Key points for investors (Russia 2015)

1. The Ministry of Economic Development
of the Russian Federation
2015
Russia for investors:
the key points

2. 2
2010 г. 2011 г. 2012 г. 2013 г. 2014 г.
Doing Business WEF Bloomberg
Russia and Other Countries: International Rankings
The World bank’s Doing Business ranking
World Economic Forum’s
Global Competitiveness Index
Bloomberg’s Best for Doing Business
2010
DB 2011
2011
DB 2012
2012
DB 2013
2013
DB 2014
2014
DB 2015
Russian
Federation
124 120 (4↑) 112 (8↑) 92 (20↑) 62 (30↑)
Measures regulations affecting 10 areas of the life of a business across 189
economies: starting a business, dealing with construction permits, getting electricity,
registering property, getting credit, protecting minority investors, paying taxes, trading
across boarders, enforcing contracts and resolving insolvency.
2010 2011 2012 2013 2014
Russian
Federation
63 66 (3↓) 67 (1↓) 64 (3↑) 53 (11↑)
The analysis of economies by the following criteria: macroeconomic environment,
complexity of business, development of the financial markets, infrastructures, health
care, education, ect.
2010 2011 2012 2013 2014
Russian
Federation
- - 48 56 (8↓) 43 (13↑)
66
63
67
64
53
Ranking progress of Russia
Defines the best countries for doing business. The ranking is based on an
assessment of an overall business activity, commercial activity and condition if the
trade. Estimates 157 economies.
For the last 2 years Russia shows
POSITIVE DYNAMICS in the rankings
estimating a business environment
48
56
43
124 120
112
92
62

3. 3
Public debt % of GDP
International reserves
of Russia increased
more than 31 times.
$ bn
Total value of assets of
Russian banking
System rose 23 times.
$ bn
January, 2015
January, 2015
1999
Capitalization of the
Russian Stock Market
grew almost 14 times.
$ bn
January, 2015
Sources: IMF, Cеntral Bank of Russia, Russian Federal Treasury, Rosstat, Moscow Exchange, UNCTAD, World Economic Forum Global Competitiveness Report,
http://www.finanz.ru/indeksi/MICEX
11,1%
99,0%
$ 378 Bn
$ 12 Bn
1999
$ 1, 381 Bn
$ 59 Bn
1999
$ 546 Bn
$ 40 Bn
1999
The dynamics of financial indicators
January, 2015

4. 4
2015
Created in 2014, started up in 2015
replaced Eurasian Economic Communion
Members:
Russia | Belarus | Kazakhstan
Armenia | Kyrgyzstan (since May 29, 2015)
Applicants:
Tajikistan
Eurasian Economic Union
176 mln people 3,6% world exports
2,6% world GDP 2,3% world imports
25% world gas reserves 11% world raw exports
9% world oil reserves 14% world energy exports
REGIONAL MARKET FACTS:

5. 5
Measures to Improve the Investment Climate
Road maps of National
Business Initiative
Access to
Infrastructure
• Enhancement of the
availability of the energy
infrastructure
Demand for Production
• Support of the access to foreign markets
and supporting export
• Expansion of medium business access to
procurement of infrastructure
monopolies and publicly owned
companies
Tax and Customs Regulation
• Improvement of customs
administration
• Improvement of tax administration
Dealing with
Construction
Permits
• Improvement of urban
planning legal regulation
and business climate in
the construction industry
Registration
procedures
• Optimization of property
registration procedure
• Optimization of legal
entities and entrepreneurs
registration procedures
Regions’ Development
• Implementation of working Standard for
executive bodies of the Russian Federation
to ensure a favorable investment climate in
the region
Institutional reforms
• Development of competition and
improvement of antimonopoly policy
• Improvement of business regulatory
• Improvement of valuation activities
11 adopted roadmaps
778 events

6. 6
Structural reforms: Starting a Business
Russia’s Doing Business Rank:
Changes of indicator’s data:
Dynamics of change of the rank in the ranking:
- abolishing the requirement to have the bank signature card notarized before opening a company bank
account;
- eliminating the requirement to deposit the charter capital before company registration;
- eliminating the requirement to notify tax authorities of the opening of a bank account.
2010
DB 2011
2011
DB 2012
2012
DB 2013
2013
DB 2014
2014
DB 2015
Russian
Federation
108 111 101 88 34 (↑ 54)
DB
2011
DB
2012
DB
2013
DB
2014
DB 2015 (compared
to DB 2011)
Procedures 8 8 8 7
4,4
(↑ by factor of 2)
Time (days) 29 29 18 15
11,2
(↑ by factor of
2,5)
Cost (% of income per
capita)
2,6 2,3 2 1,3
1,2
(↑ by factor of 2)
Paid-in min. capital (%
of income per capita) 1,9 1,6 1,4 1,2 0
108
111
101
88
34
REFORMS WHICH AFFECTED A RANK IN THE DOING BUSINESS RANKING:
The best dynamics of 2014
GROWTH ON 54 POSITONS

7. 7
Structural reforms: Registering Property
Russia’s Doing Business Rank: Dynamics of change of the rank in the ranking:
– reducing the term of the state registration and implementation of the state cadastral account from 43 to
18 days;
– possibility to file the application for registering property and for making amendments in Cadastral Register
in electronic form;
– eliminating the requirement of the document confirming the payment of the state duty along with the
application for registration and enforcing possibility of making the payment after submission of such
application.
2010
DB 2011
2011
DB 2012
2012
DB 2013
2013
DB 2014
2014
DB 2015
Russian
Federation
51 46 46 17 12 (↑ 5)
DB
2011
DB
2012
DB
2013
DB
2014
DB 2015 (compared
to DB 2011)
Procedures 6 5 5 4
3
(↑by factor of 2)
Time (days) 43 43 44 22
19
(↑ by factor of
2,3)
Сost
(% of property value)
0,1 0,2 0,2 0,1 0,1
41
46 46
17
12
REFORMS WHICH AFFECTED A RANK IN THE DOING BUSINESS RANKING:
Changes of indicator’s data:
Russia shows ONE OF THE BEST
world practices

8. 8
DB 2011 DB 2012 DB 2013 DB 2014 DB 2015
Structural Reforms: Paying Taxes
Russia’s Doing Business Rank:
Dynamics of change of the rank in the ranking:
– simplifying the methods of accounting;
– creating the form of cross function transfer;
– promoting the use of tax accounting software and electronic services;
– possibility of filing of the uniform adjustment invoice in case of changes of the cost of shipped goods
specified in two or more initial invoices
– unifying of codes of the reporting period in various tax declarations and calculations;
– creating the interactive service called Private office of the taxpayer – legal entity.
2010
DB 2011
2011
DB 2012
2012
DB 2013
2013
DB 2014
2014
DB 2015
Russian
Federation
105 94 64 56 49 (↑7)
105
94
64
56
49
REFORMS WHICH AFFECTED A RANK IN THE DOING BUSINESS RANKING:
Changes of indicator’s data:
DB
2011
DB
2012
DB
2013
DB
2014
DB 2015 (compared
to DB 2011)
Payments
(number per year)
8 7 7 7 7 (↑1)
Time
(Hours per year)
320 290 177 177
168
(↑ by factor of 2 )
Total tax rate
(% profit)
46,5 46,9 54,1 50,72 48,9
LOWEST
corporate income taxes among BRICS

9. 9
Foreign Investment Advisory Council
THE KEY INSTRUMENT:
in promotion of interests of the
companies at the government level
INCLUDES 51 INTERNATIONAL COMPANIES AND BANKS:

10. 10
Success stories of the Russian Business
Industry:
Consumer Finance
Revenue ($Mln): 188
Employees: >1,000
Industry:
Consumer Finance
Revenue ($Mln): 1,100
Employees: >6,000
Industry: Retail
Revenue ($Mln): 18,202
Employees: >230,000
Industry: Retail
Revenue ($Mln): 750
Employees: >2,400
Industry: Consumer Goods
Revenue ($Mln): 140
Employees: >2,000
Industry:
Consumer Goods
Revenue ($Mln): 100
Employees: >700
Industry: High-Tech
Revenue ($Mln): 120
Employees: >1,500
Industry: High-Tech
Revenue ($Mln): 80
Employees: >300
Industry: High-Tech
Revenue ($Mln): 1,207
Employees: >5,300
Industry: High-Tech
Revenue ($Mln): 200
Employees: >1,200
Industry: High-Tech
Revenue ($Mln): 398
Employees: >8,000
Industry: High-Tech
Revenue ($Mln): 300
Employees: >2,000
Industry: High-Tech
Revenue ($Mln):30
Employees: >400
Industry: High-Tech
Revenue ($Mln): 30
Employees: >650
Industry: Telecom
Revenue ($Mln): 8,400
Employees: >33,500
Sources: WEF Unkown Russia 2015
These companies exclusively focus on the Russian market and use innovative operational strategies
to successfully adapt global best practices.They have implemented operational models that have
allowed them to adapt global business models to Russia’s specific local conditions.

11. 11
Think Tank Index 2014
Institute 2013 2014
Brookings Institution (United States) 1 1
Chatham House (United Kingdom) 2 2
Carnegie Endowment for International Peace (United States) 3 3
Center for Strategic and International Studies (CSIS) (United States) 5 4
Bruegel (Belgium) 8 5
Stockholm International Peace Research Institute (SIPRI) (Sweden) 4 6
Carnegie Moscow Center (Russia) 29 26
Institute for World Economy and International Relations (IMEMO
RAS) (Russia)
34 43
Council on Foreign and Defense Policy (SVOP) (Russia) 99 98
Moscow State Institute of International Relations (MGIMO) (Russia) 102 102
Sources: 2014 Global Go To Think Tank Index Report, 2013 Global Go To Think Tank Index Report
Rank Country
Number of
Think Tanks
1 USA 1830
2 China 429
3 United Kingdom 287
4 Germany 194
5 India 192
6 France 177
7 Argentina 137
8 Russia 122
9 Japan 108
10 Canada 99
TOP-10 Countries on the Number of
Think Tanks
Global Distribution of Think Tanks
Think Tank Index Results

12. 12
LOWER CONTROL OF BUSINESS
• lifting restrictions for Russian business, freeing it from obsessive control
• launch of special information register for transparency strengthening
• supervising vacation within 3 years for small business proved to be law-abiding
OFFSHORE AMNESTY
• Total amnesty for businesses returning capital to Russia.
• They won’t face criminal and administrative prosecution.
TAX FREEZE
• Existing taxes in Russia unchanged for next 4 years.
TAX INCENTIVES FOR SMEs
• Small businesses starting from scratch should get a 2-year tax exemption
FAR EAST and ASIA
• Vladivostok is granted free port status
• Russia will work closely on economic integration with fast-growing Asian countries
President’s address to the Federal Assembly
“Freedom for economic development, social services and citizen
initiatives is the best response to both external constraints and
our internal problems.”
Vladimir Putin, December 4, 2014
MAIN POINTS ON ECONOMY AND LIBERALIZATION: