opportunities in Russia Investment opportunities in Russia Report of Trade Representative of the Russian Federation in Finland Dr. Valery Shlyamin 30.01.2009 Helsinki

Main economic indicators of Russian economy (rate of growth, %) 2004 2005 2006 2007 2008* 2009* GDP 7.2 6.4 6.6 8.1 6.0 -0.2 Industrial Production 8.3 4.0 4.7 6.3 2.0 -5.7 Capital Investments 11.7 10.7 11.0 21.1 9.2 -1.7 Real Personal Disposable Income 10.4 9.3 12.5 12.1 -2.7 Retail Trade Turnover 13.3 12.8 16.1 13.6 3.4 *estimate Source: Ministry for Economic Development of the Russian Federation, Ministry of Finance of the Russian Federation 08.12.2018 Russian Trade Representation in Finland

Russia as investment opportunity 2000 year State GDP - $ 260 bln. Consolidated budget - $ 40 bln. State Debt – over 50 % of GDP and over 120% of Federal Budget Gold and currency reserves - $ 27,7 bln. Short-terms goals logic Lack of PPP’s legal base and practice Macroeconomic instability 2008 year State GDP - $ 1729 bln. Consolidated budget - $ 559 bIn. State Debt – less than 10 % of GDP and less than 28% of the Federal Budget Gold and currency reserves– $ 438,2 bln. Long-term strategic planning on federal and regional levels New legal base and practice for PPP Macroeconomic Stability Source: Ministry for Economic Development of the Russian Federation, Ministry of Finance of the Russian Federation 08.12.2018 Russian Trade Representation in Finland

Result - macroeconomic stability. Federal Budget Profitability in 2008 – 6,5% of GDP Stabilization Fund by 1st of January 2009 – $ 225,1 bln. Gold Reserves as of December 2008 – $ 438,2 bln. Source: Ministry for Economic Development of the Russian Federation, Ministry of Finance of the Russian Federation 08.12.2018 Russian Trade Representation in Finland

Modern establishment of legal base and authorities for market regulation, de-bureaucratization of economy and competition development Tax Code, Customs Code Legislation on licensing and valuation activity Legislation on natural Resources: Entrails, Water, Forest, Land Legislation on bankruptcy, currency control, new edition of the law on joint-stock companies Law on state purchases Law on competition protection Law on autonomic organizations 08.12.2018 Russian Trade Representation in Finland

Finish investments to the Russian economy From 2002 to the 2008 year (mln.dollars) Source: Rosstat

Russian Trade Representation in Finland Source: Rosstat 08.12.2018 Russian Trade Representation in Finland

The largest Finish investment project currently realized in Russia “Fortum” investment project in the “TGK-10” (one of the local heat -and electricity company, Western Siberia) Total investments: 2,5 mrld.euro -”Stockmann” city-mall in Saint-Petersburg Total investments: 110 mln.euro -”Lemcon” industry park in the city of Kaluga (Center part of Russia) Total investments: 600-700 mln.euro “Evli Bank” has created second equity fund for the investment to the Russian commercial property Total investments: 700-900 mln.euro Source: companies annual reports, finnish newspapers 08.12.2018 Russian Trade Representation in Finland

Russian Trade Representation in Finland Large Finnish investment project planned to be realized -joint project “Borea” of ”UPM-Kymmene” and “Sveza” (A.Mordashev, Severstal). Goal of the project: Pulp plant, OSB plant, sawmill Place: city Sheksna, Vologodskaja oblast Total amount of investments: 1,1 mrld.euro -project “Stora Enso” in Nishnji Novgorod. Goal of the project: Pulp and paper plant. Total amount of investments: 1,1 mrld.euro -project “Ruukki Group” in the North-West of Russia Goal of the project: modern sawmill Total amount of investments: 70 mln.euro -project «Finndomo» industrial wood houses production plant in the North-West of Russia Source: companies annual reports, finnish newspapers 08.12.2018 Russian Trade Representation in Finland

Welcome to cooperation 08.12.2018 Russian Trade Representation in Finland