Investment passport of «Gurievsk city district» municipality

1. Investment passportof «Gurievsk city district» municipality gurievsk.gov39.ru

2. Table of contents 2

3. Contents Best regards, Head of the administration of Gurievsk city district Sergey SergeevichPodolsky Dear partners, residents of the district! I am glad to welcome all those who would like to engage directly in the successful development of our municipality. You are welcome to get acquainted with the Investment passport of the Gurievskcity district. The investment passport is a sort of guidebook for businessmen, potential investors, which forms an idea about the district itself and about the possibility of implementing investment projects in the territory of our district. One of the main tasks that I, as the head of the administration of the city district, focus on today, is laying a comfortable ground for business development as well as attracting of investments to the municipality. In my opinion, the important factors of success in attracting investments are assisting and supporting investors at all stages of project implementation; acceleration of administrative procedures and weighted solutions in business. Ihereby invite all partners interested in cooperation to a constructive dialogue. 3

4. Contents Historical reference 1262istheyearoffoundation ofthecityofNeuhausen, (“NewHouses” in German). Upto 1939 the city population constituted 4,198 people. There was a militaryairfield in theareaof ​​Neuhausen. Goodclimate, lack of industrial production aswellas a beautifulpark, pond, pool, tavern, - it all resulted in a foundation of a recreationalarea. ThecityofGurievskwas founded onthesite ofthecityofNeuhausenandnamedinhonorofGurievStepanSavelievich- theHerooftheSovietUnion. The DecreeofthePresidentoftheSupremeSovietofthe RSFSR ofSeptember 7, 1946 "OntheadministrativeandterritorialstructureoftheKaliningradregion" in 14 districtsoftheregionestablishedGurievsk citydistrictwithGurievsk itself as its center. 4

5. General information about the district Contents 1st place among the municipalities of the Kaliningrad region regarding population As of 01.01.2018, the total population of the district is 66.7 thousand people Working-age population – 42,700 people Unemployed – 225people Average life expectancy – 72years Number of working-age population (thousand people) Number of officially registered unemployed (people) 5

6. Geographical location Contents • 128.4 thousand hectares in area, • 7 administrative districts, • 147 settlements. • Located around the city ​​of Kaliningrad, • the distance between Gurievsk • and Kaliningrad is 7 km: •  the nearest suburban zone of the regional center •  located at the intersection of transport highways •  well-developed electricity and gas supply network •  availability of modern means of communication and telecommunications •  substantial proportion of working-age population due to migration, • including migration from Kaliningrad •  potential for the growth of construction industry and agro-industrial complex, • including production and processing of agricultural products 6

7. Transport network Contents The main transport highways of the region run through the territory of the district: “Northern bypass of Kaliningrad”, “Southern bypass of Kaliningrad”, as well as federal roads: A-229 “Kaliningrad-Chernyakhovsk-Nesterov” and A-217 “Primorskoye semicircle (Ring route in the region Primorsky recreational zone)”. The total length of the federal and regional roads is 402.6 km. The municipal route network of regular passenger and luggage transportation includes 4 bus routes 308.3 km long, connecting 52 settlements. The sections of the railways of two branches of the trans-European transport corridors run through the territory of the district: section No. 1-A (Riga-Kaliningrad-Gdansk) of route No. 1 Via Baltica (Helsinki-Tallinn-Riga-Kaunas-Warsaw) and section No.9-D (Kaunas- Kaliningrad) of route No. 9 (Helsinki - St. Petersburg - Moscow - Kiev - Minsk - Vilnius - Kaunas - Klaipeda). • The total length of the railway lines is 76 km, density: 55 km / 1000 sq. km. In January 2018, the Kaliningrad-GurievskNoviy-Kaliningrad shuttle trains have been launched. Trains make 5 runs from Kaliningrad to Gurievsk and back daily. During the year 2017, 127 thousand passengers were transported. 7

8. Contents Advantages of the Gurievsk city district There is an international airport (17 km from Kaliningrad) within the territory of the district The length of public roads of local significance is 544 km Mineral resources: oil, peat, claydite clay, construction sand, fresh underground water (27 deposits of peat, 6 deposits of sapropel, 7 deposits of gravel-sand mixture, 9 - construction sand, 1 - clay raw materials, 1 deposit of fresh groundwater). The district has access to the Curonian and Kaliningrad Gulfs 8

9. Municipality - for the investor Contents Investments into fixed assets (million rubles) • The priority areas of investment and entrepreneurial activity in the territory of Gurievsk city district are: •   - agro-industrial complex; •   - industry and manufacturing; •   - housing construction and housing and communal services; •   - tourism; •   - innovations. Investments in fixed assets - 7.8 billion rubles. • Since 2016, the municipality holds a public council on improving the investment climate and business development with the participation of the head of the city district administration. •  The investor can take advantage of the mechanism of accompanying of investment projects based on the "one-stop" service principle, as well as accelerated administrative procedures for the preliminary coordination of land plots granting and lease. •  The Multifunctional Center of State and Municipal Services (MFC) is successfully operating in the Gurievsk District; it covers 204 types of services, including SMBE (small and medium-sized business entities) support. On the basis of the MFC, an information portal "Business Navigator SME" has been opened in the district; it provides full range of services for business. 9

10. Contents Investor Support • In order to stabilize and develop agricultural industry, state • support is provided to agricultural manufacturers in the form of • subsidies from the regional and federal budgets. • In 2017149.6 million rubles in total as subsidies were • received by: • - 23 peasant (farm) households and individual entrepreneurs; • - 14 agricultural enterprises; • -20 private farms of 19 types of production. • Together with the Ministry of Industrial Policy, Entrepreneurship and Trade of the Kaliningrad region within the framework of the existing funding, the state support of the SMEs subprogram "Development of small and medium-sized businesses" of the state program of the Russian Federation "Economic development and innovative economy" is being implemented. • The Gurievskcity district administration is taking measures to accelerate and simplify procedures for issuing permits for investors within the requirements of the current legislation, in order to ensure a favorable investment climate in the district, create an open information environment for investors and create mechanisms to increase investment attractiveness. 10

11. Contents Investment infrastructure 11

12. Legal framework Contents • Normative legal acts of the Gurievsk city district: • Decision of the seventy-seventh session of the Gurievsk District Council of Deputies of the fourth convocation of May 20, 2016 No. 455 "On approval of the procedures for assessing the regulatory impact of drafts of municipal regulatory legal acts and the examination of municipal regulatory legal acts affecting the implementation of entrepreneurial and investment activities" • Decision of the eightieth session of the Gurievsk District Council of Deputies of the fourth convocation of 01.07.2016 No. 472 "On streamlining the issues of regulation of investment activities by local governments of the Gurievsk city district." • The resolution of the administration of the Gurievsk city district No. 6396 of 17.11.2016 "On approval of the Regulation on the Public Council on improving the investment climate and business development under the head of the Gurievsk city district administration". • The resolution of the administration of the Gurievsk city district No. 6990 of December 13, 2016 "On the approval of the composition of the public council for improving the investment climate and the development of entrepreneurship under the head of the administration of the Guryievsk city district.“ • The resolution of the administration of the Gurievsk city district No. 4093 dated 01.09.2017 "On approval of the administrative regulations for the provision of municipal services "Maintenance of investment projects on the principle of "one window". • The resolution of the administration of the Gurievsk city district No. 1294 of 09.04.2018 "On the approval of the Investment Message and the Investment Declaration of the Gurievsk city district. • The resolution of the administration of the Gurievsk city district No. 5006 of 06.09.2016 "On the creation of a temporary working group for the formation of a favorable investment climate and management of activities in this area under the head of the Gurievsk city district administration". • Resolution of the administration of the Gurievsk city district No. 5005 of 06.09.2016 "On the establishment of an expert group to monitor the implementation of successful practices in the Gurievsky urban district aimed at creating a favorable investment climate, developing and supporting small and medium-sized businesses." • Decision of the thirty-sixth session of the Gurievsk District Council of Deputies No. 201 dated November 15, 2013 "On Taxes across the territory of the Guryevsk Municipal District." • The resolution of the administration of the Gurievsk city district No. 6583 of 30.11.2016 "On the approval of the municipal target program of support and development of small and medium-sized businesses in the Gurievsk city district. 12

13. Investment projects Contents • The following investment projects are currently being implemented • in Gurievsk city district: • - construction of storage facility for agricultural products (elevator) by OOO PtitsefabrikaGurievskaia (LLC Poultry Farm "Gurievskaia“). The total cost of the project is 1 billion 868 million rubles, execution term - 2 years; • - reconstruction of three poultry houses by OOO PtitsefabrikaGurievskaia (LLC Poultry Farm "Gurievskaia“). The project cost is 675.2 million rubles, execution term - 1 year; • construction, reconstruction and modernization of the poultry complex for growing broilers in OOO PtitsefabrikaGurievskaia (LLC Poultry Farm "Gurievskaia“). The total cost of the project is • 1 billion 799.6 million rubles, execution term - 5 years. • A number of promising projects are being developed, such as: • - Construction of water supply and water disposal facilities for Khrabrovo Industrial Park; • - Foundation of a medical cluster (construction of an oncology center and an infectious hospital in the village of Rodniki). • At the same time, there are going to be social objects constructed, such as: a comprehensive children's and youth sports school in Gurievsk, a cultural center in Petrovo village; there is also a reconstruction of the cultural center in the village of Khrabrovo planned. • In the long term, the inflow of investments is expected from the residents of the Special Economic Zone registered in the district, such as: Airport Khrabrovo, LLC Mekont Invest, LLC GruppaAitex, LLC Baltbeton, LLC PGM – GORODSKOYE PROSTRANSTVO (“PGM – URBAN SPACE”) 13

14. Contents Investment sites • Prospective investment sites designed for the development of water tourism on the territory of the Gurievsk city district have been determined: • Tourism and recreation area of the Gurievka river (a park of culture and recreation of Guryevsk city and the area surrounding the castle of Neuhausen); •  Tourism and recreation area on the shore of the Kaliningrad Gulf near Ushakovo, Novomoskovsk Territorial Administration; • Tourism and recreation areas on the coast of the Curonian Lagoon in the area of pp. Kashirskoye and Zalivnoye (territorial administration of Khrabrovo); •  Tourism and recreation area on the bank of the Pregolya river, Rodniki village, (territorial administration of Nizovie) 14

15. Contents Plots of land • We are ready to offer 3plots of land located in the Kostiantinovka village with a total area of 61.4hectares for investment projects. 15

16. Contents Land plot №1 CN 39:03:060001:95 for the design and construction of an industrial zone “Industrial park” in the village of Konstantinovka 16

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18. Contents Land plot №2 CN 39:03:060001:261 for agricultural production 18

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20. Contents Land plot №3 State property not designated by limits  for agricultural production 20

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22. Brief economic characteristics Contents In 2017, 4219 economic entities operated on the territory of the district. About 2 thousand new jobs were created. Tax revenues to the local budget exceeded 750 million rubles. • Number of business entities (units). Distribution of business entities by economic sectors (units). The volume of industrial products exceeded 26 billion rubles. The turnover of retail trade - 1.7 billion rubles. The trading network is developing successfully. Three large shopping centers opened in ‘17. 22

23. Strategy of social and economic development of the Gurievsk city district until year 2030 Contents Сonditions for quality of life of the municipality’s population improvement Global strategic objective Priority areas Main goal Conditions for the preservation and development of human potential (improving of demographic situation, ensuring employment, raising of income of the population, ensuring safety of life in the district) Social development Spatial development Comfortable living environment for residents and visitors of the district. Improvement of the environment (improving of ecological awareness of the population, reducing harmful emissions, eliminating negative environmental impacts) Municipal development Effective system of municipal management of the district’s development (management system for the implementation of the district’s development strategy, development and coordination of the implementation mechanisms of the strategy, strategy monitoring) Economic development Conditions for a competitive economy (increasing of investment attractiveness of the district, development of the district territory, modern and developed infrastructure) • Priority directions of the region's economic development are: •   construction industry, including production of building materials and production of construction machinery •   agro-industrial complex, incl. food production, production of agricultural technology, machinery and equipment 23

24. Contents The budget of the Gurievsk city district Structure of income and expenses The amount of income in 2017: 2 229 million rubles The amount of expenses in 2017:   2 206 million rubles Surplus: 22 million rubles 24 26

25. Agroindustrial complex Contents The volume of agricultural products amounted to 3.3 billion rublesin 2017. • The agro-industrial complex is one of the priority sectors of the economy of the Gurievsk city district. It includes: • 16 operating agricultural and • 22 processing enterprises, • 93 farms and individual entrepreneurs, • 2 agricultural cooperatives. • In addition, the district has 15,778 private plots (farms). • Main directions: • crop raising - the production of grain, rape, potatoes, vegetables. Additional direction: industrial gardening. • livestock farming: production of milk and meat. Additional directions: egg production, fur farming, honey production. Structure of planted acreage,% 25

26. Real estate development Contents 187.4 thousand square meters of residential buildings were built in 2017. Average housing area per one person in the district is 41.8 square meters. • Housing construction is one of the main directions of the development of the municipal formation. • In 2017, construction work was carried out in the amount of 4,810.2 million rubles. In Gurievsk city district there are 637 enterprises that carry out their activities in the construction industry. • Dynamics of housing commissioning (thousand square meters) 26

27. Large-scale enterprises Contents The largest industrial enterprise of the region in the production of semi-finished and ready-made meals is LLC Miratorg-Zapad; factory for the production of aerated concrete autoclave hardening ("Aeroblock“) LLC Tekhnoservis; the only company in the region for the production of eggs - OOO PtitsefabrikaGurievskaia(LLC Poultry Farm "Gurievskaia“);production of a wide range of high-quality canned fish and meat, as well as canned poultry meat, mushrooms and vegetables - LLC BARS; modern machine-building factory for the production of semi-trailers and superstructures for freight chassis of LLC Griunvald; transport and logistics complex LLC DSV Transport. The average wage for employers of large and medium-sized enterprises of the district is 35.7 thousand rubles. 27

28. Contents • Small and medium-sized business entities (SMBE) • There are more than 4 thousand SMBE on the territory of the municipality. About 48% of working population is engaged in small business alone, and the share of earnings of small enterprises in the total revenue is about 45 percent. • By economic activity, the SMBE distribution is as follows: retail trade is the prevailing branch of the economy (47% of the total amount of SMBE); 20% of SMBE are engaged in construction field; in processing industry - 14% of SMBE; about 13% of SMBE are engaged in transport services. The Municipal Target Program for the Support and Development of Small and Medium-sized Entrepreneurship for 2017-2019 is operating in the Gurievsk city district, • The main activities of the program: •   arrangement and holding of training seminars and provision of educational services related to the retraining and qualification improvement of SMBE employees; •   development and production of informative materials, printing of promotional products; •   advising SMBE on their activities. In the year of 2017, there were 6 legal seminars held; training courses were arranged and conducted under the program "Practical development of the investment potential of territories and entrepreneurship", information and methodological materials for SMBE were developed and printed. 28

29. Tourism potential Contents • There are more than 70 objects of cultural heritage on the territory of the district: • 5 Order castles (Waldau, Schaaken, Brandenburg, Neuhausen, Kaimen); • 11 protestant churches, six to seven centuries old; • 7 defensive forts of the XIX century; •   5 monuments and burials of World War I; • 18 memorials to Soviet soldiers and officers who died in 1944-1945; • 17 archaeological sites. There are 2 museums on the territory of the district, which host 1,265 exhibits in total. 429 excursions were conducted in museums, the number of visitors during the year exceeded 10 thousand people. International historical and artistic festivals, interesting medieval military-historical reconstructions and battles, reflecting the events from IVX to XX centuries are held here. In 2017, the district held 2,725 cultural events, where about 180 thousand people took part. There are 8 tourist routes, the number of participants is about 20 thousand people. . 29

30. Hospitality infrastructure Contents • Today the hospitality sector of the district occupies over 2% of the total number of small businesses and is represented by rural manors and guest houses, such as «Usadba», «Okhota», «Voronets» manor, «Domik v derevne» (Farm house) inn, unique Hotel «Nesselbeck» designed and built as a medieval castle, «Festivalnyi» camping,hotel and restaurant complexes «ERA SPA» and «La Belle», manor-museum «LesnoiKhutorok»,Hotel «Solnechnyi». 30

31. Contents International activity In 2017, cooperation agreements with the municipalities of the cities of Mlynary, Ostashevo, Olecko, the Republic of Poland were signed in order to participate in cross-border cooperation programs "Poland-Russia 2014-2020“ and "Lithuania-Russia 2014-2020" and there was project documentation developed for the following objects: - Reconstruction of wastewater treatment facilities of domestic sewage with a capacity of 3000 m3/day in the Vasilkovo village of Gurievsk district. - Foundation of the "Reed Park" in the territory of the park of culture and recreation in Gurievsk. Construction of a 300 meters long promenade in the coastal zone of the Gurievka River. - Reconstruction of the MaloyeVasilkovo-Avangardnoe highway with an access to the regional circuit road "Northern bypass of Kaliningrad" (Stage 1). • In 2017, two international projects were implemented under the programs of the Swedish International Center for Local Democracy (ICLD) and the Council of Ministers of the Nordic countries. • "WaterNets - Ru“ project. Establishment of a Partnership of Water Users to address the problems of Gurievka River Basin pollution. • "Population participation in urban planning and development: approbation and adaptation of Nordic models in the Kaliningrad region“ project. Public space arrangement in the Tiergarten park complex. 31

32. Contents Municipality Management The Council of Deputies of Gurievsk District is a representative body of local self-administration. Head of the representative body, the head of the Guryev urban district - Kurilov Alexey Leonidovich. Tel.: +7 (4012) 302-89 Elected on September 18, 2016 for a period of 5 years. Deputies: 20 people. The administration “Gurievsk city district” municipality is the executive body. The head of the administration of the Gurievsk city district is Podolsky Sergey Sergeyevich. Tel.: +7 (4012) 302-01 As of 01.01.2018, the staff of local administration bodies of the Gurievsk city district was 178 people, incl. 129 municipal employees. Kurilov Alexey Leonidovich Sergey SergeevichPodolsky 32

33. Contents Contacts of administration officials responsible for investor relations • Working hours: Mon-Fri from 8:00 to 17:00, lunch break: from 13:00 to 14:00 33

34. Contents Mass media • The mass media of the district are represented by «NasheVremia» («Our Time»), the weekly socio-political, socio-economic newspaper of the Gurievsk district of the Kaliningrad region. The newspaper has been published since 1947. It is a weekly paper, with a circulation of 1500 copies. The founder of the newspaper is the administration of the Gurievsk city district, the publisher: UIA "Editorial office of the newspaper«NasheVremia». This newspaper is an official publication of the administration of the Gurievsk city district. 34

35. Welcome to Gurievsk city district! Contents "Gurievsk city district" Municipality tel.: 3-02-00, 3-02-60 http://gurievsk.gov39.ru 238300, Kaliningrad region, Gurievsk, Lesnaya str., 3a fax: 30-265 adm_gur@gov39.ru