Prepared specially for Forum of regional collaboration, th of September, 2008 Deputy Minister of Economy of the Republic of Tatarstan Rashat Sh.Fattakhov The Republic of Tatarstan – effective development model.

Long-term investment policy Highly skilled workforceProfitable geopolitical situationRich natural resourcesLocal energy supplyPowerful industrial and scientific base Political and economical stability Competitive edges

Stable economical and geopolitical situation Tatarstan share in Russian Federation: Tatarstan share in Russian Federation:  GRP – 2,7%  Industrial production – 3,9%  Agriculture – 4,7%  Fixed asset formation – 3,2%  Population – 2,6% Territory – 68 thous sq km, 70% of agriculture concern Population – 3,76 mln.people, 74% urban, 26% rural Labour resources: – 2,41 mln people Economically active – 1,8 mln people GRP due to the consuming capacity – 20,52 thousand dollars 3

Growth points Agriculture Agriculture Energetics Car components Car components Automotive industry Petrochemistry Clusters 4

Well-balanced social and economical development 5

Russian economical development results: role and place of Tatarstan The 2d place on competitiveness; The 2d place on share of innovational product in total volume of production; Leader on trade ability of financial income of population; The 2d place in Russia on agriculture production; The 4 th place on the development of human potential index; The 5th place in Russia on volume industrial production and GRP; The 6 th place on fixed asset formation;

7 GDP structure changes – innovation development 7

Fixed asset formation structure

Foreign investments: dynamics and structure (thous.dollars) 9

Moody’s: «Ва1» stable outlook» Fitch: «ВBB-» stable outlook Standart&Poor’s: «ВВ-» positive vision ЭкспертРА: «2B» middle potential – moderate risk In total ranking of Russian regions Tatarstan considered to be one of the major leader-regions Tatarstan is in the first ten of Russian regions on minimal integral risk in Volga region, on minimal investment risk, on high efficiency of region management The Republic takes the 5 th place for the last 12 years on stable low investment risk" Investment climate and bank system in Tatarstan 10 Credit borrowings from Tatarstan

11 Tatarstan large-scales enterprises capitalization Company Changes during the year 2007(mln $) Capitalization, May (mln $) OJSC «Tatneft» OJSC «KAMAZ» OJSC «Niznekamskneftehim» OJSC «Kazanorgsintez» In 2007 the capitalization of large-scaled enterprises of the Republic of Tatarstan came up in 1,7, whereas in the Russian Federation in 1,32.

12 Innovation strategy IPP «IDEA» 2. Investment-venture funds 3. Business-incubators, business-hotels 4. Industrial parks, technoparks 5. Technology towns 1. Research laboratories in schools, universities, enterprise research institutes 3. Business-schools and technical universities of European level 4. Design education 5. Allocation of discount accommodation according to Social mortgage project 1. International market entry with developments in promising fields 2. Provision of European life quality standards for residents of Tatarstan Infrastructure Science-education- business integration Innovational economy Already invested 15 bln rubles Already invested 15 bln rubles To be invested 10 bln rubles To be invested 10 bln rubles

State noncommercial organization «Venture investment fund of the Republic of Tatarstan» State noncommercial organization «Insurance fund of the Republic of Tatarstan» Noncommercial organization «State housing fund under the jurisdiction of President of the Republic of Tatarstan» JSC «Leasing company of small business of the Republic of Tatarstan» «Regional venture fund of investments to small enterprises in scientific sphere of the Republic of Tatarstan» (ZAO «UK «Troika Dialogue») «Regional venture fund of investments to small enterprises in scientific sphere of the Republic of Tatarstan (high technologies)» (JSC «UK «Ak Bars Capital») Financial Institutes of Development

14 Nonfinancial Institutes of Development «IPT «IDEA» Technopolis «Himgrad» of petrochemical cluster STP «Center of innovational activity KSTU» Innovational technological center «Кniat» ООО «Center of construction decisions» Scientific technological park «Kazan State technological university» Business-incubator of Elabuga «Technopark «East» Business-incubator of Chistopol Business-incubator of Naberezhnie Chelni «IPT «IDEA – south-east»KIP “MASTER”

15 Scientific and technological potential of Tatarstan Academy of Science of the Republic of Tatarstan 87 universities and institutes 14 technoparks Approximately 2000 doctors of science More than 7000 candidates of science 73 science research institutes, development laboratories

Tatarstan children Decrease of children’s death (15%) Increasing of number of children having summer vacation (95%) Preventive measures of population narcotization Decreasing of annual rate of growth if injured people from 20% to 5% Decreasing of population narcotization Programme of social mortgage Accommodation loans at 7 % interest for up to 28 years will be granted to young people, government workers and workers in priority industries. Cellular medicine implementation Decreasing of individualization (50%) Decrease in terms of hospitalization on % Decrease on 50 % of quantity of kidney failure cases Road facilities From 2008 highway engineering is the first priority. Investment to double to 13 bln. rubles per year. Social objects $1 bln. USA doll. Were invested in education, medicine and culture during Developed social infrastructure 16

Targets up to 2020 Growth, times 2,7 2,6 GRP 2,3 2,1 Industrial production 4,8 5 Fixed asset formation 3,2 Real income Tatarstan Russian Federation 17

18 Thank you for your attention! Deputy Minister of Economy of the Republic of Tatarstan Rashat Sh.Fattakhov The Republic of Tatarstan Kazan city ,Moskovskaya st. tel fax Hope for fruitful and profitable collaboration!