1. THE MINISTRY FOR ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION The Business Forum under the Conference on Interaction and Conference Building Measures in Asia Bangkok, March 30-31, 2011 The Program of financial support – the factor of the accelerated growth of SMEs

2. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Federal Law «On Development of Small and Medium Entrepreneurship in the Russian Federation» 2 Micro enterprisesSmall enterprisesMedium enterprises up to 15 employees 16-100 employees 101 – 250 employees annual turnover up to € 1,5 mln annual turnover up to € 10 mln annual turnover up to € 25 mln SMEs Criteria Business Forum CICA. Bangkok, March 30-31, 2011

3. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Main Indicators of the SME Sector 3 9,1% - SME sector growth in 2009; 2,4% - in 2010 € 500 bln – annual turnover of the SME sector 16,7 mln employed in SME sector 25% of total employment 21% - share of SMEs in the GDP of Russia 1,6 mln micro, small and medium enterprises and 4,1 mln private entrepreneurs Main problems: √ Unemployment, layoffs √ Expensive credits √ Decreasing of number of SMEs in monotowns Business Forum CICA. Bangkok, March 30-31, 2011

4. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Main Indicators of the SME Sector 4 Business Forum CICA. Bangkok, March 30-31, 2011

5. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Main Indicators of the SME Sector 5 Service sector includes: real estate operations, maintenance leasing, hire of household items, the activities connected with use of computer facilities and information technology, R&D, consulting, advertising etc. Business Forum CICA. Bangkok, March 30-31, 2011

6. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 6 The SME Support Programme Business Forum CICA. Bangkok, March 30-31, 2011

7. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 7 The SME Support Programme Main directions of subsidising of Russian regions on the State SME Support Programme in 2005-2010 (mln Euro) Business Forum CICA. Bangkok, March 30-31, 2011

8. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION The SME Support in 2010 Key measures on the SME development undertaken by the Russian Government in 2010 SME support in 2010 - € 600 mln Support for export-oriented SMEs – € 55 mln Support for innovative SMEs – € 53 mln Start-up grants for SMEs – € 50 mln Leasing for SMEs – € 30 mln Guarantee funds – € 67,5 mln Micro loans – € 66,7 mln Business trainings – € 8,5 mln, 50 000 entrepreneurs Youth entrepreneurship – € 7,5 mln 8 Business Forum CICA. Bangkok, March 30-31, 2011

9. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 9 Guarantee Funds The Government of the Russian Federation founded Guarantee funds for SMEs in most of regions 78 Regional Guarantee funds € 600 mln capitalization (€ 410 mln subsidized on State SME Support Programme in 2005-2010) SMEs got loans from banks more than € 1,4 bln more than € 1,4 bln Business Forum CICA. Bangkok, March 30-31, 2011

10. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Micro Loans 10 To provide micro loans for SMEs Russian regions were subsidized with € 115 mln in 2005 – 2010 2010: - 16 000 micro loans for SMEs - € 12 500 average loan Business Forum CICA. Bangkok, March 30-31, 2011

11. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Start-up Grants 11 2010: - 8 000 start-up grants - € 7 500 average grant - € 12 500 start-up grants for innovative SMEs -Priority to jobless - 100 000 start-up grants for unemployed from the Ministry of Health and Social Development Programme To provide new SMEs with start-up grants Russian regions were subsidised with € 95 mln in 2005 – 2010 Business Forum CICA. Bangkok, March 30-31, 2011

12. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 12 Monoprofile Towns 35 monoprofile towns=35 programmes= € 50 mln (2010-2011) Population: ≤ 50 thousands Spending limits: € 1,25 mln Population: 50 - 300 thousands Spending limits: € 2,5 mln Population: ≥300 thousands Population: ≥ 300 thousands Spending limits: € 5 mln Reached results: - 2400 start-up grants - 800 micro loans - 7 business incubators - business trainings 10 000 – 12 000 entrepreneurs Business Forum CICA. Bangkok, March 30-31, 2011

13. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION The Russian innovative SME support infrastructure 22 regional venture funds with total capitalization exceeding € 230 mln The fund of funds – Russian venture company with total capitalization exceeding € 675 mln Seed funds (2010 – 2012) € 90 mln Scientific research funds Foundation for Assistance to Small Innovative Enterprises – FASIE (2010 - 2012) € 135 mln Rosnano capitalization exceeds € 3,75 bln Innovative SMEs Support 13 Business Forum CICA. Bangkok, March 30-31, 2011

14. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION New Innovative SMEs Founded by Universities SME funding January 2010 44 – educational institutions 116 – innovative companies 881 – employees February 2011 166 – educational institutions 766 – innovation companies 1472 - employees 83 regional business incubators 22 business incubators in Universities 25% min 75% max Private sector investments (min. 50%) & equipment University funds & intellectual property rights A new founded SMEs receive infrastructure, grants and micro loans. 14 Business Forum CICA. Bangkok, March 30-31, 2011

15. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 15 € 12 500 for 1 new job 100 000 new J O B S 300 000 saved Jobs Creation in the Post-Crisis Time Business Forum CICA. Bangkok, March 30-31, 2011

16. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 16161616 SME support in 2011 - € 525 mln Youth Entrepreneurship The SME Support in 2011 Business Forum CICA. Bangkok, March 30-31, 2011 Guarantee funds Export oriented SMEs Start-ups Micro loans Leasing Monoprofile towns Innovative SMEs

17. Thank You for Attention! The Ministry for Economic Development of the Russian Federation The SME Development Department tel: +7-495-695-53-05 fax: +7-495-695-51-76 Web: www.economy.gov.ru THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION