Kaliningrad Region: Russian Europe Moscow 09 June 2014 - PowerPoint PPT Presentation

Kaliningrad Region: Russian Europe Moscow 09 June 2014

Destination: Kaliningrad The Kaliningrad Region is Russia's westernmost province situated on the south-eastern coast of the Baltic Sea, at the junction of key trade routes Moscow Distances from Kaliningrad: Riga • 1250 km to Moscow; • 940 km to Saint Petersburg; • 160 km to Gdansk; Copenhagen • 360 km to Warsaw; Kaliningrad • 600 km to Berlin. Vilnius Travelling time from Kaliningrad: Hamburg • 36 hours by sea to Hamburg; Berlin Warsaw • 48 hours by railway to Moscow for a container train; • 1 hour by car to the EU.

The Region's logistical advantages, or five reasons to place a production facility in the Kaliningrad Region 1. Geographic position in the centre of Europe; 2. A year-round ice-free seaport; 3. A well-developed infrastructure (including one of the densest road and railway networks in Russia); 4. Availability of both ‘Russian’ and ‘European’ railway gauges; 5. Low-cost and less time-consuming haulage to Europe (compared to other Russian regions) .

Four lanes of traffic European transport Two lanes of traffic corridors: Saint Petersburg Trans-European corridors Tallinn 1A « VIA HANSEATICA » (Riga – Kaliningrad – Riga Gdansk) IX D (Kaliningrad – Vilnius – Minsk) Extensive railway network with both Russian and European gauge Vilnius 9D Russia's only ice-free port on the Baltic Sea Moscow An international airport (Khrabrovo Airport) Minsk 22 border crossings Warsaw Berlin

More PRO arguments: Unique business environment provided by the Kaliningrad Oblast’s legal status • of a Special Economic Zone, which is effective on the whole of its territory; Well-developed engineering and manufacturing infrastructure; • Administrative support for investment projects, provided by the Government of • the Kaliningrad Region; Numerous tourist and recreation areas, including seaside resorts, historical and • cultural sites; Comfortable conditions for living, relaxation and leisure; • A low crime rate and low social tension in the community; • Availability of skilled workforce and good HR development facilities. •

Region's Human Resources 28 Higher education institutions including 5 state universities 40,900 students 23 vocational colleges 11,200 trainees Women Men Population, men and women, by age groups as of 2013 82% of the workforce employed in The Kaliningrad Region's population the Kaliningrad Region hold as of beginning of 2013: 946,800 vocational qualifications The Region's working population: 531,500

Region's economic potential and progress Kaliningrad was ranked by Forbes Magazine as the best city for doing business among TOP Доля экспорта 30 cities in Russia Structure of the Kaliningrad Region's exports Калининградской области, % 10% 7% India Индия The region's annual industrial production growth rates 12% Lithuania Литва had been over 25% - ranking it one of 59% Netherlands Голландия 12% the highest among Russia's Northwest regions Germany Германия Norway Норвегия nearly moved to Kaliningrad Region under the Compatriots Repatriation Programme 20 000 since 2007 . Kaliningrad Region ranks second, among all Russian regions in this people respect.

Structure of the Region's economy 19,9% Industrial Trade and production 26,9% services 18,8% Agriculture & Other 8,1% fishing activities 11,6% Transport & 14,7% communication Mining industries As of the end of 2013, 5 601 industrial companies were operating in the region, including 103 in mineral production, 5 230 in processing industries, and 268 in the production and distribution of electric power, gas and water.

Deepwater port construction project in the Kaliningrad region Vessels with a draft of up to 15 m for the transport of bulk liquid and bulk cargo deadweight of 100-150 thousand tons. As well as container ships with a capacity of 8 - 10 thousand TEU PORT - HUB The main general cargo, transferred by port terminals To existing will be: petroleum and petroleum products, ports and terminals fertilizers and metals Vistula Lagoon Estimated volume of containers handled amounts to 3.5 million TEUs per year : - The main containerized cargo can become spare parts and vehicle sets for Autotor, as well as other goods in transit - It is assumed to actively develop the transit of containerized cargo to the other regions of Russia

Prospects for high-quality beef exports from Kaliningrad region Since 2012, there is a program «Development of beef cattle in the Kaliningrad region» . The total funding of the program is 6.3 billion rubles , of which 650 million rubles are the regional budget, 5.6 billion rubles are the federal budget and extra- budgetary sources. In 2013 rubles are from the regional budget 200 million rubles. 18 000 hectares of land are in operation management of agro- industrial group "Miratorg" More than 16 000 of heads are imported into the region The export of high-quality beef will be possible upon reaching 45000 heads .

Amber sector Production-mining complex Amber reserves in the region amount to more than 160 thousand tonnes; Volumes of annual amber extraction are approximately 340 tonnes; More than 150 companies in amber processing sector and approximately 200 companies in specialized trade sector are registered on the territory of the Kaliningrad region. The major companies in the sector are joined in “ Yantarniy sojuz ” (Amber Union) - 22 companies .

Federal Law No. 16-FZ "On the SEZ in the Kaliningrad Region“ : till 2031 Tax preferences for SEZ-resident corporations General taxation SEZ taxation 0% - during the first 6 years 20% Income tax and 50% of the effective rate in the 7 th through 12 th 2,2% Property tax years State guarantees given to SEZ-resident corporations  The land rental rate remains flat throughout the term of a lease agreement;  A simplified procedure is in place for issuing visas to foreign nationals representing SEZ- resident corporations;  SEZ-resident corporations are given Government guarantees that the overall tax burden shall not to be increased throughout the investment project lifecycle. Investors enjoy substantial tax benefits and are given a number of additional guarantees during the first 12 years of project implementation

The Kaliningrad Region's Over 100 SEZ-resident companies 14,500 new jobs RUB 73.5 bln of attracted Special Economic Zone: RUB 25.1 bln paid as taxes investments A Success Story Steadily improving key economic New industrial clusters created indicators 80 71,7 70 63,2 60,5 55,8 60 50 40 30 20 10 0 RUB bln 1 2009 2010 2011 2012 Investment influx into the Kaliningrad region's economy

The Kaliningrad Region is a first-class destination for tourists from both Russia and Europe, inviting them: To visit fascinating world-class recreational facilities, such as entertainment parks and casinos; To get to know the rich and unique cultural and historical heritage of a region at the junction of Russia and Europe; To go on ecological tours to wild-country areas; To enjoy a relaxing and productive business tourist stay in the region; To benefit from local wellness services; To enjoy a safe and pleasurable stay environment.

FIFA World Cup Games 2018 A number of major hotel operators are planning to build new facilities in Russia by the beginning of the 2018 World Cup's finals. In Kaliningrad, in particular, such hospitality actors as Accor, Hotel Group, Russian groups of companies and Polish Dwor Oliwski are developing plans to construct new hotels. New cafes and restaurants will be opened. But this is not enough, and Kaliningrad is anticipating new investors!  A new stadium with 45,000 seats;  Sports complexes comprised of 4 training bases and 2 football fields (RUB 3 billion);  A sports complex including a football field, a four- star hotel, a spa center and a gym;  All associated engineering, transport, social and tourist infrastructure.

“Khrabrovo” International airport reconstruction Specialists of NACO Holland company have developed the concept of the airport reconstruction. It is planned to increase passenger flow to 3 million people till 2014 and to 5 million till the beginning of the World Football С hampionship 2018. In 2008 the quantity of passengers in “Khrabrovo” airport amounted to more than 1 million people . At the moment the length of the air strip is 2,5 km. For the purpose of Kaliningrad to take aircrafts with a takeoff weight of over 80 tons, the strip will be increased to 3.3 kilometers. "Aeroinvest “ company invests 2.4 billion rubles in the reconstruction of Kaliningrad airport “Khrabrovo“ .

Kaliningrad Region Development Corporation JSC is a development institution established to implement governmental industrial and investment policies in the Kaliningrad Region The Company was set up pursuant to Decision No. 285 dd. 23 April 2012 of the Kaliningrad Region Government The Government of the Kaliningrad Region is the Corporation’s sole stockholder.