1. THE MINISTRY FOR ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION The SME Support Measures in Russia

2. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION The Federal Law «On Development of Small and Medium Entrepreneurship in the Russian Federation» 2 Micro EnterprisesSmall EnterprisesMedium Enterprises up to 15 employees 16-100 employees 101 – 250 employees annual turnover up to $ 2,1 mln annual turnover up to $ 14 mln annual turnover up to $ 35 mln SMEs Criteria

3. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION The SME Sector Main Indicators 3 3,2% - the SME sector growth in 2010 17 mln employed in the SME sector 25% of total employment (2010) 21% - share of SMEs in Russia’ GDP 1,7 mln micro, small and medium enterprises and 4,1 mln private entrepreneurs Main problems: √ Administrative burdens √ Expensive credits √ Decreasing of number of SMEs in monotowns

4. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION SME Support Measures 4 Access to Government Procurements SMEs Easing Taxation Finance & Credit Access Reduction of Administrative Burdens The Finance Support Program under the Ministry for Economic Development of Russia The Finance Support Program under the Government Corporation «Vnesheconombank» Access to Real Estate Assets

5. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION SME Support Measures 5 Administrative Regulation Measures  Start-up of business with a simple notification procedure  Any inspection is fulfilled one time in three years  Number of licenses for SMEs has been decreasing

6. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 6 SME Support Measures The Government Procurements  20% quota is reserved for SMEs  Guarantee deposit is reduced

7. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 7 SME Support Measures Access to Real Estate Assets  The privatization program for SMEs  Specialized list of public real estate assets in state and city levels exists for SMEs  Special benefits to innovative SMEs founded by Universities

8. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 8 SME Support Measures Taxation  5% tax on income or 6% tax on turnover  Single tax for trade and personal services SMEs

9. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 9 SME Support Measures The Finance Support Program under the Ministry for Economic Development of Russia  Grants for start-up  Guarantee Funds  Microfinance Organizations  Leasing  Export-oriented SMEs  Infrastructure (business incubators, industrial parks, tech-parks)  Trainings  Annually above 100 000 new jobs

10. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION SME Support Measures 10 Guarantee Funds  80 entities at all in Russia  70% max. loan guarantee  300 bank – partners  $ 13 mln – max. loan  $ 10 mln – max. guarantee

11. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 11 SME Support Measures Microfinance Organizations  67 microloan offices in Russia  16 000 microloans for SMEs  $ 17 500 average loan

12. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 12 SME Support Measures Support of Innovative SMEs  $ 17 000 grant  $ 170 000 subsidy for new equipment, know-how and training  Up to $ 2 mln subsidies from venture funds e.g. the Russian Venture Company, Rosnano  about 1000 innovative SMEs are set up by Universities in Russia

13. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 13 SME Support Measures Support of Export-oriented SMEs  $ 34 000 grant  Loan subsidies  Subsidies for exhibition activity  Export Support and Consulting Centers in the Russian regions

14. THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 14141414 SME Support Measures The Finance Support Program under the Government Corporation «Vnesheconombank» GC «Vnesheconom- bank» GC «Vnesheconom- bank» Russian Development Bank Bank-partners (91) $1,3 bln Leasing companies (67) Factoring companies (8) Microfinance organizations (18) SME  $ 3,5 bln program fund  in 82 Russian regions

15. Thank You for Attention! The Ministry for Economic Development of the Russian FederationThe Ministry for Economic Development of the Russian Federation The SME Development DepartmentThe SME Development Department tel: +7-495-695-53-05tel: +7-495-695-53-05 fax: +7-495-695-51-76fax: +7-495-695-51-76 Web: www.economy.gov.ruWeb: www.economy.gov.ru THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION