1. PRESENTATION OF SMOLENSK REGION

2. Geographical location The total area of the region: 49,8 thousand square kilometers 2 The population size 975,2 thousand people

3. Transport infrastructure Federal highway М-1 «Belarus» Federal highway А-141 «Orel – Rudnya» Federal highway А-101 «Moscow – Bobruisk» Lateral transportation corridor «North - South» Perspective transportation corridor «The Golden Ring» Perspective fiber-optical communication link Moscow – St. Petersburg Fiber- optical communication link Moscow – Bryansk – Smolensk – Belarus Gas transmission pipeline «Yamal – Europe» ■ Baltic Pipeline System(BPS-II) 3

4. Power supply The Smolensk region produces excessive power. The power industry of the region is represented by such large enterprises as the Smolensk Nuclear Power Plant and the Smolensk Thermal Power Station, which is a partner of the German power-producing concern E.ON. The annual volume of electricity generated is 25 bln. kWh. 4

5. Basic vocational training: Number of institutions -18; number of trainees – 3879 in 14 degree programs (94 professional majors). Intermediate vocational training: Number of institutions - 49; number of trainees – 18014 in 21 degree programs (87 professional majors). Higher professional training: Number of institutions - 34; number of trainees – 48219 in 20 degree programs (about 80 professional majors). Institutions for vocational training 5

6. Gross Regional Product The volume of the Gross Regional Product of the Smolensk region contains 199,1 bln. rubles. The growth rate of the Gross Regional Product: 2011 – 104,7% 2012 – 100,9% 2013(estimated) – 99,0% 2014(predicted) – 106,3% 6 bln. rubles

7. The Structure of the Gross Regional Product 7

8. The structure of industrial production 8

9. The enterprises with foreign investment 9

10. JSC «DOROGOBUZH» - production of mineral fertilizers The largest enterprises of the region «KRISTALL» PRODUCTION CORPORATION - one of the largest diamond manufacturers in the world 10

11. Machine-building complex of the region integrates more than 200 enterprises employing more than 35 thousand people It includes:  enterprises of power engineering industry  enterprises of instrument-making industry and electrical engineering  enterprises of transport machine building Industrial production: machine-building complex 11

12. Production of foods and beverages:  8 creamery plants  16 milk processing factories  3 milk canning plants  2 meat-packing plants  3 distilleries on breweries Industrial production: food industry 12

13.  The total reserve of timber in state forestry fund – 295 mln. square meters.  The reserve of exploitable and overripe forests – 57 mln. square meters.  The amount of exploitable and overripe forests – 4,6 mln. square meters annually. 13 Development of wood processing and timber industry

14. LLC «EGGER DREVPRODUCT GAGARIN»- production of flakeboard and laminated plywood JSC «Igorevsky wood processing integrated plant» Investment into the construction of the facility for medium-density fiberboard production on the terms of private-public partnership funded by the Investment Fund of Russia. 14 Industrial production: wood processing industry

15. Dynamics of the investment into capital stock 15 The volume of the investment into capital stock in 2012 was 56,4 bln. rubles, in 2013 (estimated) – 58,6 bln. rubles.

16. 16 State support of the investors Forms of State support Provision of the investment land lots with transport, energetic and engineering infrastructure Assistance in investment projects Providing tax concessions, investment tax credits I nformation and administrative support of investors Providing subsidies to small and medium enterprises Participation of the authorities in the development, evaluation and implementation of investment projects Provision of grants to organizations of industry

17. Priority investment sites 17