1. Yaroslavl Oblast Government Investment Opportunities in the Heart of Russia 2012 Igor Elfimov Vice-Governor of Yaroslavl Oblast

2. Yaroslavl Oblast basic facts Yaroslavl Oblast has an advantageous location as the two Central Russia major cities Moscow and St. Petersburg are relatively close to Yaroslavl, 282km and 800km respectively. City of Yaroslavl (founded 1010), the administrative center of the Oblast is an intersection of federal highways, railroads and waterways. It is also a growing industrial hub with advanced infrastructure and friendly investment climate, a home for many companies, Russian and international. Yaroslavl Oblast is divided into 16 districts, including 11 cities, 17 towns and 227 rural settlements. Population: 1,271,600 (as of 10/2012) Total area: 36,200 km² Yaroslavl Oblast has large water, land and forest reserves. Yaroslavl Oblast Government

3. The central part of Yaroslavl is a UNESCO World Heritage Site City of Yaroslavl Yaroslavl Oblast Government

4. - Oblast investment strategy approved by the Governor - Investment memorandum approved by the Governor - Approval of the yearly plan to develop infrastructure for investors - Local laws to protect legal rights of investors and boost investors’ activity - New legislation to assess impact of the local laws on business - Council to improve investment climate - Specialized agencies to attract investment - Infrastructure – industrial parks - Professional trainings to meet needs of regional strategy and investors’ requirements - Direct investors’ access to local authorities - 2 language Web site with constantly updating information for investors - Governor’s Yearly Address on the investment climate - One stop shop to help investment projects Правительство Ярославской области Federal Agency for Strategic Initiative Roadmap in Yaroslavl Oblast Yaroslavl Oblast Government

5. Investment policy in the Oblast favors successful development of new businesses Yaroslavl Oblast Investment Climate Experts rank Yaroslavl Oblast to be among the Top 10 most dynamic oblasts of Russia by the quality of financial management and ability to attract investors Foreign investments total in Yaroslavl Oblast economy (thous.USD) QI2011 QII2011 QIII2011 2011 QI2012 QII2012 QIII2012 Yaroslavl Oblast Government

6. Komatsu (Japan) trucks and excavators Takeda (Japan) pharmaceuticals DuPont (US)automotive coatings Velux (Denmark) dormers Nexans (France), cables and wires Astron Buildings (Belgium) hardware construction GE (US) gas turbines Huadian Power International (China) electric generation Foreign Direct Investment in Yaroslavl Oblast Yaroslavl Oblast Government

7. The majority of skilled population works for industrial companies Local Workforce Employees in sector from the total workforce, % Total urban 1044,6 (thous of people) Total rural 227,0 (thous of people) Economically active 700,6 (thous of people) Yaroslavl Oblast Government Yaroslavl Oblast unemployment rate in 2012 (officially registered) J F M A M J J A S O

8. Educational system for professionals 58 000 students 38 institutions for higher education 56 colleges for secondary professional education Major state universities in Yaroslavl Oblast Yaroslavl Technical University Soloviev Rybinsk State Aviation Technical University Yaroslavl State University Yaroslavl State Pedagogical University Sectors welcoming professionals: automotive technology metallurgy automatic control and management design and assembly of engines electrical power systems electrical and radio engineering chemical engineering pharmaceuticals Education Yaroslavl Oblast Government

9. Tunoshna International Cargo Airport is 20 km from Yaroslavl, 5 km from the railway station Moscow - Archangel M8 Federal Motorway Passenger and cargo ports on the Volga River Railways: Northern Railway, the Trans-Siberian Railway, roundabout route Samara – St. Petersburg - Karelia Фото Сапсан Фото красивого «мордастого» грузовика Фото самолета (Руслан из прошлой презентации) Transport Infrastructure Yaroslavl Oblast Government

10. Infrastructural Capacity Construction is easy transport infrastructure access to communications advanced power system availability of modern materials Site of Komatsu, 50 000 sq.m.Site of Lindab-Astron, 14 000 sq.m. Komatsu plant in Yaroslavl was designed and built by local Lindab-Astron (Industrial Park Novoselki) Yaroslavl Oblast Government

11. Industrial sites and Technological parks Париж Technological park Master in Tutaev (34.5 ha) 2 Industrial park Novoselki (400 ha) Industrial site Rostovskaya ( 200 ha) Industrial site Protech (54 ha) 3 5 7 1 Technological park Slavich (220 ha) 6 Industrial site Vostochnaya (160 ha) 4 Industrial site South-West (100 ha) 8 Industrial site Makarovo (50 ha) 9 Technological park Gavrilov-Yam ( 12 ha) Yaroslavl Oblast Government

12. Square – more than 400 hectares Sanitary zones up to 100 meters available Infrastructure available along the site boundaries Energy supply from 4х40 MWt substation Gas supply from new gas control points (GCP) “Ananyevo” Novoselki industrial site 12 Rostovskaya industrial site Square – 200 hectares Infrastructure available along the site boundaries Energy supply from “Nero” substation Gas supply Industrial sites welcome your business Yaroslavl Oblast Government

13. Pharmaceu- ticals, medical equipment Auto components Machinery for power energy and turbines Distribution and Logistics Tourism Strategy: Key Sectors & Clusters Top priority clusters Yaroslavl Oblast Government

14. LLC Intellectual dialog R&D of the innovative and competitive medicine Localization Import substitutionExport orientation Joint project of Hi-Tech Center CHEMRAR and R-Pharm for production of pharmaceutical substances; Production of generic products at R-Pharm plant R-Pharm and Takeda (Nycomed) plant Pharma 2020 Strategy in Yaroslavl Oblast Pharmaceuticals Yaroslavl Oblast Government

15. Total volume of investment into GMP pharma projects in the Oblast - over USD1000 mln Но При Postgraduate education Specialized secondary education R&D Internship at hi-tech enterprises Cooperation with major pharmaceutical companies GMP Multilevel Specialists Training Pharmaceuticals Yaroslavl Oblast Government

16. TYRES, MECHANICAL RUBBER GOODS Yaroslavl Tyre Plant, Yaroslavl Plant RTI Tires, gaskets, sealing rings, cuffs, barrels, cases, caps OEM COATINGS DuPont Russian Coatings Refinish and OEM Coatings, Clear coats, Primers, CED + Technical Support GEAR and CABLES TIIR, Fritex, Markon, Pragmatik-PK, RybinskAutoCable Sealings, covers, brake shoes, pump elements, cables AGGREGATES Savell, Multitruck Assemb ly units, bodies, tanks, vans ENGINE UNITs and COMPONENTS Avtodiesel, Tutaev Motor Plant, YZTA-YZDA (fuel- injection system), Agro-service (tooling), Gasmotor Engines, gearboxes, fuel systems, pump elements, microprocessor engine control systems Companies, operating in the Oblast deliver their production to the largest Russian and foreign automakers Auto Components Yaroslavl Oblast Government

17. Tourism Yaroslavl Oblast is a part of the famous tourist route “The Golden Ring of Russia" Types of tourism 27% MICE meetings, incentives, conferences, exhibitions 23% Active sports, recreation, hunting, fishing, wellness, agri-tourism, extreme 26% Cruise 34% Cultural including religious and pilgrimage 5000 monuments of history, culture and natural artifacts 250 different museums 261 tourist facilities 2011 - 1.8 mil tourists visited Yaroslavl Oblast, of them: 1.5 mil - Russians, 0.3 mil – foreign tourists (mostly - USA (27%), France (24%), Germany (21%) Yaroslavl Oblast Government

18. Formation of a large recreational tourist cluster that will include a net of camps for the minors between ages 9 and 15 with diversified infrastructure and unique education programs. There will be also the Central City for family vacations and corporate holidays. Project implementation period: 2013-2015 Estimated investment volume: over RUB35.00 bln Operational results by 2016: world class resort with total area of more than 750 000 sq km up to 6 000 created new jobs increase of tourist flow up to 620 000 visits per year Tourism for children and teenagers : Strana Detei ( Children’s Country ) Yaroslavl Oblast Government

19. Cruise travel – the Volga river (stretches for 340 km across Yaroslavl oblast) City of Yaroslavl is located at the confluence of the Volga and the Kotorosol rivers. 450 000 out of 1,8 mln tourists visited Yaroslavl oblast in 2012 through cruise travel Rybinsk Reservoir (the Rybinsk Sea) travel Surface area - 4,580 sq km Max. depth - 28 m Water tourism: unique location of Yaroslavl Oblast Yaroslavl Oblast Government

20. By 2020 the resort Yaroslavskoe Vzmorie will be constructed on the shore of Rybinsk Reservoir. It is going to be a unique Central Russia resort zone for hosting over a million tourists per year. As a part of the project Agranta Group and Accor Group have signed a cooperation agreement for construction of the first hotelresort Mercure in Yaroslavl Oblast. Water tourism : Tourist Project Yaroslavskoe Vzmorie (Yaroslavl Seaside) Yaroslavl Oblast Government

21. Operational results: estimated investment volume: over RUB18.00 bln world class resort with area of 3,600 ha up to 20,000 created new jobs increase of tourist flow up to 210 000 tourists per year Water tourism : Tourist Project Yaroslavskoe Vzmorie (Yaroslavl Seaside) Yaroslavl Oblast Government

22. Support of Investors Tax incentives for investors Duration: 7 years or more Full exemption from property tax (rate - 0%) Reducing income tax rate by 4,5% (to 15.5%) Full exemption from vehicle tax (rate - 0%) Tax relief on land tax Possible provision of subsidies from the Oblast budget to compensate the costs of infrastructure (comes as a part of investment agreement) Support and maintenance projects Assistance in selection of sites for investors Support with infrastructure issues Faster paper process (permits, approvals, etc.) Assistance with local company registration Assistance in training of personnel Yaroslavl Oblast Government

23. 1. Equal opportunities for Russian and international investors Lower administrative barriers Protection of investors’ rights Infrastructure development: professional training and accommodation for employees State support of the projects in progress Yaroslavl Oblast Investment Memorandum Guidelines For full text of the Memorandum click here Yaroslavl Oblast Government

24. Yaroslavl Oblast Offers a place to enjoy a happy life qualified and skilled personnel developed transportation infrastructure special Oblast institution (Agency for Investment and Cluster Development) to take investors through administrative barriers WELCOME! Yaroslavl Oblast Government

25. Thank you www.yarregion.ru Contacts: Igor Elfimov Vice-Governor of Yaroslavl Oblast E-mail: Igor.Elfimov@region.adm.yar.ru Telephone: +7(4852) 786-004 Address: ul.Svobody, 62 Yaroslavl 150014 Russia