1. Special Economic Zones in the Russian Federation Dr. Leonid Vodovatov Deputy Head of the Department of Technological-Innovative Zones

2. 2 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Normative and legal regulation of SEZ creation The federal law « About special economic zones in the Russian Federation » from July, 22nd, 2005 №116-FZ; The federal law « About special economic zones in the Russian Federation » from July, 22nd, 2005 №116-FZ; The decree of the President of the Russian Federation « About Federal agency on management of special economic zones » from July, 22nd, 2005 №855; The decree of the President of the Russian Federation « About Federal agency on management of special economic zones » from July, 22nd, 2005 №855; The order of the Government of the Russian Federation «About Federal agency for management of special economic zones» from August, 19th, 2005 №530; The order of the Government of the Russian Federation «About Federal agency for management of special economic zones» from August, 19th, 2005 №530; Agreements between the Government of the Russian Federation and subjects of the Russian Federation on creation of special economic zones on their territory; Agreements between the Government of the Russian Federation and subjects of the Russian Federation on creation of special economic zones on their territory; More 42 regulations and legal documents. More 42 regulations and legal documents.

3. 3 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES The agreements and signed documents With the Russian Union of industrialists and businessmen (employers); With the Russian Union of industrialists and businessmen (employers); With Commercial and industrial chamber of the Russian Federation; With Commercial and industrial chamber of the Russian Federation; With Bank of foreign trade activities of the USSR (“Vnesheconombank”); With Bank of foreign trade activities of the USSR (“Vnesheconombank”); With Fund of assistance to development of small scaled scientific and technical enterprises. With Fund of assistance to development of small scaled scientific and technical enterprises. With Federal agency on an atomic energy. With Federal agency on an atomic energy. Memorandums with committee on development of international trade of Singapore, with the Ministry of the industry and trade of the Czech Republic, with the Ministry of commerce of the Peoples Republic of China, with the United Nations Organization on industrial development - UNIDO; The Memorandum of mutual understanding with the Ministry of the industry and trade of Singapore Memorandums with committee on development of international trade of Singapore, with the Ministry of the industry and trade of the Czech Republic, with the Ministry of commerce of the Peoples Republic of China, with the United Nations Organization on industrial development - UNIDO; The Memorandum of mutual understanding with the Ministry of the industry and trade of Singapore The Memorandum on cooperation with the Korean agency of assistance to trade and investments are prepared for signing. The Memorandum on cooperation with the Korean agency of assistance to trade and investments are prepared for signing. International in the Russian Federation

4. 4 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Goals and objectives Manufacturing industry development Manufacturing industry development Advanced technology branches development Advanced technology branches development New kinds of products manufacturing New kinds of products manufacturing Commercialization of scientific-and-technological developments Commercialization of scientific-and-technological developments Fair competition between the countries Fair competition between the countries

5. 5 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Tax regime On organizations profit tax in industrial-manufacturing SEZ: On organizations profit tax in industrial-manufacturing SEZ: Accelerated expenses acknowledgement on the Research and Advanced Development Accelerated expenses acknowledgement on the Research and Advanced Development Accelerated amortisation Accelerated amortisation Liberalization of expenses transfer to the future period Liberalization of expenses transfer to the future period Reduced rate on the Unified Social Tax in technology- promotional SEZ Reduced rate on the Unified Social Tax in technology- promotional SEZ Exemption from Organizations Property Tax and Land Tax since the registration Exemption from Organizations Property Tax and Land Tax since the registration

6. 6 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Customs treatment Import of foreign goods on the SEZ territory without paying of customs duties and VAT Import of foreign goods on the SEZ territory without paying of customs duties and VAT Import of Russian goods on the SEZ territory on terms of export with paying of excises and without paying of export customs duties Import of Russian goods on the SEZ territory on terms of export with paying of excises and without paying of export customs duties Export of foreign and Russian goods from the SEZ territory to the rest of the RF territory with paying of customs duties, VAT and excises Export of foreign and Russian goods from the SEZ territory to the rest of the RF territory with paying of customs duties, VAT and excises Export of foreign and Russian goods outside the RF customs territory with paying of import duties, export duties in compliance with export treatment, without paying taxes Export of foreign and Russian goods outside the RF customs territory with paying of import duties, export duties in compliance with export treatment, without paying taxes

7. 7 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Administrative regime Financing of the creation of SEZ infrastructure at the cost of federal, regional and local budgets Financing of the creation of SEZ infrastructure at the cost of federal, regional and local budgets Realization of the “One Window” principle Realization of the “One Window” principle Guarantee for residents against negative changes in the Taxes and Receipts Law of the RF Guarantee for residents against negative changes in the Taxes and Receipts Law of the RF The owners of the real estate situated in the scope of the SEZ territory have right to redeem the lands located under these objects The owners of the real estate situated in the scope of the SEZ territory have right to redeem the lands located under these objects Settlement of the disputes concerned with SEZ creation or dissolution, with status deprivation by SEZ residents judicially Settlement of the disputes concerned with SEZ creation or dissolution, with status deprivation by SEZ residents judicially

8. 8 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES SEZ resident of industrial-and-production or technological-and-innovative SEZ Individual entrepreneur or profit-making organization Individual entrepreneur or profit-making organization Registered on the territory of municipal formation inside of which SEZ is situated Registered on the territory of municipal formation inside of which SEZ is situated Concludes agreement with SEZ managing bodies on conducting industrial-manufacturing or technology- promotional activity Concludes agreement with SEZ managing bodies on conducting industrial-manufacturing or technology- promotional activity Has no right to have representatives and subsidiaries outside SEZ Has no right to have representatives and subsidiaries outside SEZ

9. 9 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Competition results On December, 21, 2005 the Chairman of the Government of Russian Federation М.Е. Fradkov has signed orders of the creation of six SEZ On December, 21, 2005 the Chairman of the Government of Russian Federation М.Е. Fradkov has signed orders of the creation of six SEZ Two industrial-and-production SEZ were created: In Lipetsk region (household electronics production); In Lipetsk region (household electronics production); In Elabuga (Tatarstan) (manufacture of cars and their components, highly technological production of petrochemistry). In Elabuga (Tatarstan) (manufacture of cars and their components, highly technological production of petrochemistry). Four technological-and-innovative SEZ: In Dubna (the Moscow region) (development of information and nuclear- physical technologies); In Dubna (the Moscow region) (development of information and nuclear- physical technologies); In Moscow (Zelenograd) (development of micro and nanoelectronic products); In Moscow (Zelenograd) (development of micro and nanoelectronic products); In St.-Petersburg (development of hi-tech production); In St.-Petersburg (development of hi-tech production); In Tomsk (development of new materials). In Tomsk (development of new materials).

10. 10 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Industrial-production special economic zone Lipetsk region Industrial-production Special economic zone in the Lipetsk Region Lipetsk Washing Machines Plant Stinol Refrigerator Plant TPP-2, Thermal Capacity – 250 HCAL/HR Free Capacities – 150 HCAL/HRE Thermic main pipe DU 700 Terminal storage Oil main pipeline “Michurinsk-Kremenchug” The water intake 6000 m 3 /day High-voltage lines of 220 kV, 110kV Gryazi district Gryazi r\w station Lipetsk region Area 10,3 sq. km. Area 10,3 sq. km. Investments volume by the year 2012 – 13,5 bln RUR. Investments volume by the year 2012 – 13,5 bln RUR. Additional tax income by 2025 г.- 82 bln RUR. Additional tax income by 2025 г.- 82 bln RUR. More than 12.000 employees by 2015. More than 12.000 employees by 2015. Lipetsk region Area 10,3 sq. km. Area 10,3 sq. km. Investments volume by the year 2012 – 13,5 bln RUR. Investments volume by the year 2012 – 13,5 bln RUR. Additional tax income by 2025 г.- 82 bln RUR. Additional tax income by 2025 г.- 82 bln RUR. More than 12.000 employees by 2015. More than 12.000 employees by 2015.

11. 11 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Nizhnekamskneftehim Airport KamAZ Naberezhnye Chelny Nizhnekamsk Elabuga Industrial-production special economic zone Republic of Tatarstan The Republic of Tatarstan area is 67,8 thousand square km Administrative and territorial division 45 Population - 3,768 million people

12. 12 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Technological-innovative special economic zone Moscow, Zelenograd RESIDENTS «Zelenograd Innovational-technological center» (ZITC) Basic technologies for creation microsystem equipment, microelectromechanical systems, radioelectronic equipment, information-operating systems. At the site of the Moscow institute of electrotechnics the technological village is created by ZITC. With the foreign investments (more than $8 mil.) new experiment and technological rooms are equipped and two “clean rooms” for optointegral elements. ZITC cooperates with Motorola, Intel. DIRECTIONS OF ACTIVITIES Micro-, nanoelectonics, optoelectronics, information-communication systems, bioinformational and biosensor technologies, nanotechnologies and nanomaterials. «AlphaChip»: The company has 7-year experience in cooperating with the Division of Semiconductor devices of Motorola. Introduce extralarge integral circuits for electronic and information technics, communication devices, household electronics. FOUNDERS OF EXPECTED RESIDENTS: CISCO Systems Inc.; Siemens AG; Plant «Micron» (microelectronics).

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14. 14 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Technological-innovative special economic zone Dubna, Moscow region DIRECTIONS OF ACTIVITIES Ininformation and nuclear-physics technologies Center of the offshore programming and IT- outsourcing for Russia, USA and EU is being created. RESIDENTS LUXSOFT DUBNA (IT-technologies) founder holding «Luxsoft» (IBS): Service volume in 2005 – $37 mln «Sistema-Dubna» (ion-plasma and nucleo- physical technologis). FOUNDERS OF EXPECTED RESIDENTS: AFK «Sistema» (ion-plasma and nucleo- physical technologis). «Boeing» и «Progresstech» (intellectual services in design and engineering)

15. 15 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Project of the Russian IT-centre Project of the little town has been developed by British companies « John Thompson & Partners », "Gillespies" and "Bidwells" in collaboration with Moscow Research and Design Instiotute of Town Planning and Saint-Petersburg Research and Design Institute of Urbanistics Special Economic Zone Culture park New road bridge Mixed use urban quarter High Density Quarter Medium Density Quarter Green Fingers Low Density Quarter IT-cluster within the framework of the created special economic zone From 2006 to 2012 in Dubna will be concentrated not less than 10 thousand programmers and experts in the field of digital electronics

16. 16 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Technological-innovative special economic zone Saint-Petersburg DIRECTIONS OF ACTIVITIES precise and analytical instrument-making, medical equipment, software, development of electronics, communication equipment, biotechnologies and new materials Founder: Open company «Tranzas» Founded in 1990 >1200 employees worldwide Occupy about 30-40% of world market of electronic maps for offshore navigation Supplier of the systems for frontier services and Navy of dozens of countries: Russia, USA, Sweden, Germany, India, Great Britain, Chile, Peru, Columbia, etc. By the year 2006 75% of the civil aircraf were equipped by Tranzas according to ICAO standarts More than 1700 training simulators by Tranzas installed in 70 countries World-known leader in onboard equipment for airplanes and helicopters. RESIDENTS JSC «Tranzas» JSC «Tranzas Technologies» FOUNDERS OF EXPECTED RESIDENTS: A.F. Ioffe Physico-Technical institute (RAS) JSC “Alcatel”, JSC “Kozitsky Plant”, Motorola Neudorf NovoOrlovsky park

17. 17 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Technological-innovative special economic zone Tomsk RESIDENTS «Tomskneftekhim» founded the first resident: «Tomskneftekhim» founded the first resident: «R&D organization «SIBUR -Tomskneftekhim». New technologies are being developed: extremely-macromolecular polythene production, new titano-magnesium catalyst production for petrochemistry DIRECTIONS OF ACTIVITIES Information, communication and electronic technologies, new materials production technologies, nanotechnologies, biotechnologies At the north site of the SEZ petrochemical cluster is being created: Next to the site petrochemical plant of Tomsk “TomskNeftekhim” is situated. It’s the biggest producer of polimers, amino-formaldehyde resins, formalin. The plant is affiliated with JSC «Sibur Holding» The South site border on Tomsk scientific centre of Siberian Branch of RAS The installation developed at participation of the leading specialists of the Institute of Catalysis of RAS. Applying of new technologies will allow to produce materials for extra strong : mobile mechanical parts, means o security. FOUNDERS OF EXPECTED RESIDENTS: GAZPROMMICROGENTECHSNABEXPORT В.А.В.С.

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24. 24 FEDERAL AGENCY FOR MANAGEMENT OF SPECIAL ECONOMIC ZONES Special Economic Zones Zelenograd Dubna Saint Petersburg Saint Petersburg Tomsk Elabuga Lipetsk