Yaroslavl Oblast Government

Investment Opportunities in

the Heart of Russia

2013

Yaroslavl Oblast

Overview

Yaroslavl Oblast has an advantageous location as the two Central Russia major cities Moscow

and St. Petersburg are relatively close to Yaroslavl, 282km and 800km respectively. The

administrative center of Yaroslavl Oblast - the city of Yaroslavl (founded 1010) is an intersection

of federal highways, railroads and waterways. It is also a growing industrial hub with advanced

infrastructure and friendly investment climate, a home for many Russian and international

companies.

Yaroslavl Oblast is divided into 16 districts, including 11 cities, 17 towns and 227 rural

settlements.

Population: 1,271,800 (as of 01/2013)

Total area: 36,200 km²

Yaroslavl Oblast has large water, land and forest reserves.

Yaroslavl Oblast

Government

YAROSLAVL

MOSCOW

The central part of Yaroslavl is a UNESCO World Heritage Site

City of Yaroslavl Yaroslavl Oblast

Government

World Bank Rating

«Doing Business in Russia – 2012»:

• Scope: 30 cities

• Over 600 respondents

Report covers 4 indexes:

• Company registration

• Construction permit

• Electric hook up

• Proprietorship registration

Yaroslavl Oblast is the 8th

among the 30!

Yaroslavl Oblast

Government

Priority-oriented Oblast investment strategy was approved by Governor

Governor’s personal guarantees to investors

Comprehensible roadmap of infrastructure development

Complete set of investment laws

Minimal administrative procedures and no barriers for business

Public discussion over investment legislature with Governor

Skilled and professional population

Industrial and technological parks

Direct access to the authorities of all levels

Bilingual Web site for investors http://www.yarinvestportal.ru/en/

Governor’s Yearly Address on the investment climate

One stop shop to speed up investment process

Правительство Ярославской области Implementation of Federal Agency for Strategic Initiative business

standards with assistance of Business Russia (All Russia Public Organization)

in Yaroslavl Oblast

Yaroslavl Oblast

Government

1

2

3

4

5

6

7

8

10

9

12

11

Investment policy favors successful development of new businesses

Yaroslavl Oblast Investment Climate

Experts rank Yaroslavl Oblast to be among the Top-10 most dynamic oblasts of

the Russian Federation by the quality of financial management and ability to

attract investments

15 045 30 306

43 594 57 216

10 006

176 640

311 106

0,0

40000,0

80000,0

120000,0

160000,0

200000,0

240000,0

280000,0

320000,0

2011 2012

Объем поступления иностранных инвестиций в экономику региона нарастающим итогом с начала года

(тыс. долл. США)

Foreign investments total in Yaroslavl Oblast economy

(thous.USD)

QI2011 QII2011 QIII2011 2011 QI2012 QII2012 QIII2012

Yaroslavl Oblast

Government

Autonomous Non-Commercial Organization (ANCO) Center for Innovative Development,

a Yaroslavl Oblast innovative infrastructure institution for development

Center for Innovative Development processes applications for innovative ideas, carries out

professional expertise and makes improvements to meet lending bank / strategic investor demands

Center for Innovative Development becomes a business partner with selected companies Acts as a project coordinator before main investments are invited

Sources

of innovations Demand

Commercialization

of innovations

Test

production

Serial

production

Sales/

Marketing/

Distribution

• General shape of innovative project development

At this stage the project is invested with funds,

followed by controlling, professional evaluation and

start of test/ serial production.

Center for Innovative Development

steps in at these two stages

Показатели по инновационной

деятельности Innovation Projects Support

Open

innovations

Yaroslavl Oblast

Government

Komatsu (Japan) trucks and excavators

Takeda (Japan) pharmaceuticals

DuPont (US) automotive coatings

Velux (Denmark) dormers

Nexans (France) cables and wires

Lindab (Sweden) hardware construction

GE (US) gas turbines

Huadian Power International (China) electric

generation

Foreign Direct Investments in Yaroslavl

Oblast

Yaroslavl Oblast

Government

The majority of skilled population is employed by industrial companies

Local Workforce

Employees in sector from the total workforce, %

• Total urban population 1 044 800

• Total rural population 227 000

• Economically active population 700 600

Yaroslavl Oblast

Government

2,1 2,1 2,1

2,0 1,9

1,8 1,8

1,7

1,6 1,6

1,00

1,20

1,40

1,60

1,80

2,00

2,20

2,40

Уровень регистрируемой безработицы в 2012 году

(по данным Ярославльстата, в % на конец периода)

Yaroslavl Oblast unemployment rate in 2012

(officially registered)

J F M A M J J A S O

System of Education for Professionals

• 58 000 students

• 38 institutions for higher education

• 56 colleges for secondary professional

education

Major state universities in Yaroslavl Oblast

• Yaroslavl Technical University

• Soloviev Rybinsk State Aviation Technical University

• Yaroslavl State University

• Yaroslavl State Pedagogical University

Sectors welcoming professionals:

• automotive technology

• metallurgy

• automatic control and management

• design and assembly of engines

• electrical power systems

• electrical and radio engineering

• chemical engineering

• pharmaceuticals

Education Yaroslavl Oblast

Government

Tunoshna International Cargo

Airport is 20 km from

Yaroslavl, 5 km from the

railway station

Moscow - Archangel

M8 Federal Motorway

Passenger and cargo ports

on the Volga River

Railways:

Northern Railway,

the Trans-Siberian Railway,

roundabout route Samara –

St. Petersburg - Karelia

Фото Сапсан

Фото

красивого

«мордастого»

грузовика

Фото

самолета

(Руслан из

прошлой

презентации)

Transport Infrastructure Yaroslavl Oblast

Government

Infrastructural Capacity

Construction is easy

• transport infrastructure

• access to communications

• advanced power system

• availability of modern materials

Site of Komatsu , 50 000 sq.m. Site of Lindab-Astron , 14 000

sq.m.

Komatsu plant in Yaroslavl was designed and built by

local Lindab-Astron (Industrial Park Novoselki)

Yaroslavl Oblast

Government

Париж

MASTER Industrial park (39 500 sq.m.)

•

Industrial park Novoselki (300 ha)

Gavrilov-Yam industrial park (12 ha)

Rostovkaya Investment site ( 200 ha)

Krasnoye Investment site (54 ha)

•

•

•

•

Investment site Vostochnaya (160 ha)

•

Investment site Yugozapadnaya (100 ha)

•

Yaroslavl Oblast Investment Sites and Parks

•

Industrial site Kharabihkskaya (450 ha)

• Square – more than 400 hectares

• Sanitary zones up to 100 meters available

• Infrastructure along the site boundaries

available

• Energy supply starting at 4х40 MWt

substation

• Gas supply from new gas control points

(GCP) “Ananyevo”

Novoselki industrial site

12

Rostovskaya industrial site

• Square – 200 hectares

• Infrastructure along the site boundaries available

• Energy supply from “Nero” substation

• Gas supply

Industrial sites welcome your

business Yaroslavl Oblast

Government

Pharmaceu-

ticals,

medical

equipment

Auto

components

Machinery

for power

energy and

turbines

Distribution

and Logistics

Tourism

Strategy: Key Sectors & Clusters

Top priority

clusters

Yaroslavl Oblast

Government

LLC Intellectual dialog

R&D for innovative and

competitive medicine

Localization Import substitution Export orientation

Joint project of Hi-Tech Center

CHEMRAR and R-Pharm for

pharmaceutical substances

production;

Generic products production at

R-Pharm plant

R-Pharm and Takeda

(Nycomed) plant

Pharma 2020 Strategy in Yaroslavl Oblast

Pharmaceuticals Yaroslavl Oblast

Government

• Total volume of investment into GMP pharma

projects in Yaroslavl Oblast exceeds USD1000 mln

Но

• При

• Postgraduate education

• Specialized secondary education

• R&D

• Internship at hi-tech enterprises

• Cooperation with major pharmaceutical companies

GMP Multilevel Specialists Training

Pharmaceuticals Yaroslavl Oblast

Government

TYRES, MECHANICAL

RUBBER GOODS

Yaroslavl Tyre Plant,

Yaroslavl Plant RTI

Tires, gaskets,

sealing rings, cuffs,

barrels, cases, caps

OEM COATINGS

DuPont Russian

Coatings

Refinish and OEM

Coatings, Clear coats,

Primers, CED +

Technical Support

GEAR and CABLES

TIIR, Fritex, Markon,

Pragmatik-PK,

RybinskAutoCable

Sealings, covers, brake

shoes, pump elements,

cables

AGGREGATES

Savell,

Multitruck

Assemb

ly units, bodies, tanks,

vans

ENGINE UNITs and

COMPONENTS

Avtodiesel, Tutaev Motor

Plant, YZTA-YZDA (fuel-

injection system),

Agro-service (tooling),

Gasmotor

Engines, gearboxes, fuel

systems, pump elements,

microprocessor engine

control systems

Companies, operating in the Oblast deliver their production to the largest Russian and international automakers

Auto Components Yaroslavl Oblast

Government

Tourism

Yaroslavl Oblast is a part of the famous tourist route “The Golden Ring of Russia"

Types of Tourism

27%

MICE

meetings,

incentives, conferences,

exhibitions

23%

Active

sports, recreation,

hunting, fishing,

wellness, agri-tourism,

extreme

26%

Cruise

The Volga River cruises

24%

Cultural

including religious and

pilgrimage

5000 monuments of history, culture and natural artifacts

250 various museums

261 tourist facilities

2011 - 1.8 mln tourists visited Yaroslavl Oblast, of them:

1.5 mln - Russians, 0.3 mln – international tourists (mostly - USA (27%) , France (24%) ,

Germany (21%)

Yaroslavl Oblast

Government

Formation of a large recreational tourist cluster that will

include a net of camps for the minors between ages 9 and 15

with diversified infrastructure and unique educational

programs. There will be also the Central City for family

vacations and corporate holidays.

• Project implementation period: 2013-2015

• Estimated investment volume: RUB33,000,000.00

Operational results by 2016:

• world class resort with total area of more than 750 000 sq km

• up to 6 000 new work places

• over 620 000 visits per year

Tourism for children and teenagers :

Strana Detei (Children’s Country) Yaroslavl Oblast

Government

Cruise travel – the Volga river (stretches for 340 km across Yaroslavl oblast)

City of Yaroslavl is located at the confluence of the Volga and the Kotorosol rivers.

450 000 out of 1,8 mln tourists visited Yaroslavl oblast in 2012 through cruise travel

Rybinsk Reservoir (the Rybinsk Sea) travel

Surface area - 4,580 sq km

Max. depth - 28 m

Water tourism: unique location of

Yaroslavl Oblast Yaroslavl Oblast

Government

World-class resort Yaroslavskoe Vzmorie should be

constructed on the shore of the Rybinsk Reservoir by

2020. It is going to be a unique Central Russia resort

area for hosting over a million tourists per year.

As a part of the project Agranta Group and Accor

Group have signed a cooperation agreement for

construction of the first hotel resort Mercure in Yaroslavl

Oblast.

Water tourism : Tourist Project

Yaroslavskoe Vzmorie (Yaroslavl

Seaside)

Yaroslavl Oblast

Government

Operational results:

• estimated investment volume: RUB18,000,000.00

• world class resort with area of 3,600 ha

• 20,000 new work places

• over 210 000 tourists per year

Water tourism : Tourist Project

Yaroslavskoe Vzmorie (Yaroslavl

Seaside)

Yaroslavl Oblast

Government

Investor Support

Tax incentives for investors

• Duration: up to 9 years

• Full exemption from property tax (rate - 0%)

• Reducing income tax rate by 4,5% (to 15.5%)

• Full exemption from vehicle tax (rate - 0%)

• Tax relief on land tax

• Possible provision of subsidies from the Oblast budget to compensate the costs of

infrastructure (comes as a part of investment agreement)

Support and maintenance projects

• Assistance in selection of sites for investors

• Support in connection to the infrastructure

• Faster paper process (permits, approvals, etc.)

• Assistance with local company registration

• Assistance in training of personnel

Yaroslavl Oblast

Government

1.

Equal opportunities for Russian and international investors

Lower administrative barriers

Investors’ rights protection

Infrastructure development: professional training and

accommodation for employees

State support of the investment projects in progress

Yaroslavl Oblast Investment Memorandum

Guidelines

Yaroslavl Oblast

Government

Yaroslavl Oblast today :

a welcoming ancient Russian soil with deep

cultural roots and traditions

many experienced professionals and skilled

experts live and work here

Yaroslavl Oblast has been implementing a State

Agency for Strategic Initiatives standard to maintain

favorable investment climate

Yaroslavl Oblast legislation is one of the best

among its peers in the Russian Federation

Tax reliefs for investors for a period through 7 to 9 years

Property tax zeroing for investors

Profit tax lowering to 15,5 %

Transportation tax zeroing

Land tax relief

Budget subsidies to compensate infrastructural expenses

(comes as a part of investment agreement)

RA Expert investment rating 3В1

Fitch Ratings (national ) AA-

World Bank rating Doing Business in Russia-2012 8th place

Capital Investments (RUB mil.): 2010 30 538 =

2011 37 293 =

2012 (9 months) 36 510 =

Yaroslavl Oblast Advantages

www.yarregion.ru

Yaroslavl Oblast Investment Policy Department (state support of investments and innovations)

Теl: +7 (4852) 40-19-03, E-mail: der@region.adm.yar.ru

Yaroslavl Oblast Government Enterprise Agency for Investment and Cluster Development (investors’ gateway to Yaroslavl Oblast)

Теl: +7 (4852) 77-01-91, E-mail: info@icdy.ru

Thank you !

For more information please refer to the following link: http://www.yarinvestportal.ru/en/

Contacts: