PRESENTATION OF SMOLENSK REGION

Geographical location 2 The total area of the region: 50 thousand square kilometers The population size 968 thousand people About 68 million people live in 500 km radius of Smolensk

Transport infrastructure Federal highway М-1 «Belarus» Federal highway А-141 «Orel – Rudnya» Federal highway А-101 «Moscow – Bobruisk» International transportation corridor «North - South» (passes through St. Petersburg) 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

Power supply The Smolensk region is power excessive region. 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 part of the German power-producing concern E.ON. The annual volume of electricity generated is 25 bln. kWh. 4

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 – in 21 degree programs (87 professional majors). Higher professional training: Number of institutions - 34; number of trainees – in 20 degree programs (about 80 professional majors). Institutions for vocational training 5

Gross Regional Product The volume of the Gross Regional Product of the Smolensk region contains 215,3 bln. Rubles (estimated in 2013). The growth rate of the Gross Regional Product: 2011 – 104,7% 2012 – 104,2% 2013(estimated) – 102,4% 6 bln. rubles

The Structure of the Gross Regional Product 7

The structure of industrial production 8 The base of the economic potential of the region is industry, the part of industry in Gross Regional Product is more than 30 %. The volume of industrial manufacture contained 187,2 bln. rub.

JSC «DOROGOBUZH» - production of mineral fertilizers The largest exporting enterprises of the region «KRISTALL» PRODUCTION CORPORATION - one of the largest diamond manufacturers in the world 9

The enterprises with foreign investment 10

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

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

 The total reserve of timber in state forestry fund – 300 mln. square meters.  The reserve of exploitable and overripe forests – 56,4 mln. square meters.  The amount of exploitable and overripe forests – 4,7 mln. square meters annually. 13 Industrial production: development of wood processing and timber industry

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

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 – 55,9 bln. rubles.

Dynamics of foreign investments 16 96% of the total amount of investments are into processing industry. The largest of major countries-investors are Austria and Germany.

17 State support of the investors Forms of State support Provision of the investment land lots with transport, energetic and engineering infrastructure Assistance of 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 subsidies to organizations of industry

Priority investment sites 18 There are more than 350 investment areas with total area of hectares.

19 Investment portal of Smolensk region is: All about the potential of Smolensk region Proposals for the placement of your business Actual information about preferences for investors Investment declaration of Smolensk region Actual information about priority investment areas Opportunity to make a request for business placement Opportunity to make a request for a free investment area Program documents in the sphere of investment activities Information about territory planning of Smolensk region Important information about tax system and rate system in Smolensk region Information about the technological connection of the objects to engineering and technical supply and other.

Contacts Economic Development Department of Smolensk region Head of Department – Victor Kozhevnikov Phone/fax: +7 (4812) , The first deputy head of Department – Rostislav Rovbel Phone: +7 (4812) Directorate of Investment Policy Head of Directorate– Margarita Goncharova Phone: (4812) , , fax: Division for state support of investment activities Deputy head of Division for state support of investment activities – Svetlana Merkushova Phone: (4812) , , fax: Division for investment projects support and presentation activities Head of Division – Irina Lazarenkova Phone: +7 (4812)