Kanash Town: Priority Social and Economic Development Area

1. KANASH TOWN PrioritySocialandEconomicDevelopmentArea Общая информация город Канаш Общая информация – город Канаш OPPORTUNITIES AND ENVIRONMENT FOR RESIDENT INVESTMENT 1

2. Общая информация город Канаш General information about Kanash town • Kanash was founded in 1925. • Kanash occupies an advantageous geographical position. It is located almost in the centre of the Chuvash Republic, not far from large industrial cities of the Volga region: 80 km from Cheboksary and 130 km from Kazan - the capital of Tatarstan. • Kanash is the major railroad junction of the Republic. • Kanash is the third largest industrial town of the Chuvash Republic with a total urban area is 1,871.2 hectares; its population is 45.5 thousand people. • Main transport highways cross the town: on the west it is a federal highway Tsivilsk-Ulyanovsk-Syzran which is connected to Moscow-Nizhny Novgorod-Kazan highway. The town also has a roadway connection with all regions of the Republic. • Murom-Arzamas-Kazan-Yekaterinburg and Ryazan-Ruzayevka-Kanash-Kazan railways as well as the rail spur to Cheboksary pass through Kanash. 2

3. Priority Social and Economic Development Area “Kanash” Priority Social and Economic Development Area – is a part of Russian Federation subject which establishes its special legal framework for implementation of entrepreneurial and other activities in order to create favorable conditions to attract investments, ensure accelerated socioeconomic development and create comfortable conditions to provide public vital activity. 3

4. Priority Social and Economic Development Area «Kanash» CONDITIONS FOR CREATION PSEDA (RF GovernmentRegulationNo 614 fromJune, 22 2015)(Chuvash RepublicGovernmentRegulationNo204fromMay, 25 2018) PSEDA is created within the boundaries of municipal unit • Requirements for PSEDA residents: • Place of registration – municipality of Kanash • To operate only at the territory of the Kanash municipality • The legal entity should not be a local economic mainstay or an affiliated company in relation of a local economic mainstay • Take-out received from a local economic mainstay should not exceed 50% from the total revenue • The investment project does not permit to attract foreign labor in the amount exceeding 25% of the total employees number 4

5. Priority Social and Economic Development Area «Kanash» PSEDA resident in the FIRST YEAR after registration as a PSEDA resident should New legal entities Active companies INVEST in the implementation of the investment project not less than 2.5 million rubles CREATE not less than 10 new jobs INVEST in the implementation of the investment project not less than 2,5 million rubles CREATE not less than the average number of employees over the last 3 years 5

6. Priority Social and Economic Development Area «Kanash» LIST of types of economic activity, allowed to be implemented on the PSEDA (Priority Social and Economic Development Area) «KANASH» 1. Crop production and livestock farming, hunting and provision of relevant services in these areas 2. Fishery and fish farming 3. Food production 4. Production of softdrinks; production of mineral water and other drinking water in bottles 5. Garment industry 6. Production of leather and leather goods 7. Manufactureof chemicals and chemical products 8. Manufacture of other non-metallic mineral products 9. Metallurgical production 10. Manufacture of fabricated metal products, except machinery and equipment 11. Manufacture of electrical equipment 12. Manufacture of machinery and equipment not elsewhere classified 13. Manufacture of bodies (coachwork) for motor vehicles; manufacture of trailers and semi-trailers. 6

7. Priority Social and Economic Development Area «Kanash» Set of documents to an application of potential resident of PSEDA • passportoftheinvestmentproject • documentconfirmingtheauthorityoftheapplicant'srepresentative, inthecaseofappealtheapplicant'srepresentative; • copieslicenses(iftheApplicantimplementstheactivitysubjecttolicensing) and/or certificateSRO (self-regulatoryorganization) ofanApplicantofadmissionto a certaintypeofworkortypesofworkthataffectthesafetyofcapitalconstructionfacilities (providedincasesuchworksareimplementedbytheApplicant) • certificatefromthecreditinstitution (original), containinginformationonthecurrentfinancialconditionoftheApplicant; • copiesoftheaccounting (financial) reportingonthetwofinancialyears; • incasethereis a plotoflandorotherpropertynecessaryfortheimplementationofthedeclaredeconomicactivity, copiesofthetitledocuments (lease/sub-leaseagreement, contractforuncompensateduseor a documentconfirmingownershiprights) • copyofthetaxpayer’s (payer'sofinsurancepremiums) consenttotherecognitionoftheinformationthatis a taxsecret, availableintheformapprovedbyauthorizedFederalExecutiveauthority • consentofthepersonaldatasubjecttotheprocessingofhispersonaldatainaccordancewiththeFederallaw "onpersonaldata'' • copyofthecalculationofinsurancepremiumsforthereportingperiodmarkedby a taxauthority 7

8. Priority Social and Economic Development Area «Kanash» PROPOSED PROCEDURE conclusion of an agreement with PSEDA residents 10 working days 10 working days ApplicationHandlingtoauthorizedagency (MinistryofEconomicDevelopmentoftheChuvashRepublic), consideration How to become a PSEDA resident ReceivingtheconclusionsoftherelevantministriesandKanashadministration 5 workingdays 5 working days 5 working days Decision making on the Commission Considerationofanapplicationpreparationof a consolidatedopinion Conclusion agreement with the PSEDA resident 10 working days 3 working days Sending of the agreement to the Ministry of Economic Development of the Russian Federation EnteredoftheMinistryofEconomicDevelopmentoftheRussianFederationintheregisterof PSEDA residents 8

9. Priority Social and Economic Development Area«Kanash» Areas for the realization of investment projects 9

10. Priority Social and Economic Development Area«Kanash» Sites for implementation of investment projects 10

11. Kanash Industrial Park - location Industrial Park The most favorable spatial location of the industrial park of Kanash town is identified on the basis of the strategic development priorities of the Republic, promising sectors of specialization of the manufacturing industry and a list of other important factors. The location of the industrial park being constructed is on the outskirts of the town near the industrial zone. Access to the site of the industrial park from Kanash is provided by the road 97K-002 "Amish" with the possibility of subsequent access to the Federal highway A-151, which is at the distance of 6 km. At the distance of 80 km from the industrial park there is the airport of Cheboksary city. Cheboksary-Moscow regular flights are operated from the Cheboksary airport. A large railway junction and the station ''O.P. 670 km'' is at the distance of 1 km from the planned industrial park. Address: The Chuvash Republic, Elevator territory, the land plot from the North-East of Kanash town. Area: 373 951,00 square metres (37,4 ha) 11

12. Kanash Industrial Park - planning YANTIKOVSKOYE SHOSSE Industrialarea EXPLICATION OF BUILDINGS AND STRUCTURES 12

13. Kanash Industrial Park - communication Electricity Water Gas Electricity – 24 Mw Gas supply– 5500 м3/h Water supply / sewerage – 5500 м3/day Telephone and Internet connection Convenient access roads. Parking for cars. Asphalt covering and roads width throughout the park will allow unimpeded access to heavy vehicles. 13

14. Kanash Industrial Park – rent and buying areas Rentail The price of the lease of the site is determined at the auction and will be set at a low price in the amount of the land tax rate and fixed for the entire term of the lease Redemption value Will be determined foreclosure at reduced cost Benefits - registered plot of land for an industrial facility - agreed preliminary design of the territory - simplification of procedures for obtaining technical conditions for connection to water supply, electricity and gas supply networks - all infrastructure connections are guaranteed (ready service lines are connected to the constructable surface) 14

15. Contact information for potential residents Индустриальный парк – кураторы проекта Ontheissuesofparticipationas PSEDA residentsandtheproductionlocationintheareasoftheKanashIndustrialParkpleasecontact: MinistryofEconomicDevelopment, IndustryandTradeoftheChuvashRepublic 10 Presidentsky boulevard, Cheboksary, ChuvashRepublic, 428004 Tel/Fax: 8(8352) 64-20-40 E-mail: economy@cap.ru Tel: 8(8352) 64-20-60 E-mail: mineconom12@cap.ru KanashadministrationoftheChuvashRepublic 24, 30 letPobedy street, Kanash, ChuvashRepublic, 429330 Tel/Fax: 8(83533) 2-12-15 E-mail: gkan@cap.ru Tel: 8(83533) 2-22-54 E-mail: gkan100@cap.ru Tel: 8(83533) 2-25-03 E-mail: gkan41@cap.ru 15