Special economic zonesSpecial economic zonesin the Russian Federation andin the Russian Federation and

Investment fund of RussiaInvestment fund of Russia

Normative and legal regulationof SEZ creation

• The federal law « About special economic zones in the Russian Federation » from July, 22nd, 2005 №116-ФЗ

• The decree of the President of the Russian Federation «About Federal agency for management of special economic zones»from July, 22nd, 2005 №855

• The order of the Government of the Russian Federation «About Federal agency for management of special economic zones» from August, 19th, 2005 №530

• Agreements between the Government of the Russian Federation and subjects of the Russian Federation on creation of special economic zones on their territory.

• And others

Results of the competition

On December, 21st, 2005 the Chairman of the Government of On December, 21st, 2005 the Chairman of the Government of Russian Federation Russian Federation ММ..ЕЕ. . FradkovFradkov has signed orders of the creation of has signed orders of the creation of six SEZ.six SEZ.

Two industrialTwo industrial--andand--production SEZ were created:production SEZ were created:In In LipetskLipetsk region region (household electronics production);(household electronics production);In In ElabugaElabuga ((TatarstanTatarstan)) (manufacture of cars and their components, (manufacture of cars and their components, highly technological production of highly technological production of petrochemistrypetrochemistry). ). Four technologicalFour technological--andand--innovative SEZ were created:innovative SEZ were created:In In DubnaDubna (the Moscow region)(the Moscow region) (development of information and(development of information andnuclearnuclear--physical technologies); physical technologies); In In Moscow (Moscow (ЗеленоградЗеленоград)) (development of micro and (development of micro and nanoelectronicnanoelectronicproducts);products);In In St.St.--Petersburg Petersburg (development of hi(development of hi--tech production);tech production);In In TomskTomsk (development of new materials).(development of new materials).

JSC JSC ««Special economic zonesSpecial economic zones»»

•• JSC JSC ««Special economic zonesSpecial economic zones»» was created by was created by The order The order of the Government of the Russian Federation from April, of the Government of the Russian Federation from April, 12th, 2006 with the purpose of realization of Agreements 12th, 2006 with the purpose of realization of Agreements on SEZ establishment and maintenance of conditions for on SEZ establishment and maintenance of conditions for installation of objects of an infrastructure and other objects, installation of objects of an infrastructure and other objects, and also for management of the specified objects.and also for management of the specified objects.

In structure of Board of directors of are invitedIn structure of Board of directors of are invited the the representativesrepresentatives of Ministries:of Ministries:

• of Economic development and trade; • of Finance;• of Industry and Energy;• of Education and Science.

Measures on acceleration of creation Measures on acceleration of creation of SEZ infrastructureof SEZ infrastructure

•• The organization of parallel performance of design and The organization of parallel performance of design and exploration work;exploration work;

•• Maintenance of rhythmical deliveries of materials and Maintenance of rhythmical deliveries of materials and accessories in strict conformance to the plans;accessories in strict conformance to the plans;

•• The rigid control over quality of performance design and The rigid control over quality of performance design and exploration, building and construction work;exploration, building and construction work;

•• Maintenance of rhythmical financing of prospecting, Maintenance of rhythmical financing of prospecting, design and civil work.design and civil work.

Work with foreign investorsWork with foreign investors

• Boeing • Bombardier Inc.• Chevron• Cisco Systems• Hewlett Packard • Intel• Siemens

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The agreements andThe agreements andsigned documentssigned documents

• With the Russian Union of industrialists and businessmen (employers);• With Commercial and industrial chamber of the Russian Federation;• With Bank of foreign trade activities of the USSR (“Vnesheconombank”);• With Fund of assistance to development of small scaled scientific and

technical enterprises.• With Federal agency on an atomic energy.

• Memorandums with committee on development of international trade of Singapore, with the Ministry of the industry and trade of the Czech Republic, with the Ministry of commerce of the Peoples Republic of China, with the United Nations Organization on industrial development - UNIDO;• The Memorandum of mutual understanding with the Ministry of theindustry and trade of Singapore and the Report on cooperation with the Korean agency of assistance to trade and investments are prepared for signing .

InternationaInternationall

inin the Russian Federationthe Russian Federation

Advisory council on Advisory council on technologicaltechnological--andand--innovative SEZinnovative SEZ

•The council’s creation is purposed by the organization and carrying out of an expert estimation of the business-plans, presented by the persons, intending to receive the status of the resident of technological-and-innovative SEZ, or its residents, intending to change conditions of the agreement on technological and innovative activity conducting.

•The advisory council acts to a constant basis and is the joint advisory-expert body of RusSEZ.

•The structure of Advisory council includes celebrated Russian scientists. For carrying out of business-plans examination the expert groups including experts in a subject domain and economists are also created.

The Inauguration of the The Inauguration of the technologicaltechnological--andand--innovative SEZ in Tomskinnovative SEZ in Tomsk

On April, 26, 2006 The President of The Russian Federation Vladimir Putin inaugurated technological-and-innovative SEZ

in Tomsk

The first resident of SEZ –SIBUR-Tomskneftekhim R&D Company Ltd.

SIBURSIBUR--Tomskneftekhim Tomskneftekhim R&D Company Ltd. R&D Company Ltd.

In the territory equipped with the support of UralIn the territory equipped with the support of Ural--Siberian Petrochemical, by theSiberian Petrochemical, by the resident resident the unique experimental installation developed at participation the unique experimental installation developed at participation of leading experts of of leading experts of

TomskneftehimTomskneftehim Ltd., JSC SIBUR and Institute of catalysis of the Siberian braLtd., JSC SIBUR and Institute of catalysis of the Siberian branch of the nch of the Russian academy of sciences is prepared by the beginning of preRussian academy of sciences is prepared by the beginning of pre--production operation. production operation.

Installation is intended for manufacture Installation is intended for manufacture titanotitano--magnesium catalysts which were magnesium catalysts which were not made in Russia till now. With the use of this domestic catalnot made in Russia till now. With the use of this domestic catalyst manufacture of yst manufacture of superhighsuperhigh--molecular polythene will be adjusted. For the following two yeamolecular polythene will be adjusted. For the following two years the rs the

resident invests up to 150 resident invests up to 150 mlnmln RURRUR..

The purpose of creation The purpose of creation touristtourist--recreational SEZrecreational SEZ

On June, 3, 2006 the President of the Russian Federation V.V.Putinsigned the Federal law "About the amendments to the Federal act "About the special economic zones in the Russian Federation ", providing the creation of special economic zones of tourist-recreational type on the territory of RussiaTourist-recreational SEZ are being created in Russia to stimulate, develop and effective use of the recreational resourses, objects of resorts, natural medical resources, and also to render the services in the field of the organization of rest and rehabilitation of citizens, sanatorium treatment and preventive maintenance of diseases.

The touristThe tourist--recreational SEZ recreational SEZ are the prospective tool for maintenanceare the prospective tool for maintenance ::

• a favorable investment and enterprise climate in Russia• development of a competitive tourist and sanatorium Russian

product• assistance to applying to the tourist and sanatorium industry of

the Russian Federation an innovative way of development• improvement of quality of tourist and sanatorium services up to

the world standards• stimulation of development of depressive regions with low

industrial potential• development of an innovative and transport infrastructure• a gain of volume of export of tourist and sanatorium services• improvement of quality of a life and employment of the SEZ

personnel

• decrease of the profit tax rate• 5 years tax exemption to the property located exclusively

within SEZ borders• 5 years ground tax exemption to sites in borders of SEZ

territory from the moment of of the property right registration.

• extraction and processing of minerals of medical purpose

Privileges for the residents Privileges for the residents of touristof tourist--recreational SEZrecreational SEZ

The purpose of creation port SEZ in the Russian Federation is not so much conditioning of domestic and foreign investments attraction for construction and reconstruction of a port infrastructure, how many stimulation of development of port facilities, and finally development of port services.

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The purpose of creation The purpose of creation portport--type SEZtype SEZ

• Port special economic zone is not only an isolated geographical territory, but also a system of privileges, allowing to provide intensive economic growth of port facilities:

• such zones can be created within the limits of existing sea or river ports and cargo terminals of the international airports

• the term of functioning port-type SEZ is increased up to 49 years

• free customs zone regime is applied within the borders of port-type SEZ.

The purpose of creation The purpose of creation portport--type SEZtype SEZ

The Investment Fund of the The Investment Fund of the Russian FederationRussian Federation

The Investment fund of the Russian Federation

the finance stipulated in the federal budget and the perspective financial plan of the Russian Federation, appropriated to the state support of the investment projects sold on conditions of state-private partnership.

• Attraction of the private capital to realization of the major infrastructural projects of national scale through the state-private partnership development

• Development of system of financing of innovative projects with attraction of the private capital and the best international practice of venture financing

Conditioning of the Russian economy diversification and maintenance of steady economic growth

The purposes of creation of The purposes of creation of Investment Fund:Investment Fund:

Forms of the state Forms of the state support of projectssupport of projects

Cofinancement of the projet

Placement of fundsto the autorized

capitals of investors

Administration of State guarantees

The Investment Fund

Criteria of projects selectionCriteria of projects selection

Qualitative criteria• Conformance to the priorities of the Program of social and economic development of the Russian Federation on intermediate term prospect• Presence of the private partner• Impossibility of realization of the project without the state support• Presence of positive social effects• Presence of the positive conclusion of the investment adviser

Budget efficiency

The size of cumulative tax revenues and other incomes of the federal budget caused by realization of the project,

should exceed total volume of means of the state support

Quantitative criteria

Financial efficiency

Positive pure resulted cost of the project

calculated in view of the state support.

Economic efficiencyThe volume of project

contribution to the GNP gross exceeds

0,01 %

Investment projects Investment projects examinationexamination

The investment adviser of the initiatorGlavgossexpertisa of RussiaConcerned Ministry(conclusion on the project)

Ministry of economic development and trade Federal Agency for SEZ Consultant of the Ministry (gives the conclusion of projects confirmance to the criteria)

Investment commission (gives the recommendations of finance allocation to the project)

Government Commission(makes a decision of the financing the project)

I

II

III

IV

The volume of Fund approved by The volume of Fund approved by the Governmentthe Government

The Investment Fund

2006 2007 200869,7 bln RUR 95,8 bln RUR 91,4 bln RUR