Special economic zones of the Russian Federation Ministry for economic development of the Russian Federation Department of special economic zones and projects of regional development

Thanks to free connection to utility lines Air Liquide saved up to Be with us on the highway to success! Rockwool International has built the largest thermal insulation materials producing factory in the world and saved $12.6 mln. on customs incentives Thanks to free connection to utility lines Air Liquide saved up to $2.5 mln. of investments Jan Keller, Vice-president Russia-CIS and member of Air Liquide executive Committee Nicholas Andrew Vince, General Director, Rockwool Russia We consider SEZ as the best place for business and investments in Russia In such a large project like ours, tax incentives are of great importance Mechmet Ali Tiryaki, General Director , JV Saint - Goban and Sisecam Sekine Toshikazu, Director for economy, Yokohama

The key figures of SEZ’s efficiency More than 60 bln. RUB invested in infrastructure More than 300 residents in SEZ Planned total investments – more than $ 12 bln. Industrial and production zones Technology and innovation zones Tourist and recreational zones 2012 Port zones 3

The Republic of Ingushetia Location of 27 special economic zones 6 13 Industrial and production zones Tourist and recreational zones 3 5 Port zones Technology and innovation zones St.Peterburg Murmansk Region Samara Region Republic of Tatarstan Republic of Tatarstan Sverdlovsk Region Pskov Region Moscow Region Dubna Moscow Zelenograd Khabarovsk Region Kaluga Region Lipetsk Region Ulyanovsk Region Stavropol Region The Republic of Ingushetia Ski claster Krasnodar Region The Republic of Kabardino-Balkaria The Republic of Dagestan Tomsk Region Altai Region Russkiy island The Republic of Adygeya The Republic of Karachaeva-Cherkessia The Republic of Osetiya Republic of Altai Irkutsk Region Republic of Buryatia 4 4

The best area for investments in the Russian Federation! Why do investors choose us? Tax preferences The free customs zone Ready-to-use infrastructure Income tax Free connection to utility lines Exemption from import duties and VAT by import of raw materials, equipment, construction materials and components No export duties and VAT for finished goods Federal budget - 2% Regional budget - 18% Favorable rent rates Federal budget – 0% Regional budget - 0-13,5% ( 0% is allowed in Republic of Tatarstan, Samara region, Lipetsk region) Buy-out of land is allowed on favorable conditions Property tax 2,2% 0% for 10 years Transport tax 0.1-3.8 0 for 10 years ( in EUR/1 hp) Land tax The best area for investments in the Russian Federation! 1,5% 0% for 5 years Insurance fee payment 34% 14% * On the territory of Russian Federation * Limited to residents of innovation SEZ, industrial SEZ involved in R&D activities and for residents of tourist cluster On the territory of SEZ

Preferences Special administrative regime Decrease in administrative barriers, “single window” Special administrative regime Authorities involved: Ministry of economic development, JSС “SEZ” Transparent legislative and management Science and education centers Access to qualified human resources No import duty, refundable VAT Free customs mode Office facilities, gas, water, energy etc. All the necessary infrastructure at lower prices Investment agreement with the Government, zones are created for 20 years State guarantees and stability Income tax decrease, property, land, transport tax exemption for 5 years Special tax treatment 6

Obtaining the resident status forming request to the Ministry - expert committee consideration STEP ONE STEP TWO STEP THREE STEP FOUR STEP FIVE register the company forming business plan - supervisory committee consideration - sign an agreement with the Ministry and the management company Thursday, November 08, 2018

1 2 MANAGEMENT OF THE SPECIAL ECONOMIC ZONES • implementing general policy of SEZ (incl. legislation) • attraction of potential investors and management companies • approval and registration of residents (investors) • signing the agreements with residents and management companies • control over execution by residents of agreements 1 Ministry of economic development of the Russian Federation JSC «Special economic zones» • master-planning and development of SEZ • designing and building of infrastructure • attraction of potential investors • management and operation of SEZ • granting land to investors • specifications of connection to engineering networks Subsidiaries of JSC «SEZ» 2 Professional management company Preferences: receives state subsidies tax preferences

Ministry for economic development of the Russian Federation Contact information Ministry for economic development of the Russian Federation Mr. Andrey Sokolov +7 (499) 795-66-47 Sokolov2@economy.gov.ru Director of the Department of special economic zones and projects of regional development Mr. Vadim Tretyakov +7 (495) 690-34-06 Tretyakov@economy.gov.ru Deputy director of the Department of special economic zones and projects of regional development