NIZHNY NOVGOROD REGION

-Business, educational and cultural centre of the Privolzhsky Federal District -Population – 3.3 million people -Urbanization – over 79 per cent NIZHNY NOVGOROD REGION

Helsinki St. Petersburg Delhi Berlin Warsaw Minsk Nizhny Novgorod Moscow Yekaterinburg Vladivostok Centre of the European Part of Russia Crossover of the international transport corridors: Pan-European № 2 and “North-South” Crossroad of Russia NIZHNY NOVGOROD REGION

Railway Railway density and cargo traffic volume is above Russia’s average Automobile Road density is 5 times higher than Russia’s average Air International airport. Daily international flights to Frankfurt, Germany Water Exit to all seas of the European part of Russia NIZHNY NOVGOROD REGION Transportation

- Russia’s population is over 140 mln. people, and it is the largest consumer market in Europe - The majority of these people reside in the European part of Russia - 43 mln. consumers live within a 500- km radius of Nizhny Novgorod - 84 mln. consumers live within a 1000-km radius of Nizhny Novgorod Leader in Accessible Consumer Market NIZHNY NOVGOROD REGION

Industrial Complex NIZHNY NOVGOROD REGION

Trucks 54% Buses 63% Steel Pipes 19% Paper 15% NIZHNY NOVGOROD REGION Share of Total Production in Russia

Over the last 3 years: - GRP increased twofold - foreign trade turnover increased 2.2 times - foreign investments increased sixfold - real income of the population increased by 43.4% - retail turnover volume increased by 61% NIZHNY NOVGOROD REGION Economic Development 2008 Growth Rates (in % to 2007 figures): - investments to the basic capital – 120.5% - international investments – 130.1% - construction – 156.9% - housing – 126.3% - retail sales – 116.6% - fee-based services rendered to the public – 109.2%

NIZHNY NOVGOROD REGION - Region’s Economic and Financial Sector Stabilization Programme – December 2008; - Targeted work with enterprises; - State support of “backbone” enterprises on the regional level; - Availability of credit resources for industrial enterprises; - Support of industrial enterprises product demand; - Support of small enterprises; - Support of residential housing and infrastructure projects Anti-Crisis Measures

Priorities: -automobile construction; - science, research and innovations; - production and distribution of mass- consumer goods. NIZHNY NOVGOROD REGION Development Strategy up to 2020

Region’s Electric Power Industry Development Programme in the framework of the Agreement with OAO RAO "UES of Russia" Region’s Social and Engineering Infrastructure Development Programme Amount of financing in 2008 – over 14 billion RUR Construction and modernisation of 445 projects and sites, including: multi-level junctions, underground railway, Nizhny Novgorod airport, hydraulic power system in Gorodets NIZHNY NOVGOROD REGION Infrastructure Development

Skilled Work Force 18 state and private higher educational institutions; 6 establishments of the Russian Academy of Sciences; 47 industry research centres and engineering bureaus. Scientific Research and Development Russian Federal Nuclear Centre; over 300 small high-technology companies. Science and Technology NIZHNY NOVGOROD REGION

Innovations Areas of activity: IT, production of medical equipment, energy-saving and ecology, security and counterterrorism systems. Areas of activity: software development for communication systems, IP-telephony, digital signal processing, satellite and cellular communications. Production of export oriented software products. Total area – 62 ha, amount of financing – mln €. Construction of basic facilities and phased commissioning – Assistance to small innovative enterprises in the sphere of information supply, initial and preferential financing, marketing and promotion activities. Open Technological Park (Satis) IT-park “Orbita”IT-park “Ankudinovka” “Nizhny Novgorod innovation business incubator” Regional law of 2006 “On state support of innovative activity in the Nizhny Novgorod region” Regional venture fund for investments into science-intensive small enterprises established in 2007

year mln. US $ NIZHNY NOVGOROD REGION Foreign Economic Activity

Major Economic Partners NIZHNY NOVGOROD REGION

year mln. US $ NIZHNY NOVGOROD REGION Trade Turnover with Finland Export: -organic chemical compounds, -metals, -wood, pulp and paper products, -fuel and energy products. Import: -chemical products, -machine-building products, -wood, pulp and paper products, -metals, -fuel and energy products.

NIZHNY NOVGOROD REGION Cornerstones of cooperation with Finland Annual joint working group sessions since 1997 Priority spheres: machine-building, timber industry, innovations, construction and urban planning, ecology & energy- efficiency. Partnership with the Tampere region in the framework of the Cooperation agreement concluded in 1998 and updated in 2008

“Z”, Germany “CeBIT”, Germany “ITB Berlin”, Germany “MIPIM”, France “BMP”, Spain “CITM”, China “The Great Rivers”, N.Novgorod “Russia United”, N.Novgorod NIZHNY NOVGOROD REGION Exhibition Activity

Culture and educational centres of USA, Japan, Sweden, Czech Republic, Germany, Italy, Austria, Spain, France, Turkey etc. International Community Association of Nizhny Novgorod (ICANN) since Honorary councils of Czech Republic, Austria, Italy, DPRK and Kyrgyz Republic Centres of Foreign Culture NIZHNY NOVGOROD REGION

Investor - Regional Authority Relations 104 days

NIZHNY NOVGOROD REGION Investment Council  Established in 2006  Total investment volume – billion RUR  Total workplaces estimated –  Priority investment projects – 57

Maximal reduction on the tax paid to the regional budget from 17.5% to Maximal reduction on the tax paid to the regional budget from 17.5% to 14.0% 24% to budgets of all levels, including to the regional budget 24% to budgets of all levels, including 18.0% to the regional budget Income Tax 0% Favourable tax rate (%) 0.3% - 0.5% 2.2% Current tax rate (%) Land Tax Property Tax NIZHNY NOVGOROD REGION Investment Support

NIZHNY NOVGOROD REGION Investment Projects

NIZHNY NOVGOROD REGION Industrial Clusters PVC Processing Centre Industrial and Logistic Complex Automobile Cluster

NIZHNY NOVGOROD REGION Industrial Park “Dzerzhinsk-Vostochniy” Dzerzhinsk

NIZHNY NOVGOROD REGION Vesuvius Schott Industrial Park “Bor-Centre” Total area: 79 ha Residents: “Schott AG”, Germany (pharmaceutical packaging), “Vesuvius”, Belgium (refractory products)

NIZHNY NOVGOROD REGION Thank you for attention

NIZHNY NOVGOROD REGION Valery Shantsev Governor tel. +7 (831) fax +7 (831)