Special Economic Zones of the Russian Federation Ministry

Special Economic Zones of the Russian Federation Ministry for economic development of the Russian Federation Department of special economic zones, regional and monocities development projects

Why Russia? ü Advantageous position between Europe and Asia – location of distribution channels; ü Rich natural resources ( > 20% of the world resources); ü Russia is the 6 th largest economy in the world by the GDP ($2, 5 bln, purchasing power parity). According to IMF in 2017, the nominal size Russia’s GDP will reach $3, 3 trillion; ü Russia has 9 th largest domestic market in the world (consumer spendings account for 70 -75% of income); ü Balanced labor cost and workforce skills, high level of education, strong labor market (unemployment rate is 5, 5%); ü Growth of Russian stock market capitalization by 22 times; ü Developed infrastructure; ü Policy to reduce bureaucracy and corruption; ü Economy diversification, reducing dependence on oil and gas sector.

Location of 29 special economic zones 7 Industrial and production zones 14 5 Technology and innovation zones 3 St. Peterburg Murmansk Region Samara Region Republic of Tatarstan Tourist and recreational zones Port zones Republic of Tatarstan Sverdlovsk Region Pskov Region Moscow Region Dubna Moscow Zelenograd Khabarovsk Region Kaluga Region Lipetsk Region Ulyanovsk Region Vladivostok Tourist claster Stavropol Region The Republic of Ingushetia The Republic of Kabardino. Balkaria The Republic of Adygeya The Republic of Karachaeva. Cherkessia The Republic of Osetiya Krasnodar Region The Chechen Republic The Republic of Dagestan Tomsk Region Altai Region Republic of Altai Russkiy island Irkutsk Region Republic of 3 Buryatia

The key figures of SEZ’s efficiency More than 73 bln. rub invested in infrastructure About 460 bln. rub investors planned total investments More than 350 residents in SEZ 3. 10. 14

The largest SEZ investors

Preferences Ø Special administrative regime • Decrease in administrative barriers Ø Transparent legislative and management • Authorities involved: Ministry of economic development, professional management company Ø Access to qualified human resources • Science and education centers Ø Free customs mode • No import duty, refundable VAT Ø All the necessary infrastructure at lower prices • Office facilities, gas, water, energy etc. Ø State guarantees and stability • Investment agreement with the Government, SEZs are created for 49 years Ø Special tax treatment • Income tax decrease, property, transport tax exemption for 10 years

Preferences/taxes Federal SEZ Industrial and production zones Technology and innovation zones Profit tax Federal budget 2% 0% for 5 years Regional budget 0 -13, 5% Property tax 0% for 10 years Land tax 0% for 5 years Transport tax (rub/1 hp) Insurance fee payment Port zones 2% 0 -13, 5% Tourist and recreational zones Territory of the Russian Federation 0% for 10 years (for cluster residents) 0 -13, 5% 2% 0% for 10 years 2, 2% 0% for 5 years 1, 5% 0 for 10 years 10 -150 14% till 2017 for residents involved in R&D activities 14% till 2017 for residents of tourist cluster 34% - 18% Free customs regime + + + - - Ready-to-use infrastructure + + -

Obtaining the resident status sign an agreement with the Ministry and the management company 4) 2) forming request to the Ministry STEP 1 1) register the company; forming business plan Thursday, March 15, 2018 STEP 2 STEP 3 STEP 4 3) expert committee consideration 8

Management authorities of SEZ Single centralized management system of SEZ Government of constituent entity of Russia Main functions: § provides expert examination of project documentation and engineering survey Supervisory board Main functions: § coordination of activities on SEZ development; § control of the agreement on SEZ establishment implementation; § analysis, approval and control of SEZ development plans implementation; § assistance in SEZ residents and other investors project implementation Ministry of Economic Development of Russia Main functions: § elaboration of the unified state policy in sphere of SEZ establishment and functioning; § SEZ management; § legal entities and individual entrepreneurs registration as SEZ residents; § maintenance of SEZ residents register; § issue of extracts from the SEZ residents register; § annual SEZ efficiency estimation; § control of operation agreement implementation by SEZ resident; § decision making on land buy-out by renters; § other functions. Management company Main functions: § provides establishment and operation of SEZ infrastructure; § attracts residents and other investors in SEZ; § development of SEZ zoning project; § acts as a state customer for SEZ territory zoning and infrastructure creation at the expense of budget funds; § obtains technical conditions for SEZ facilities and surrounding territory connection to the engineering and technical networks; transferring them to legal entities and individual entrepreneurs carrying out the construction; § manages and disposes SEZ land other SEZ real estate; § publication of information of free land.

Contact information Ministry for economic development of the Russian Federation Ahmeeva Elmira – deputy director of the Department ahmeevaea@economy. gov. ru +7 (495) 690 -13 -02 Galkina Vasilisa – head of the division of SEZ investors cooperation and international relations galkinave@economy. gov. ru +7 (495) 690 -58 -38 Department of special economic zones, regional and monocities development projects +7 (499) 795 65 55 +7 (495) 690 27 75 (fax)