By Marina Dessiatkina Trade Commission of the Republic of Sakha (Yakutia) March 8, 2010 By Marina Dessiatkina Trade Commission of the Republic of Sakha (Yakutia) March 8, 2010

QUICK FACTS: Trade Commission of the Republic of Sakha (Yakutia) million. sq. kilometers 40% of its territory located in Arctic Circle One of the richest regions for mineral resources in Russia and worldwide

Diamonds – 82% Gold – 17% Uranium – 61% Antimony – 82% Iron ore – 5% Coal – 5% Tin – 28% Mercury – 8% Sakha Republic’s share in total mineral reserves of the Russian Federation Sakha Republic’s share in total mineral reserves of the Russian Federation Trade Commission of the Republic of Sakha (Yakutia) 3

Importance of the mining industry for the region’s economy Trade Commission of the Republic of Sakha (Yakutia) 4 80% of all region’s industry activities; 68% of all industrial jobs and 18% of all jobs in the region; 57% of all regional taxes appropriated for the federal budget; 67% of all capital investments in the Sakha Republic’s economy; 18,4% of total volume of goods sold outside of region

Foreign investment: considerations checklist Availability and accessibility of substantial raw mineral and energy reserves; Strategic location allowing convenient reach for Asia Pacific markets; Presence of companies conducting their exploration, mining and export activities successfully Preparedness of the local government for constructive dialogue with foreign investors; Regional and federal law on foreign investments: recent developments Trade Commission of the Republic of Sakha (Yakutia) 5

Foreign Investment Act of the Republic of Sakha (Yakutia) Dated: December 22, 1992 (reference № 1270-XH) Foreign investments are fully and implicitly protected on the territory of the Republic of Sakha; Rights to freely re-invest and export - all forms of revenue First 10 years - guaranteed conditions existed for the moment of registration; Guarantee doesn’t cover for federal law changes: customs rules, taxation regulations, credit and finance, and anti-monopoly law; It doesn’t provide for economic security, environmental protection, public order, and local health care; Within given power, the public administration of the Republic of Sakha (Yakutia) and local governments can provide additional guarantees. Trade Commission of the Republic of Sakha (Yakutia) 6

Act on Foreign Investment Activities in the Republic of Sakha (Yakutia) dated by May 30, 2006 (reference № 709- Ш )  Establishes tax benefits and offers investment tax credits;  Provides for a wide range of government support to:  Encourage equity market developments,  Promote financial leasing  Offers government fiscal guarantees and funds allocation to investment projects on a competitive basis;  Introduces a list of tax benefits in reference to:  Corporate income tax, – no more than 4% of fixed tax rate, - the portion to be attributed to the Republic’s budget;  Corporate property tax, - in particular reference to all forms of property to support an investment project, and/or equipment or part of the equipment bound by leasing contract;  Corporate tax on transport vehicles acquired to serve the investment project, passenger cars excluded.  Total sum of tax benefits shouldn’t exceed total sum of the investment. Trade Commission of the Republic of Sakha (Yakutia) 7

Procedures for Foreign Investments in Business Entities of Strategic Importance for Russian National Defense and State Security, a.k.a Federal Law № 57-FZ, dated by April 29, 2008 Source: Trade Commission of the Republic of Sakha (Yakutia) 8

THANK YOU! Contact Information: Marina Dessiatkina Trade Commission of the Republic of Sakha (Yakutia) North Service Rd. W Unit 375 Oakville, Ontario L6M 2Y1 Canada Phone: Cell: Contact Information: Marina Dessiatkina Trade Commission of the Republic of Sakha (Yakutia) North Service Rd. W Unit 375 Oakville, Ontario L6M 2Y1 Canada Phone: Cell: