1. Kaliningrad Chamber of Commerce and Industry September 2010

2. KALININGRAD CHAMBER OF COMMERCE AND INDUSTRY Non-state, non-commercial organization, connecting the Russian commercial and non-commercial organizations and entrepreneurs 225 Members with number of employees more than 70 000 Foundation : 1990 Branch office : Sovetsk, Chernjachovsk Legal base of activity : Law on Chambers of Commerce and Industry in Russia Kaliningrad Chamber of Commerce and Industry

3. LOCATION OF THE KCCI `S MEMBERS Kaliningrad Chamber of Commerce and Industry

4. SOME ACTIVITES OF KCCI`S MEMBERS

5. COOPERATION AGREEMENTS OF KCCI Chambers of Commerce and Industry: Northern Kazakhstan`s CCI Northern Kazakhstan`s CCI Byelorussia`s CCIs Byelorussia`s CCIs Norwegian - Russian CCI Norwegian - Russian CCI Southern Sweden CCI Southern Sweden CCI Shaulyai Chamber of Trade Shaulyai Chamber of Trade Vilnius CCI Vilnius CCI Authorities: Arbitration Court of the Kaliningrad region Arbitration Court of the Kaliningrad region Ministry of Foreign Affairs of the Russian Federation in Kaliningrad Ministry of Foreign Affairs of the Russian Federation in Kaliningrad Калининградская Торгово-промышленная палата

6. SERVICES OF KCCI Assistance in establishing of trade, industrial and scientific-technical relations between the Chamber Members and Foreign Companies: Assistance in establishing of trade, industrial and scientific-technical relations between the Chamber Members and Foreign Companies: Organization of trade missions, presentations of companies Searching of partners Legal support information support Special support for Investors Special support for Investors Accreditation of representations of foreign companies in the Kaliningrad Region Accreditation of representations of foreign companies in the Kaliningrad Region Issue of certificates of origin, of ATA Carnets Issue of certificates of origin, of ATA Carnets Mediation and A rbitration Mediation and A rbitration Kaliningrad Chamber of Commerce and Industry

7. Special Economic Zone in Kaliningrad Region: Legal Aspects Kaliningrad Chamber of Commerce and Industry September 2010

8. Special Economic Zone in the Kaliningrad Region - special legal regime for production, investment and/or other activities - special legal regime for production, investment and/or other activities Period of action: till the 31 st of March 2031 Legal basis: Federal Law « On special economic zone in the Kaliningrad region … », since 01.04.2006 Kaliningrad Chamber of Commerce and Industry

9. SCHEME OF ACTION FOR THE FEDERAL LAW No. 16-FZ RELATED TO THE GOODS PROCESSING IN THE TERRITORY OF SEZ Legal persons acting in transition period on FZ-13registered before 01.04.2006 Goods processing with identification and fulfillment of processing criteria Article 24 RUSSIAREST OF THE WORLD Goods import from the RF customs territory Goods exportation without customs duties Article 23 Point 2 Imported goods coming-in under free-customs-zone regime Goods exportation without export duties Legal persons registered in SEZ after 01.04.2006 Goods processing with obligatory identification to consider consumption in the territory of SEZ exclusively Article 10 Points 5, 6 Customs clearance of goods Goods import from the RF customs territory Goods exportation with customs duties Article 13 Points 2, 3 Goods coming-in under free- customs-zone regime Coming-in under import regime 40 Goods exportation with taxes Article 13 Point 6 SEZ in the KALININGRAD REGION

10. Tax benefits offered for the Resident of the SEZ Corporate income tax and property tax are: 0% for the first 6 years after the investment 0% for the first 6 years after the investment 50% “discount” on tax for the next 6 years 50% “discount” on tax for the next 6 years Kaliningrad Chamber of Commerce and Industry

11. Requirements to the Resident of SEZ : legal person legal person in conformity with the legislation of Russia in conformity with the legislation of Russia registered by the public authorities in the Kaliningrad region registered by the public authorities in the Kaliningrad region goods are manufactured exclusively in the Kaliningrad region goods are manufactured exclusively in the Kaliningrad region investments are made in the Kaliningrad region investments are made in the Kaliningrad region investment project meets the stipulated requirements investment project meets the stipulated requirements Kaliningrad Chamber of Commerce and Industry

12. Investment projects are to meet the following requirements: investment project is to be implemented in the territory of the Kaliningrad region investment project is to be implemented in the territory of the Kaliningrad region company must conduct a capital investment company must conduct a capital investment volume of capital investments is not less than 150 million rubles (approx. 6 million USD) volume of capital investments is not less than 150 million rubles (approx. 6 million USD) this amount should be invested within 3 years this amount should be invested within 3 years Kaliningrad Chamber of Commerce and Industry

13. Not-eligible projects: extraction of oil or natural gas, or provision of related services extraction of oil or natural gas, or provision of related services production of ethyl alcohol, alcohol products, tobacco products, and other excisable goods production of ethyl alcohol, alcohol products, tobacco products, and other excisable goods Exception: passenger cars and motorcycles wholesale and retail trading wholesale and retail trading repairs of household devices and personal usage objects repairs of household devices and personal usage objects financial activity financial activity Kaliningrad Chamber of Commerce and Industry

14. Examples of the investment projects carrying out in the Kaliningrad region: Construction of an industrial complex for deep processing of oil carrying cultures Construction of an industrial complex for manufacturing of electronic-home appliances Construction of a factory for deep processing of fish Construction of a complex for manufacturing of a refrigerating machinery Rendering of services on towage and mooring of sea vessels By the September 2010: 69 residents Total investment: more than 30 milliard Rubles Kaliningrad Chamber of Commerce and Industry

15. Guarantees to the Resident of the SEZ The total tax load cannot be increased within 25 years (till 31 March 2031) The total tax load cannot be increased within 25 years (till 31 March 2031) Exception: excise tax, value added tax and transfers to the Pension Fund of Russia The regime of interdictions and restrictions concerning implementation of capital investments cannot be applied till 31 March 2031 The regime of interdictions and restrictions concerning implementation of capital investments cannot be applied till 31 March 2031 Exception: Item 1 Clause 6 of the Law about SEZ Land plot: Land plot: The rent stipulated in the rent contract can not be changed during the contract period Kaliningrad Chamber of Commerce and Industry

16. Additional information www.investinkaliningrad.ru Kaliningrad Chamber of Commerce and Industry

17. THANK YOU FOR YOUR ATTENTION! WWW. KALININGRAD-CCI.RU Kaliningrad Chamber of Commerce and Industry