Investement memorandum of the Pskov Region

Contents

10Favorable conditions for business

20Investment potential of transport and logistics complex

14Investment potential of the industrial sector

26Transport infrastructure of the Pskov Region

12Pskov Region investment development agency

13Investment agreement signing procedure

22Investment potential in the sphere of tourism

04The Governor's opening speech

16Possibilities for industrial cooperation

13State industrial development fund of the Pskov Region

24Moglino industrial production special economic zone

06A short introduction to the Pskov Region

18Investment potential of the agriculture complex

High potential for business development

Developed infrastructure and logistics

Proximity to the largest markets of the European Union and Russia

Proximity to Baltic Sea ports

Tallinn

350 km

Riga

280 km

St. Petersburg

280 km

Moscow

750 kmMinsk

505 km

Western gates to Russia

Pskov

Available human resources

Moglino SEZ federal project

Dear friends!

I am glad to suggest for your attention an updated investment memorandum of the Pskov Region.

It encompasses information about the Pskov Region, our achievements including investments, as well as with factors, which form Pskov investment climate.

Unique geographical position, favorable investment climate and rapidly developing infrastructure make the Pskov Region one of the most interesting Russian regions for foreign and domestic investors.

Since 2010, the Pskov Region has been showing a stable growth of fixed asset investments. In 2016, the figure reached RUR 27.3 bn. Today, among the projects supported by us, 10 projects were recognized as strategic, their total investment is RUR 8.9 bn. It is our task to retain these investors and to attract new ones.

The Administration of the Pskov region supports the implementation of major investment projects, among them:

• Tourism and recreation cluster "Pskovsky" which includesworks to create infrastructure facilities for the cluster. Theproject is included into the Federal targeted programme"Development of domestic and entry tourism in the RussianFederation for 2011-2018" and into the list of priorityinvestment projects in the North-West Federal district.Cluster "Pskovsky" has an enormous cultural and economicpotential for the whole Russia and contributes to the growthof the tourist flow to the Pskov region;

Mikhail Vedernikov,Acting governor of thePskov region

in Russia. The leading position has been achieved due to the development of cattle breeding. The quality level of production has also grown, the percentage of pedigree livestock is increasing, as well as productivity.

We are working actively on returning lands to agriculture use, to provide them later for investment projects. Over 11,000 hectares of farmland have been returned to agriculture use. By 2020, 28.9 thousand hectares of farmland will be returned to agriculture use.

To improve the investment attractiveness of the Pskov region and to form a favorable image of Pskov, we established the State autonomous institution of the Pskov region 'Agency of investment development of the Pskov region' which supports all investment projects based on one-stop-shop approach. Promotion of investment processes and development of infrastructure in Pskov is its key task. The Agency supports 67 investment projects with the total investments of RUR 75.9 bn. These are mainly projects in the fields of agriculture, industrial production and tourism. In total, over 8,700 jobs will be created. And that's just the beginning.

• The project on the establishment of pig breedingcomplex with the feed production facility and meat packinghouse in the Pskov region (establishment of 52 sites of pigcomplex with a total capacity of 2 million of slaughter pigsper year; a feed plant with 120 tonnes of granular feedper hour capacity; silos with 152.7 thousand tonnes of rawmaterials storage capacity; meat packing house with 2million slaughter pigs per year capacity). The total plannedinvestment for the project is RUR 50.46 bn. The project isincluded into the list of priority investment projects in theNorth-West Federal district.

• Establishment and development of a woodworkingcluster in Dedovichi settlement: forest raw material baseestablished, forest nursery commissioned, Sudoma timberfactory reached its full capacity. Investments amounted toRUR 3.78 bn, 207 jobs were created.

In addition, in recent years industrial production has been actively developing. Today our prominent factories such as Leshozmash plant (Velikiye Luki), ZETO, Alkaline accumulators plant (Velikiye Luki), Electric machines plant (Ostrov), Pskovgeokabel, Pskovelektrosvar, Avtoelectroarmatura etc. participate actively in import substitution. This allowed the enterprises not only to retain the production volumes but also to launch dozens of new products under import substitution approach.

Over the past five years, the Pskov region has retained leadership for the growth of agricultural production in Russia and NWFD, and in 2016 Pskov took the first place

04 05

Natural resources

The Pskov Region is rich in limestone (38 million m³), sand gravel (110 million m³), dolomite, marl, gypsum, refractory and low-melting clays, molding sands, raw materials for mineral dyes, sapropel and therapeutic muds, underground mineral waters, and peat. In the region there are 329 deposits of peat (563,2 million tons), of which 101 deposits are developed (100 million tons).

The forests occupy more than one third of the territory of the region. Forest reserves are 2,4 million ha, the rated wood cutting is 5,4 million m³.

A special pride and wealth of the Pskov Region are its water resources. Over 3700 lakes are located here.

A short introduction to the Pskov Region

642,2 ths. people population

334,7 ths. people employable

311,5 ths. people currently employed

55,399 km² area of the region

2 urban districts

24 municipal districts

Economy of the region

The economy of the Pskov Region is diversified. Small and medium-sized enterprises predominate in the Pskov Region. It provides a possibility for investors to find potential part-ners in many directions. The following industries are defined by the Strategy of social and economic development until 2020 as priority strategic directions of development:

• Agroindustrial complex;• Food industry;• Engineering;• Electric industry;• Tourism;• Transport and logistics complex;• Construction;• Timber industry.

Gross regional product

Gross regional product in 2014 exceeded RUR 123 bln. In 2015, the figure increased to RUR 132,8 bln.

Industrial complex

The industrial potential of the Pskov region is over 220 large-and medium enterprises.Food production takes the largest share of the industrial complex – 45,8%, production of electric equipment, electronic and optical equipment takes 22,7%.

Agricultural complex

Agriculture is one of priority directions of social and economic development of the Pskov Region. It accounts for 9,7% in GRP. Traditional agriculture spheres of the Pskov Region are: dairy farming, pig farming, poultry farming, flax cultivation, potatoes and vegetables cultivation, grains and forage crops cultivation.

Industrial complex structure

Gross regional product structure

Agricultural complex structure

0706

33,1% other

20,6% other

23,3% vegetable growing

9,7% agriculture

13,2% transport and telecom

10,4% public management

15% manufacturing

18,6% trade

5% metalworks 5,9% machinery and equipment

22,7% electric equipment

45,8% food processing

76,7% animal breeding

Resource centre for agriculture specialists training

The resource centre for agriculture specialists training in the Pskov region was created in 2014 and is actively working at the Pskov agrotechnological college.

The resource centre is aimed at vocational and advanced training of agriculture personnel, as well as provision of new educational level by introduction of up-to-date manufacturing technologies in agriculture for meeting the needs of agriculture producers in professional services.

Resource center services:

• Highe education - 9• Secondary education - 11• Retraining programs - 20

Today the centre cooperates with such enterprises as PskovAgroInvest, OOO; VET, OOO; Agrofirma Pobeda, ZAO; Krasnoye Znamya, OJSC; Plemreproduktor Naziya, OOO; Dashenka, OOO; Idavang, OOO, Selkhozcomplect, OOO; Pskov bakery complex, OJSC etc.

For more information about the Resource centre and how to apply for staff training / retraining see www.rcpskov.ru

Resource centre for industry and social fields

Pskov region Resource centre for training in the industrial and social fields is under development. The Pskov State University (PskovGU) has approved a Provision on the Resource centre.

The Resource centre will coordinate the interaction of PskovGU and other educational organizations in the area of training in basic and vocational education, with organizations (employers) who are located in the Pskov region and employ most specialists with secondary vocational and higher education.

Resource Center objectives:

• development of basic and additional educational services in PskovGU taking into account the needs of industrial and social sphere in the Pskov region;

• development of a conscious choice of profession taking into account the promising trends in the labour market;

• building of the university human capacity meeting the demands of the modern labour market;

• promotion of industrial and social achievements, as well as increase of working and technical occupations prestige;

• study of foreign expertise on human capacity innovative development, and introduction of the results into PskovGU practice;

• creation of employment conditions for PskovGU graduates etc.

Labor resources

Presence of highly qualified personnel in the Pskov Region is one of absolute advantages of the Region. The number of graduates is around 3000 people annually, 30% of them are engineers, and 30% are workers.

In 2010, the Pskov State University was founded after the unification of the Pedagogical and Polytechnic universities. 13 vocational schools train in key industrial professions.

The key specialties in Pskov are machine engineering, electric technologies, energy, agriculture, architecture and construction, economy, and management. Thus, nearly all specialists required in the market are trained in Pskov.

Utility infrastructure

A considerable advantage of Pskov is high accessibility of utility infrastructure: vacant power capacities and affordable cost of technological connection to the utility infrastructure.

The Pskov Region possesses a significant amount of vacant power resources: The amount of produced electricity exceeds the existing internal needs. These vacant capacities can be used for business needs. The Dedovichi 430 MW GRES is not used to its full capacity.

Foreign trade activity

Pskov companies support trade and economic relations with 105 countries. 188 foreign enterprises operate in the territory of Pskov.

Export trade structure is represented by such goods as: equipment, transport vehicles, wood, paper and their products, food products, and raw materials for food production.

Goods are exported to 70 countries

Import trade structure: food products and food raw material; machines, equipment, transport vehicles; chemical products.

Goods are imported from 35 countries.

3000 graduates annually

30% engineering specialties

30% working specialties

08 09

Federal measures of support

The federal support measures are aimed at the stimulation of development of all branches of manufacturing industry. They include subsidies of interest rates on bank loans and support of investment projects. There are also industry-wise federal measures of support for light industry, timber industry, machinery manufacturing and other.

Institutional measures of support include cooperation with the Industry development Fund.

The fund offers preferential conditions for project co-financing aimed at the development of new high-tech production and technical re-equipment.

Support tools provided by the Fund: targeted loans and financial security for leasing projects.

Regional measures of support

The Administration of the Pskov Region makes every effort to create a favorable investment climate for businesses.

The investment process management in the Pskov Region is a scheme of interaction between the government authorities, local self-government bodies, and regional institutes of development. In general, the following support measures for investment activities can be allocated: administration, information, infrastructure, and finance support.

The region has developed a sufficient regulatory framework which stipulates the provision of support to the subjects of investment activity and practical mechanisms of its implementation. This regulatory framework is based on the regional law 'On tax benefits and state support to the investment activities in the Pskov Region'.

The key support mechanisms are:

• full administrative support to the investment projects under “one-stop-shop” approach;

• tax benefits;• special support measures in strategic sectors – agriculture,

tourism, industry, and housing sector; • concessional lending for small and medium businesses;• subsidies;• preferential conditions for land resources conditions.

Support of investment projects

The administration of the Pskov region provides support to any investment project regardless of the volume of investments.

Any investor, who addresses to the Administration of the Pskov region, receives help during administrative procedures and support in land and utility infrastructure connection issues. The obligations of the Pskov region and the investor are stipulated by the Agreement of intent on project implementation.

An investment project with over RUR 100 mln investments can be declared strategic, which becomes, inter alia, a basis for region's guarantees and participation in federal programs of support to investment activity (for example, status of a priority project in timber harvesting on federal level providing a possibility to get forest land lots without tender procedures under preferential rent rate).

In addition, on the basis of the law of the Pskov region No. 1571-OZ from 06 October 2015, investors, whose projects are declared as a large-scale, can be provided with land plots without auction. The obligations of the region and the investor are fixed in the investment agreement.

More information about the conditions of obtaining the land without auction you can find out by contacting the Pskov region investment development agency.

Executive bodies performance standards

Executive bodies performance standards on providing favorable investment climate in the Pskov Region were successfully introduced in Pskov.

The standard is a minimum set of requirements and events forming the infrastructure of effective communication between businesses and authorities.

Under this work, the Investment declaration of the Pskov Region, the Investment strategy of the Pskov Region were approved, the procedure of assessment of regulatory impact of the regulatory legal acts blueprints of the Pskov Region was introduced, and order of investment projects support based on 'one-stop-shop' approach was developed.

This set of regulatory legal acts is aimed at the improvement of investment conditions and the Regional investment climate in whole.

It is worth noting the Pskov Region, by the assessment of the Ministry of Economic Development, is one of the leading regions in the introduction of the Standard – and is included into the list of best practices of Standard introduction, which is recommended for dissemination.

Favorable conditions for business

Property tax

2,2% 0,01%

13,5%

Reduced property tax

Profit tax

Reduced profit tax

18%

1110

12 13

State Industrial Development Fund of the Pskov region

2Investment commission

of the Administration of the Pskov region considers the project

and makes a decision: declare a project strategic or refuses

to provide support.

3Governor of the Pskov region

signs the investment agreement between the Administration

of the Pskov region and the investor.

Investment agreement signing procedure

1Investor prepares documentation

about the investment project with the support of the Pskov Region Invest-

ment Development Agency and sends it to the State Committee of the

Pskov region on economic development and investment

policy.

The Administration of the Pskov region entrusted GAU PO “Pskov Region Investment Development Agency” with the functions of the State Industrial Development Fund of the Pskov region. The fund provides:

• financing of enterprise development projects;• short term loans in addition to federal programmes

and programmes of the Federal Fund.

Loan financing sources — 70% from federal fund, 30% from regional fund.

interest rate

private investments

loan term project budget

loan amount5%

50%

5 years ≥40 bln rub

20–100 bln rub

Special organization to support investment projects was established in Pskov — State autonomous institution “Pskov Region investment development agency” (further referred to as “Agency”).

The Agency supports investment projects under “one-stop-shop” approach following investor's applications. Here we should also pay your attention that this support doesn't depend on the volume of investment.

At present, 67 investment projects in various branches of economy are under support, their total volume of the investments is RUR 75,9 bln. These projects will create over 8700 jobs.

The main tasks of the Agency are:

• establish favorable conditions for the implementation of investment projects in the Pskov Region;

• provide individual support and consultations to every investment project at any stage of its implementation;

• attract investments to the economy of the Pskov Region, promote the investment potential of Pskov in global market and Russian markets;

• develop social infrastructure projects under the framework of public private partnership.

Pskov Region investment development agency

Following these tasks, the Agency carries out the following functions:

• provide investors with the information on resources required for investment projects (land, labor, power etc.);

• support strategic investment projects in the Pskov Region and investment projects under Agreements of intention;

• prepare feasibility studies and other conclusions for investment projects;

• organize cooperation between investors and representatives of the financial sector;

• prepare, print out and disseminate information materials about Pskov Region investment opportunities;

• hold exhibitions, forums, seminars, and conferences aimed at promotion of Pskov Region investment opportunities, Moglino SEZ; organize and participate in such events held in other subjects of the Russian Federation.

For more information on investment projects support, investment potential of the Pskov Region, legal base etc.:

Address: Pskov Region investment development agency180000, Pskov, Lenina street, 17.Tel. 8-800-250-62-24, +7 (8112) 62 24 00E-mail: airpo@invest.pskov.ruwww.invest.pskov.ru /

67 investment projects in various sectors

Receiption ofsubsidies

Reception of loans

Tax benefits

The Pskov region is the industrial region of the North-Western part of Russia.

The industrial potential of Pskov is over 220 large and medium enterprises, more than half of those are manufacturers which account for over 88% in a total output of shipped goods.

Engineering, electric and food industries are the key anchors.

Developed industrial spheres in Pskov:

automotive components and equipment;

production and development of cable products and electrical equipment;

machinery construction and production equipment for forestry and agriculture;

construction materials.

Pskov is home to large industrial enterprises significant not only for the region, but also for the whole economy of Russia:

• Velikiye Luki meat factory, OAO;• Velikiye Luki dairy factory, ZAO;• Autoelectroaramatura, OAO;• Pskovkabel, OAO;• ALYUR, OOO;• Electrotechnical equipment plant, ZAO;• Power machines — “Rheostat” factory, OOO;• Velmash Service, OOO;• Pskovelektrosvar, ZAO;• Pskov garment factory “Slavyanka”, ZAO etc.

The companies of the Pskov Region modernize their equipment, introduce advanced technologies and new high-performance equipment, launch the production of new innovative goods.

The Administration of the Pskov Region has approved a Plan of import substitution promotion in the Pskov Region for 2015–2020 (Decision No 90-h from 29.01.2015) which is aimed at the increase of production of high-quality competitive domestic products, creation of favorable conditions for agriculture business, industry and export potential of the Pskov Region.

Investment potential of the industrial sector

Industrial production index, %

State program “Industry development and competitiveness improvement” is developed to support industrial production.

State support under federal programs, cooperation with the Ministry of industry

Financial resources issues

Import substitution program

Support to innovation development

Cooperation and coordination

Targeted support to companies and sectors in challenging conditions

123

456

789

14 15

2010 2012 20142011 2013 2015 2016

117,4

116,399,6 100,6 94,4

102,8104,7

Possibilities for industrial cooperation

1 Cooperation with Pskov factories will support quick adaptation of the products in the market.

2 Synergy with existing supply chains and proximity to key domestic consumption centers contribute to a faster cycle of integration of the product.

Investment sites for projects “greenfield” and “brownfield”

Electronics and electric appliances

• Autoelectroarmatura, OAO (electric equipment for cars);• Electrotechnical equipment factory, ZAO (electrotechnical equipment);• Power machines - Rheostat factory, OOO (low voltage apparatus);• Pskov cable factory, OAO (cable, wiring and electrotechnical products);• Velikiye Luki plant of alkaline accumulators, ZAO (electric accumulators, batteries and components);• Pskovgeokabel, OOO (carrying geophysical cables).

Machines, equipment, automotive components

• Pskovelektrosvar, ZAO (equipment for butt, spot, and other types of welding);• YURA Corporation (electric wires for Hyundai);• Pskov plant of mechanical drives, OAO (gears and drives);• PERKO Plant, OOO (security and efficiency enhancement systems);• Technosvar KS, OOO (welding equipment);• Transneftemash, Velikiye Luki plant (equipment for oil and gas pipelines);• GISpribor-M, ZAO (equipment for geophysical studies).

Pskov Region is close to existing and developing production and consumption centers of automotive industry:

• St Petersburg, Moscow: Toyota, Hyundai, GM, Renault; • Belarus – MAZ;• Kaliningrad – KIA;• Tatarstan – Ford Sollers, KAMAZ;• Ulyanovsk – UAZ;• Krasnoyarsk – KAZ;• Kaluga – Volkswagen, Volvo, Peugeot, Citroen, Mitsubishi.

Construction industry

OKZ Holding, OOO (metalwork)• Tochlit factory (castings from carbon and alloyed steel, non-ferrous metal);• DSK construction company, ZAO (panels and other constructions for large-panel house building); • Euro-Ceramics, OOO (ceramic tiles);• ZHBI, OOO (reinforced concrete constructions and components);• Dula.RU, OOO (furniture and equipment for shops);• GS Group (added-value wood processing).

Pskov Region is rich in resources for production construction materials, and proximity to centres of production and consumption and the Regions-leaders in housing construction will ensure stable sales of the product.

Agriculture and timber industry

Velmash Service, OOO (mobile lifting machines)• Velikiye Luki plant “Leskhozmash”, OAO (machines for timber industry);• Velikiye Luki pilot machine building plant, OAO (lifting equipment);• Veltorf, OOO (mining and processing of milling peat for agriculture use);• Polyplast, OOO (reservoirs, sewage disposal equipment for industrial and domestic wastes);• Pilot plant Micron, ZAO (racks for shops and warehouses);• Tann Nevsky, OOO (cigarette paper).

1716

Agriculture is one of priority directions of social and economic development of the Pskov Region. 56,7% of lands in Pskov are agriculture lands. There are 216 thousand ha of vacant land. Developed agriculture sectors in Pskov:

• animal husbandry – cattle, pig breeding; • poultry farming; • crop and vegetable growing (closed and open soil),

orcharding;• aquaculture.

The most developed agriculture sector in Pskov is meat and dairy cattle breeding.

In the recent animal production has been growing steadily. For large dairy complexes, 1200 animals and annual milk production of 9 thousand tons each, were constructed. These complexes received pedigree cows from Australia.

Pskov provides every condition for fishery development. The climate of the region is suitable for sturgeon, trout, carp, and other kinds of fish.

Pskov is home to 186 agricultural enterprises, 244 peasant (farmer) holdings and to over 88 thousand private farms.

Today, seven major food-processing enterprises are operating in the Pskov region. Four of them are dairy-processing plants: Veliky Luki dairy plant, Pskov milk factory, Pushkinogorsky creamery, Pokhovsky creamery, two plants specialize in meat

processing: Veliky Luki meat processing plant, Pskov meat processing plant, and one of the plants produces bakery - Pskov Bakery. Over 150 dairy products and over 180 meat products are produced in the Pskov region.

Pskov and Velikiye Luki meat plants are the largest meat processing plants in the Pskov Region. Velikiye Luki meat plant is a flagship of meat industry in the North-Western region. Since 2002 it solidly belongs to the top seven largest Russian producers of sausage. Their production is widely known in the Pskov Region and beyond.

Production of agriculture machinery is also well developed in Pskov. We produce:

• specialized freight motor transport, tractor trailers, and loaders;

• timber trucks, cranes-manipulators, metal carriers;

• soil cultivating appliances, plows for tractors.

These directions provide a possibility for cooperation and joint projects with Pskov enterprises in the sphere of agriculture machinery production.

We also provide various investment sites to locate an agriculture enterprise in any district of the Pskov Region.

Investment potential of the agricultural complex

Agriculture production index, %

Overall

Vegetable growing

Animal breeding

Subsidies for pedigree cattle growing

Subsidies for dairy farming development

Subsidies for fish farming development

State program for agriculture development for for 2013–2020

Grant support to new farmers

Support to family animal-breeding farms

Support via bank loan programs for small enterprises

State support via bank loan programs in vegetables growing

Reclamation works

Tax benefits

Compensations in case of crops loss

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10

216 ths. hectares of unused land

18 19

2013 2014 2015 2016

116,4129,5

119,4 126,3

112,9122,9 115,5

119,3

105,8109,5

105,6 100

1 place for livestock production growth in the RF

2 place for agricultural output growth in the RF

* according to data for 2016

Using beneficial geographical position and proximity to Baltic Sea ports, the administration of the Pskov Region managed to create a logistics hub with an international airport, developed road network and several key transport railway junctions.

Federal highways passing through the territory of the Pskov region link Russian and European economic centers: St Petersburg - Kiev (M20), Moscow - Riga (M9). State border crossing is organized by the Pskov customs.

Railroads passing through the territory of the Pskov Region: Moscow — Riga, St Petersburg — Odessa, St Petersburg — Vilnius — Kaliningrad, St Petersburg — Riga.

The Pskov Region has an excellent transport accessibility to Baltic sea ports. Large Russian and Baltic ports: St Petersburg, Ust'-Luga, Riga, Tallinn, Gdansk (Poland), Helsinki (Kotka).

9 border crossing points including one airport, 5 automobile and 3 railway and 6 customs posts operate in the Pskov region. This provides for fast and convenient cargo delivery.

Under the “Concept of customs registration and customs control of imported goods in places close to the state border” the Pskov Region is building customs and logistics infrastructure along the border on the European Union at key checkpoints.

To date, 10 transport logistics terminals and 13 temporary storage warehouses have been put into operation in the Pskov region. Logistics terminals provide customs clearance, temporary storage of goods, and other services.

Airport

Pskov has an international airport for passenger and freight medium-haul aircrafts. There are regular flights Pskov — Moscow and Pskov — St Petersburg. Pskovavia, OAO has a long experience of freight flights to and from Europe and Africa, domestic freight traffic, as well as flights bypassing Russia.

“Green corridor” pilot project

The Pskov Region is also implementing a pilot project on a simplified procedure of international transport vehicles border crossing at multilateral automobile car checkpoints. A simplified order includes a separate lane and a parking for car carriers, as well as a dedicated window for customs transit procedure registration. For information: 100% Mercedes cars entering the RF territory by land cross the border in the Pskov Region. This is due to the 'green corridor' system and convenience of logistics routes.

Investment potential of transport and logistics complex

Brief description automobile logistics

• In the field of international freight transport there are over 45 companies-members of ASMAP (Association of International Road Transport Carriers);

• Over 80 carrier companies operate in the Pskov region.• Trucking fleet is over 1000 units.

Railway transportation

• There are 112 railway stations, 4 junction stations and 3 border stations in the Pskov Region;

• 61 companies perform car supply operations;

• 20 companies provide loading operations on railway cars.

We offer various investment sites to logistics companies.

We are glad to offer for your attention several promising ideas for new logistics projects in Pskov:

Pskov is a transit corridor for over

5% of Russian imports

10% of Russian exports

9 border crossing points

1 Opportunities for cargo storage 2 Opportunities

for cargo distribution 3 Opportunities for cargo processing

Development of industrial infrastructure

Development of customs and logistics infrastructure

Development of logistics infrastructure

2120

The Pskov Region possesses a significant tourist potential. Pskov is an ancient city of Russia which possesses rich and interesting history. Pskov has 4100 cultural and historical sights and over 350 leisure and entertainment facilities.

Pskov is located close to tourist objects of St Petersburg and Baltic countries (Estonia, Latvia and Lithuania).

The Pskov Region is one of the most environmentally friendly regions in the northwest of Russia; rural tourism and ecotourism are actively developing.

The tourists travel to Pskov for the following purposes: over half of them come for cultural and educational tourism, 22% travel for business, 19% come for medical treatment and rehabilitation, 1% are pilgrims, and 6% come for other purposes.

The tourism flow in the Pskov Region has been growing in recent five years. It is due to noticeable diversification of the tourism product and construction of new accommodation

facilities. In the Pskov region there are four major tourist destinations – Pskov, Izborsk, Pechory, Pushkinskye Gory. Tourists’ interest to Ostrov and Porkhov is growing.

The Pskov region fits both cultural, educational and business tourism. The Pskov region has over 100 accommodation facilities (hotels and hostels) with 3826 beds altogether. These tourist facilities can accommodate between 7,500 and 8,000 tourists. Catering network is also well developed with over 300 cafes and restaurants. There are 14 conference halls in Pskov making the city attractive for business tourism.

In order to improve the competitiveness of the Pskov Region in the tourist market, a project of tourist and recreational cluster “Pskovsky” was developed.

This project was included into the federal targeted program “Development of domestic and incoming tourism in the Russian Federation”, as well as the list of priority investment projects in the North West Federal District.

Successful implementation of the projects under tourist and recreational cluster “Pskovsky” will allow to find solutions to many important tasks. Firstly, creation of full-fledged urban tourism infrastructure – a system of public places, parks, shopping areas including water resources, developed hotel and expo infrastructure, catering and entertainment facilities. Cluster "Pskovsky" includes 4 investment projects under implementation, and 3 more projects are planned for future. 16 projects have been implemented including:

• Hotel and restaurant complex “Dvor Podznoyeva”;• Hotel complex “Izborsk”;• “Altun” estate;• Pskova river quay reconstruction;• Velikaya river quay reconstruction;• Pushkin, Lenina street, Oktyabrsky prospect

reconstruction;• “Detsky park” upgrade etc.

We offer “greenfield” and “brownfield” sites for the following projects: hospitality, catering, rural tourism, development of camping grounds.

Investment potential in the sphere of tourism

>50% educational and cultural tourism

4 key tourist destinations:

Pskov, Izborsk, Pechory, Pushkinskye Gory. 10 reasons to visit the

Pskov Region:

Get introduced to great history

See great ancient fortresses — Pskov, Izborsk

Visit holy places and monasteries

Walk along medieval streets of old Pskov

Taste traditional Russian dishes

Visit Pskov museums

Visit the land of famous writers and composers: Pushkin, Mussorgsky, Rimsky-Korsakov

Visit historical festivals and reenactments — Battle on the Ice, Isaborg, Zhelezny Grad

Visit an aeronautics festival in Velikiye Luki

Enjoy the pristine northern nature and beautiful lakes

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10

Over 300 ths. tourists a year

>4100 cultural and historical sights

22 23

Moglino SEZ tenants will enjoy:

• tax and customs benefits;• guaranteed and free of charge connection to utilities;• land lease with a purchase option;• staff retraining services in Moglino SEZ training center;• customs clearance services under “free customs zone”

regime.• moglino SEZ Management company provides consultations

and support to investors in one-stop-shop mode.

Enjoying a beneficial geographical location Pskov is now a rapidly growing industrial location in the North-West Russia. We are building new industrial competences right at the Western gateway from Europe to the vast market of Russia.

We offer you a unique opportunity to become a regional leader in production catering two huge markets: the Eastern Europe including Baltic States and the hinterland of Russia with a fast, easy and comfortable access to the most populated areas of Moscow and St Petersburg. Unlike traditional industrial destinations in Russia, Pskov offers you to pioneer the growing industrial potential and enjoy the chance of becoming a regional industrial leader tapping on multiple opportunities both in the hinterland of Russia and in the Eastern Europe.

Moglino SEZ was initiated by the Administration of the Pskov Region and supported by the Government of the Russian Federation and Ministry of economic development

of the Russian Federation. Moglino SEZ utility infrastructure construction is financed by the Federal budget in the amount of RUR 3.2 bn. The total area of Moglino SEZ is 215 ha.

The development will include utility, transport, customs and business infrastructure, as well as factories producing construction materials, automotive components, electrical devices, communal. Agriculture and transport equipment, and logistics cluster.

Moglino SEZ project is supported by Singapore company Jurong Consultants Pte Ltd. Which has been implementing similar projects all over the world for several decades. Jurong Consultants experience allows for world-class level of Moglino SEZ management.

Agriculturalequipment

Utility equipment

Spare grounds

Transportequipment

Constructionmaterials

Logistic zone

Automotive parts

Electrical engineeringand household equipment

Moglino SEZ, JSC180000, Russian Federation, Pskov, Lenina street, 17+7 (8112) 68-20-80; info@moglino.com, www.moglino.com

Engineeringinfrastructure

33480 ths. nm³/yearGas supply

120 MVAPower supply

4900 м³/day Water supply

3500 m³/dayWater removal

7,1 kmRoads

Pre-built industrial units

5000 m²area

Businessinfrastructure

Business center

4800 m²area

1800 м²to lease

Corporate profit tax*

Land tax

2013–20192020–20212022–20232024 onwards

0%3%

10%13,5%

for 10 years

for 5 years from the registration date

for 10 years from the registration date

Taxation policy

Corporate property tax

Vehicle tax

0%1

2

3

4

5

6

7

7

А212 HighwayPskov, 8 km

Estonia, 50 km

2524

* Corporate profit tax in the Federal budget – 3% (2017-2020)** SEZ tenants may apply an increased fixed assets depreciation factor, not exceeding 2