International rating agency Fitch Ratings Ltd confirmed long- term rating for the region «Stable» in 2010  Stability of regional economy  High potential of economic development  Moderate debt loan Rising of investor's trust and increase of region investment attractiveness 2

CONCEPTION OF MURMANSK REGION – Murmansk region is a main Russian outpost in the Arctic and North Atlantic regions Economic growth with new quality Sustainable development of natural resources Educational and technological components of Arctic researches Tourism and sports — new effective sectors of economy Blurring of distinction between «permanent» and «temporary» population Modernization and renovation of urban environment Distributed power economy on CO 2 - neutral sources Budget network on a new technological platform «Compact», professional and high- efficient executive authority 3

6. Development of tourism as a new economic base for some parts of the territories of Murmansk region 6 STRATEGIC INITIATIVES OF MURMANSK REGION ON THE WAY TO FULFILL MISSION-2025 («DEVELOPMENT CORRIDORS») 1. Murmansk transport hub: development of multi- industry port 2. Technological complex for natural gas and gas- condensate production from Shtockman field, including technological fleet base, LNG plant, coast and offshore pipeline infrastructure and village for employees. 3.Making of clusters and industrial parks round strategic projects 4. Reconstruction of fishing industry sector on a new technological and organisational base 5. City economy as an instrument of holding population on the territory and attraction of young talents Murmansk region 2010 Murmansk region

Investors: Gasprom, Total, Statoil ASA Project production volume : 71,1 bln. m2 of gas and 27,2 mln. tonnes of LNG/ year Investments : 44 bln. USD STRATEGIC PROJECT Integrated development Shtockman gas condensate deposit 1  Inclusion of the region into a system of Arctic shelf development as a main base  17 bln. USD of investments on the territory of Murmansk region  new workplaces and orders for enterprises of Murmansk region  Modernization and construction of social and transport infrastructure of the region and provision of gas supply for the region  Taxes in budget of Murmansk region and Teriberka  Underwater production of natural gas  LNG Plant  Coast and offshore pipeline infrastructure  Port transport-technological complex  Building of village for employees Project includes:Value for Murmansk region : 5

STRATEGIC PROJECT Integrated development of Murmansk transport hub 2  For Northern Sea Route  For Barents Euroatlantic transport corridor  For shelf development projects in Arctic  For export-import container cargo of Rusian Federation  Port terminals  Railway approaches  Development of airport «Murmansk»  Roads and logistic complex  Conservative scenario - 52 mln. tonnes  Neutral scenario – 84 mln. tonnes Basic elements of MTHTargeted cargo turnover of the port until 2020 Possible mechanism of investment stimulation : Port special economic zone (PSEZ) Participants :  Mintrans RF,  JSC «RZD»,  LLC «Murmansk sea port «Lavna»,  CSC «Sintez-Petrolium»,  JSC «UK «Murmansk transport hub» Goal of the project: Usage of MTH potential Usage of MTH potential for assuring cargo flows: 6 Cargo terminalOil terminal Storage and distribution zoneLogistics centerCoal terminal Coal terminal (reconstruction)

7 Construction of the coal terminal on the West coast of the Kola Bay Goal: to meet the growing demands of the producer companies in transshipment capacities of coal export through Murmansk Transport Hub by constructing an additional coal terminal Estimated capacity : 20 mln.tons per year Construction time : 3 years Construction costs (in future prices) : 17,6 bln.rub. Estimated capacity: 35 mln.tons per year Construction time : 11 years Construction costs (in future prices) : 84,8 bln.rub. Construction of the oil and oil-product terminal on the West coast of the Kola Bay Goal: to meet the growing demands in crude hydrocarbons transshipment in Murmansk Transport Hub by constructing a modern, environmentally safe oil terminal on the West coast of the Kola Bay Reconstruction of the coal terminal on the East coast of the Kola Bay Estimated capacity: more than 10 mln.tons per year Construction time: 2 years Construction costs (in future prices): 2,3 bln.rub. Goal: increase of operational efficiency of the transshipping complex on the territory of the Murmansk Trade Sea Port second cargo handling area achieved by applying modern coal transshipment technologies Construction of the container terminal on the East coast of the Kola Bay Estimated capacity : 1 mln. TEU per year Construction time : 4 years Construction costs (in future prices): 28,5 bln.rub. PORT SPECIAL ECONOMIC ZONE FACILITIES Goal: to use the potential of Murmansk Transport Hub as a container port in the context of the growing turnover of containerized cargoes in Russia by constructing a modern container complex

3 CLUSTERS AROUND STRATEGIC PROJECTS Cluster Technology of shelf development Cluster Mining and chemical Cluster MTH and processing center 8 Murmansk / Teriberka Murmansk Murmansk region

4 Main directions: 1.Modernization of fishing fleet 2.Construction of fish processing plants, facilities for storage, packing, transportation of outputs 3.Making brands and marketing for finished outputs (packed and branded output) for inner and external markets 4.Creation of bright investment climate 5.Scientific assessment of fishery development potential 6.Construction and support of trade platform for sale of live/chilled fish and frozen fish in Murmansk (fish broker's board) RECONSTRUCTION OF FISHING INDUSTRY SECTOR ON A NEW TECHNOLOGICAL AND ORGANISATIONAL BASE 9

ТRТ «Pechengskaya» ESTABLISHING OF TOURISTIC CLUSTER ON THE TERRITORY OF MURMANSK REGION Tourism and recreation territories of regional value (ТRТ) – the base for tourism cluster of the region ТRТ«Russian Lapland» ТRТ «Khibinskaya» Intergated development of the territories Organization of communication between all parties of touristic business and supporting sectors Systematic approach to the sector's problems solutions Implementation of innovation technologies on the touristic service market Appearance of new competitive touristic destinations Preparation of investment fields for investors, solutions of land questions Opportunity of regional tax extensions for TRT residents Complex advance of touristic cluster of the region to russian and international markets 10

International programs implemented in Murmansk region: Program ENPI CBC «Kolarctic» Cooperation program of Barents/Euroarctic region (BEAR) EU Northern Dimension cooperation program on developing the northern regions implemented within partnerships Programs of Northern Council of Nordic Ministers Programs of international technical assistance within nuclear and radiation safety External economic cooperation of Murmansk region: Norway- Finnmark, Troms, Rogaland Finland- Lapland, Oulu Sweden- Norrbotten Canada-Newfoundland, Labrador, Manitoba

INTERNATIONAL AND EXTERNAL ECONOMIC COOPERATION Volume of foreign investment, mln. USD 71 activities were carried out with the representatives of foreign countries Dynamics of foreign trade turnover of Murmansk region, mln. USD Main foreign trade partners of Murmansk region in 2010  Memorandums of mutual understanding were signed with «Statoil» and «Total»  Contracts on realization of the projects on radiation safety with the County Finnmark were signed  New contacts with partners from China, Canada, South African Republic were established

EXTERNAL ECONOMIC COOPERATION WITH NORWAY International technical assistance from Norway to Murmansk region (mln. USD) Investments from Norway to Murmansk region (mln. USD) Dynamics of turnover of Murmansk region and Norway (mln. USD) 13

EXTERNAL ECONOMIC COOPERATION WITH FINLAND IN 2010 Dynamics of turnover of Murmansk region and Finland (mln. USD) The Government of Finland financed 37 projects in Murmansk region to the amount of 1,1 mln. EURO within the program of cross-border cooperation. In the first round of applications of the Program ENPI CBC « Kolarctic» 13 projects were approved, 11 of them are with Finnish partners.

Congress-exhibition activity in Murmansk region International branch and trade –industrial exhibitions: “Sea.Resources.Technologies” “Kolsky Partneriat” “SEVTEK” “Product Forum of Polar North” Murmansk International Economic Forum

MURMANSK– THE CAPITAL OF KOLA ARCTIC to 100-anniversary celebrations Development of infrastructure is planned at the present moment:  Sea façade in the port Murmansk (objects of Murmansk transport hub)  Sports complex (healthy life-style)  Arctic center with museum complex (Russia is an Arctic country) СПОРТИВНО-КОНЦЕРТНЫЙ КОМПЛЕКС электрические сети сети водоснабжения сети теплоснабжения Construction: Modernization:  Municipal roads  Municipal infrastructure  Community facilities  Transport hub on basis of sea,-bus and railway stations with improvement of adjoining territory and airport network  Treatment facilities (environmental safety)

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