1. HISTORICAL AND CULTURAL BACKGROUND There are 372 objects of federal importance and over 4000 historical and cultural monuments of local significance in Pskov region.

2. О ПСКОВСКОЙ ОБЛАСТИ ПСКОВСКАЯ ОБЛАСТЬ PSKOV REGION Pskov Region Geographical location Distance from Pskov: to Riga – 260 km to Tallinn – 350 km to Vilnius – 400 km to Minsk – 450 km to Helsinki – 700 km to Warsaw – 850 km to Stockholm – 860 km to Berlin – 1200 km To Kaliningrad - To Moscow – 689 km Distance from Pskov: to Riga – 260 km to Tallinn – 350 km to Vilnius – 400 km to Minsk – 450 km to Helsinki – 700 km to Warsaw – 850 km to Stockholm – 860 km to Berlin – 1200 km To Kaliningrad - To Moscow – 689 km Pskov Region is the only one in the Russian Federation bounded by 3 different states at the same time: Estonia, Latvia and Belarus Pskov Region is the only one in the Russian Federation bounded by 3 different states at the same time: Estonia, Latvia and Belarus

3. Population – 737,3 000 inhabitants (by 01.12.2008) There’s the highest death-rate in Pskov region - 24,5 persons per 1 thousand inhabitants and natural population loss - 15,7 persons per 1 thousand Births: 6 535 - Deaths: 18 360 Large cities: Pskov – 201 000 inh. Velikie Lukie–104 300 inh. Ostrov – 24 800 inh. Nevel – 18 100 inh. Sebezh – 13 800 inh. Pskov Region 24,7 % engaged in economy with a higher education 50,4% - special professional 18,4% - high school 24,7 % engaged in economy with a higher education 50,4% - special professional 18,4% - high school Economically active population – 50 %

4. Pskov Region in the year 2008 The structure of a regional gross output О ПСКОВСКОЙ ОБЛАСТИ

5. Dominating directions of agriculture: milk and meat cattle breeding storing up a supply of fodder production of vegetables and potatoes flax growing. AgricultureAgriculture There’s quite a number of agricultural holdings free of circulation for a period of 10 years and suitable for organic farming There’s quite a number of agricultural holdings free of circulation for a period of 10 years and suitable for organic farming

6. IndustryIndustry Index of industrial production in 2007 to 2006 — 108% Leading manufacturing activities: foodstuff production electro-, electronic-, optical equipment machine-building and metal – working Textile and clothing manufacture Index of industrial production in 2007 to 2006 — 108% Leading manufacturing activities: foodstuff production electro-, electronic-, optical equipment machine-building and metal – working Textile and clothing manufacture

7. Developed transport infrastructure, low transport costs Cheap and qualified labour Non-occupied market niche Cheap resources and raw materials Availability of main oil / gas-pipe lines Electro energy capacities in reserve Large supply of own resources and raw materials (wood, peat, fresh water supply, lime stone) Vast ecological clean non-occupied territories Moderate climate AND – FAVORABLE GEOGRAPHICAL LOCATION... Developed transport infrastructure, low transport costs Cheap and qualified labour Non-occupied market niche Cheap resources and raw materials Availability of main oil / gas-pipe lines Electro energy capacities in reserve Large supply of own resources and raw materials (wood, peat, fresh water supply, lime stone) Vast ecological clean non-occupied territories Moderate climate AND – FAVORABLE GEOGRAPHICAL LOCATION... GREAT OPPORTUNITIES: PSKOV REGION

8. 1/3 of the overall region territory occupied by forests (total area – 55,4ths sq. km, 29,2ths sq. km – agricultural holdings ). There’re 3700 lakes in the region, the biggest one is 3521 sq. km (Peipsi Lake) Wood cutting area - 3,5 millions m3. The region is abundant in non-timber forest resources: mushrooms, berries and medical raw materials. European mink otter marten beaver Forests are inhabited with 21 species of wild animals, which include especially valuable fur species such as: FORESTRYFORESTRY

9. PSKOV REGION TRANSPORT Length of motorways with a hard paving – 11 000 km Length of railways – 1 100 km Motorway and railway system connects the region with the capitals of Baltic countries, harbours of St.Petersburg, Murmansk, Kaliningrad, Tallinn, Riga. Every day more that 4 thousands motor vehicles and dozens of trains cross customs borders (about 800 panel trucks).

10. PSKOV REGION Pskov Region Governor Mr. Andrey Turchak Pskov Region Governor Mr. Andrey Turchak Favorable investments policy is the part of our regional economics strategy. Pskov regional executive power bodies do their best for the constant investment climate improvement. We are open for cooperation and ready to help for mutual prosperity. Favorable investments policy is the part of our regional economics strategy. Pskov regional executive power bodies do their best for the constant investment climate improvement. We are open for cooperation and ready to help for mutual prosperity.

11. Pskov region is a competent subject of the Russian Federation The system of legislative and executive bodies provides: Efficient state and local management Authority division between the Federation, region and local self- government Empowering for efficient local self-government realisation PSKOV REGION

12. Administrative structure Courts State Authority Federal AuthorityRegional Authority Ministries and departmentsRegional CouncilState executive authority Local self-government bodies Heads of local administrations Local administrationsLocal deputy councils PSKOV REGION

13. Density of rural population Extreme points: From 4,6 persons / km2 - Plyussa rayon From 21,1 persons / km2 - Pechory rayon Average density of population in the Russian Federation - 2,3 persons / km2 Territorial structure of local self-government in Urban districts – 2 Municipal rayons - 24 including: Urban settlements – 26 Rural settlements - 192 Extreme points: From 4,6 persons / km2 - Plyussa rayon From 21,1 persons / km2 - Pechory rayon Average density of population in the Russian Federation - 2,3 persons / km2 Territorial structure of local self-government in Urban districts – 2 Municipal rayons - 24 including: Urban settlements – 26 Rural settlements - 192 PSKOV REGION

14. Typology of rural settlement by a population criterion 8385Total 497Over 100 persons 348From 51 up to 100 persons 2734From 11 up to 50 persons 3753From 1 up to 10 persons 10530 person PSKOV REGION

15. Bezhanitsky municipality (rayon) Territory – 3535 sq.km (6,6% of a total regional territory): agricultural holdings – 1008 sq.km, forests – 795 sq.km (27,5%), lakes and rivers – 132 sq.km Urban settlements – 2 Rural settlements - 10 Bezhanitsky municipality (rayon) Territory – 3535 sq.km (6,6% of a total regional territory): agricultural holdings – 1008 sq.km, forests – 795 sq.km (27,5%), lakes and rivers – 132 sq.km Urban settlements – 2 Rural settlements - 10 High recreational potential – lots of lakes and rivers, nature reservation park Direct motorways and railways to St.Petersburg, Belarus, Ukraine, Moldova High recreational potential – lots of lakes and rivers, nature reservation park Direct motorways and railways to St.Petersburg, Belarus, Ukraine, Moldova