1. МИНИСТЕРСТВО РОССИЙСКОЙ ФЕДЕРАЦИИ ПО РАЗВИТИЮ ДАЛЬНЕГО ВОСТОКА Ministry for the development of the Russian Far East Government of Russian Federation 1

2. 2 1.«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». 2.«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». National Priority for the Entire 21 st Century «Developing Siberia and the Far East is our national priority for the entire 21st century. » Moscow, 12 December 2013 г.

3. 3 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

4. Target audience of investors 4 Countries: Japan South Korea China USA Canada Germany Finland Turkey Industries: construction materials timber-processing complex fish processing tourism metallurgy 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 ①Exporters in Asia Pacific have become investors in the Russian Far East ②Need to focus on the priority sectors and countries agro-industrial complex autoparts logistics oil and gas chemistry infrastructure

5. New structure for Investors support 5 CORPORATION For Development of the Russian Far East Agency for labor development AGENCY for Investment and export support Fund for Development of the Russian Far East Ministry for the Development of the Russian Far East Alexander Galushka Deputy Prime Minister Commission on the implementation of investment projects Yuri Trutnev

6. Law of Special Advanced Economic Development Zones 6 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

7. Law of Special Advanced Economic Development Zones Sphere of special regulation 1. Attracting foreign labor 2. Providing the land plots for the construction 3. Use of State and Municipal property for construction 4. Easements set up 5. Environmental Impact Assessments 6. The construction works 7 1. Land transfer from one category to another 2. The establishment of Technical Regulations 3. The establishment of Sanitary Standards 4. Urban areas Planning 5. State construction Expertise and construction Supervision 6. Technical conditions and Connection Fee 7. Attracting domestic and foreign skilled employees 8. Customs regulations and procedures 9. Medicine and Education 10. Certain powers of public authorities and local self-government 11. Subsoil use 12. Tax exemptions Creation Management and operation Issues

8. Create conditions for will be competitive 8

9. Our mission - make The Best conditions in region CONDITIONS in Asia-Pacific countries KoreaChinaSingaporeUSACanadaJapan RUSSIA- today RUSSIA - target for the model SEZ unit Profit tax1015173323,526,413,5 10 % Of profit Inbound and Outbound logistics cost 7005504401 3201 6609701 800 440 U.S. dollars per 20- foot container Power cost7,37,413,66,97,417,911,7 6,9 U.S. cents per 1 kWh of electricity Payroll taxes8,8%26,7%16%7,7%8,7%25,6%14% 7,7 % Of payroll Dealing with Construction Permits 29672627163193244 26 days Connection to the system power supply 28413668142105254 28 days Export support5444532 5 score based on the volume of export support measures Protection of intellectual property 2345453 5 rank score rating IPRI Labor powerHigh middleHighlow High Availability of suppliersHigh middleHighlow High 9

10. Advanced Economic Development Zones development stages 10 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.

11. Collection data from territories 11 Checked more then 140 parameters from more than 400 plots. Currently collected data from territories and have start identify the 15 best sites for SEZ Chukotka Kamchatka Magadanskaya oblast Yakutia Khabarovskiy kray Amurskaya oblast ЕАО Primorskiy kray Sakhalin RUSSIA

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

13. Faces of the Ministry 13 Maxim Shereykin Deputy minister Alexandr Osipov First deputy minister Oleg Skufinsky Deputy minister Alexandr Galushka Minister of the Russian Federation On Development of the Far East

14. Khabarovsk 680000 г. Хабаровск, ул. Муравьева-Амурского, 18 E-mail: info@minvostokrazvitia.ru Phone: +7 4212 97-00-10 Fax: +7 4212 97-00-11 Moscow 109544, г. Москва, ул. Школьная, 25 E-mail: msk@minvostokrazvitia.ru Phone: +7 499 605-19-10 Fax: +7 495 671-46-04 Contacts 14