Investment Potential of the Pskov Region

Investment potential of the Pskov region

March 2014

www.pskov.ru

www.invest.pskov.ru

02. Geographical location. Transport accessibility

Pskov Region

Helsinki

Tallinn

Riga

Saint- Petersburg

Moscow

Pskov

М9 М9

М20

М20

Velikiye Luki

branch Number of enterprises

Agro-industrial complex 58

Transport and logistics complex 89

Construction 11

Consumer goods industry 28

Timber Complex 83

Tourism 52

Electrical equipment and

machinery 42

Pskov Region

03. High economic and industrial potential

Other 29,8%

Agriculture 6,8%

State management 9,7%

Transport and

communication

14,4%

Trade18,8% Manufacturing 20,5%

Structure of gross regional product

Other 30,75%

Textiles 1,98% Metallurgy 4,97%

Machinery and equipment

5,2%

Electrical, electronic and

optic equipment 28,29%

Food processing 28,81%

Structure of industrial sector

Number of enterprises in the priority sectors of

economy for development

• Manufacture of electrical equipment

• Wire and cable products

• Equipment for special types of welding

• Manufacture of electrical equipment for

the machinery

• Manufacture of load lifting equipment

Developed areas of regional production:

04. High investment potential

Pskov Region

For the period 2009-2013 was implemented -

77 investment projects,

With a total investment – 1,55 bln. EUR

Jobs to be created - 5072 Major investment projects for infrastructure

> 892,7 mln. EUR

Breakdown of foreign investments

by types of economic activity

Manufacturing

24,9%

Transport and

communications 20,3%

Wholesale and retail

Trade 30,7%

Agriculture

23,4%

Availability of investment sites in the Region:

Type «greenfield» - 118

Type «brownfield» -36

Implementation of investment projects with foreign

capital

• OOO Dula Ru, Germany (production of retail

equipment)

• ООО «TANN-Nevskiy», Austria (construction of a

factory for the paper production)

• Brix&Kamp, Denmark and Tetra Electricians, RF

(construction of a factory for the boilers production)

• OOO Idavang, Denmark (construction of a pig

breeding complex)

05. Favorable conditions for business development

Individual support of

an investor at all

stages of project

implementation

Special support

measures in

strategic sectors

(tax privileges,

subsidies)

Quick search for

land plots

Support of small and medium

enterprises (subsidizing,

microloans, sales

support)

Provision of infrastructure

(opportunity to join investment programs

in the housing and utility sector)

Tax privileges are

provided for

5 years

Pskov Region

Property tax Benefit property

tax Profit tax

Benefit profit tax

Special economic zone of industrial production type

Moglino | Special economic zone Март 2014

• Moglino | Special economic zone

8 km from the

Borisovichi residential

microdistrict

14 km from

Pskov city center

07. Integration to the city environment

Proximity to the railway station and

airport

50 km to border with European

Union

Direct access to Moscow-

Riga highway (A212)

Moglino | Special economic zone

08. Land use plan of the SEZ

Area, ha

215

Railway

Highway (A212)

Moscow-Riga


09. Land lots

Rent for land in SEZ and IP, EUR/ha/year

Kaluga region Lipetsk region Samara region Pskov region

1700 1500

1100

600

not less than 24 mln.EUR



less than 8 mln.EUR

587

822

1057

1173

10. Infrastructure Development


Water supply

Gas supply

Telecommunication

Electricity supply

Transport infrastructure

Customs infrastructure

Landscaping

m3/day

ths.m3/year

N

MVA

km

ths.m2

Ha

1 qr. 2 qr. 3qr. 4 qr. 1qr. 2qr. 3qr. 4qr. 1qr.

11. Available infrastructure

Pskov Region

Cost for electricity

(110 kV)

0,06 EUR

kW / h

Cost of connection to the power networks

(2013), EUR

Saint-Petersburg Leningrad region Tver region Pskov region

662

332

225 173

Average price for gas

in consumer prices

0,08 EUR/m3

Rate of cold water

0,36 EUR/m3

Rate for gas EUR /1000 m3

Kaluga region Lipetsk region Pskov region

91

89 88

Rate for water

disposal

0,3 EUR

kW / h


12. Taxation policy

Tax Normal rate Moglino SEZ tenant rate

1. Corporate profit tax 2% to Federal budget 18% to Regional budget

2% to Federal budget To the budget of the subject of the RF:

0% - 2013-2019 3% - 2020-2021

10% - 2022-2023 13.5% - 2024 and further years

2. Corporate property tax 2.2% 0% for 10 years

3. Land tax 1.5%

0% for 5 years from the date the ownership right arose

4. Vehicle tax 0,05-0,30 EUR

0 EUR per hp for 10 years from the moment of vehicle registration

5. Duties on import of equipment, raw materials and components from abroad 0%

6. VAT on import of equipment, raw materials and materials (apart from countries of the Customs Union)

0%

7. VAT and export duties for finished products for export through the borders of the Customs Union

0%

8.Rates of insurance payments for residents, who

signed an agreement about the implementation of

technically-innovative activity***

30,2% 14 % until 2017 years.

** The Customs Union includes the Russian Federation, Republic of Kazakhstan and Republic of Belarus. VAT for import from these countries can be reimbursed *** Provided conducting of technology development activities


Payments regarding equipment, materials and components imported to Moglino SEZ and placed under the free customs zone regime

SEZ "Moglino"

Foreign countries

foreign goods

Russian Federation

goods of

the Customs Union

VAT - 0% Import duty - 0% Excise - 0%* Customs fee – 10 - 595 EUR

Export duties - 0% VAT - reimbursed by Federal Tax Agency's inspectorate Customs fee – 10 – 595 ths.rur.

• Apart from cars with the capacity of 90 hp and motorcycles with the capacity of 150 hp

13. Charges on import in the SEZ "Moglino"


14. Charges on export from the SEZ "Moglino"

Payments regarding equipment and produced

goods exported from Moglino SEZ to the rest of the Customs Union for

the purposes of free circulation

SEZ "Moglino"

Russian Federation

Goods of the

Customs Union, goods

manufactured from the goods of the Customs

Union

Russian Federation

Foreign goods,

goods manufactured from foreign

goods and goods of the Customs

Union

VAT – 18% Import duty – according to customs tariff not taking into account prices for goods of the Customs Union Excise (if paid for import to the SEZ) - 0% Excise (if not paid earlier and if excise goods are produced) - from 0% Customs fee – 10 – 595 EUR

VAT - 18% Excise - 0% Excise (if excise goods are produced) - from 0% Customs fee – 10 – 595 EUR

Payments regarding equipment and produced goods exported from Moglino SEZ beyond the

territory of the Customs Union

SEZ "Moglino"

Foreign countries

Foreign goods, goods manufactured from foreign goods

and goods of the Customs Union

Foreign countries

Foreign goods, imported earlier from a foreign

country and imported

unchanged

VAT - 0% Export duty - 0% Customs fee –10 – 595 EUR

VAT - 0% Export duty - 0% Customs fee - 10 – 595 EUR

15. Human resources potential of the Region

Services Sector Energy, Power

Engineering and

Electrical

Equipment

Metallurgy,

Machine-building

and Materials

Processing

Architecture

and

Construction

Technology of Food

Products and

Consumer Goods

Economics and

Management

Main areas of professional training:

Pskov Region

57%

Higher education

43%

Secondary

vocational education

Total amount of graduates 3200

people (2013year)

Professional education–

13 regional institutions of secondary

vocational education and 13 regional

institutions of higher education,

Number of specialties - 85

Average salary, (November 2013), EUR

389

776

590 515

468 470

Pskov

region

St.

Petersburg

Leningrad

region

Kaluga

region

Tver region Novgorod

region


16. Human resources training center

ITE Education

Services, Singapore

Cooperation of training center and partners

Training center Moglino

Residents (other investors and SEZ)

State departments

Infrastructure departments

Training centers

Education departments

Legislation: opportunity of co-financing of costs by state program activity,

search for potential employees, information

support

Search for potential

employees; opportunity of co-financing of costs

for training

Additional education,

training, teacher training

Basic education, potential employment of last year students,

teacher training


17. Social infrastructure

Average cost of housing at the primary market,

EUR per 1 m2

Leningrad region Tver refion Novgorod region Smolensk region Pskov region

1080 1005 915

805 783

Area of multi-storey buildings

Area of manor buildings

Area of landscaping and parks

Area of sport, cultural and social area

Area of kindergartens and schools

Area of parking zones, garages and municipal facilities

Development district "Borisovichi” Borisovichi residential area will solve the housing problem of SEZ IPT "Moglino" employees:

1.Construction of low-rise housing on the area of

30 ha, including rental housing

(by the management company):

2.Construction of social infrastructure facilities, a hotel complex:

3.Residents are provided prepared land plots for construction of housing for their personnel.

18. Benefits

The project is being

implemented jointly with Jurong

Consultants Pte Ltd (Singapore) ensuring

world standards of quality

Convenient logistics

Creation of

infrastructure at the expense of budget funds

Tax privileges for residents

Free customs zone regime

One Stop Shop

principle

Opportunity to attract and retain talent

Logistics cluster within the SEZ

Social infrastructure

(housing, training center)

Low cost of utilities

and infrastructure connection

SEZ benefits are valid until 2061


Application shall include*: - business plan - copies of constituent documents; - copy of the Certificate of incorporation; - copy of Tax registration certificate. *Support of investors at all stages by Moglino SEZ Management Company

Investment requirements Capital investments upwards of 2,4 mln EUR (excluding intangible assets), including 0,8 mln EUR– within first 3 years after Tripartite agreement signing.

1 Registration

2 Presentation of

the business plan

3 Conclusion of an agreement

Register the legal body or reregister a legal body

acting in the Pskov district of the Pskov region

Present the business plan to the Supervisory and

the Expert Board

Conclude a tripartite agreement

with the Ministry of Economic Development

and OAO "SEZ IPT "Moglino"


19. Tenant status acquisition order


Thank you for your attention!

Business

Investment Potential of the Pskov Region