1. HISTORICAL AND CULTURAL BACKGROUND There are 372 objects of federal importance and over 4000 historical and cultural monuments of local significance in Pskov region.

2. О ПСКОВСКОЙ ОБЛАСТИ ПСКОВСКАЯ ОБЛАСТЬ PSKOV REGION Pskov Region Geographical location Distance from Pskov: to Riga – 260 km to Tallinn – 350 km to Vilnius – 400 km to Minsk – 450 km to Helsinki – 700 km to Warsaw – 850 km to Stockholm – 860 km to Berlin – 1200 km To Kaliningrad - To Moscow – 689 km Distance from Pskov: to Riga – 260 km to Tallinn – 350 km to Vilnius – 400 km to Minsk – 450 km to Helsinki – 700 km to Warsaw – 850 km to Stockholm – 860 km to Berlin – 1200 km To Kaliningrad - To Moscow – 689 km Pskov Region is the only one in the Russian Federation bounded by 3 different states at the same time: Estonia, Latvia and Belarus Pskov Region is the only one in the Russian Federation bounded by 3 different states at the same time: Estonia, Latvia and Belarus

3. Population – 737,3 000 inhabitants (by 01.12.2004) There’s the highest death-rate in Pskov region - 24,5 persons per 1 thousand inhabitants and natural population loss - 15,7 persons per 1 thousand people Births: 6 535 - Deaths: 18 360 Large cities: Pskov – 201 000 peopleVelikie Lukie–104 300 people Ostrov – 24 800 peopleNevel – 18 100 people Sebezh – 13 800 people Pskov Region 24,7 % engaged in economy with a higher education 50,4% - special professional 18,4% - high school 24,7 % engaged in economy with a higher education 50,4% - special professional 18,4% - high school Economically active population – 50 %

4. Pskov Region in the year 2004 The structure of a regional gross output О ПСКОВСКОЙ ОБЛАСТИ Regional gross output in 2003 was 1 bln $ that is about 103,1 % to the previous year in comparable prices.

5. О ПСКОВСКОЙ ОБЛСТИ Industry and Agriculture Industrial and agricultural products in 2001-2004 (mln. rub.) Industrial production volume in 2004 — about 8,2 million $ Industrial production volume in 2004 — about 8,2 million $ Dominating directions of agriculture –milk and meat cattle breeding, storing up a supply of fodder, production of vegetables and potatoes, flax growing.

6. PSKOV REGION The overall territory occupied by forests is approximately 2450 ths hectares (40% of the territory of the region): The overall territory occupied by forests is approximately 2450 ths hectares (40% of the territory of the region): evergreen- 45%, evergreen- 45%, birch - 35%. birch - 35%. Wood cutting area - 3,5 millions m 3. The region is abundant in non-timber forest resources: mushrooms, berries and medical raw materials. Wood cutting area - 3,5 millions m 3. The region is abundant in non-timber forest resources: mushrooms, berries and medical raw materials. European mink European mink otter otter marten marten beaver beaver Forests are inhabited with 21 speciesof wild animals, which include especially valuable fur species such as: Forests are inhabited with 21 speciesof wild animals, which include especially valuable fur species such as: FORESTRYFORESTRY

7. PSKOV REGION TRANSPORT Length of motorways with a hard paving – 11 000 km Length of railways – 1 100 km Motorway and railway system connects the region with the capitals of Baltic countries, harbours of St.Petersburg, Murmansk, Kaliningrad, Tallinn, Riga. Every day more that 4 thousands motor vehicles and dozens of trains cross customs borders (about 800 panel trucks).

8. Pskov region is a competent subject of the Russian Federation The system of legislative and executive bodies provides: Efficient state and local management Authority division between the Federation, region and local self-government Empowering for efficient local self- government realisation PSKOV REGION

9. Administrative structure Courts State Authority Federal AuthorityRegional Authority Ministries and departmentsRegional Deputy AssemblyState executive power system Local self-government bodies Heads of local administrations Local administrationsLocal deputy councils PSKOV REGION

10. Large Russian market entry Cheap and qualified labour Non-occupied market niche Cheap resources and raw materials Large supply of own resources and raw materials Vast non-occupied territories Moderate climate AND – FAVORABLE GEOGRAPHICAL LOCATION... Large Russian market entry Cheap and qualified labour Non-occupied market niche Cheap resources and raw materials Large supply of own resources and raw materials Vast non-occupied territories Moderate climate AND – FAVORABLE GEOGRAPHICAL LOCATION... GREAT OPPORTUNITIES: PSKOV REGION

11. Territorial structure of local self- government in Pskov region Urban districts – 2 Municipal rayons - 24 including: Urban settlements – 26 Rural settlements - 192 PSKOV REGION

12. Density of rural population Extreme points: From 4,6 persons / km2 - Plyussa rayon From 21,1 persons / km2 - Pechory rayon Average density of population in the Russian Federation - 2,3 persons / km2 Conclusion: There’s no territory with a low density of population in Pskov Region Extreme points: From 4,6 persons / km2 - Plyussa rayon From 21,1 persons / km2 - Pechory rayon Average density of population in the Russian Federation - 2,3 persons / km2 Conclusion: There’s no territory with a low density of population in Pskov Region PSKOV REGION

13. Typology of rural settlement by a population criterion 8385 Total 497 Over 100 persons 348 From 51 up to 100 persons 2734 From 11 up to 50 persons 3753 From 1 up to 10 persons 1053 0 person PSKOV REGION

14. Economical situation Subsidised municipalities: 25 (out of 26) Urban districts - 1 Municipal rayon - 24 (included) All the rest 218 municipalities are financed from municipal rayons’ budgets Level of subsidising (share of subsidies from regional budget) planned for the year 2006 - 48,6% including: urban districts - 0,89% municipal rayons - 47,71% Subsidised municipalities: 25 (out of 26) Urban districts - 1 Municipal rayon - 24 (included) All the rest 218 municipalities are financed from municipal rayons’ budgets Level of subsidising (share of subsidies from regional budget) planned for the year 2006 - 48,6% including: urban districts - 0,89% municipal rayons - 47,71%

15. PSKOV REGION