Special Economic Zones of the Russian Federation Ministry for economic development of the Russian Federation Department of special economic zones, regional and monocities development projects

Why Russia? Advantageous position between Europe and Asia – location of distribution channels; Rich natural resources ( > 20% of the world resources); Russia is the 6 th largest economy in the world by the GDP ($2,5 bln, purchasing power parity). According to IMF in 2017, the nominal size Russia’s GDP will reach $3,3 trillion; Russia has 9 th largest domestic market in the world (consumer spendings account for 70-75% of income); Balanced labor cost and workforce skills, high level of education, strong labor market (unemployment rate is 5,5%); Growth of Russian stock market capitalization by 22 times; Developed infrastructure; Policy to reduce bureaucracy and corruption; Economy diversification, reducing dependence on oil and gas sector.

3 Location of 29 special economic zones Russkiy island Republic of Buryatia Irkutsk Region Tourist claster Samara Region Republic of Tatarstan Sverdlovsk Region Republic of Altai Altai Region 3 Industrial and production zones Technology and innovation zones Port zones Tourist and recreational zones Republic of Tatarstan Ulyanovsk Region Tomsk Region Kaluga Region Moscow Region Dubna Moscow Zelenograd St.Peterburg Pskov Region Khabarovsk Region Murmansk Region Lipetsk Region Stavropol Region The Republic of Ingushetia The Republic of Kabardino- Balkaria The Republic of Adygeya The Republic of Karachaeva- Cherkessia The Republic of Osetiya Krasnodar Region The Chechen Republic The Republic of Dagestan Vladivostok

The key figures of SEZ’s efficiency More than 73 bln. rub invested in infrastructure About 460 bln. rub investors planned total investments More than 350 residents in SEZ

The largest SEZ investors

 Special administrative regime Decrease in administrative barriers  Transparent legislative and management Authorities involved: Ministry of economic development, professional management company  Access to qualified human resources Science and education centers  Free customs mode No import duty, refundable VAT  All the necessary infrastructure at lower prices Office facilities, gas, water, energy etc.  State guarantees and stability Investment agreement with the Government, SEZs are created for 49 years  Special tax treatment Income tax decrease, property, transport tax exemption for 10 years Preferences

Preferences/taxesFederal SEZTerritory of the Russian Federation Industrial and production zones Technology and innovation zones Port zonesTourist and recreational zones Profit tax Federal budget Regional budget 2% 0-13,5% 0% for 5 years 0-13,5% 2% 0-13,5% 0% for 10 years (for cluster residents) 0-13,5% 2% 18% Property tax0% for 10 years 2,2% Land tax0% for 5 years 1,5% Transport tax (rub/1 hp) 0 for 10 years Insurance fee payment14% till 2017 for residents involved in R&D activities 14% till for residents of tourist cluster 34% Free customs regime+++-- Ready-to-use infrastructure Preferences

Obtaining the resident status Thursday, October 22, STEP 1STEP 2 STEP 3STEP 4 2) forming request to the Ministry 3) expert committee consideration 4) sign an agreement with the Ministry and the management company 1) register the company; forming business plan

Ministry of Economic Development of Russia Government of constituent entity of Russia Management company Supervisory board Main functions:  coordination of activities on SEZ development;  control of the agreement on SEZ establishment implementation;  analysis, approval and control of SEZ development plans implementation;  assistance in SEZ residents and other investors project implementation Main functions:  provides expert examination of project documentation and engineering survey Main functions:  elaboration of the unified state policy in sphere of SEZ establishment and functioning;  SEZ management;  legal entities and individual entrepreneurs registration as SEZ residents;  maintenance of SEZ residents register;  issue of extracts from the SEZ residents register;  annual SEZ efficiency estimation;  control of operation agreement implementation by SEZ resident;  decision making on land buy-out by renters;  other functions. Main functions:  provides establishment and operation of SEZ infrastructure;  attracts residents and other investors in SEZ;  development of SEZ zoning project;  acts as a state customer for SEZ territory zoning and infrastructure creation at the expense of budget funds;  obtains technical conditions for SEZ facilities and surrounding territory connection to the engineering and technical networks; transferring them to legal entities and individual entrepreneurs carrying out the construction;  manages and disposes SEZ land and other SEZ real estate;  publication of information of free land. Single centralized management system of SEZ Management authorities of SEZ

Contact information Ministry for economic development of the Russian Federation Ahmeeva Elmira – deputy director of the Department +7 (495) Galkina Vasilisa – head of the division of SEZ investors cooperation and international relations +7 (495) Department of special economic zones, regional and monocities development projects +7 (499) (495) (fax)