Ministry for the development of the Russian Far East Government of Russian Federation Ministry for the development of the Russian Far East Уважаемые Господа , позвольте мне приветствовать вас на презентации Министерства Российской Федерации по развитию Дальнего Востока.

National Priority for the Entire 21st Century Moscow, 12 December 2013 г. «Developing Siberia and the Far East is our national priority for the entire 21st century. » «I suggest creating a network of Special Advanced Economic Development Zones in the Far East and Eastern Siberia with special conditions for organizing non-extractive production, including that intended for export». «New companies located in such zones, in such territories, should be provided with five-year exemptions for income tax, mineral extraction tax (with the exception of oil and gas, which is a profitable sector), land and property taxes, as well as preferential insurance rates, which are very important for high-tech manufacturing». 3. «Create conditions here that will be competitive with key business centres of the Asia-Pacific region. Such conditions should apply to authorization procedures for construction, connecting to electricity networks, and passing through customs. We will make active use of the Far East Development Fund in order to resolve infrastructure issues in these territories». 4. «We will need to decide on the exact location of these territories by July 1, 2014, and adopt all the legal regulatory acts necessary for them to operate». Президент РФ ВВ Путин, обращаясь к Федеральному собранию, 12 декабря 2013 года сказал: «Подъём Сибири и Дальнего Востока. Это наш национальный приоритет на весь XXI век.» Президент поручил правительству создать сеть специальных Территорий Опережающего экономического Развития (ТОР) с особыми условиями для организации не сырьевых производств, ориентированных в том числе и на экспорт. Для новых предприятий, размещённых в таких зонах, в таких территориях предусмотреть пятилетние каникулы по налогу на прибыль, НДПИ (за исключением нефти и газа), налогу на землю, имущество, а также, что очень важно для высокотехнологичных производств, – установить льготную ставку страховых взносов.

Investment Climate in Russia According to the World Bank, Russia among the ten countries which have shown the greatest progress in the creation of an enabling environment for business, and took first place on the effectiveness of the reforms of the BRICS countries. Rating «Doing Business- 2014" Russia has improved its position by 20 points compared to the previous year and 92 took place. In 2015-16 years completed 11 implementation roadmaps national entrepreneurial initiative improving administrative procedures in tax administration, property registration, export support, registration of legal entity, construction, custom and etc. 81 Russian region implements regional investment standards based on best international practices In accordance with the Presidential Decree Russia should take 20 place in the ranking of «Doing Business» in 2018

Asia-Pacific export markets for Far East of Russia Korea Indonesia Singapore Thailand Vladivostok Taiwan Philippines Japan Nahodka Khabarovsk China Russia Hong Kong Vietnam Malaysia Cambodia Laos Myanmar Beijing 1300 км Seoul 700 км Tokyo 900 км Hainan

Target audience of investors Over 4,400 large manufacturing companies have been exporting products to the Asia-Pacific region in the amount of $ 10 trillion USD, including raw exports 7 trillion USD Exporters in Asia Pacific have become investors in the Russian Far East Need to focus on the priority sectors and countries Countries: Japan South Korea China USA Canada Germany Finland Turkey Industries: construction materials timber-processing complex fish processing tourism metallurgy agro-industrial complex autoparts logistics oil and gas chemistry infrastructure

New structure for Investors support President Vladimir Putin Prime Minister Dmitry Medvedev Deputy Prime Minister Yuri Trutnev Ministry for the Development of the Russian Far East AGENCY for Investment and export support CORPORATION For Development of the Russian Far East Fund for Development of the Russian Far East Agency for labor development Investor connections Site preparation Funding Labor power supply PROJECTS INVESTMENT SITES LABOR

Law of Special Advanced Economic Development Zones Goal of the law Legislative support of the International Competitiveness Steppingstone Legislative consolidation best rules and regulations used in the Asia-Pacific region Implementation Giving Management company the right to determine the best and competitive in the Asia-Pacific region rules and regulations

Management and operation Issues Law of Special Advanced Economic Development Zones Sphere of special regulation Creation Management and operation Issues Attracting foreign labor Providing the land plots for the construction Use of State and Municipal property for construction Easements set up Environmental Impact Assessments The construction works Transfer of land from one category to another The establishment of Technical Regulations The establishment of Sanitary Standards Urban areas Planning State construction Expertise and construction Supervision Technical conditions and Connection Fee Attracting domestic and foreign skilled employees Customs regulations and procedures Medicine and Education Certain powers of public authorities and local self-government Subsoil use Tax exemptions

Create conditions for will be competitive Создание и капитализация институтов Развития ДФО таких как: АГЕНТСТВО по ПРИВЛЕЧЕНИЮ ИНВЕСТИЦИЙ И ПОДДЕРЖКЕ ЭКСПОРТА, ОАО «РАЗВИТИЕ ДАЛЬНЕГО ВОСТОКА, ФОНД РАЗВИТИЯ ДАЛЬНЕГО ВОСТОКА, АГЕНТСТВО ПО РАЗВИТИЮ ЧЕЛОВЕЧЕСКОГО КАПИТАЛА - позволят профинансировать создание сети ТОР, а Закон о развитии ДФО закрепит особые режимы их регулирования. Участие регионов и соучастие местных институтов развития позволит развить социальную инфраструктуру и кадровый потенциал регионов ДФО. Привлекательные условия ведения бизнеса и эффективное управление позволят Территориям Опережающего Развития стать конкурентными на рынке инвестиций в АТР.

Our mission - make The Best conditions in region CONDITIONS in Asia-Pacific countries Korea China Singapore USA Canada Japan RUSSIA- today RUSSIA - target for the model SEZ unit Profit tax 10 15 17 33 23,5 26,4 13,5 % Of profit Inbound and Outbound logistics cost 700 550 440 1 320 1 660 970 1 800 U.S. dollars per 20-foot container Power cost 7,3 7,4 13,6 6,9 17,9 11,7 U.S. cents per 1 kWh of electricity Payroll taxes 8,8% 26,7% 16% 7,7% 8,7% 25,6% 14% 7,7 % Of payroll Dealing with Construction Permits 29 67 26 27 163 193 244 days Connection to the system power supply 28 41 36 68 142 105 254 Export support 5 4 3 2 score based on the volume of export support measures Protection of intellectual property rank score rating IPRI Labor power High middle low Availability of suppliers 10

Advanced Economic Development Zones development stages Three spheres structure and development phases : Kernel: from tens to hundreds of hectares - an export-oriented special economic zone, industrial park, industrial park, a free trade zone. Environment: tens of square kilometers – technic and social security infrastructure for Kernel support. Ecosystem: territory of advancing social and economic development - the territory-wide municipal or urban district, internationally competitive in attracting investment and new residents. SEZ main structure: Modern production facility. International transport and logistics Hub. Residential infrastructure providing accommodation of employees of the resident companies. HR and pro education facility Criteria for selecting sites for SEZ in the Far East*: Ice-free ports.. In the long term favorable conditions for life. Existing infrastructure and human * In general, the criteria for setting the SEZ are indicative, not prescriptive.

Special Advanced Economic Development Zones Komsomolsk Belogorsk Khabarovsk Leninsk Zarubino Lazo Ussuriysk Mikhailovka Nahodka Nadezhdinskoe Svobodny Nagorny 3 4 1 10 7 6 9 5 Komsomolsk Khabarovsk Nahodka Ussuriysk Yuzhno-Sakhalinsk Vladivostok Svobodny 11 Belogorsk 2 12 8 Technological Manufacturing Agro-Industrial Logistic

«Nadezhdinskoe» Location Russia Taiwan China Korea Japan Hong Kong Seoul Russia China Korea Nadezhdinskoe Vladivostok 10 Khabarovsk Japan Tokyo Manufacturing Logistic

«Nadezhdinskoe» Location 37 км Vladivostok 30 км 20 км 30 KM SEZ 10 SEZ 30 км Manufacturing Logistic

Engineering and transport infrastructure «Nadezhdinskoe» Engineering and transport infrastructure HVL 110 kV Electricity On the north side HVL 110 kV On the east side HVL 35 kV Water Supply Main line D-300 - 1.5 km Second line - 4 km Transport infrastructure Distance from the regional center - 37km(1 hour) Distance from the railway - 1.7km Distance from the airport - 30 km(1 hour) Seaport / customs crossing - 37 km (1 hour) Distance from the road - 0 km Federal Highway M-60 "Ussuri" borders on the plot HVL 35 kV SEZ 1500 ha Federal Highway Manufacturing Logistic

«Nadezhdinskoe» Municipal 37 км Manufacturing Logistic

«Nadezhdinskoe» Regional Manufacturing and Logistics area «Nadezhdinskoe» Area of 1500 hectares with an increase up to 3000 hectares + A great resource site + Developed transport infrastructure + Ready for potential investors + Ability to create a Sea dry port + Northern Chinese territories needs in the logistics infrastructure for handling 100 million tons of cargo Manufacturing Logistic

«Zarubino» Location Russia Taiwan China Korea Japan Hong Kong Seoul Russia China Korea 5 Zarubino Vladivostok Khabarovsk Vladivostok 210 km Japan 42 km Slavyanka Zarubino Tokyo 5 Manufacturing Logistic

«Zarubino» Location 1671 ha Zarubino SEZ Manufacturing Logistic Vladivostok 210 km Federal Highway A189 5 km 1671 ha 5 Zarubino 300ha SEZ 153ha 5 km Manufacturing Logistic

«Zarubino» Manufacturing Logistic Name Industrial park. Primorsky Kray, Zarubino The total size of the territory 1671Hectares with an increase to 5857 ha The relief, elevation Mixed terrain is mostly flat, with smooth hills Category land designation Industry Owner of the site Municipal Type of site Greenfield Distance From the city center of the Russian Federation, in which the site is located From the city center of the nearest of the Russian Federation From the city center of the municipality in which the site is located From the city center of the nearest municipal education From the center of the nearest village The nearest motorways and highways The nearest railway station From the nearest seaport From the nearest river port From the land border of the Russian Federation 210 км ( Vladivostok ) 42 км ( Slavyanka ) 5 км ( Zarubino ) 5 км (A189 Federal Highway ) 5 км ( Port Zarubino ) 210 км ( Port Vladivostok ) 89 км Manufacturing Logistic

«Zarubino» Regional Industrial and Logistics SEZ A great terretory resource of site size Availability joining railway Availability joining electricity and heat networks Developed transport infrastructure Availability joining Sea port Northern Chinese territories needs in the logistics infrastructure for handling 100 million tons of cargo Manufacturing Logistic

«Lazo» Location Russia Taiwan China Korea Japan Hong Kong 6 Seoul Russia China Korea Vladivostok Lazo Khabarovsk 6 Japan Tokyo Agro-Industrial

«Lazo» Location Russia China SEZ «Lazo» 6 Sea port «Vaninsky» 640 км River Port 92 км SEZ «Lazo» 6 75 км Khabarovsk 104 км China 760 км Vladivostok Agro-Industrial

Engineering and transport infrastructure «Lazo» SEZ 400 ha Engineering and transport infrastructure Novostroyka Haka Train Station HVL 10 kV Electricity On the north side HVL 10 kV HVL 0,3kV Transport infrastructure Distance from the regional center 75 km (2 hour) Distance from the railway 0,5 km Distance from the airport 104 km (2,5 hour) Seaport / customs crossing 640 km River port 92 km Distance from the road 0 km Federal highway M-60 "Ussuri" borders on the plot HVL 0,3 kV Agro-Industrial

«Lazo» Agro-Industrial Name Regional SEZ to accommodate industrial, technological and agro-industrial park The total size of the territory 400 ha The relief, elevation Mixed terrain is mostly flat Category land designation Settlement land for agricultural use Owner of the site Municipal Type of site Greenfield Distance From the city center of the Russian Federation, in which the site is located From the city center of the nearest of the Russian Federation From the city center of the municipality in which the site is located From the city center of the nearest municipal education From the center of the nearest village The nearest motorways and highways The nearest railway station From the nearest seaport From the nearest river port 75 км (Khabarovsk) 26 км 0,5 км 0,1 км 0 км (М-60 ) 0,5 км (Haka Station ) 630 км (Port Vaninsky) 92 км (Port Khabarovsky) Agro-Industrial

TOR «Lazo» Regional SEZ for accommodate Agro-Industrial park + A great resource site + Developed transport infrastructure + Ready for potential investors

«Mikhailovka» Location Russia Taiwan China Korea Japan Hong Kong 8 Seoul Russia China Korea Vladivostok Ussuriysk 8 Khabarovsk Japan Tokyo Agro-Industrial

«Mikhailovka» Location Vladivostok Ussuriysk 320 km 122 km Mikhailovka 8 Mikhailovka Agro-Industrial

«Mikhailovka» SEZ HVL 110 kV 207 ha HVL 0,3 kV Mikhailovka Agro-Industrial

«Mikhailovka» Agro-Industrial Name Regional SEZ to accommodate industrial, technological and agro-industrial park The total size of the territory 207 ha The relief, elevation Mixed terrain is mostly flat Category land designation land for agricultural use Owner of the site Municipal Type of site Greenfield Distance From the city center of the Russian Federation, in which the site is located From the city center of the nearest of the Russian Federation From the city center of the municipality in which the site is located From the city center of the nearest municipal education From the center of the nearest village The nearest motorways and highways The nearest railway station From the nearest seaport From the nearest river port 122 км (Ussuriysk) 1 км (Mikhailovka) 1 км (М-60 ) 2 км (Dubninsky Station ) 320 км (Port Vladivostok) Agro-Industrial

«Mikhailovka» Regional SEZ for accommodate Agro-Industrial park + A great resource site + Developed transport infrastructure + Ready for potential investors

Faces of the Ministry Alexandr Galushka Minister of the Russian Federation On Development of the Far East Alexandr Osipov First deputy minister Maxim Shereykin Deputy minister Oleg Skufinsky Deputy minister Roman Rozhkov Head of investment and export support department Denis Molotkov Head of SEZ Infrastructure department Robert Urazov Head of Human Resources department