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2012



       THE STORY OF SUCCESS
Big
                                                                transport ring
   2          KALUGA REGION: AT THE HEART OF IT ALL!




Total area:
29,800 km2                                                                        MRH

Economically-active population:
553 000
                                                                        OBNINSK
Major cities:
Kaluga (pop 343 000),
Obninsk ( pop 106 000)
                                                   А 101
Climate:
Continental temperate


                                                           М3



                                        LUDINOVO
3            ECONOMIC LEADERSHIP: OUR TOP POSITIONS!




1st in Russia                                      1st in Central Federal District                        1st in Russia
Growth rate                                        3rd in Russia                                          Index of manufacturing
                                                                                                          growth (2011)
of industrial production                           Foreign Direct Investment
(August 2011)                                      (FDI) per capita


5,3 bn $                                           169,4 %                                                 111.1%
(2006 - 2011)                                      Actual GRP growth                                       Average annual GRP
Total foreign investments                          since 2006                                              growth



 BB                                                 42                                                      25,363
 National long-term rating                          Enterprises opened                                      Jobs.
 (Fitch Ratings)                                                                                            Created: 12,425




    «Kaluga region is one of the least bureaucratic places regarding investments. If Russia follows this way, the progress will
    be significant».
                                                                                                                         Vladimir Putin
4   VISION AND STRATEGY: CLUSTER POLICY!
5   CENTRAL AUTOMOTIVE CLUSTER: A REALITY TODAY!
6         PHARMACLUSTER: THE BEST START!




Berlin-Сhemie/Menarini
                                           Pharmaceutical Industry
Novo Nordisk, Nearmedic Plus,
                                           training Center
Galenika, AstraZeneca




    Hi-tech industrial park                Innovation Development
    project                                Agency of Kaluga Region
7          MODERN LOGISTICS                                                                             MOSCOW




                                                                                               MOSCOW




                                                                                     OBNINSK




                                  Smolensk
                                   region
                                                                                KALUGA




                                                          SUKHINICHI
    Logistics operators:
                                                                                   Tula
                                               LUDINOVO                           region


                                                                                           Logistic centers
                              Bryansk                                                      Airport
                               region
                                                                                           Customs
                                        KIEV

                                                                        Orel
                                                                       region
8        TRAINING CENTERS


Automotive industry training center


  Total area – 7000 sq m
  Extra in 2012 – 10000 sq m
  Workshops and labs – 20
  Studying at the same time – up to 400 people
  Short-term educational programs – 70
  State professional training programs – 20
  Number of trained personnel – 6,500
  For Volkswagen – 4,000
  For PCMA – 1,800

                                        Pharmaceutical industry


                                           February 2012 – the start of training
                                           Studying at the same time – up to 250 people
                                           Dual training system (theory and practice)
                                           Technical and educational basis of the international level
9           HOUSING FOR PROFESSIONALS




    «Eastern       «Voskresenskoye» «Swiss Village» «Zapadny»      «Pravgorod»      «Vorotynskaya   «Ecodolie»
    Balabanovo»    Project          Project         Project        Project          Roshcha»        Project
    Project        130 000 sq m     350 000 sq m    300 000 sq m   1 000 000 sq m   Project         50 000 sq m
    400 000 sq m                                                                    45 000 sq m

sq m of housing per citizen —
                                                              100% energy — efficient technologies`
20% growth by 2016                                            use in construction by 2014
                                                         ..
2 times increase                                              More than   2  million sq m —
in housing construction by         2014                       Total volume of new housing projects
10   INVESTMENT CLIMATE: AMONG THE BEST IN RUSSIA!




               Investor-friendly product: industrial parks


                 System of development institutions
             Comprehensive set of financial incentives
                    Stable investment philosophy

                   One project team: your project is our project

                         Equal support for every investor

                             Free choice of supplier

                         No bureaucracy, no middlemen
                        No hidden or unspecified charges

                        Our word is a cast iron guarantee
11        INDUSTRIAL PARKS: A BUSINESS-FRIENDLY PRODUCT!



Total industrial parks’ area: 4,742 ha
Still available: 2,522 ha
Residents: 50


Vorsino

Obninsk

Detchino

Grabtsevo
А-park


Kaluga-Yug

Rosva

Lemminkainen, private IP                                     • Industrial Parks
Maklaki                                                      • BrownFields
                                                             • Build to Suit
12        INDUSTRIAL PARKS




«GRABTSEVO»                              «VORSINO»
Industrial park                         Industrial park


«ROSVA»                              «KALUGA-YUG»
Industrial park                        Industrial park
14   DEVELOPMENT INSTITUTIONS: A COMPLETE SET!



               Agency for Regional               «Industrial
                       Development               Logistic»
               of the Kaluga Region              LLC



               Attracting investments             The main instrument for logistic projects
             into the Kaluga Region;              implementation in the Kaluga Region
       state consultant for investors




                   Leading operator               State operator for establishment and
        for innovation and high-tech              development of industrial parks and
       economy sector development                 engineering infrastructure



                       Agency for                Kaluga Region
        Innovation Development of                Development
                the Kaluga Region                Corporation
15   TAX BENEFITS
     Property tax

       Total amount of actual capital investments within
       first three years of the investment project’s
       realization
       (m $ )
                                                           Tax exemption period   0%
      3.22 - 9.66 inclusive                                   1 year
      9.66 - 16.1 inclusive                                   2 years
      Over 16.1                                               3 years

     Profit tax

       Total amount of actual capital investments within
       first three years of the investment project’s
       realization
       (m $)
                                                           Decreased tax rate   15,5 %
      3.22 - 16.1 inclusive                                   1 year
      16.1 - 32.2 inclusive                                   2 years
      32.2 - 64.4 inclusive                                   3 years
      Over 64.4                                               4 years
16   EXAMPLE OF PROJECT IMPLEMENTATION SPEED
17




     YOUR
     LOGO
Be successful

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Kaluga region

  • 1. 2012 THE STORY OF SUCCESS
  • 2. Big transport ring 2 KALUGA REGION: AT THE HEART OF IT ALL! Total area: 29,800 km2 MRH Economically-active population: 553 000 OBNINSK Major cities: Kaluga (pop 343 000), Obninsk ( pop 106 000) А 101 Climate: Continental temperate М3 LUDINOVO
  • 3. 3 ECONOMIC LEADERSHIP: OUR TOP POSITIONS! 1st in Russia 1st in Central Federal District 1st in Russia Growth rate 3rd in Russia Index of manufacturing growth (2011) of industrial production Foreign Direct Investment (August 2011) (FDI) per capita 5,3 bn $ 169,4 % 111.1% (2006 - 2011) Actual GRP growth Average annual GRP Total foreign investments since 2006 growth BB 42 25,363 National long-term rating Enterprises opened Jobs. (Fitch Ratings) Created: 12,425 «Kaluga region is one of the least bureaucratic places regarding investments. If Russia follows this way, the progress will be significant». Vladimir Putin
  • 4. 4 VISION AND STRATEGY: CLUSTER POLICY!
  • 5. 5 CENTRAL AUTOMOTIVE CLUSTER: A REALITY TODAY!
  • 6. 6 PHARMACLUSTER: THE BEST START! Berlin-Сhemie/Menarini Pharmaceutical Industry Novo Nordisk, Nearmedic Plus, training Center Galenika, AstraZeneca Hi-tech industrial park Innovation Development project Agency of Kaluga Region
  • 7. 7 MODERN LOGISTICS MOSCOW MOSCOW OBNINSK Smolensk region KALUGA SUKHINICHI Logistics operators: Tula LUDINOVO region Logistic centers Bryansk Airport region Customs KIEV Orel region
  • 8. 8 TRAINING CENTERS Automotive industry training center Total area – 7000 sq m Extra in 2012 – 10000 sq m Workshops and labs – 20 Studying at the same time – up to 400 people Short-term educational programs – 70 State professional training programs – 20 Number of trained personnel – 6,500 For Volkswagen – 4,000 For PCMA – 1,800 Pharmaceutical industry February 2012 – the start of training Studying at the same time – up to 250 people Dual training system (theory and practice) Technical and educational basis of the international level
  • 9. 9 HOUSING FOR PROFESSIONALS «Eastern «Voskresenskoye» «Swiss Village» «Zapadny» «Pravgorod» «Vorotynskaya «Ecodolie» Balabanovo» Project Project Project Project Roshcha» Project Project 130 000 sq m 350 000 sq m 300 000 sq m 1 000 000 sq m Project 50 000 sq m 400 000 sq m 45 000 sq m sq m of housing per citizen — 100% energy — efficient technologies` 20% growth by 2016 use in construction by 2014 .. 2 times increase More than 2 million sq m — in housing construction by 2014 Total volume of new housing projects
  • 10. 10 INVESTMENT CLIMATE: AMONG THE BEST IN RUSSIA! Investor-friendly product: industrial parks System of development institutions Comprehensive set of financial incentives Stable investment philosophy One project team: your project is our project Equal support for every investor Free choice of supplier No bureaucracy, no middlemen No hidden or unspecified charges Our word is a cast iron guarantee
  • 11. 11 INDUSTRIAL PARKS: A BUSINESS-FRIENDLY PRODUCT! Total industrial parks’ area: 4,742 ha Still available: 2,522 ha Residents: 50 Vorsino Obninsk Detchino Grabtsevo А-park Kaluga-Yug Rosva Lemminkainen, private IP • Industrial Parks Maklaki • BrownFields • Build to Suit
  • 12. 12 INDUSTRIAL PARKS «GRABTSEVO» «VORSINO» Industrial park Industrial park «ROSVA» «KALUGA-YUG» Industrial park Industrial park
  • 13. 14 DEVELOPMENT INSTITUTIONS: A COMPLETE SET! Agency for Regional «Industrial Development Logistic» of the Kaluga Region LLC Attracting investments The main instrument for logistic projects into the Kaluga Region; implementation in the Kaluga Region state consultant for investors Leading operator State operator for establishment and for innovation and high-tech development of industrial parks and economy sector development engineering infrastructure Agency for Kaluga Region Innovation Development of Development the Kaluga Region Corporation
  • 14. 15 TAX BENEFITS Property tax Total amount of actual capital investments within first three years of the investment project’s realization (m $ ) Tax exemption period 0% 3.22 - 9.66 inclusive 1 year 9.66 - 16.1 inclusive 2 years Over 16.1 3 years Profit tax Total amount of actual capital investments within first three years of the investment project’s realization (m $) Decreased tax rate 15,5 % 3.22 - 16.1 inclusive 1 year 16.1 - 32.2 inclusive 2 years 32.2 - 64.4 inclusive 3 years Over 64.4 4 years
  • 15. 16 EXAMPLE OF PROJECT IMPLEMENTATION SPEED
  • 16. 17 YOUR LOGO