Moscow, 2015 Special investment contract as a new instrument for the stimulation of the production localization Vasily Osmakov, Director of the Department of Strategic Development and Project Management

2 Special investment contract Investor obligations: Establishment of the industry Modernization of the industry assimilation of industrial products *at the territory of the Russian Federation Federal authorities Privileged provision of public property and land, production branch specific preferences, tax holidays Regional authorities Privileged provision of public property and land, preferences, tax holidays Privileges and preferences within the scope of its competences municipal authorities P r oced u r e f or t he co n c l u si o n of s p ec i a l i n v e s tm e n t co n t r ac t s Standard branch specific special investment contract Investment promotion into the ESTABLISHMENT AND MODERNIZATION OF INDUSTRIAL PRODUCTION AT THE TERRITORY OF THE RUSSIAN FEDERATION by means of provision of branch privileges and preferences to the investors and provision of stable conditions for the business conduction on condition of establishment and (or) modernization of industrial production Purpose for the introduction of the tool

3 The Russian Federation Subject of the Russian Federation The municipality Investor Industrial enterprise Other participants (credit, housing and public utilities providers) GUARANTEE : The public side Private party 1.Incentives 2.Guarantees against adverse changes in the business environment 1.Fulfillment of the conditions for the creation, modernization and (or) mastering of new production 2.Levels of localization Increase of industrial production Development of production branches, having priority meaning for social-economic development of the Russian Federation Introduction of best available technologies into the industrial production Establishment and assimilation of production of high technological products Localization of the production at the territory of the Russian Federation in the definite volume STABILIZATION FIXED LONGTERM COMMITMENTS Special investment contract

4 Period of validity (is equal to the term of the project to design and operating profit, but no more than 10 years) Characteristics of the product, that is creating (modernizing) Total investment Events checklist for creation/modernization of the production The list of incentive measures (privileges, preferences, etc.) that applies to investors during the period of validity of the special investment contract The procedure for monitoring the performance of the obligations of the investor and reporting SPECIAL INVESTMENT CONTRACT 1) Documents confirming the compliance of the investment project the requirements for the conclusion of the special investment contract 2) The list of incentive measures, established by the current legislation, which investor proposes to include in the special investment contract 3) The proposed list of obligations of the investor and other sides 4) Information about the investment project, the ammount of planned investments, the list of indicators (results) of the investment project implementation Investor prepares: Special investment contract

5 Procedure for the conclusion of the special investment contract The negotiations are held to discuss all disagreements The contract is not signed The contract is signed on agreed terms The investor signs a contract The investor refuses to sign the contract or is silent The investor submits a statement of disagreement The contract is signed by other participants The contract is not signed, that does not entail any negative consequences for the investor The conclusion of the interagency commission is sent to the investor Interagency commission review the documents and prepare the report Interagency commission review the documents and prepare the report Competent public authority prepare a preliminary conclusion, interacts with the investor The investor submits documents required for the conclusion of the special investment contract up to 70 working days up to 10 working days

Case study 6 China Obligations of investors o implementation of investment projects, that aimed at production of goods with certain cost; o growth of the average number of employees in comparison with the number in the year of start of project; o creation of businesses in regions with 15% of unemployment rate o more than 70% of production intended for export; o using of foreign technologies; o creation of production in certain fields of economy (energy, building supplies, chemical, metal, machine, instrument, electronic, communication and oil extraction industries) Providing individual tax benefits Providing tax and custom reliefs, as well as: o producers are relieved of obligations to subsidy employees` expenses on lodging, grain and export o reliefs of paying of used lodgments; o favorable water, electrical, transport and communication services; o favorable credits provided by Bank of China Obligations of state Hungary IN 10 YEARS FROM THE MOMENT OF CREATION OF THE MECHANISM (FROM 1995 TO 2005) HUNGARY HAS BECAME THE 1 ST COUNTRY OF CENTRAL AND EAST EUROPE IN TERMS OF VOLUME OF FOREIGN INVESTMENTS PER CAPITA ANNUAL OUTPUT OF CAPITAL INVESTMENTS INCREASED FROM 4,4 BLN U.S.DOLLARS (IN 1991) TO 45,5 BLN U.S.DOLLARS (IN 1998) Results

The interaction of business and government 7 «Программный» Бюджет Consumer Government Business Goal-setting ForecastingPlanning SP 3SP N… Information about current development Information about the needsPublic consultationPublic control Economic analysis, efficiency of applied measures research, redeployment of resources (financial, labour, material etc) The granting of privileges and preferences Vector of development Investment growth driver Programme based budget SP 1SP 2 Implementation of social projects Industry development and improving its competitiveness The development of the aviation industry (for the period of years) The development of electronic and radio- electronic industry (for the period of years) The development of the pharmaceutical and medical industry (for the period of years) The development of shipbuilding and equipment for the exploration of offshore fields (for the period of 2013 – 2030 years) Ministry of Industry and Trade of the Russian Federation:

Thank you for your attention!