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Путеводитель инвестора. Свердловская область. Особая экономическая зона производственно-промышленного типа


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Урал – один из наиболее инвестиционно привлекательных регионов России. Это крупный промышленный центр, расположенный на границе Европы и Азии.

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Путеводитель инвестора. Свердловская область. Особая экономическая зона производственно-промышленного типа

  1. 1. Guide to InvestmentSverdlovsk RegionIndustrial and manufacturingspecial economic zone
  2. 2. PwC Russia ( provides industry-focused assurance, tax and advisory services. Over 2 000 professionals working in PwC offices in Moscow, St Petersburg, Ekaterinburg, Kazan, Yuzhno-Sakhalinsk and Vladikavkaz share their thinking, experience and solutions to develop fresh perspectives and practical advice for our clients. The global network of PwC firms brings together more than 161 000 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 is the 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 Ministry of Investment and Development of the Sverdlovsk region and the Ministry of International and Foreign Economic Relations. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PwC, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.2 | Guide to investment | PwC
  3. 3. Contents2 Welcome message from the Governor of the Sverdlovsk Region4 Foreword by the Managing Partner of PwC in Russia7 General information about the Sverdlovsk Region Economic and geographical location Administrative and territorial divisions10 Key advantages of the Sverdlovsk Region: Investment potential Economic potential Key Eurasian transportation hub Large industrial centre Foreign trade activities Research and innovation capacity Human resources21 Special economic zones in Russia Background23 Industrial and manufacturing Special economic zone in the Sverdlovsk Region Location and infrastructure Transportation advantages Tax and customs preferences Procedure for obtaining special economic zone residential status Conclusion32 Contact details PwC | Sverdlovsk Region | 3
  4. 4. 4 | Guide to investment | PwC
  5. 5. Welcome message from the Governorof the Sverdlovsk RegionDear all,The Sverdlovsk Region has truly earned its reputation as Russia’s “core” territory – it is one of thenation’s strongest, fastest growing and most attractive for investment. This is where rich naturalresources, powerful industrial complex and solid scientific, cultural and human potential all cometogether.The Mid-Urals is the place where, over three centuries ago, Russia’s metal industry came to life andthrived and has since become well-known the world over. Extensive industrial experience, a powerfulresource base and skilled professionals put the Sverdlovsk Region among the leaders in terms ofmanufacturing output.Having successfully recovered from the economic crisis, the region is now moving towards the creationof high tech and knowledge-intensive production and is transitioning from an old industrial region to anarea of innovative development.And this is why the creation of the Titanium Valley industrial and manufacturing special economic zoneis a milestone event for this region, giving every investor an opportunity to fully appreciate and utilisethe vast potential of the Mid-Urals and unique conditions for the development of innovative high techindustries.We are ready to provide guarantees to all investors, both domestic and international. To do so, we havealready taken a number of administrative measures at the regional and federal levels. For example, theRussian Direct Investments Fund will be ready by summer 2011. In the near future, a special institutionof investment representatives will be set up in each of Russia’s constituent regions, and the SverdlovskRegion has already established the Ministry of Investment and Development.We are growing fast and strive to meet all business requirements to ensure the sustainability of oureconomic development and build our confidence in the future.Welcome to the Sverdlovsk Region!Alexander MisharinGovernorSverdlovsk Region PwC | Sverdlovsk Region | 5
  6. 6. 6 | Guide to investment | PwC
  7. 7. ForewordDear all,Relative political stability and a rapidly expanding economy have created significant investmentopportunities in Russia.The Urals is one of Russia’s most favourable regions for investment. It is a large industrial region,situated at the crossroads of important routes connecting Europe and Asia. The Sverdlovsk Region isrich in natural resources and has a strong, diversified production and industrial sector, great intellectualpotential and a skilled labour force. The Urals is also known for its strong history of academics andadvanced field research.Stable economic growth is making the Sverdlovsk Region more attractive for many Russian and foreigninvestors, allowing them to operate successfully in metals production and manufacturing. The Urals’steady economic growth over the past few years has attracted a lot of Russian and foreign investors.According to Russia’s policy aimed at increasing foreign investment, a number of special economic zones(SEZ) have been established across the country over the last several years. On 16 December 2010, theRussian government established an SEZ in the Sverdlovsk Region. This industrial SEZ was created tobolster the economy of Russia and the Sverdlovsk Region by providing favourable tax, administrative,economic and business conditions for companies interested in investment projects in industrialproduction.This overview of the project, investment policy and opportunities offered is intended to serve as an aidto investors looking forward to expanding operations in Russia. It would also help potential investors toassess the most competitive advantages offered by the Sverdlovsk Region.This document has been prepared in collaboration with the Sverdlovsk Region Ministry of Investmentand Development and the the Ministry of International and Foreign Economic Relations and is based onmaterials provided by the Ministries.I hope that this publication will inspire investors to pursue new achievements and initiatives. I wish theSverdlovsk Region Administration continued success in making the region prosperous.David GrayManaging PartnerPwC in Russia PwC | Sverdlovsk Region | 7
  8. 8. General informationabout the SverdlovskRegion PwC | Sverdlovsk Region | 9
  9. 9. 1 Severouralsk 2 KrasnoTurjinsk 3 Serov 4 Kachkanar 5 KrasnoUralsk 6 Verkhnjaja Salda 7 Nizhnjaja Salda 8 Nizny Tagil 9 Turinsk 10 Alapaevsk 11 Irbit 12 Verkhny Tagil 13 Novouralsk 14 Verkhnyaya Pyshma 15 Asbest 16 Tugulym 17 Pervouralsk 18 Beresovsky 19 Sukhoy Log 20 Achit 22 Ekaterinburg 21 Revda 23 Belojarsky 24 Bogdanovich 25 Krasnoufimsk 26 Arti 27 Polevskoy 28 Sysert 29 Kamensk-Uralsky10 | Guide to investment | PwC
  10. 10. Economic and geographical location Administrative and territorial divisionThe Sverdlovsk Region is one of the fastestgrowing regions in Russia and is located on the The executive authorities of the Sverdlovskborder between Europe and Asia. This is where Region are represented by its Governor anda powerful industrial complex, rich natural Government. The region has 47 towns, 26resources, large transportation flows, solid workers’ and urban-type settlements and 1 843scientific and human potential combine. villages. It is divided into five administrative districts: Gornozavodskoy, Severnyi, Zapadnyi,The economy of the Sverdlovsk Region is an Vostochnyi and Yuzhnyi, with its administrativeindustrial one, and its structure encompasses all centre in Ekaterinburg, which is the capital of thekey sectors of the industrial complex. This region Urals Federal District and Russia’s fourth largestis among Russia’s top ten, which account for 60% city by population.of the country’s industrial products. The levelof concentration of manufacturing industries in Ekaterinburg ranked third in the 2010 Forbesthe region is four times higher than the national rating of the best Russian cities for business.average. The city has confidently positioned itself as this Eurasian region’s centre and has the necessaryWhat makes this region unique is its international business infrastructure in place. Asadvantageous geographical location on the a result, the Sverdlovsk Region’s authority andborder between the European and Asian parts recognition are growing exponentially.of Russia, i.e. at the focal point of the countrystransport corridors. The regional centre isEkaterinburg, located in 1 700 km from Moscowon the eastern slope of the Urals. The SverdlovskRegion is rich in natural resources for the ferrousand non-ferrous metal sectors, as well as thechemical industry. For many years, one of thekey priorities of the region’s economic policyhas been to create a favourable environmentfor attracting investment and developinginternational business activities. PwC | Sverdlovsk Region | 11
  11. 11. Key advantages of the Sverdlovsk Region12 | Guide to investment | PwC
  12. 12. Indicators of social and economic development 1. High investment potential, low show the region’s vast potential for the investment risks and stable financial development of the Urals’ economy and its position resistance to fluctuations in global markets due to the diversified structure of its manufacturing 2. Leadership among Russia’s constituent industries and the radical modernisation regions in terms of economic processes currently underway. development 3. The largest transportation and logistics hub in the Urals Region Finance 4. Multi-industry manufacturing complex 5. Developed foreign trade activities Regional budget in 2011 infrastructure 3 085 bln. euro 6. High level of academic knowledge, university and industry R&D potential Capital invrstment in 2010 7. Skilled labour and a substantial 5 425 bln. euro innovation potential Foreign investment 2010 1 084 bln. euroInvestment potentialSverdlovsk is one of Russia’s top constituentregions for investment. Over many years, theregion has enjoyed steady and sustainablegrowth at rates much higher than the nationalaverage.The region has a great talent pool and scientificpotential, a developed business infrastructurethat meets global standards, effectiveinvestment support legislation and a successfullyimplemented long-term regional social andeconomic development strategy.It is the fifth most populous region in Russia,according to the Territorial Agency of the FederalState Statistics Service for Sverdlovsk Region,and ranks fourth among Russia’s constituentregions in terms of the volume of regionallymanufactured products dispatched andwholesale and retail turnover. PwC | Sverdlovsk Region | 13
  13. 13. Economic potentialAs a result of a positive trend in the region’s Rating of Sverdlovsk Regiondevelopment over the last few years, its long-term credit rating has been continuously onthe rise; this sustainable financial positionhas become one of the region’s most attractive Industrial Production 6aspects. In 2010, Standard & Poor’s rating agencyonce again affirmed the region’s BB credit rating.A low debt burden, the regional authorities’pursuing a conservative debt management Retail turnover 4policy, financial support from the federal budget,significant industrial assets, and high liquidityand people welfare indicators that are above the Wholesale turnover 4Russian average have had a positive effect onthe regions credit quality. Confirmation of thispositive credit rating enhances the SverdlovskRegion’s investment attractiveness, facilitates the Capital Investments 9expansion of the range of potential investors andcreditors, and broadens access to borrowings andother sources of capital. This in turn contributesto the further growth of the region’s economy. Foreign Investments 8The Sverdlovsk Region’s internal regionalproduct is RUB 835bn (2009: sixth amongRussia’s regions).There are 73 lending institutions operating in theSverdlovsk Region, including those with foreigninvestment: Raiffeisen Bank, Barclays Bank,Intesa Bank, Societe Generale Vostok, Citibank,Home Credit and Finance Bank and others.Leading global audit, consulting, insurance andleasing companies also operate in the region.The implementation of large investment projectsby foreign companies has demonstrated that theregion’s economy is open to foreign capital. Overjust the last three years, Boeing (US), Siemens(Germany), Buzzi (Italy), OMIA (Switzerland),Saint Gobain (France) and others have beenlaunching and successfully implementing theirinvestment projects in the region.The law “On state support for investors in theSverdlovsk Region”, aimed at creating favourableconditions for investment overall and support forforeign investments, is in effect. The key investorsupport arrangements are state guarantees, taxexemptions and a number of other measurestaken as part of governmental support.14 | Guide to investment | PwC
  14. 14. Key Eurasian transportation hubThe Sverdlovsk Region is advantageously locatedwhere Europe and Asia meet, determining theregion’s importance as a key transit centre inRussia. The region’s transport infrastructure isbeing developed in accordance with a number offederal and regional programmes.The Sverdlovsk Region Administration hasadopted a framework for the development of theregion’s transportation and logistics system for2009-2015 (with an outlook up to 2030) in linewith federal law. This framework is currentlybeing implemented. According to this document,the Sverdlovsk Region is developing as a largeinternational logistics centre with an interregionalmanaging centre. It serves international andregional communications and transit traffic, suchas the main latitudinal corridor (an extension ofthe International Transport Corridor No. 2 Berlin-Moscow-Nizhniy Novgorod through Ekaterinburg – Sverdlovsk Railway is the main connectingto Beijing), made up of the existing Transsib and handling centre for freight and passengerrailways and the Ekaterinburg-Tiumen and traffic between Europe and Asia and has a uniqueEkaterinburg-Kazan highways. geographical position and significant resources. Today, the market served by Sverdlovsk RailwayIn developing a transportation hub linking covers 10.5% of the countrys territory, 7.4% ofEurope and Asia, the region intends to build an its population and ensures the operation of 7% ofefficient transportation and logistics system, the Russia’s basic production assets;components of which include: – A developed network of roads, including the– Koltsovo international airport hub, which is West-East International Transportation Corridorthe largest airport hub in Russia after Moscow and a system of highways;and St Petersburg and facilitates the economicand social development of the Sverdlovsk Region – A network of international- and interregional-and its integration into the global economy, as level terminal and logistics complexes forwell as an expansion of business, culture and transferring, storing and handling Eurasiantourism; commodity flows. PwC | Sverdlovsk Region | 15
  15. 15. Large industrial centre The machine building complex specialises in the production of machines and equipment,The region’s level of manufacturing industry electrical equipment, electronic and opticalconcentration is considerably higher than the equipment, and transport vehicles. It includesnational average, allowing the Sverdlovsk Region 240 large and medium enterprises and is one ofto take pride in its role as Russias industrial the core industries in the Mid-Urals’ economy. Itcentre. has traditionally been the most innovative and technically advanced sector of the manufacturingThe Sverdlovsk Region’s industries cover industry, employing more than 180 000 people.almost all existing types of economic The region’s machine-building enterprises areactivities. Traditionally, the region’s industrial also large consumers of manufacturing products.specialisation includes the ferrous and non-ferrous metals industry, metal processing,machine building and power generation,including nuclear power.Structure of volume of the shippedgoods and services in 2009(in % total amount)14,8% Production and distribution of energy, gas and water 44,8% Metallurgy 18,5% Machine-building 17,1% Other activities4,8% Mining 80,4% Manufacturing activities16 | Guide to investment | PwC
  16. 16. The metals complex specialises in theproduction of metal and finished metal products, Export structure in 2010and includes the production of finished steel andsteel pipes, pellets and ferroalloys. The non- 17,7%ferrous metals industry manufactures primaryaluminium, titanium rolled products, refinedcopper and copper concentrate.Mining: The Sverdlovsk Region is amongRussia’s most mineral resource-rich areas. Theregion accounts for 97% of the vanadium, 68%of the bauxites, 23% of the iron ore, 6% of the 46,7% 21%copper and 2% of the nickel extracted in Russia.It is known for its high level of extraction ofalluvial gold and platinum, hard rock gold, rawmaterials for the construction industry, facingand fabricating materials, etc. 14,6%Wood processing and woodworking: Thewood market, comprising mostly lumber and plywood, is oriented towards the domestic market n Machinery equipment productionand export primarily to the US and Europe. n Chemical production n OtherCurrently, the Mid-Urals area is also witnessing n Metal and metalwarefast growth in the production of electronic andoptical equipment, pharmaceuticals and healthproducts. Import structure in 2010 11,7% 17,8% 12,5% 10,6% 47,4% n Metal and metalware n Chemical production n Mineral products n Machinery equipment production n Other PwC | Sverdlovsk Region | 17
  17. 17. Commodity import USA China Germany United Kingdom France Czech Republic Technologies Italy People Information Attract investment USA Germany Netherlands EkaterinburgWe have trade partnersfrom 120 countries18 | Guide to investment | PwC
  18. 18. Foreign trade activities According to the Russian Ministry of Foreign Affairs, the Sverdlovsk Region ranks third in Commodity the country in terms of the number of official consular and trade missions of foreign countries export (over 20). The region has more than 130 trade partners. Germany Geographically, the region’s key foreign trade partners continue to be industrially developed Italy countries, which account for over 50% of its total commodity turnover. These countries are the Vietnam key consumers of metals and metal products, machine-building products and chemicals, Austria which constitute the core of the regions exports. The region’s foreign trade is expressly export driven. Export accounts for 70.7% of the total China commodity turnover while import totals 29.3%. The Sverdlovsk Region differentiates its exportTechnologies both geographically and by product type, thereby lowering its general exposure to market fluctuations.People The Sverdlovsk Region is a large importerInformation of high-tech products. Each year, it imports machine-building products worth around EUR 2 billion. Investment Sverdlovsk Region partner countries Finland, Hungary, Bulgaria, Slovakia Spain Sverdlovsk Region partner regions Baden-Wurttemberg (Germany), Rheinland-Pfalz Netherlands (Germany), Liguria (Italy), Piemonte (Italy), Carinthia (Austria), Baria-Vungtau (Vietnam), Switzerland Sinczyan-Uigur Autonomous District (China) Sverdlovsk Region partner city Harbin (China) Ekaterinburg partner cities Genoa and San Remo (Italy) More than 20 representatives of foreign diplomatic missions PwC | Sverdlovsk Region | 19
  19. 19. 20 | Guide to investment | PwC
  20. 20. Research and innovation capacity ofthe Sverdlovsk RegionThe Sverdlovsk Region is one of just a fewRussian regions that have retained their highR&D potential and is a leader among them. Theregion has vast innovation resources that canbe used for the production of new high-techproducts that will be competitive in both thedomestic and global markets.The region’s industrial science complex is madeup of 92 industrial R&D institutes that employmore than 17 000 people. The academic sciencecomplex comprises 22 institutes of the UralsDivision of the Russian Academy of Sciences.There are also 32 universities and over 160large and medium innovative manufacturingenterprises. More than 30 000 people areinvolved in R&D work in the region.In 2010, the Yeltsin Urals Federal University wasfounded on the basis of two old Ekaterinburguniversities. This university is the core ofresearch and innovation in the Urals Region. Inthe Sverdlovsk Region, there are 32 universitiesin total (21 of them are state or municipallyowned and 15 of them are non-governmental).The Sverdlovsk Region has 4 200 educationalinstitutions of all types, which teach more than1 million people. The system of secondaryand higher vocational education is also welldeveloped. PwC | Sverdlovsk Region | 21
  21. 21. Human resources Economically active populationThe Sverdlovsk Region has a population of 4.5 2343 thousand peoplemillion, of which 83% live in towns and 17%reside in rural areas. People who are 30 to 49years old comprise the largest portion of theworkforce in the region (56.3%). Almost one Doctors of Science 1000fourth of the total workforce (24.9%) is made upof young people from 15 to 29 years of age, andthe average age of the region’s workforce is 39. PhD 5000The Sverdlovsk Region’s workforce is highlyeducated, which is an important condition forincreasing production efficiency as a whole and State Universities 19creates opportunities for attracting high-techinvestment projects to the region. The regionplaces great importance on training specialistsfor important investment projects; it sets up Scientific and researchtraining centres, re-trains teachers and develops organizations 138educational programmes to meet the demand forany skill or profession.22 | Guide to investment | PwC
  22. 22. Specialeconomic zonesin Russia PwC | Sverdlovsk Region | 23
  23. 23. Background SEZ residents are protected from unfavourable changes in Russian law, i.e., if Russia’s federal orRussian Government Resolution No. 1032 of regional laws or any other regulatory acts worsen16 December 2010 created an industrial and the position of SEZ residents, then they shouldmanufacturing special economic zone in the not be applicable until the area loses its SEZVerkhnesaldinsky City District Municipality of status. It is important that the time period of thisthe Sverdlovsk Region in pursuance of Federal guarantee coincides with the period of the SEZ’sLaw No. 116-FZ of 22 July 2005 “On special existence. This guarantee also covers changeseconomic zones in the Russian Federation”. in tax and customs requirements, which is very important for any business in Russia, where suchRussia has 24 special economic zones (SEZs) of four changes occur rather frequently.types: industrial (4), innovative (4), tourist (13)and port and logistics (3). In the Urals and Siberia, Only those investors who have obtained theirthere is just one industrial and manufacturing SEZ, status as an SEZ resident are entitled to theselocated in the Sverdlovsk Region. As of 1 January exemptions and preferences. SEZ residents2011, 257 investors were registered in SEZs. Twenty- must make a capital investment in roubles in anthree more companies have obtained approval of amount equivalent to no less than EUR 3 000 000their projects from the Expert Boards and will soon (except for intangible assets) using the Centralenter into contracts on operating in the SEZ. Thirty- Bank of Russia exchange rate as of the day onone residents operate in the industrial zones, 195 which the application for concluding a contractentities in the innovative zones and 31 companies in on manufacturing and industrial operationsthe tourist zones. in the SEZ was filed with the SEZ managingFederal Law No. 116 of 22 July 2005 “On special bodies. SEZ residents must also make a capitaleconomic zones in the Russian Federation” investment in roubles in an amount equivalentestablishes a special regime of operating to no less than EUR 1 000 000 (except forwithin an SEZ that provides a special system of intangible assets) within a year of concluding thebenefits and preferences for its residents. The above contract.key advantage of an SEZ is the predictability ofexpenses (administrative, tax, resource, etc.) for After their registration in the SEZ, residentsinvestors doing business there. can lease a plot of land with a complete engineering and transportation infrastructureAmong an SEZ’s other advantages are: that significantly reduces expenses on the• a special tax regime; construction of their production facility. The• a special customs regime; plot of land can be bought out later. In addition,• special rates for lease and purchase of land SEZ residents are given an opportunity to use and connection to infrastructure networks. an accelerated depreciation method with a coefficient of two and an accelerated R&DSimplified administrative barriers are an expense recognition approach.advantage available to those who set upproduction within an SEZ. Investors also like Extraction or development of mineral resources,to see that there are fewer examinations. processing of non-ferrous or ferrous metals andExaminations are carried out solely to the production of excisable products (except forextent required to assess project solutions from light cars and motorbikes), weapons or militarya health and safety perspective with regard to equipment are not allowed within the SEZ.buildings, structures and individual designs It is also prohibited to have housing facilitiesand their compliance with the approved urban within the SEZ. Industrial and manufacturingplanning documentation. The timeframe zone residents do not have the right to engageof the examination and approval of project in any activity other than that provided in thedocumentation for investment projects investment project. SEZ residents also do notsuggested for implementation in an SEZ has been have the right to have representative offices orsignificantly reduced to 45 days. branches outside the SEZ.24 | Guide to investment | PwC
  24. 24. Industrialand manufacturingspecial economiczone in theSverdlovsk Region PwC | Sverdlovsk Region | 25
  25. 25. 26 | Guide to investment | PwC
  26. 26. Location and infrastructure Cities of the SEZThe SEZ is located beteen Verkhnaya Salda and Verkhnaya Salda was founded in 1778. ItNizhny Tagil, two of the Sverdlovsk Region’s covers 7 000 hectares and has a population oflargest cities. It is also in close proximity to CJSC 51 000. The city is 176 kilometres away fromUral Boeing Manufacturing, a US-Russia venture, Ekaterinburg, and its principal industries areand VSMPO-AVISMA Corporation OJSC, the mechanical engineering, metals and relatedworlds main producer of titanium and titanium mining industries.products and a supplier of titanium componentsfor Airbus, Boeing, General Electric, Goodrich, Verkhnaya Salda is home to several universitiesEmbraer, Rolls Royce, Safran, etc. and technical vocational schools, including the Verkhnaya Salda Branch of the Ural FederalThe scope of the SEZ’s industrial priorities University. The total number of studentscovers aircraft engineering, production of attending educational institutions there is 4 700,components for the aerospace and auto with about 1 180 graduates every year. To meetindustries, metalworking, tool engineering, the the needs of the SEZ’s residents, the governmentmachine tool industry, mechanical engineering, is establishing the Territorial Training Centre forthe robotics industry, microelectronics, and technical specialists on the basis of the Yeltsinchemical production, including pharmaceuticals, Ural Federal University.composite materials, medical products, etc. PwC | Sverdlovsk Region | 27
  27. 27. Nizhny Tagil was founded in 1722. Its territory The educational infrastructure of these two citiescovers 4 106 square meters and has a population neighbouring Titanium Valley has the necessaryof 37 500 people. Nizhny Tagil is located 146 basis for training in-demand away from the city of Ekaterinburg. Its Verkhnaya Salda has a professional vocationalmajor industries are the mining, mechanical school for skilled workers, a college for highlyengineering, metals, energy and food industries. qualified personnel and a branch of the Ural Federal University for engineers with university degrees. In addition, there is the Nizhny Tagil Technological Institute (a branch of the Ural Federal University), E.A. and M.E. Cherepanov Nizhny Tagil Mining and Metallurgical College, Demidov Nizhny Tagil State Professional College, Polytechnic Gymnasium, etc. The city is also home to the Nizhny Tagil Institute of Metal Testing. The institute is capable of providing for a laboratory base for applied research to be conducted by potential SEZ residents.28 | Guide to investment | PwC
  28. 28. Transportation advantages railway line links the SEZ with the Nizhny Tagil-Alapaevsk highway and Smychka railwayTitanium Valley provides SEZ residents with station, which provides access to all of Russiaseasy access to rail and motorway transportation main railroads. Salka Airport, which is readyto destinations throughout Russia and around for use by the SEZ’s future residents, is just 20the world. The R-353 motorway near Nizhny kilometres from the SEZ. Ekaterinburg-basedTagil connects the SEZ to the city and the entire Koltsovo International Airport offers flights toRussian transportation network. A separate destinations around the world. PwC | Sverdlovsk Region | 29
  29. 29. Customs benefits and preferences An important advantage of the SEZ is that products manufactured there using goodsUnder Article 6, Part 4 of the Federal Law “On produced abroad and goods from the CustomsSpecial Economic Zones”, the Sverdlovsk Region Union (Russia, Kazakhstan and Belarus) canAdministration and the Administration of the be exported by SEZ residents to Russia and theVerkhnaya Salda City District of the Sverdlovsk Customs Union without VAT and duties untilRegion ensure the due adoption within their 1 January 2017 (if a company is registered inpowers of legal acts and regulations establishing the SEZ before 1 January 2012), or outside thethe following tax benefits for SEZ residents by 30 Customs Union without VAT and customs duty,July 2011: provided the goods were sufficiently processed in the SEZ. Residents are entitled to independently choose Type Current Tax rate criteria for the sufficient processing of goods, of tax tax rate in the SEZ which can include the following: in Russia • Changing the classification code of goods under the Unified Product Range of the Corporate 20% 15.5% 10 Customs Union’s foreign trade activity at the years level of any of the first four digits years profit tax • Meeting the required conditions, executing production and technological operations Corporate 2.2% 0% 10 sufficient for qualifying goods produced years years using foreign-made goods placed under the property tax free customs zone customs procedure as the Customs Union’s products Land tax 1.5% 0% • Changing the value of goods when the percentage of the value of materials used or the added value reaches the fixed percentage in the finished products price (normally, the Transport tax 7-15% 0% ad valorem percentage) (roubles per unit of horse An SEZ resident company can apply a multiplying power) ratio of two to the main statutory limit of depreciation charges for property, plant and equipment. It is entitled to treat R&D expenses as deductible, including those that did not produceThe SEZ offers a free customs zone regime, under a positive result, in the total amount of actualwhich foreign-made equipment and components costs incurred in their reporting (tax) period.can be imported for free, i.e., value added tax onimported foreign goods will be 0% and import The Sverdlovsk Region Administration iscustoms duty will not be charged. considering granting subsidies to investors (SEZ residents) to reimburse profit tax costs related to payments to the Russian constituent’s budget at 13.5%, with over RUB 1.5 billion in total capital investments into the project for a pay-off period of less than 10 years.30 | Guide to investment | PwC
  30. 30. Procedure for obtaining ConclusionSEZ resident status The Russian economy is becoming more andTo obtain SEZ resident status, corporate investors more accessible to the world. The growingwill need to: domestic market, rich mineral resources, vast scientific and production potential, political and financial stability have combined to 1. sign a letter of intent with the make investment in Russia more attractive by Sverdlovsk Region Administration; creating the possibility of long-term business development. 2. develop a business plan for the project based on the criteria established by The Sverdlovsk Region has been witness to a the Russian Ministry of Economic great deal of work on establishing and improving Development; the conditions necessary for doing business and making investments. With its high standard of 3. generate a request for a company to be living, powerful production facilities, and well- assigned SEZ resident status and developed business and logistic infrastructure, register a legal entity in the Verkhnaya the region is a shining example of Russia’s Salda City District; modern and upgraded economy. 4. undergo the investment project Today, as an industrial centre of Russia, the approval procedure at the SEZ Expert region is a very attractive potential market with Council meeting; unlimited opportunities. Having a presence in the region provides for successful business 5. sign an agreement on conducting growth both in and outside of Russia for many production and industrial activity in years to come. the SEZ with the SEZ’s operator, who will provide all necessary support for As prescribed by the Strategy for the Sverdlovsk communication among the residents Region’s social and economic development with regard to SEZ matters. through 2020, one of the main tools for achieving sustainable economic development in the region is the establishment of institutions like SEZs at a regional level, namely production and industrial SEZs and high-tech enterprises based on OJSC VSMPO-AVISMA Corporation in Verkhnaya Salda. The establishment of an SEZ in the Sverdlovsk Region is a critical step toward ensuring a comfortable environment for investors in this key Russian region. Today we can also affirm that making investments in SEZs is the best way of contributing to the Russian economy, which is characterised by sustainable post-crisis growth, increasing consumption of one of the world’s densest markets (Russia’s population is 141 million people and 281 million people live in its neighbouring states) and the world’s third- largest gold and currency reserves. PwC | Sverdlovsk Region | 31
  31. 31. 32 | Guide to investment | PwC
  32. 32. PwC | Sverdlovsk Region | 33
  33. 33. Contact details:Sverdlovsk Region Administration PwC EkaterinburgSverdlovsk Region Ministry Senat Business Centre 7A, office 301,of Investment and Development Gorkogo Ul.1 Oktyabrskaya Pl. Ekaterinburg, Russia, 620075Ekaterinburg, Russia, 620031 Phone: +7 (343) 253 1433 Fax: +7 (343) 253 1430Mikhail MaximovMinister of Investment and Development Maxim Matsiborko Managing PartnerSverdlovsk Region Ministry of E-mail: andForeign Economic Relations1 Oktyabrskaya Pl.Ekaterinburg, Russia, 620031Alexander KharlovSverdlovsk Region Minister of Internationaland Foreign Economic RelationsPhone: +7 (343) 217 8672Fax: +7 (343) 217 8907r66@midural.ruAndrei SobolevHead of Foreign Trade and Investment,Sverdlovsk Region Ministry of Internationaland Foreign Economic RelationsPhone: +7 (343) 217 8908Fax: +7 (343) 217 8907sobolev-ao@midural.ru34 | Guide to investment | PwC
  34. 34. PwC | Sverdlovsk Region | 35
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