Investment opportunities of Sverdlovsk region

1. Investment opportunities ofSverdlovsk region October, 2010

2. Sverdlovsk region Structure of the presentation 1. Regional economy performance 2. Ten reasons to invest into Sverdlovsk Region 3. Investment infrastructure

3. Sverdlovsk region Regional economy performance

4. Sverdlovsk region

5. Sverdlovsk region Rating of Sverdlovsk Region (2009): Industrial Production6 Retail turnover4 Wholesale turnover4 Capital Investments9 Foreign Investments8 194.8 thousand sq. km 4.4 millionpeople

6. Economic data GRP structure in 2008, % GRP of Sverdlovsk region (bln.USD) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - GRP 2008 - - - - - - - - - - - - - - - The fifth place in Russia in 2008

7. Investments in 2009 SVERDLOVSK REGION FIXED CAPITAL INVESTMENT

8. Foreign trade Trade partners of the Sverdlovsk region Basic categories of goods exported from Sverdlovsk region

9. Sverdlovsk region 10 reasons to invest into Sverdlovsk Region

10. 10 reasons to invest into Sverdlovsk Region 1. Stable Financial Position of the Region Credit rating from Standart&Poor’s agency : BB, stable outlook, 2009 2. Business-friendly climate № 3 among «Best Russian cities for business» according to Forbes’ survey of 2010 3. Active foreign economic activities 125 countries – trade partners of Sverdlovsk region The foreign trade turnover of the Sverdlovsk Region constituted more than $9 bln in 2009 We have trade partners from 125 countries Foreign investments in Sverdlovsk Region constituted more than $1 bln

11. 10 reasons to invest into Sverdlovsk Region 4. Developed transport-logistic infrastructure • The main city of the region – Ekaterinburg ranks third among the transport centers of Russia: • 6 federal autoroads, • 7 main railway roads, • airport “Koltsovo” • Developed motorways network • International transport corridor «West – East» • Ekaterinburg ring-road • Federal motorway corridors • Koltsovo international airport hub • Delivers services for international and domestic long-distance air traffic • Sverdlovsk railway • The main transit and handling center for freight and passenger flows going in «Europe-Asia direction»

12. 10 reasons to invest into Sverdlovsk Region 5. Positive dynamics at the Labor Market 6. Stable position of industry Industrial production index (from the beginning of 2010 corresponding to the same period of 2009) A number of companies continue their technical re-equipment and implementation of innovative technologies to enhance their competitiveness.

13. 10 reasons to invest into Sverdlovsk Region 7. Unique scientific-research potential Sverdlovsk region is one of the biggest scientific-research centers of Russian Federation • More than 130 scientific and research organizations working in various fields: • Microbiology • Chemistry • Nanotechnologies • Physics • More than 20 others trends - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8. Reach resource base 25 ore-bearing deposits 8 copper mines In Sverdlovsk region are mined and produced (of Russian volume): 100% of vanadium and 70% bauxites, 72% of asbestos, 56,4% of talc and soapstone, 11,3% of limestone, 12% of kaolin, 11% of refractory clay

14. 10 reasons to invest into Sverdlovsk Region 9. Main city of the region is in compliance with international standards of business infrastructure The developed financial infrastructure is presented by leading foreign banks, the international advisers There are a lot of business centers and modern hotels. 10. Prospects for development of recreation zones Sverdlovsk region is reach with natural resources, hot springs, several ski mounting resorts are being developed.

15. Sverdlovsk region Investment infrastructure

16. Sverdlovsk regionDevelopment instruments • The Middle Ural development corporation • Venture capital fund of Sverdlovsk region • SEZ “Titanium valley” • (VerhnyaSalda) • Technological parks • Industrially parks • The exhibition center

17. WWW.U2020.RU The Internet support of investment projects in Sverdlovsk Region

18. Sverdlovsk regionState Support of Investment Activities Financial Support Regional government guarantees Subsidy of interest rates Investment activity of Region Administrative Support • Changes in the legislation • Bills prepare: • Reduction of income tax for newly created enterprises during 5 years (18% -> 13,5%) • -Reduction of property tax from addition of mid-annual property value of the enterprise (2,2% -> 0%) • Assistance in investors attraction • Creation and promotion of regional brand

19. Sverdlovsk region Small And Medium Enterprise Support of Small And Medium Enterprise: The guarantee under the credit from the Regional supporting fund of small enterprises - reimbursement of costs enterprises up to $ 165 000 Microfinancing and grants (municipal supporting funds of small enterprises) - Business start up grants up to $ 16 500 Financial Support Cheap credit at the level of the refinancing rate Reduction of overhead costs of the start up level (business incubator) - 5 business incubators of the total area more than 7000 м2 Administrative Assistance Investors attraction assistance for the innovative projects (Sverdlovsk venture fund) Information Support • Training for the first time entrepreneurs «Start your business» • more than 6 000 people a year are trained • more than 20 thousand people a year are consulted • -more than 2 000 people a year open new companies Educational and Consulting Assistance

20. Welcome to Sverdlovsk region!