2015 MOSCOW INVESTMENT POTENTIAL: REAL PROPERTY AND INFRASTRUCTURE MOSCOW CITY PROPERTY DEPARTMENT

I. Public-private partnership II. Land auctions III. Tax benefits and Lease incentives for industrial enterprises IV. Construction of transfer hubsV. Investment programs " 1 ruble per 1 sq.m per year" INVESTMENTS TO THE DEVELOPMENT OF THE CITY TERRITORY 2 MOSCOW CITY PROPERTY DEPARTMENT

I. Public-private partnership 1. Concessionary agreements 2. Public-private partnership agreements (since January 01, 2016) 3 MOSCOW CITY PROPERTY DEPARTMENT

I. Public-private partnership 1. Concession CONCESSION - creation/reconstruction of property owned by concessor (Moscow) by concessioner (the investor) and the implementation of economic activities with the use of this property Concessionary agreement -Shall be executed for extended lengths of time (up to 49 years); -Shall be executed on a competitive basis; -It allows to confirm a complex set of relationships by one document Concession facility -Is free of third party rights; -It may be transferred by the concessioner for use of third parties with the consent of the owner; -The concessioner does not have a right of private ownership to the object of the concession agreement; -Pre-emption right of the concessioner to purchase the concession facility 4 MOSCOW CITY PROPERTY DEPARTMENT

I. Public-private partnership Realisable concessionary agreements MUNICIPAL CLINICAL HOSPITAL No. 63 Concession Agreement of 2013 NameIndication Land plot area 20,109.0 sq. m. Existing objects area 29,647.6 sq. m. Maximum area of designed objects86,000 sq. m. Period of concession agreement49 years Investment phase (design and survey works, construction and installation works, equipping, commissioning) 5 years Planned investment costs, total, € 89,265, Reconstruction cost, €58,857, Equipment cost, €30,408, Share of services of compulsory health insurance from 20% to 30% Name of medical service Total volume of services Volume of services of compulso ry health insurance Number of medical trials of positron-emission tomography center 29,760.00up to 7,000 Number of hospitalizations of endovascular surgery center 4,867up to 1,000 Number of visits of endovascular surgery center 386,880up to 65,000 Number of hospitalizations of perinatal center 6,600up to 1,000 Number of visits of perinatal center305,040up to 55,000 Number of obstetrics4,538up to 1,000 Number of hospitalizations of rehabilitation center 1,460up to 500 Number of visits of rehabilitation center 189,720up to 25,000 5 MOSCOW CITY PROPERTY DEPARTMENT

I. Public-private partnership Realisable concessionary agreements 6 Construction of the Northern alternate route of Kutuzovsky Avenue Concession Agreement of 2014 NameIndication Length11 km, at least 4 lines, at least 3 interchanges Investments to construction Approx. 846,326,530.00€ Concession period40 years The Moscow City Government will carry out a repayment and vacation of the land and give land on lease Expenditures on site preparation and removal of existing engineering networks will be divided between the parties The concessioner shall bear all costs associated with the design, construction and operation of the facility The concessioner shall independently fix the passage fee in the amount not exceeding the maximum limit defined by the Government of Moscow The Northern alternate route of Kutuzovsky Avenue is turnpike, concessioner collects the fee. A free by-pass is possible by Kutuzovsky Avenue and Mozhaisk Highway MOSCOW CITY PROPERTY DEPARTMENT

I. Public-private partnership 2. Public-private partnership agreements (since January 01, 2016) 7 A wide range of agreement facilities -Private highways; -Public transport (except of metropolitan railway); -Railway transport facilities; -Pipelines -Ports, airports -Air, water transport -Educations, health, etc. facilities Compulsory figures of Public-private partnership agreements -Observance of the bidding process for the selection of the private partner -Creation of facility (construction/reconstruction); -Funding for the facility creation; -Operation and maintenance of the facility; -Creation of private ownership of a private partner to the created facility; MOSCOW CITY PROPERTY DEPARTMENT

Payment shall be in accordance with the bidding result Period of the lease contract for the construction period Bidding documents– complete information for a decision on the participation in the auction -Conclusion on engineering maintenance of the facility with value indicators; -Urban Development plan of the land (the main type of permitted use, technical and economic indicators); -Draft of land lease contract; -Land is registered in Cadastre; -Land is free legally and materially -Redemption of the right to lease shall be paid for 3 days from the date of the auction; -The annual rental rate for the period of construction is 1.5% of the cadastral value of land (payable quarterly); -The starting price is set based on an independent market valuation 6 years List of land plots planned for sale at auction II. Land auctions MOSCOW CITY PROPERTY DEPARTMENT

The range of areas of land plots sold at auction: from ha (trade) to ha (leisure facility) 9 The function of the land plots * * 29 land plots are planned to be sold until the end of 2014 Commerce and household purpose Garage purpose Public purpose (administrative, educational facilities, technological parks, etc.) Others (teaching and educational, medical and sanitary, etc.). residential space * 3 land plots – private housing projects (Troitsky and Novomoskovsky Administrative Districts); 1 land plot – multiple family dwelling (Zelenograd Administrative District) – first in practice II. Land auctions 3 MOSCOW CITY PROPERTY DEPARTMENT (II quart.)

III. Proposals on tax benefits and lease incentives for industrial enterprises Correspondence of the enterprise to economic and city-planning criteria Status getting Industrial complex (basis package) Industrial / technological park (expanded package) Lease of land plot for the period of operation 0.3% of cadastre Land tax0.3% of cadastre Property tax50% of charged Income tax18% General load reduction8% Lease of land plot for the period of operation 0.01% of cadastre Land tax0.01% of cadastre Property tax0 % Income tax13.5 % General load reduction25 % 10 MOSCOW CITY PROPERTY DEPARTMENT

IV. Construction of transfer hubs 11 THs are designed to provide a safe and comfortable passenger services in the place of their transfer from one mode of transport to other It is planned to create network of 176 permanent transport hubs (TH) in Moscow till MOSCOW CITY PROPERTY DEPARTMENT

IV. Construction of transfer hubs TH Funds of TH operator Urban land plot Investor's funds TH commercial facilities To the investor TH production facilities To the city 12 TIH operators Moscow Metro State Unitary Enterprise Mosingproject OJSC MKZHD OJSC MOSCOW CITY PROPERTY DEPARTMENT

V. Investment programs " 1 ruble per 1 sq.m per year" Private preschool / school education 3. Objects of cultural heritage 1. Private medicine MOSCOW CITY PROPERTY DEPARTMENT

V. Investment programs " 1 ruble per 1 sq.m per year" 1. "On hand doctor" Rental conditions -Rental rate for the use of premises is € 0.01 per 1 sq.m. per year (after observance of terms) ; -Period of premises rent is 20 years Terms of use of preferential rates of rent -Provision of medical services under the compulsory health insurance; -Non-provision of dental, cosmetological, detoxication, plastic surgery, venereological, andrological services Area of premises from 250 m2 to 500 m2* * The premises are located on the 1st floor of dwelling houses with separate entrances 52 non-residential lease agreements for these purposes are executed since 2013, 17 clinics are opened 13 medical facilities are planned to be sold on auctions for the IV quarter of 2015 List of real property planned for sale at auction MOSCOW CITY PROPERTY DEPARTMENT

V. Investment programs " 1 ruble per 1 sq.m per year" 1. "On hand doctor" 15 MOSCOW CITY PROPERTY DEPARTMENT

V. Investment programs " 1 ruble per 1 sq.m per year" 2. Private preschool / school education Rental conditions -Rental rate for the use of premises is € 0.01 per 1 sq.m. per year; -Period of premises rent is 49 years Terms of use of preferential rates of rent -Provision of educational services during the first year in an amount not less than 50%, during the second year 100% of the number of places established by the Moscow Department of Education; -Implementation of the basic educational program in respect of at least 80% of children registered in Moscow; -Educational activity not later than 6 months from the date of the lease contract if repair of the facility is necessary (minor repair); -not later 18 months from the date of the lease contract if overhaul is necessary; -not later 3 years from the date of the lease contract if the facility reconstruction is necessary; 29 lease contracts are executed since 2013, 9 educational organizations are opened 4 facilities are planned to be sold on auctions for the IV quarter of 2015 List of real property planned for sale at auction MOSCOW CITY PROPERTY DEPARTMENT

V. Investment programs " 1 ruble per 1 sq.m per year" 2. Private preschool / school education Novokhoroshevsky Ave., 11 (North-West Administrative District) 27 Profsoyuznaya str., bld. 4 (South-West Administrative District) 17 MOSCOW CITY PROPERTY DEPARTMENT

V. Investment programs " 1 ruble per 1 sq.m per year" 3. Objects of cultural heritage (OCH) Bidding documents contain the most complete set of documents -Information about OCHs including information about technical inventory of the facility; -Technical specifications; -Urban Development plan of the land; -Cadastral certificate of the land; -Draft of lease contract Rental conditions -Conclusion of security obligations; -Lease of part of facility is possible; -Preferential rate of € 0.01 per 1 sq.m. per year after the completion of restoration work and commissioning of the facility; -The period of restoration works is up to 5 years; -Market rent value shall be fixed for the period of restoration; -Period of rent is 49 years 15 lease contracts are executed since 2012, 3 facilities are restored The total value of lease rights exceeds the starting one in average 4 times 7 facilities are planned to be sold in the IV quarter of 2015 List of facilities planned for sale at auction MOSCOW CITY PROPERTY DEPARTMENT

V. Investment programs " 1 ruble per 1 sq.m per year" 3. Objects of cultural heritage (OCH) 7 Pechatnikov lane (Central Administrative District ) 23 Podsosensky lane, bld. 3 (Central Administrative District) 19 MOSCOW CITY PROPERTY DEPARTMENT

Thank you for your time. MOSCOW CITY PROPERTY DEPARTMENT