The Komi Republic is located in northeastern European Russia. It has an area of 416,800 square km and a population of around 880,000 people. The capital and largest city is Syktyvkar. The Komi Republic has a wealth of natural resources, particularly mineral resources, forests, and fossil fuels. It is one of Russia's most important fuel and energy production regions. The economy focuses on extractive industries like mining, forestry, and energy production. The Komi Republic offers various tax incentives and other forms of support to attract investors and encourage economic development.

1. General information about the Komi Republic
Distance Area: Outstretch:
from Syktyvkar to Moscow 416,800 km2 From South to North – 785 km
by railroad is 1410 km 2.4% of Russia From West to East – 695 km
Population: 880 600 From South -West
Capital: Syktyvkar to North- East – 1275 km
The Komi Republic is located in the northeast of European Russia and is a
part of the Northwestern Federal District. Its area is 416,800 square km (2.4% of
Russia).
The population at the beginning of 2015 was about 0.9 mln people, including
more than 100 nationalities and ethnic groups (0.6% of Russia population).
Population density is 2.1 people per 1 km2. The total share of Komi indigenous
people is 22, 4%. The average age of residents is 37.6 years.
The Republic has 10 cities that accommodates 78% of population. The capital
city is Syktyvkar. The major industrial centers are Vorkuta, Ukhta, Usinsk,
Sosnоgorsk and Inta.
The Komi Republic is rich in mineral resources. It has well-developed
infrastructure and highly-qualified staff.
The foundation of its natural resources potential is in its mineral resources,
which vary in quality and conditions of occurrence. They include fossil fuels, ore
minerals, and non-metallic minerals as well as balneological resources. Currently,
the Komi Republic is one of the most important fuel and energy bases in Russia, has
the Russia’s highest reserves of bauxite, titanium, and barite ore, and possess
considerable manganese and chromite ore resources.
The Komi Republic is one of the leading forestry regions of Russia. There are
more than 30% of timber resources of the Northwestern part of Russia in the
Republic. The basic forest-forming species include spruce, pine and birch.
Commercial use of wood is seen in wide range of industries: starting from logging
to production of pulp paper and cardboard.

2. Industry takes the central place in the economy. The main economic activities
are part of the fuel, energy, and forestry sectors.
Agricultural sector produces goods for the domestic consumer market,
specializing in dairy and beef cattle breeding, cultivation of potatoes and vegetables.
Transport complex of the Republic includes various types of modern
transport. The backbone of the railway network is Kotas-Vorkuta main railroad.
Large oil and gas pipelines («Northern Lights», «Usa-Ukhta-Yaroslavl», etc.)
transporting fuel products to the central and northwestern regions of the European
Russia originate in the Republic.
Transportation network of the Republic consists of 7 airports, 2,200 km of
railway, 4,100 km of navigable inland waterways, and 10,800 km of roads, of which
58% are paved. In the Komi Republic per 1,000 m2 there are 18.0 km of highways,
4.1 km-of the railway, 9.8 km-of navigable waterways.
The energy system of the Komi Republic is a united, almost closed territorial
complex, consisting of five energy units connected by a 220 kV backbone single
circuit transmission line of 1000 km.
In the Komi Republic, telecommunication is present in all available modes.
The telecommunications market is one of the most rapidly growing economic sectors
in Komi. The provision of telecommunications services on the territory of the
Republic is made by over 30 operators. The basic telecom operators are the Komi
Branch of OJSC Rostelecom and CJSC SeverTransTelecom. The companies
operating in the telecom market offer a full range of telecommunication services
including high-speed broadband Internet access and digital l P-TV. Digital telephone
stations work in all big cities, townships and villages of the Komi Republic.
The building complex comprises of construction and erection, repair and
construction organizations, construction companies and building materials industrial
companies.
Fundamental and applied research is conducted in more than 70
organizations of the Republic. The leading actor is the Komi Science Center, Ural
Branch, and Russian Academy of Sciences.

3. The Republic has unique natural landscapes. One of the most picturesque
corners of Europe where nature is preserved in its original form is “Yugуd Va”
National Park (Light Water) with the total area of 1,891,700 ha (5% of the
Republic) located on the western slopes of Northern and Polar Urals. Equally
unique is Pechora-Ilych State Nature Biosphere Reserve with the total area of
721,000 ha (2% of the territory). Since 1995, National Park “Yugуd Va” and
Pechora-Ilych Reserve have been a part of the UNESCO’s World Natural Heritage
List under the title «The Virgin Komi Forests».
The Komi Republic is one of the recognized centers of the Finno-Ugric
community which Komi people belong to. The Finno-Ugric ethnocultural park
opened in Yb village in 2011; it became the main tourist center of the Komi
Republic. There you can find a hotel, a restaurant of traditional Finno-Ugric food,
a souvenir shop, and the largest in the republic conference hall. An entertainment
center and a water park will be built soon.
The tourist train-hotel “Siyaniye Severa” (“Northern Lights”) started its
work in summer 2011. It сomprises of two railway vehicles with comfortable train
compartments, all needed facilities, and a diner.
Health tourism is also developing in the Republic. A sanatorium, with good
infrastructure, offering many therapeutic services is being built northwards of
Syktуvkar opposite to the Seryоgovo village.
The Komi Republic is a great depository of natural resources, among which
mineral resources have the key place. Known reserves of the Komi Republic
contain about 80% raw quartz, titanium around 50%, bauxite 30 barite 13%, coal-
4, 5%, oil around 3% of all Russia reserves.
Timan-Pechora oil and gas province is one of the biggest hydro petroleum
prospects in Russia. The major part is located in the Republic administrative
boundaries.
There are 50,1% of total initial resources of Timan- Pechora oil and gas
province (4167,5 mln tons of equivalent fuel), out оf which 2180,9 mln tons of oil
(44,4% of the province reserve), 1673,3 billion cubic meters of liberated gas
(59,3%) are in the Republic.

4. 178 raw hydrocarbon deposits were discovered in the Republic: 122 oil
deposits, 3 of gas-oil, 9 of petroleum, 39 of gas, and 5 of oil-gas.
Pechora coal field is the second biggest deposit in Russia as per resources
and contain all range of mineral coal. There are 30 deposits and coal areas with total
geological resources of 341 billion tons. Moreover 6 deposits of commercial
mineral coal are in the stage of commercial exploitation, comprising more than 7
billion tons, and out of them 4 deposits are in the stage of commercial production.
Starting from 1930, the first commissioning of the area, 1,4 billion tons of coal were
extracted.
Titanic ore is present in Yanega and Pizhma deposits. Yarega oil and
titanium deposits are located in the Ukhta district. They contain around 50% of
Russian reserve of titanium. The project of establishing of Yarega mining and
chemical refinery, implemented by OJSC «Yaregа Ruda», aiming at mining and
advanced processing of the oil-titanium ore of the Yarega deposit, is significant for
the future of Russia and our Republic. It is planned to build a mining and chemical
refinery with a capacity of 650 thou tons of ore per year, arrange its processing to
the final commercial products, including pigmentary titanium dioxide, which
Russian industry is lacking.
The Komi Republic is Russian largest and most promising raw material base
of boxite ore. Deposits of two bauxite areas, Mid-Timan and South-Timan, were
discovered and researched in the Timan mountain chain. Mid-Timan bauxite mine,
of the biggest Vezhayu-Vorykvinsky deposits, is functioning and producing,
providing bauxite to the Ural and North-West Russia Companies.
Oil shale reserves of the Komi Republic are concentrated in two regions:
Timan-Pechora and Vychegda. Calculated reserves of the Chim-Loptyugskоe
deposit, located in the Udorsky District, comprise more than 900 mln tons. Usage
of shale rock is possible almost in all known areas of application as fuel, raw
material, pitch generation, medical products generation micro fertilized etc.
Reserves of peat that also belongs to solid fuel minerals are located in many
deposits.

5. There are 5 deposits of raw quartz in the Komi Republic, containing around
80% of Russian reserves of gangue quartz. The biggest and the only deposit under
development is «Zhelannoе», located in the Pre-Polar Ural. Development of the
deposit is carried out by CJSC «Kozhimskoe RDP». At present the enterprise is
processing the gangue quarts to get high-purity quartz concentrates, matching the
world standards, and also raw materials for the production of high-purity silicon.
Projected resources of Polar Ural in the Khoilinskyi deposit of the barite
ore are evaluated as 30% of all explored resources of barite in Russian Federation
and 14% of the reserves concentrated in the West Europe. There are all needed
conditions in the Republic for the construction of the barite concentrate processing
mill.
Non-metal minerals complex is presented by large mineral-construction
resources deposit (gypsum, glass making sand, architectural and cladding stones,
the raw material for concrete, sand and gravel material, sand, clay, mineral
pigments etc.)
Manganese ore with industrial reserves of 30 mln tons is presented by
Parnoksy ferro manganese deposit, located on the western slope of Tether-Polar
Urals. The Ina affiliation «Мanganese Komi »ОJSС« Chelуabinskfyа electro-
metalourgikal Company does development.
Hardrock gold reserves are also available in the Komi Republic,
development is planned by CJSC «Gold minerals» («Chudnое» deposit at the
Nether-Polar Urals).
The Republic possesses a rare combination of crystalline raw gemstones,
colored stones (Polar-Urals nephrite, jadeite, colored calcedony, Pre-Polar Urals
rhodonites, crystals, amethyst, and citrine) deposits, suitable for the arrangement of
local jewelry and souvenirs production.
Deposits and occurrence of rare metals (niobium, tantalum molybdenum
wolframium), disseminated gallium, scandium), rare-earth metals (ceric and
yttrium groups) were discovered in the Timan, Nether-Роlar Urals. Commercial
resources were estimated only for niobium, tantalum and rare-earth metals.

6. Investment policy of the Komi Republic
The Komi Republic is currently among the regions with high level of
investment attractiveness.
In terms of per capita investment in fixed assets, Komi occupies one of the
leading positions among the regions of Russian regions.

7. Standard of executive authorities’ performance in ensuring congenial
investment climate was introduced in the Komi Republic in 2013. Komi is one of
the leaders among North-Western Federal District in this issue.
Investment attractiveness of the Republic is also confirmed by relatively
high credit ratings from leading rating agencies (Moody’s Investors Service and
Fitch Ratings) estimating the long-term foreign currency credit rating of the Komi
Republic, respectively at Ba3 (Moody's) and BB (Fitch Ratings). According to
Fitch, the national long-term rating of Komi is defined at AA- (rus) level.
According to Moody's the credit rating over the national scale is defined at Аa3.ru
level.
Russian investment agencies “Expert RA” and “RIA Rating” also confirm
investment attractiveness of the Komi Republic. According to "Expert RA"
evaluation, the Komi Republic belongs to the category of borrowers with very good
credit ratings. The region is characterized by high levels of economic development,
and its fiscal system is assessed as stable.
To create a positive image of the Republic, to inform potential investors
about its opportunities and attract extra resources, the Government of the Komi
Republic systemically builds up a balanced investment policy. Its main goal is to
create conditions and prerequisites for the accumulation and use of the investment
capacity for sustainable socio-economic growth.
The unified system of state support of investment activity has been
established and acting in the Republic. The system has been approved by
regulations that define the legal, institutional and economic basis for investment in
the region. The Law of the Komi Republic «On investment activity in the Komi
Republic» is the key legal act aimed at creating conditions to encourage investment
in the Republic.
For all entities involved in investment activity, regardless of ownership type,
the Government of the Komi Republic guarantees the following:
 equal rights in the implementation of investment activity;
 openness in discussing the investment projects;

8.  compliance with the terms of contracts and investment agreements
made with the entities involved in investment activity;
 stability of investors' rights and protection of investments.
You can find more information about regulations of investment projects
implemented in the Komi Republic, based on «One-Stop-Shop principle», on the
Komi Republic Investment portal (www.invest.rkоmi.ru) in the section «One-
Stop-Shop».
The Government of the Komi Republic is actively working with the
authorized federal agencies to get financial assistance from the federal budget for
socially significant investment projects of the Republic, by including them in
federal target programs.
The prospects of socioeconomic development of the Republic are
associated with further involvement in production and efficient use of the existing
capacity, intensive development, and processing of all types of raw material
resources available in the Republic development of infrastructure.
Aiming at this, the Government of the Komi Republic has created a system
of advance planning. The Strategy of Socio-economic Development of the Komi
Republic, defining the basic goals, long-term objectives and priorities of the
economic and social development of the Republic, is the foundation of that system.
Today, the basis for the development of the Komi Republic is the major
industrial projects with payback periods between one and ten years, and the total
investments of over RUB 500 billion. Equally important is the implementation of
smaller projects aimed at diversification of the Republic's economy, and
developing the economy of the future sectors, such as information technology and
biotechnology.
Measures to encourage investment
In the Republic Komi there is a policy of stimulating investment. Depending
on the project category, its industry sector, the needs of investors, are offered various

9. forms of support from the Government of the Republic Komi: grants, subsidies,
guarantees, tax incentives, investment tax credits.
Tax benefits are granted to projects which are implemented in priority
economic activities.
One of the main condition for receiving tax benefits is the inclusion of the
investment project in the List which is formed to provide tax benefits (here in after
- List).
Investors whose projects included in this List, can apply for the tax benefits
on property tax of an organization (the reduction in the rate by 0.2 - 0.3 percentage
points of the generally established rates of 2.2%) what is more, income tax of an
organization, which is transferred to the republican budget of the Republic Komi
(the reduction in the rate by 1.8 - 2.2 percentage points of the tax rate of tax, which
is must be transferred to the republican budget of the Republic Komi (17%)).
The period of tax benefits for each tax up to 5 years.
In addition, it may be granted to the investor the Investment tax credits for
income tax and regional taxes for the period from 1 year to 5 years. The main
condition – the project was implemented in one of the priority activities for the
Republic.
The payment for the use of such credits is ½ of key rate of the Bank of
Russia. Investment tax credits are granted for the period estimated payback period
(from 1 year to 5 years).
Ways of ensuring fulfillment of obligations to return of the investment tax
credit can be a pledge of property, surety or bank guarantee.
The package of documents for granting of the investment tax credit is filed
annually before 15 April at the Ministry of economy of the Republic Komi.
Another form of guaranteed benefits for the investor, implementing and (or)
planning a large-scale investment project on the territory of our region is the

10. possibility of providing land plot for rent without auction in case the project
corresponds any of the criteria that must be correspond by large-scale investment
projects:
Large-scale investment project involves the construction of any of the
following objects:
1) objects whose location will significantly increase the number of jobs in the
municipality in the Republic Komi, on whose territory they are located, but not less
than 250 jobs;
2) objects whose location will allow to increase for 1% or more the annual tax
revenue, which are levying on the territory of municipal formation in the Republic
Komi, in which the project is being implemented, but not less than 5 million rubles;
3) individual dwellings, apartment blocks, transferred in property or social
recruiting citizens who lost their dwellings in emergency situations;
4) objects, whose establishing contributes to decline in the share of imported
products on the regional market.
In 2017 it is planned to develop new mechanism of interaction between the
Government of the Republic Komi and entities performing activities in the sphere
of industry on the territory of the Republic Komi – the conclusion of the special
investment contract. In the framework of the conclusion of the special investment
contract it is supposed to provide the whole range of government support measures
stipulated by the legislation for entities in the sphere of industry, development of
new measures of state support.
State support is provided primarily a highly efficient investment projects
which correspond to the development strategy of the Republic Komi and is aimed at
developing of priority sectors of the economy and play a key role in the formation
of the gross regional product, the development of social infrastructure of the
Republic and the development of production with high value added.

11. For potential investors it may also be attractive investment projects
implementation on the territory of advancing socio-economic development
«Yemva». In this case, they have the opportunity to use the following benefits
envisaged by the Russian legislation:
Benefits for the residents of advancing socio-economic development:
• Income tax: no more than 5% during the first five years, np less than 10%
over the next 5 years.
• Property tax, land tax: can be provided exemption.
• Social contributions: 7.6% for 10 years.
• The regime of a territory of the free customs.
• Preferential connection to different infrastructure objects.
• The ability to attract preferential and expedites procedures foreign qualified
staff.
• Use of sanitary and technical regulations following the example of most
developed countries in the OECD.
• Special order of using land.
• Preferential rates for the rent.
• A special procedure for the state control and municipal supervision.
• The provision of specific public services.