ECONOMIC POTENTIAL AND STRATEGIC PROJECTS OF SAMARA REGION

ECONOMIC POTENTIAL ECONOMIC POTENTIAL ANDAND STRATEGIC PROJECTS STRATEGIC PROJECTS

OF SAMARA REGIONOF SAMARA REGION

Volga Federal Volga Federal DistrictDistrict

Territory – 53600 sq.km.

Population – 3 171 400

Density of population – 59,2 / 1 sq.km.

Mean age of population – 39,9 years

Chemicals - 9,3%

Vehicles production - 23%

Electrical equipment production - 4,8%

Rubber & plastics production - 3,3%

Mining operations - 16,3%

Petrochemicals- 4,8%

Metallurgical production - 6,8%

Food products - 10,8%

Other products - 8,2%

Production of energy, gas & water - 12,7%

Manufacturing complex of Samara region

Region within Russian transport system

INTERNATIONAL

NATIONAL

Credit rating according to Standard

& Poor's national scale

Investments opportunity

(Rating agency «Expert RA»)

Credit rating according to Moody's

InterfaxRating Agency national scale

Ratings of Samara region

12 place ruAA+long-term

Аа1.ru

Credit rating according to Standard & Poor's

international scale

BB+

Credit rating according to Moody’s InvestorsService international

scale

Bа1 / Stable

UN index of human potential

10 place

Providing of comfortable informing & institutional

environment for attracting investments

Decreasing market entering barriers

Providing of effective law support for business activities

Mutually beneficial basis for public & private interests

Approaches in Samara region’s investments policy

Current tax Law Tax Law from 01.01.2012 г.

The rate of property tax reducing (2,2%)

Investment Volume and tax

free period of a Project

Tax free period = payback period, but no longer than 7 years.

Up to 100 million rub. (approximately 2,4 million euro)– 2 yearsFrom 100 million rub. to 500 million rub– 4 yearsFrom 500 million rub (approximately 11,9 million euro), – 5 years

Comments

Tax free period lasts from the start of a project (first financing).

Tax free period lasts from the register date of the property within the project

The rate of corporation tax reducing (4,5%)

Investment Volume and tax

free period of a Project

If the investment sum exceeds 650 million. rub. (approximately 15,5 million euro), Tax free period = payback period, but no longer than 7 years.

From 100 million rub. to 500 million rub– 4 yearsFrom 500 million rub– 5 years

CommentsTax free period lasts from the start of a project (first financing).

Tax free period lasts from the start of generating profit

Foreign partners of Samara region

Samara Region

USA

PepsiCo Coca-Cola Alcoa General Motors Delphi Automotive

Systems Corning Incorporated АDS Plastic Tenneco Automotive

Group Triumph Development FINCA International Citibank

Spain

UEB Union Explosivos

France

Renault Danone Auchan Tarkett Sommer Societe Generale Leroy Merlen

Switzerland

Nestle EM Finance S.A. Transrail AG Laveo Electro AG

Czech Moravan Safety Belts A.S. ST-Holding S.R.O.

Hungary

IKR Babolna

Germany

Henkel Bayer KROHNE VB Autobatterie Kuka METRO Group WUERTH Holding Siemens Rehau VKT Trading Lapp Holding ROMEX

Italy Pietro Barbaro A.O. Ansaldo Industria S.p.a. Cooperativa Ceramica

d’Imola S.R.L. Sefin S.p.a. Autocomponent

Engineering S.R.I.

United Kingdom

DELCAM International Kingficher Group Majenta Corporation WT Henley Nordco, Inc. Transchemical Overseas

Limited Marvel Lifesciences

Austria

Alpla Raffaisenbank Doppelmayr J ohnson Controls

Automotive

Sweden

IKEA

Denmark

Inmeco Group APS

Ireland

Pennygold Trading Supplies

Serbia

Sinteza Invest Group A.D.

Netherlands

Provimi Holding Oriflame Eastern

Europe B.V. Marriott International Bos Man

Watermanagement B.V.

Portugal Amorim & Irmaos Cork

Australia

SGS Industrial Services

POSSIBLE FIELDS OF POSSIBLE FIELDS OF COOPERATIONCOOPERATION:: Automotive industry

Projects in aviation & space

Transport & logistics

Construction

Retail

Telecommunications & IT technologies

Nanotechnologies

Medicine

Tourism & hotel business

International cooperation

INDUSTRIAL TYPE SPECIAL ECONOMIC ZONE

«TOGLIATTI»

ОЭЗ

JSCJSC « «AvtoVAZAvtoVAZ»»

SEZSEZ

660 ha

SPECIAL ECONOMIC ZONE IN SAMARA REGION

Rate on the territory of Russian Federation

Rate on SEZ territory

For first 5 years:

CORPORATION TAX (regional

budget)

PROPERTY TAX LAND CHARGES TRANSPORT TAX

18%

13,5%

2,2% 1,5% 6-150 rub.

0% 0% 0 rub.

SPECIAL ECONOMIC ZONE IN SAMARA REGION

0%VAT

0%Import duties

FREE CUSTOMS ZONEFREE CUSTOMS ZONE

FOREIGN COUNTRIES

EQUIPMENT SEZ «TOGLIATTI»

SPECIAL ECONOMIC ZONE IN SAMARA REGION

201220112011

JSC «Sigma»

JSC «Iron stream»

JSC «Liga»

JSC «Renforce –New technologies»

«TPV-Rus» (Slovenia)

ZF Lemforder Gmbh (Germany)

10 550 working places

SPECIAL ECONOMIC ZONE IN SAMARA REGION

950 mln. euro Investments volume

BUILDING PLAN

JSC «RT – Engineering»

Association of playgame industries

IP-telephony

High-speed internet

Sewage system

Water supply

Heat supply

Electrical power supply

Gas supply

Motor road

Railway

SPECIAL ECONOMIC ZONE IN SAMARA REGION

38 agreements with potential residents, as for October 2011

6 projects are approved

50 300 кв.м.

250 servers

Over 3500 new working places

Project cost – 100 mln. euro

Project parameters:

IT-park «Zhiguli valley»

Priority directions of IT-park activities

Development & implementation of IT-technologies in industrial production

Implementation of advanced IT-technologies in automotive industry, engine-building, defense & aerospace industry

Software development, including computer modeling of technological processes

Advanced training in IT-technologies

IT-park «Zhiguli valley»

TOURIST-RECREATIONAL TYPE SPECIAL TOURIST-RECREATIONAL TYPE SPECIAL

ECONOMIC ZONEECONOMIC ZONE

SPECIAL TOURIST ZONE

Zone is situated in the National park «Samarskaya Luka» near Shiryaevo village

SEZ area – 182,33 ha

Project cost – 120 mln. euro

SEZ contains:

Ski resort;

Medical, health & spa resort;

Mineral water production

SPECIAL TOURIST ZONE

PREPARATION FOR FOOTBALL CUP 2018

Hotels

PREPARATION FOR FOOTBALL CUP 2018

Suites needing reconstruction - 2732Extra needing suites - 1760

12% - 4 stars (637 suites)72 % - 3 stars (3686 suites),16 % - below 3 stars (816 suites)

Working: Constructing:

Reconstruction of «Kurumoch International Airport»

Novokuibyshevsk

Kinel

Zhiguliovsk

Togliatti

Samara region’s rapid transport system

Samara

Railroads

River transport

Autobahn

PREPARATION FOR FOOTBALL CUP 2018

Governmental support of presentation activity

● In 2010 - 18 presentational events, 5 exhibitions, 4 international missions (Germany, Netherlands, France, Slovenia), more than 60 meetings with international partners were managed and held.

● More than 250 companies took part in the events● More than 1500 m2 of exhibitions territory were built

Most part of events is financing by the Government of Samara Region and free of charge for participants

That allows for many small and middle size companies to show their economic potential in an international market

Companies which hosted foreign partners:

● Software company ‘Open Code’● Software company ‘I-Sys’● Travel Company ‘SamaraIntour’● Travel Company ‘Profcenter’● Togliatti ship buiding factory● APEX stationery, office supply company● ‘Samara Stroypharphor’ factory● ‘Baltika’ Beer Company● Butter and cheese factory ‘Koshkinskiy’● Publishing company ‘AGNI’● Hospital named after Yeroshevskiy (eye surgery) Medicine

Company ‘Imploziya’● Production Company ‘Samara Windows Construction’● Bank ‘Pervobank’● Industrial Equipment Factory ‘Strommachina’● Industrial Equipment Factory ‘Samara Steel Factory’● Automotive company ‘Argo’● Automotive company ‘Audi’● Automotive company ‘Porsche’● Language center ‘I-Polyglot’● Samara State University● Samara State Aerospace University● Samara State Technical University● International Market Institute

● Samara Region Administration● Samara City Administration● Trade Chamber of Commerce of Samara Region ● AvtoVAZ ● ‘Electroshield’ factory ‘Alcoa’ ● Samara Metallurgical ● factory ‘CSKB-Progress’ ● Engine Factory and Production Company ‘Aviaagregat’ Engine

Factory, ● Production and Construction Company ‘Plastic’ ● industrial company Samaraneftegas ● Samarainvestneft Posneft ● ‘Kourumuch’ International Airport ● Samara Regional Center of Innovations and Technology Transfer ● ‘EXPO-VOLGA’ exhibition center ● Perfume and cosmetics factory ‘Vesna’● Fashion House ‘Bosco’● Holding ‘Lapp Group’● Science, production and software company ‘Smart Solutions’● Science, production and software company ‘Knowledge Genesis’● Science, production and software company ‘Magenta

Technology’

Since 2009, Samara Regional Center of Human Resources, Samara Regional Resource Center with the great support and partnership of Samara Region Administration hosted more than 50 interns from Germany (2009, 2010 and 2011), France (2009 and 2011), Norway (2011). More than 100 companies from all sectors of economics of different sizes and interests worked with interns providing them with valuable and important information:

Testimonials:

'Agema Consulting AS, a Norwegian based consulting company was very satisfied with the assistance provided by the Regional Resource Center. I received invaluable help in the Center's setting up meetings with companies and translation help at the meetings',

"Samara Regional Center of Human Resources and Regional Resource Center: I would like to express my thankfulness once again to you for your great hospitality during my 1 week stay with you in Samara. We got a great introduction to Samara region and possibility to meet companies and other business people from our industry. In the long run we hope that we will manage to use these valuable business contacts and create some common business projects together."

Carl Tybring-Gjedde, AGEMA.

Jaakko Isotalo,BIGHOUSE AS

ContactsGovernment of Samara Region

www.samregion.ru

Samara Regional Resource Centerwww.samara-rrc.ru

Administrations of city Samarawww.city.samara.ru

Samara Regional Center of Human ResourcesDmitriy Ovodenko, [email protected]