М И Н И С Т Е Р С Т В О Р О С С И Й С К О Й Ф Е Д Е Р А Ц И И П О Р А З В И Т И Ю Д А Л Ь Н Е Г О В О С Т О К А

Ministry for the development of the Russian Far East

Government of Russian Federation

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1. «I suggest creating a network of Special Advanced Economic Development Zones in the Far East and Eastern Siberia with special conditions for organizing non-extractive production, including that intended for export».

2. «New companies located in such zones, in such territories, should be provided with five-year exemptions for income tax, mineral extraction tax (with the exception of oil and gas, which is a profitable sector), land and property taxes, as well as preferential insurance rates, which are very important for high-tech manufacturing».

3. «Create conditions here that will be competitive with key business centres of the Asia-Pacific region. Such conditions should apply to authorization procedures for construction, connecting to electricity networks, and passing through customs. We will make active use of the Far East Development Fund in order to resolve infrastructure issues in these territories».

4. «We will need to decide on the exact location of these territories by July 1, 2014, and adopt all the legal regulatory acts necessary for them to operate».

National Priority for the Entire 21st Century

«Developing Siberia and the Far East is our national priority for the entire 21st century. »

Moscow, 12 December 2013 г.

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Asia-Pacific export markets for Far East of Russia

Korea

Indonesia

Singapore

Thailand Vladivostok

Taiwan

Philippines

Japan

Nahodka

KhabarovskChina

Russia

Hong Kong

Vietnam

Malaysia

Cambodia

Laos

Myanmar Beijing1300 км

Seoul700 км

Tokyo900 км

Hainan

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Target audience of investors

Countries:

• Japan

• South Korea

• China

• USA

• Canada

• Germany

• Finland

• Turkey

Industries:

• construction materials

• timber-processing complex

• fish processing

• tourism

• metallurgy

Over 4,400 large manufacturing companies have

been exporting products to the Asia-Pacific

region in the amount of $ 10 trillion USD,

including raw exports 7 trillion USD

①Exporters in Asia Pacific have become

investors in the Russian Far East

②Need to focus on the priority sectors and

countries

• agro-industrial complex

• autoparts

• logistics

• oil and gas chemistry

• infrastructure

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Site preparation Labor power supply Investor connections Funding

New structure for Investors support

CORPORATIONFor Development of the

Russian Far East

Agency for labor development

AGENCY for Investment and export support

Fund for Development of the

Russian Far East

Ministry for the Development of the Russian Far EastAlexander Galushka

Deputy Prime MinisterCommission on the implementation of investment projects

Yuri Trutnev

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Law of Special Advanced Economic Development Zones

Goal of the law Legislative support of the International Competitiveness

Steppingstone Legislative consolidation best rules and regulations used in the Asia-Pacific region

Implementation Giving Management company the right to determine the best and competitive in the Asia-Pacific region rules and regulations

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Law of Special Advanced Economic Development ZonesSphere of special regulation

1. Attracting foreign labor2. Providing the land plots for the construction 3. Use of State and Municipal property for

construction 4. Easements set up5. Environmental Impact Assessments6. The construction works

1. Land transfer from one category to another2. The establishment of Technical Regulations3. The establishment of Sanitary Standards4. Urban areas Planning 5. State construction Expertise and construction

Supervision6. Technical conditions and Connection Fee7. Attracting domestic and foreign skilled

employees8. Customs regulations and procedures 9. Medicine and Education10. Certain powers of public authorities and local

self-government11. Subsoil use12. Tax exemptions

Creation Management and operation Issues

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Create conditions for will be competitive

Our mission - make The Best conditions in region

CONDITIONS in Asia-Pacific countries Korea China Singapore USA Canada Japan RUSSIA-

todayRUSSIA

- target for the model SEZ

unit

Profit tax 10 15 17 33 23,5 26,4 13,5 10 % Of profit

Inbound and Outbound logistics cost 700 550 440 1 320 1 660 970 1 800 440 U.S. dollars per 20-

foot container

Power cost 7,3 7,4 13,6 6,9 7,4 17,9 11,7 6,9 U.S. cents per 1 kWh of electricity

Payroll taxes 8,8% 26,7% 16% 7,7% 8,7% 25,6% 14% 7,7 % Of payroll

Dealing with Construction Permits 29 67 26 27 163 193 244 26 days

Connection to the system power supply 28 41 36 68 142 105 254 28 days

Export support 5 4 4 4 5 3 2 5score based on the volume of export support measures

Protection of intellectual property 2 3 4 5 4 5 3 5 rank score rating

IPRI

Labor power High High High High middle High low High

Availability of suppliers High High High High middle High low High

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Advanced Economic Development Zones development stages

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Three spheres structure and development phases :

Kernel: from tens to hundreds of hectares - an export-oriented special economic zone, industrial park, industrial park, a free trade zone.

Environment: tens of square kilometers – technic and social security infrastructure for Kernel support.

Ecosystem: territory of advancing social and economic development - the territory-wide municipal or urban district, internationally competitive in attracting investment and new residents.

SEZ main structure:

Modern production facility.

International transport and logistics Hub.

Residential infrastructure providing accommodation of

employees of the resident companies.

HR and pro education facility

Criteria for selecting sites for SEZ in the Far East*:

Ice-free ports..

In the long term favorable conditions for life.

Existing infrastructure and human

* In general, the criteria for setting the SEZ are indicative, not

prescriptive.

Collection data from territories

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Checked more then 140 parameters from more than 400 plots.

Currently collected data from territories and have start identify the 15 best sites for SEZ

Chukotka

Kamchatka

Magadanskaya

oblast

Yakutia

Khabarovskiy

kray

Amurskayaoblast

ЕАОPrimorskiy

kray

Sakhalin

RUSSIA

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3

4

1

10

7

6

95

Komsomolsk

Khabarovsk

Nahodka

Ussuriysk

Yuzhno-Sakhalinsk

Vladivostok

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Belogorsk

Svobodny

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1. Komsomolsk

2. Belogorsk

3. Khabarovsk

4. Leninsk

5. Zarubino

6. Lazo

7. Ussuriysk

8. Mikhailovka

9. Nahodka

10. Nadezhdinskoe

11. Svobodny

12. Nagorny

Technological Manufacturing Agro-Industrial Logistic

Special Advanced Economic Development Zones

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Faces of the Ministry

Maxim ShereykinDeputy minister

Alexandr OsipovFirst deputy minister

Oleg SkufinskyDeputy minister

Alexandr Galushka

Minister of the Russian FederationOn Development of the Far East

Khabarovsk680000 г. Хабаровск,ул. Муравьева-Амурского, 18

E-mail: info@minvostokrazvitia.ruPhone: +7 4212 97-00-10Fax: +7 4212 97-00-11

Moscow109544, г. Москва,ул. Школьная, 25

E-mail: msk@minvostokrazvitia.ruPhone: +7 499 605-19-10Fax: +7 495 671-46-04

Contacts

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