Путеводитель инвестора. Екатеринбург


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Данная публикация призвана помочь потенциальным инвесторам оценить наиболее перспективные отрасли экономики Екатеринбурга.

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Путеводитель инвестора. Екатеринбург

  1. 1. Guide to InvestmentEkaterinburg
  2. 2. PwC Russia (www.pwc.ru)provides industry-focused assurance, tax and advisory services. Over 2000 professionals working in PwC offices in Moscow,St Petersburg, Ekaterinburg, Kazan, Yuzhno-Sakhalinsk and Vladikavkaz share their thinking, experience and solutions todevelop fresh perspectives and practical advice for our clients. The global network of PwC firms brings together more than161000 people in 154 countries.PwC first appeared in Russia in 1913 and re-established its presence here in 1989. Since then,PwC has grown to become the largest professional services provider in Russia.According to the annual rating prepared by the independent rating agency Expert RA, published in Expert magazine, PwC isthe largest auditor, tax and legal advisor in Russia (see Expert, 2000-2010).This overview has been prepared in conjunction with and based on the materials provided by the Administration ofEkaterinburg.This publication has been prepared for general guidance on matters of interest only, and does not constitute professionaladvice.2 | Guide to investment | PwC
  3. 3. 4 | Guide to investment | PwC
  4. 4. Contents7 Welcome message from the Head of Ekaterinburg – Chairman of the Ekaterinburg City Duma9 Welcome message from the Mayor of Ekaterinburg11 Foreword by the Partner of PwC in Ekaterinburg12 Ekaterinburg: an overview Geographic location Human resources Science16 Economic potential The city’s development strategy Living standards and personal income Ekaterinburg’s social and economic development in 2010 versus other Russian cities with one million-plus inhabitants Banking system22 Economic structure by sector Manufacturing Technoparks and industrial parks Construction26 Urban infrastructure Hotels and restaurants Transport Transport potential30 Foreign trade relations32 Investment potential Major investment areas Tax system37 Conclusion38 Contacts PwC | Ekaterinburg | 5
  5. 5. 6 | Guide to investment | PwC
  6. 6. Welcome message from the Head of Ekaterinburg – Chairman of theEkaterinburg City DumaDear ladies and gentlemen,Welcome to Ekaterinburg, the capital of one of Russia’s most advanced regions. Today, the capital of the Ural Federal District is a leader in most criticalmetrics among Russian cities with one million inhabitants or more. Over the past 15 years, the city has succeeded in diversifying its economy andpreserving its traditional competitive advantages, while working hard to create new ones.The city’s industrial base is dominated by heavy engineering, which accounts for a 35% share, with metallurgy, chemicals, construction materials andfood processing also prominent sectors, with an aggregate share of 27%. Ekaterinburg’s qualitative economic development is reflected in the increasingintegration of science and production, and the growth of science-intensive industry and high-tech production facilities. The services sector andwholesale and retail trade are also gaining momentum. The citys economic development priorities are focused on the quality of the business and socialinfrastructure, and creating a favourable climate for businesses, including foreign partners.It’s particularly noteworthy that our investment resources have come primarily from the local business community, which has eagerly taken up thechallenge of investing in and developing diverse sectors of the city’s economy. Both Russian and foreign companies are actively carrying out a number ofambitious, large-scale development projects.Ekaterinburg has been active in expanding its international links. Every year, the city hosts hundreds of business delegations. Ekaterinburg ranks thirdamong Russia’s cities, behind only Moscow and St Petersburg, in the number of foreign consulates and diplomatic missions.But, even with all the positive trends in developing business and trade relations, the international business community’s insufficient awareness ofEkaterinburg’s strong potential has hampered the development of new areas for cooperation. So, we hope this Investor’s Guide will help you learn moreabout the many opportunities that Ekaterinburg has to offer.We believe the most promising areas for cooperation are: - creating new production facilities, primarily for innovation-driven sectors. - developing technoparks. We are particularly interested in sharing experience and technology related to providing public services. - promoting tourism and trade - cooperating in exhibitions and trade shows: Along with business missions, exhibitions and trade shows offer valuable opportunities to identify suitable business partners. That’s why we would like to invite you to use Ekaterinburg-Expo, our new exhibition centre, as a venue for your next trade show or exhibition.Ekaterinburg is open for business cooperation, which we see as the cornerstone of future success and prosperity for us all!Evgeniy N. PorunovHead of Ekaterinburg –Chairman of the Ekaterinburg City Duma PwC | Ekaterinburg | 7
  7. 7. 8 | Guide to investment | PwC
  8. 8. Welcome message fromthe Mayor of EkaterinburgDear partners,I am pleased to present this Investment Guide to Ekaterinburg, one of Russia’s largest and most dynamic cities. Today’s Ekaterinburg is notonly the capital of the Ural Federal District but also a leader in many categories among Russia’s major cities with million-plus populations.We encourage you to learn more about our city’s diverse economy, key urban infrastructure, historical leaders in industry and innovation,and the city’s development strategy and future prospects, all of which together define the Urals capital’s business profile.Historically, our city has been famous for its advanced industrial production facilities. Now, in the early 21st century, Ekaterinburg is alsoa major transportation and logistics hub and a centre of information, business, science, technology and culture that offers significantinvestment potential. The city’s extensive international links are supported by the presence of many foreign diplomatic missions andbusiness representative offices. In recent years, Ekaterinburg has hosted world-class national and international events: the SCO and BRICsummit meetings in 2009, the Innoprom exhibition and forum in 2010, and many others. In 2011, Ekaterinburg was selected as one ofseveral host cities across Russia for the 2018 Football World Cup.The Urals capital not only values its rich heritage and is actively building its present, but also looks to the future with confidence.Ekaterinburg’s strategic development plan up until 2025 calls for an entire range of programmes focused on the city’s integrateddevelopment as an efficient, modern, innovation-friendly business environment, a space for living and realising the boldest of ideas.The Ekaterinburg City Administration has consistently emphasised strengthening and expanding the city’s economic relations at the local,interregional and international levels. You’ll find our city to be hospitable, ready for open dialogue and welcoming to new friends andbusiness partners. We hope that what you learn from this Investor’s Guide to Ekaterinburg will start you on the path to a long-term andmutually beneficial cooperative relationship!Alexander E. YakobMayor of Ekaterinburg PwC | Ekaterinburg | 9
  9. 9. 10 | Guide to investment | PwC
  10. 10. ForewordEkaterinburg is one of Russia’s most attractive cities for doing business. In May 2010, Forbes magazine published a new ratingon the business appeal of Russian cities. Among the 103 cities analysed, Ekaterinburg ranked third according to six differentparameters: business climate, consumer purchasing power, ability to weather a crisis, social characteristics, infrastructure, and easeof doing business for business owners and top managers.For a long time, Ekaterinburg has retained its leadership position thanks to a diversified economy and the equal playing field thatthe local authorities have ensured for all businesspeople.Ekaterinburg was founded as a mining community on the banks of the Iset River in 1723. Throughout its history, the city hasdeveloped as one of Russia’s leading industrial, cultural, transportation, administrative, scientific, military and political centres.Among Russia’s major metropolitan areas, Ekaterinburg ranks third in size, with a total population of over 25 million and a landarea exceeding 3 million square kilometres. Building on its strong economic potential and status as the capital of the Ural FederalDistrict, Ekaterinburg is considered the country’s second most important economic hub, just behind the Moscow metropolitan area.Ekaterinburgs investment appeal has been growing at a very dynamic pace. This is due to the city’s unique economic andgeographic location at the crossroads of transport routes between Europe and Asia. This favourable geographic location hasenabled Ekaterinburg to become one of Russias major transport and logistics centres, integrating traffic flows from all directionson all modes of transport, including rail, motor and air, linking Ekaterinburg to all regions of Russia. In recent years, Ekaterinburghas experienced a rapid pace of social and economic development. A building boom, growing manufacturing base and expandingservices sector have been the main drivers of the citys dynamic social and economic development and financial sustainability.The City Administration maintains strong cooperative relations with both Russian and foreign business partners and guaranteessupport in promoting and carrying out investment projects. This Guide to Investment is designed to help potential investors assessthe most promising sectors of Ekaterinburg’s economy. It was prepared jointly by PwC Russia and the External Relations Committeeof the Ekaterinburg City Administration, which has generously provided reference materials and data.Maxim MatsiborkoPartner, Head ofPwC office in Ekaterinburg PwC | Ekaterinburg | 11
  11. 11. Ekaterinburg: an overview12 | Guide to investment | PwC
  12. 12. Geographic location Human resourcesEkaterinburg is one of Russias largest and most In the past five years, gains from in-migration and adynamically growing cities. As the administrative centre reduced rate of population decline have helped increaseof the Sverdlovsk Region and the Ural Federal District, it is the citys population by 28 300.one of Russia’s most important industrial, transportation,trading, financial, scientific and cultural centres. Ekaterinburg has a broad labour market, with over 700 000 people employed across all economic sectors. IndustrialEkaterinburgs geographic location is extremely employment continues to dominate within Ekaterinburg’sfavourable. The city occupies a low-lying section of the Ural labour market, a legacy of the city’s heritage as a centre ofMountain range, which puts it at the confluence of major heavy industry. The city’s popu-lation boasts a high leveltransportation routes from Central Russia to Siberia (first of education, including a significant number of peoplethe Great Siberian Route, which was then followed by the with higher vocational education. With its strong scientificTrans-Siberian Railway). As a result, Ekaterinburg has and technical heritage, the city enjoys significant humanemerged as the strategically important centre of Russia, resources potential.which continues to link the European and Asian parts ofthe country. Ekaterinburgs population (in thousands)*The city has a population of 1 386 500 inhabitants and 1380covers a land area of 491 square kilometres, ranking fourthin Russia. 1370Ekaterinburg is 1 667 kilometres from Moscow, or two 1360hours by airplane. 1350 1340 1330 2003 2004 2005 2006 2007 2008 2009 2010 * Population figure as of 1 January 2011 PwC | Ekaterinburg | 13
  13. 13. ScienceAs one of Russia’s largest scientific and technologicalcentres, Ekaterinburg is the site of intensive scientificresearch activities.The region’s scientific community has made a significantcontribution to the technological modernisation ofindustrial facilities in the Ural region, as well as thedevelopment of new sources of raw materials, andimprovements in the regions environment.The city is home to 20 academic scientific institutions thatconduct research in many areas, including mathematicsand mechanics, physics and chemistry, metallurgy,environmental science, geology, nanotechnology and manyother fields of science. Their research is highly regardedboth within Russia and internationally.Ekaterinburg is one of Russias major centres of highereducation-based research. The city boasts 45 highereducational institutions with 180 000 students studyingpractically all specialist disciplines available in Russia. With65 000 students, the Boris Yeltsin Ural Federal University,named in honour of Russias first President, was founded inEkaterinburg in 2010 by presidential decree on the basis oftwo of the region’s oldest higher educational institutions.The citys higher education-based research community hasincreasingly been integrating into academic and industryresearch.14 | Guide to investment | PwC
  14. 14. PwC | Ekaterinburg | 15
  15. 15. Economic potentialEvery year, critical projects in all areas of business(industry, trade, and residential construction) are carriedout in Ekaterinburg, reflecting the city’s strong economicpotential and dynamic growth.This has resulted mainly from the development of theservices sector, growing industrial production andresidential construction, as well as the concentrationwithin Ekaterinburg of macro-regional level administrativeand support functions. In the period 2003-2010, thevolume of goods shipped by large and medium-sizedenterprises grew by 2.7 times, while retail sales grew byover 2.5 times, the number of residential and commercialpremises built rose by 2.3 times and 4.8 times, respectively,and real earnings increased 1.9 times.16 | Guide to investment | PwC
  16. 16. The city’s development strategyEkaterinburg is one of the first cities in Russia to developits own strategy. For the past eight years, Ekaterinburg’sdevelopment has been guided by the StrategicDevelopment Plan up to 2015, approved by the City Dumain June 2003. The Plan constitutes a set of materials on thecitys development strategy, which integrates key futuredevelopment goals, missions, programmes and projectsfocused on achieving strategic results.Todays Ekaterinburg is an interregional financial andbusiness centre and a venue for international events. InJune 2009, the city hosted several important transnationalevents: a meeting of the heads of state of the ShanghaiCooperation Organisation (SCO) member countries(the SCO Summit and the first BRIC Summit). In 2010,Ekaterinburg hosted such significant events as the 12thround of German-Russian interstate consultations, the10th German-Russian Petersburg Dialog Forum, and the6th session of the Russo-German Youth Parliament (inJune 2010), among others. In 2010 and 2011, Ekaterinburgwas the site of Innoprom, the Ural International Exhibitionand Forum of Science and Innovation. In 2011, thisimportant event is expected to attract attendees from over40 countries.Ekaterinburg is currently building Ekaterinburg Expo,the region’s largest exhibition complex and the mostadvanced facility of its kind in Russia. Ekaterinburg Expois scheduled to host Expo 2020, which is billed as “Russia’sfirst global multi-purpose exhibition”.Ekaterinburg has also been selected as one of severalRussian host cities for the 2018 World Cup FootballChampionship. The region’s preparations for the 2018World Cup are expected to have a very positive impact onjob creation, labour productivity, salary levels, and thegeneral quality of life. PwC | Ekaterinburg | 17
  17. 17. Living standards and personal incomeIn many social and economic indicators, Ekaterinburgoutperforms Russia’s other million-plus cities. The highincome level of Ekaterinburgs population drives the city’sleadership in terms of retail sales growth (RUR 450.7billion in 2010). The city’s sales volume per capita is 2.7times higher than the nationwide average. Ekaterinburg isa traditional shopping centre for residents of smaller citiesand towns in the Ural region and Siberia.The average monthly salary in the city is RUR 26,097.Ekaterinburg’s social and economic development in 2010 versus other Russian cities with one million-plus inhabitants Unit of Nizhniy Indicator Volgograd Ekaterinburg Kazan Novosibirsk Omsk Rostov-on-Don Samara Ufa Chelyabinsk Measure Novgorod Population as of beginning of year ‘000 1014,9 1375,4 1136,6 1278,8 1409,1 1127,7 1048,1 1133,8 1038,1 1095,9 Volume of locally produced goods shippedIndustrial production index % 87,2 107 99,3 - 98 - 70,5 76,9 95,3 73,6 Capital investment by large and medium- RURm 7164,8 62200 18608,9 13347,4 13964 12197,2 12650,8 12203,6 12998,6 11521,4 sized businesses Retail sales RURbn 170,2 450,7 259 204 - 157,9 233,1 200,6 300,6 231,5 New residential construction sq.m ‘000 325,5 1026,8 771,8 365,4 1017 349,8 850 588,7 654,41 1487,418 | Guide to investment | PwC
  18. 18. PwC | Ekaterinburg | 19
  19. 19. 20 | Guide to investment | PwC
  20. 20. Banking systemEkaterinburg has one of the country’s most advanced of BSGV Bank CJSC in Ekaterinburg (Bank Societe Generalbanking systems. The number of banks operating in Vostok), the Ekaterinburg branch of UniCreditBank CJSC,Ekaterinburg has doubled over the past five years. the Ekaterinburg branch of Promsvyazbank OJSC, a branchThe citys banking sector encompasses over 80 lending of Absolut Bank in Ekaterinburg, the Ekaterinburg branchinstitutions, including: of Home Credit and Finance Bank, 19 banking organisations registered in Ekaterinburg; 2 banking organisations registered in the Sverdlovsk Region; 46 banking organisations registered in other regions of the Russian Federation; and over 10 representative offices of banking organisations and one non-banking lending institution (Clearing Agency of Ural Regional Currency Exchange, CJSC).Some of the characteristics of Ekaterinburgs bankingsector are: a broad range of activities; an advanced institutional structure; a significant need for accelerated capitalisation of the banking sector to increase the range of services to meet growing customer demand; a high degree of customer loyalty; and a high degree of innovation.As of the beginning of 2011, Ekaterinburg has 10 foreign- the Ural branch of CitiBank CJSC, a branch of MBA-owned registered banks, including: the Ural branch of KMB MOSCOW in Ekaterinburg, and a branch of BNP ParibasBank, the Ural branch of Raiffeisen Bank CJSC, a branch Vostok in Ekaterinburg. PwC | Ekaterinburg | 21
  21. 21. Economic structure by sectorManufacturing aerospace industry, motor vehicles, and many other things. In recent years, the small business sector has been shifting away from its traditional focus on trade and servicesManufacturing is Ekaterinburgs leading economic sector towards manufacturing and auxiliary services, as wellwith an annual turnover exceeding RUR 150 billion. Heavy introducing new technologies and proactive cooperationengineering dominates the city’s industrial structure. with leading businesses.Ekaterinburg is the largest centre of heavy engineering inthe Ural region and in Russia as a whole. It has 50 majorheavy engineering enterprises that account for over 40% of Import structure in 2010the citys production. Goods manufactured in Ekaterinburgare shipped to over 100 countries around the world.Equipment, machinery and vehicles, tools and instruments,and automation facilities and systems designed andmanufactured in Ekaterinburg are used widely by leadingmetallurgical, mining, chemical, and machine-buildingplants, as well as in such sectors as power generation, oiland gas, housing and public utilities, food processing,consumer goods, and water and land transport.In addition to military orders, the citys defence industryproduces high-quality goods for the public health sector,agriculture, housing and public utilities infrastructure, the n 43,2% Machine-Building n 22,5% Metallurgical Production and Production of Metal Ware n 3,1% Other Production Facilities n 4,2% Production of Miscellaneous Non-Metallic Mineral Commodities n 0,6% Cellulose and Paper Production, Publishing and Printing Business n 13,1% Food Production n 7,3% Chemical Production (Including Pharmaceuticals n 5,2% Production of Rubber and Plastic Goods n 0,8% Light Industry22 | Guide to investment | PwC
  22. 22. PwC | Ekaterinburg | 23
  23. 23. Technoparks and industrial parksEkaterinburgs development strategy is focused on Innovation Centre and to generate RUR 240 million increating a favourable infrastructure and organisational earnings by 2018.conditions within the city to stimulate innovative processesas a critical driver for ensuring sustainable economic The Priborostroyeniye Technology Park was createddevelopment and improved public welfare. as part of the Semikhatov Automation Research and Manufacturing Association. The Akademicheskiy CentreThe city is aggressively creating an infrastructure for for Innovation and Technology (a part of the Ural divisioninnovation-driven businesses (technoparks, industrial of the Russian Academy of Sciences) continues its effortsparks and innovative technology centres). to promote innovative products manufactured by research institutes and small businesses. Its innovation-drivenAn IT cluster was created in 2010, which includes initiatives encompass such areas as metallurgy, industrialequipment manufacturers, such as ASK, IskraUralTel and waste recycling and beneficiation, instrument engineering,Data-Center. In early 2011, a project to build an IT park in construction materials and new types of equipment.Ekaterinburg was presented. To date, over RUR 1.2 billionof investment financing has been raised for the project, The Tekhnomet Technology Park has been created towhich is expected to become a branch of the Skolkovo focus energy conservation technologies in metallurgy and machine-building. Construction has started at a 1.7-hectare site provided by the City Administration on the Averon Technology Park, which will produce electronic medical equipment and automation equipment.24 | Guide to investment | PwC
  24. 24. ConstructionThe strong growth in Ekaterinburgs economy is bestreflected in the citys “building boom”.In 2010, Ekaterinburgs large and medium-sizedconstruction companies carried out building contractsworth a total of RUR 22,7 bln..Ekaterinburg is currently the site of the largest buildingproject in Russia and Europe: construction of theAkademicheskiy housing estate, which will provide overnine million square metres of new housing. In twentyyears, over 325,000 people, or about one-fourth ofEkaterinburgs current population, will be able to livethere. The first apartment units are already occupied andthe estate features a newly built secondary school, thecity’s largest, which will accommodate 1,000 students fromSeptember 2011. New residential and commercial construction1200 1026,81000 955,02 964,5 899,53 859,1 816,53 800 735,3 658 600 495,5 502 400 200 0 2006 2007 2008 2009 2010 PwC | Ekaterinburg | 25
  25. 25. Urban infrastructureHotels and restaurantsThe citys hotel infrastructure consists of fully refurbishedand newly constructed facilities. To date, Ekaterinburghas 56 hotels, of which 44 were built in the past five years,including such cutting-edge, world-class hotel facilities asthe Hyatt Regency Ekaterinburg, the Angelo AirporthotelEkaterinburg, the RAMADA Ekaterinburg, the Park InnEkaterinburg and the Accor Novotel.Ekaterinburg has an extensive food service and restaurantsector with 1,563 restaurants that can serve up 120,500diners. With a sales volume of RUR 15.4 billion in 2010,the city’s dining establishments offer a wide selectionof international cuisine, including Russian, Ukrainian,Caucasian, Japanese, Chinese, Italian, French, German,Cuban, Serbian and Czech, among others.26 | Guide to investment | PwC
  26. 26. PwC | Ekaterinburg | 27
  27. 27. TransportIn recent years, the growth of the citys economy has Two new subway stations - Chkalovskaya andstimulated a rapid increase in the number of motor Botanicheskaya - will be opened by the end of 2011. Thisvehicles, which not only requires ongoing maintenance and will complete construction on the first subway line, whichrepair of the city’s road network but also resolving major is 13.5 kilometres long and has nine stations. Constructiontransportation issues facing the city, primarily through of the second line to link the citys west and east sides isbuilding new roads and rebuilding existing ones as well as scheduled for 2012.building new transport facilities.Ekaterinburgs municipal public transportation systemfeatures most types of surface transport (tram, trolleybus,bus, minibus taxi and regular taxi, and suburban electrictrain) as well as an underground subway system. Publictransport routes serve all city districts. The municipaltransport fleet is upgraded every year for an average ofnew 75 units annually.28 | Guide to investment | PwC
  28. 28. Transport potentialThe construction of several state-of-the-art logistics hubs Koltsovo Airport is an international air-transportrepresents a quantum leap in the development of the citys hub that meets all international standards. Thetransportation infrastructure. In the near future, the city airport can handle a large volume of passengerswill be in a position to handle up to one-fourth of Russias (up to eight million passengers annually) and cargototal cargo traffic. To date, annual freight traffic amounts traffic of 79 400 tonnes. It has a modern terminalto 3,464,000 tonnes. serving international and domestic airlines. ToThe citys strong transport potential is driven by its unique increase passenger flow, an express train was putgeographic location, proximity to national and regional into service between Koltsovo Airport and the mainhighways, a major railway hub, and an airport that ranks railway station. From downtown Ekaterinburg, youfifth in Russia in terms of passenger traffic. can reach the airport in 20 minutes. PwC | Ekaterinburg | 29
  29. 29. Foreign trade relationsEkaterinburg maintains strong trade relations with 129 As of the end of 2010, Ekaterinburg had 320 registeredcountries around the world. The city’s enterprises do foreign businesses. On average, 20 foreign businesses arebusiness with partners from the Netherlands, Kazakhstan, launched in the city annually.Germany, the United States, China, Italy, India, Ukraine,South Korea and Belarus. Over 100 business missions visit Ekaterinburg has 12 partner cities in 7 countries:the city annually. Guangzhou (sister city) in China; Genoa, Turin and San Remo in Italy; Plzen in the Czech Republic; Inchon (sisterEkaterinburg currently has 20 foreign consulates, city), Seongnam and Pohang in South Korea; Minsk andincluding: Mogilev in Belarus; Plovdiv in Bulgaria; and Annaba in Algeria. 11 consulates-general: the United States, the United Kingdom, Kyrgyzstan, the Czech Republic, Germany, the People’s Republic of China, Vietnam, France, Hungary, Tajikistan and Azerbaijan; 8 honorary consulates: Austria, Hungary, Democratic Republic of Congo, South Korea, Mongolia, Republic of Seychelles, Italy and Luxembourg; and an office of the Embassy of Belarus. In addition, the city hosts: 2 trade missions: the Netherlands (unaccredited) and Ukraine; as well as several official representative offices without diplomatic status, including Czech Trade, an agency for supporting Czech business; a correspondent station of ICE, Italys Foreign Trade Institute; NBSO, a centre for supporting Dutch business; a contact bureau of Rheinland-Pfalz (Germany) in Russia; and the Finnish-Russian Chamber of Commerce.30 | Guide to investment | PwC
  30. 30. PwC | Ekaterinburg | 31
  31. 31. Investment potentialIn 2010, large and medium-sized businesses of all types Cartier, etc. In the past five years, the auto market has alsomade capital investments totalling RUR 62.2 billion aimed seen considerable transformations with several dozen newat developing the city’s economy and social services. showrooms opening up, offering, among other things, such luxury makes as Bentley, Ferrari, Porsche and others.Major investment projects include the construction ofthe Ekaterinburg City urban business district and theAkademicheskiy housing estate.Ekaterinburg is becoming more appealing for Russianand foreign investors. International retail chains(Metro, Auchan, IKEA) and hotel chains (Hyatt RegencyEkaterinburg, Park Inn Ekaterinburg, Angelo AirporthotelEkaterinburg, RAMADA Ekaterinburg, Accor Novotel)came to Ekaterinburg right Moscow and St Petersburg andare now successfully operating in the city.Among the city’s retail outlets are stores of Europesleading fashion labels, such as Chanel, Louis Vuitton,32 | Guide to investment | PwC
  32. 32. PwC | Ekaterinburg | 33
  33. 33. Major investment areas include: Tax system In the Russian Federation, investment and business activity • technical upgrade of industrial enterprises; must comply with the current tax regime. • establishment of joint ventures for The Russian Tax Code establishes the system of taxes and manufacturing competitive and innovative fees and general principles governing taxation and fees in products; the Russian Federation. Main taxes and fees include: • creation of dedicated centres rendering general industrial services (casting, galvanics, etc.); • Income tax – 20%. • VAT –10% or 18% (based on the type of • upgrade and refurbishment of boiler rooms, goods) heating networks and heating lines; • Property tax – 2.2% • upgrade and refurbishment of sewage disposal plants, sewerage systems and pumping stations; • Transport tax - from 15.7% (based on engine horsepower) • recycling of domestic waste; construction of sorting plants; recycling of glass, paper, rubber • Personal income tax – 9%, 13%, 15% or and sludge; - recycling of medical waste, 30% (based on the type of income) household appliances waste and wood; • Insurance premiums - 34% (charged to • cleaning of storm water drains; the labour compensation fund, based on annual earnings) • upgrade of lift facilities; • major repairs of apartment blocks; • energy conservation for housing and public utilities infrastructure; • upgrade of vehicles used for intra-city transportation; and • construction and refurbishment of roads, construction of road junctions; subway.34 | Guide to investment | PwC
  34. 34. PwC | Ekaterinburg | 35
  35. 35. ConclusionThe Ural region, centred around the city of Ekaterinburg, Ekaterinburg into an air transport centre.is a cornerstone of Russia which forms the heart of thecountry’s industrial base. Ekaterinburg is the leader among It is also important that Ekaterinburg has been included inRussian cities with million-plus population in terms of the Great Cities of the Future rating. This study, conductedinvestment appeal and the sustainability of positive social by the English-language edition of Forbes magazine,and economic development trends, as well as the level was based on the top ten positions in the Worldwideof development of its retail and service sectors, and the Emerging Markets Index, as calculated by MasterCardmaturity of its consumer market. after researching the 85 most promising cities that drive development in the worlds 30 leading markets. In theA significant part of Ekaterinburgs investment appeal MasterCard index, Ekaterinburg ranks 59th, with Moscowis based on the fact that it is home to many foreign (14th) and St Petersburg (41st) the only other Russianconsulates, as well as the central office of the Ural Customs cities to outrank the Ural capital.Administration. Another attractive feature is KoltsovoInternational Airport, Russias largest regional transportand logistics hub, which has been fully refurbished to turn36 | Guide to investment | PwC
  36. 36. The rating took into account eight primarycriteria: • overall economic and business environment; This is why a number of major Russian and foreign • economic growth rate; investors, after assessing Ekaterinburgs investment potential, are successfully doing business in the city in such • conditions for doing business; diverse sectors as construction, ferrous and non-ferrous metallurgy, chemicals, construction materials, textiles and • standard of financial services provided; food processing, and agriculture. • business compatibility with other markets; The Ekaterinburg City Administration and the city’s leadership are ready for an open dialogue and are doing • peoples educational level and IT infrastructure their utmost to ensure that our business partners grow and development standard; prosper together with the city, and that Ekaterinburg offers • overall quality of life; and a favourable environment for your business operations. We are ready to help you realise your investment plans. • overall safety level and number of potential risks. Welcome to Ekaterinburg! PwC | Ekaterinburg | 37
  37. 37. ContactsEkaterinburg City Administration PwC Russia - Ekaterinburg24A Lenin Ave., Ekaterinburg, 620014 7A Gorkiy St., Ekaterinburg, 620075Tel.: +7 (343) 355 2990 Tel.: +7 (343) 253 1433Fax: +7 (343) 355 2992 Fax: +7 (343) 253 1430 26www.екатеринбург.рф E-mail: office.ekb@ru.pwc.com www.pwc.ruCommittee for External Relations Maxim MatsiborkoSvetlana A. Garipova Managing PartnerCommittee Chair E-mail: maxim.matsiborko@ru.pwc.comTel.: +7 (343) 354 5567garipova@adm-ekburg.ruEkaterinburg Congress BureauTel.: +7 (343) 371 79 27Fax: +7 (343) 371 79 26E-mail: dunaeva@adm-ekburg.ruwww.ekaterinburg-convention.comEkaterinburg Information and Tourist Service21 8 Marta St., Ekaterinburg, 620014Tel.: (343) 376-43-61www.its.ekburg.ru38 | Guide to investment | PwC
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  39. 39. ©2011 PwC. All rights reserved. Further distribution is permitted with the written consent of PwC. “PwC” refers to the firms of PricewaterhouseCoopers International Limited (PwCIL).Each firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any sevices to clients. PwCIL is not responsible or liable for the acts or omissions of anyof its member firms nor can it control the exercise of their professional judgement or bind them in any way. No member firm is responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgement or bind them in any way.