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Guide to Investment Republic of Tatarstan

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Page 1: pwc - Guide to Investment - Republic of Tatarstan

Guide to InvestmentRepublic of Tatarstan

Page 2: pwc - Guide to Investment - Republic of Tatarstan

PwC Russia (www.pwc.ru) provides industry-focused assurance, advisory, tax and legal services. Over 2,000 professionals working in PwC offices in Moscow, St Petersburg, Ekaterinburg, Kazan, Novosibirsk, Krasnodar, Yuzhno-Sakhalinsk and Vladikavkaz share their thinking, experience and solutions to de-velop fresh perspectives and practical advice for our clients. Global PwC network includes over 161,000 employees in 154 countries.

PwC first appeared in Russia in 1913 and re-established its presence here in 1989. Since then, PwC has been a leader in providing professional services in Russia.

According to the annual rating published in Expert magazine, PwC is the largest audit and consulting firm in Russia (see Expert, 2000-2011).

This overview has been prepared in conjunction with Tatarstan Investment Development Agency (TIDA).

This publication has been prepared for general guidance on matters of interest only, and does not con-stitute professional advice. You should not act upon the information contained in this publication with-out obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PwC network, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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Welcome letter from thePresident of the Republic of Tatarstan Rustam Minnikhanov

Foreword

Tatarstan InvestmentDevelopment Agency

General information on Tatarstan• Overview• Education and science• Workforce• Sport events• Transport infrastructure

The Republic of Tatarstan’s strategic economic development priorities

• Chemicals and petrochemicals• Machinery and metal processing• IT and telecommunications• Agriculture and food processing• Construction • Health care and pharmaceuticals• Services and tourism• Halal industry

Investment climate• Government non-profi t organisations• International investment forums• Investment website

Investment infrastructure• Special Economic Zone Alabuga

Brief data points illustrating Tatarstan’s economicand investment potential

• GRP and GDP• Industrial production• Investment in fi xed capital• Foreign investments• Foreign trade

Leading banks operating in Tatarstan

Contacts

Contents

4 25

286

36

8

10

4016

42

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Welcome letter by the Presidentof the Republic of TatarstanRustam Minnikhanov

Today, it is widely recognised that Tatarstan has signifi cant potential in terms of attrac-ting direct investment, primarily from fore-ign countries. Leading consultancies rank the republic among Russia’s most favourable regions in terms of investment climate and business opportunities. International rating agency Moody’s gave Tatarstan a Ba1 invest-ment rating, while rating agency Fitch gave it BBB, indicating that the region’s economy is both a highly reliable and attractive desti-nation for investment. Today 1,044 commer-cial organisations with foreign investment are registered in Tatarstan, of which 472 are wholly foreign owned.

Tatarstan has established its own Tatarstan Investment Development Agency to ensure effective collaboration between the authori-ties and investors. This agency joined the World Association of Investment Promo-tion Agencies (WAIPA) in September 2011. The Agency’s key objectives are promoting Tatarstan in the global economy, attracting investors to the republic, and supporting ongoing investment projects.

The Republic of Tatarstan is actively wor-king to develop modern industrial sites with diverse profi les, as well as industrial parks and business process outsourcing centres, which provide a favourable envi-ronment and meet investor requirements.

Dear friends,

It gives me great pleasure to introduce you to the Republic of Tatarstan, one of Russia’s fastest-growing regions, located at the intersection of strategic trade routes connecting northern and southern Russia, as well as Asia and Europe.

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Special Economic Zone Alabuga is the best known of all such business platforms. Its residents have access to a fully established manufacturing, engineering, utilities, trans-port and customs infrastructure, while also enjoying a number of tax and customs ben-efits. Other facilities include Technopolis Himgrad, which was specially designed for chemicals and polymer processing compa-nies, and the Kama Industrial Park (KIP) Master, which was specifically designed for heavy engineering enterprises and is one of the republic’s prized initiatives. We are also currently working on the SMART City Inter-national Exhibition and Conference Centre project, which will include an expo centre and congress halls, an international educa-tion centre, and an international health and recreation centre.

The Republic of Tatarstan is consistently implementing projects to develop industrial and park areas. Tatarstan’s legislation is in line with modern standards, and guarantees and protects the rights of investors. The rele-vant legislative base comprises the laws “On Foreign Investments” and “On Investment Activities”. A law “On public-private part-nerships” was recently enacted in Tatarstan, which creates the essential conditions for ex-

panding the number of PPP-based projects.

Particular attention should be paid to the de-velopment of Tatarstan’s transport network. Airlines, motorways, railways and navigable rivers constitute the core of this network. From a transport perspective, Tatarstan is located at a critical crossroads, linking the Urals, Siberia and the Far East with Euro- pean Russia and a number of CIS countries.

We can state with confidence that we are moving in the right direction, given that such internationally recognised companies as Ford-Sollers, Rockwool, Hayat Group, Daimler, Lufthansa, Schneider Electric and Fujitsu have all chosen Tatarstan as a place to do business.

I can assure you that the key economic pol-icy priorities of Tatarstan’s leadership have always been, and will continue to be, aimed at making the republic more attractive for the global investment community, and sup-porting business development and entrepre-neurial initiatives.

We would be delighted to welcome you as a business partner, and wish you every success in carrying out your projects here, in the Republic of Tatarstan.

Yours faithfully, Rustam Minnikhanov President of the Republic of Tatarstan

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Foreword

The Republic of Tatarstan is an undisputed leader in Russia both in terms of economic growth and investment appeal. Located in the heart of Russia, Tatarstan is convenient for investors not only because of its geographical location, but also due to the wealth of natural resources and great educational and scientifi c potential in the region.

The Tatarstan government is actively in-volved in increasing the region’s investment appeal. They have wisely implementeda number of projects designed to make the processes for international and Russian in-vestment in the region as simple as possible. The Tatarstan Investment Development Agen-cy (TIDA), established in 2011, is, for exam-ple, a reliable and useful “one-stop shop” tool.

TIDA aims to support investment projects from the very fi rst meeting with potential investors, in addition to assisting in project implementation. One of TIDA’s functions is to help in selection of a production site. A well-developed network of technology parks with sophisticated engineering infrastructure is available for investors. Such parks include the Khimgrad Technopolis, Idea Technol-ogy Park, as well as modern business incuba-tors located in various regions of Tatarstan. Leading Tatarstan’s development institutions is Special Economic Zone Alabuga, which attracts investors by promoting the develop-ment of high-tech projects in fundamental economic clusters: these include the petro-chemical complex, as well as the automotive and construction industries.

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We cannot ignore the impressive work al-ready done by the Republic, nor the large-scale projects that have just begun as part of preparations for the XXVII World Summer Universiade 2013, the 2015 World Aquatics Championships, and the 2018 FIFA World Cup, during which it is planned a number of games will be held in Kazan. PwC Russia is proud to be a Partner and Official Professio-nal Services Provider to the XXVII World Summer Universiade 2013 in Kazan.

With more than twenty years experience of working in Tatarstan, we at PwC can at-test to the Republic’s economic potential. We see Tatarstan as a reliable site for invest-

ments. According to a 2011 PwC survey of Tatarstan investors, 70% were positive about the Tatarstan government’s increased focus on raising investments and thought that the investment climate (infrastructure and in-vestment comfort) has significantly improved over the past 3-5 years.

This guide was prepared in collaboration with the TIDA and is based on data supplied by TIDA. We hope that you will find here all the necessary information on priority stra-tegic development areas of the Tatarstan economy and on the region’s economic and investment potential, and that this will help you to implement your investment ideas.

Very truly yours, David Gray Managing Partner PwC Russia

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The Agency’s investment policy objectives are:

• promoting Tatarstan worldwide as one of the most investment attractiveregions of Russia;

• attracting investment to the republic and creating the necessaryinvestment infrastructure;

• assisting and providing support for the development and implementationof investment projects, including PPP-based projects, which are a successful mechanism for working with investors.

Applying to TIDA

Determining investor’s

requirements

Completing package of documents

Signing an agreement

Project launch

• providing information about the republic by industry• selecting an investment platform• helping resolve issues with the relevant ministries and agencies

• helping prepare the necessary set of documents• agreeing the set of documents with relevant ministries and agencies• providing information support on legal, tax and other issues

• interacting with ministries and agencies to agree and sign an investment agreement• managing the process of signing an investment agreement between the parties

The Agency works with investorson a “one-stop-shop” principle.

Tatarstan Investment Development Agency (TIDA) was established on 1 June 2011.

Tatarstan InvestmentDevelopment Agency

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Tatarstan Investment Development Agency is a member of the World Association of Investment Promotion Agencies (WAIPA).

Address: 50 Peterburgskaya St., Kazan, 420107Tel.: +7 (843) 570-4001Fax: +7 (843) 570-4005

E-mail: [email protected]

Website: www.tida.tatarstan.ru www.invest.tatarstan.ru

Linar YakupovChief Executive of TatarstanInvestment Development Agency

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Kazan

Chistopol

Nizhnekamsk

Almetyevsk

Elabuga

Bugulma

Naberezhnye Chelny

Naberezhnye Chelnyheavy engineering,utilities, consumer goods, construction, food and processing

Nizhnekamskpetrochemicals

Chistopolconsumer goodsand food processing

Almetyevskpetrochemicals (oil and associatedgas production)

Elabugaoil production and heavy engineering

Kazan the republic's capitalheavy engineering, chemicals and petrochemicals, consumer goods and food processing

Tatarstan is one of Russia’s most economically developed regions. It is located in the centreof a large industrial region, 800 kilometres east of Moscow, at the confl uence of the Volga and Kama rivers.

Tatarstan on a map of Russia

General informationon Tatarstan

Overview

Area: 67,836.2 sq. kmPopulation: 3.8 million peopleTatarstan stretches 290 km from North to South and 460 km from West to EastTatarstan has a moderately continental climate.Offi cial languages are Tatar and Russian.Predominant religions are Islam and Orthodox Christianity75.4% of Tatarstan’s residents live in urban areas.The capital is Kazan (area: 614.2 sq. km; population: 1.161 million people)Offi cial website of the Republic of Tatarstan: www.tatarstan.ru

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Kazan

Chistopol

Nizhnekamsk

Almetyevsk

Elabuga

Bugulma

Naberezhnye Chelny

Naberezhnye Chelnyheavy engineering,utilities, consumer goods, construction, food and processing

Nizhnekamskpetrochemicals

Chistopolconsumer goodsand food processing

Almetyevskpetrochemicals (oil and associatedgas production)

Elabugaoil production and heavy engineering

Kazan the republic's capitalheavy engineering, chemicals and petrochemicals, consumer goods and food processing

Tatarstan’s natural resources

Water resources: the Volga, Kama, Belayaand Vyatka rivers as well as numerous smallrivers and lakesForest resources cover 16% of the landExtractable resources:• oil (around 0.8 billion tonnes),• limestone and dolomite (66 million

tonnes),• building stone (35.3 million cubic metres),• peat (over 35,000 ha),• gypsum (72 million tonnes),• brick earth (73.5m cubic metres),• petroleum bitumen (12.5 billion tonnes)

On 30 August 2005, Kazan celebrated its1,000-year anniversary.Since April 2009, Kazan has offi cially hadthe right to be called Russia’s Third Capital.

The President of the Republic of Tatarstan is the region’s highest-ranking offi cial.Rustam Minnikhanov is thePresident of the Republic of Tatarstan.Ildar Khalikov is the Prime Ministerof the Republic of Tatarstan.Farid Mukhametshin is the Chairmanof the State Council of the Republicof Tatarstan.

Administration

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Tatarstan has substantial scientifi c and edu-cational potential. Kazan is one of Russia’s leading educational centres, ranking third af-ter Moscow and St Petersburg in terms of the number of students (over 200,000 people).

At the beginning of the 2011/2012 academic year, Tatarstan had:

• 86 educational institutions (higher,secondary and specialised), of which

• 30 are higher educational institutions (mostly located in Kazan).

Nineteen of these are in the public sector while 11 are privately run.

Kazan (Volga) Federal University was created on the basis of the famous V.I. Ulyanov-Lenin Kazan State University (KSU). This world-class research and educational centre is among Rus-sia’s federal universities.

In 2009 the oldest universities in the country:• the A.N. Tupolev Kazan State Technical

University and • Kazan State University of Technology

won a competition of university development programmes to be eligible for the status of Na-tional Research University.

The economically active populationis 2 million people (53.9% of the total population)

The average gross salary is RUB 20,009per month (a 16.1% increase over 2010)

Education and science

Average per capitacash income, RUB

2009

25,000

15,915.4

Tatarstan Russia

16,857.0

18,158.1

18,887.8

19,791.8

20,702.7

20,000

15,000

10,000

5,000

02010 2011

Workforce

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Sport events

In 2013 Kazan will host the XXVII Summer Universiade, or World Student Games. Some 65 sports facilities concentrated in four areas of Kazan will be used during the Games. Over 100,000 people from 170 countries are expected to attend the Universiade.

www.kazan2013.ru

The 16th World Aquatics Championship will be held in Kazan in summer 2015. This marks the fi rst time that Russia will host this tournament.

A decision to hold this tour-nament in Kazan was taken at the General Congress of the International Swimming Federation (FINA) 2011, held in Shanghai on the eve of the 2011 World Cup.

www.fi na.org/H2O

The plan for the 2018 FIFA World Cup includes 16 foot-ball stadiums in 13 Russian cities, grouped into four clusters: the northern clus-ter (Kaliningrad and St Pe-tersburg), the central cluster (Moscow), the Volga cluster (Kazan, Nizhny Novgorod, Yaroslavl, Samara, Vol-gograd and Saransk), the southern cluster (Krasnodar, Rostov-on-Don and Sochi) and Ekaterinburg.

www.russia2018-2022.com

XXVII SummerUniversiade – 2013

World AquaticsChampionships – 2015 FIFA World Cup – 2018

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Transport infrastructure

Transport connection

The republic is situated at the intersection of several major transport routes: railways (the Trans-Siberian Railway and the North-South line), rivers (the Volga and Kama rivers, which fl ow into the Caspian Sea, and therivers of the Urals and greater Moscow re-gions), and motorways. Three federal high-ways cross the republic: the M-7 Volga, the M-5 Ural, and the Kazan-Orenburg highway. The region has 18,500 km of paved public roads.

It also has three cargo ports with fi ve cargo areas, four passenger ports (Kazan, Naber-ezhnye Chelny, Chistopol and Nizhne-kamsk), and six inland water terminals.

Druzhba, the world’s largest oil pipeline, starts in Tatarstan. Large gas pipelines car-rying natural gas from the Urengoy and Yamburg fi elds to Western Europe also run through the republic.

Six airports are located in Tatarstan. Kazan and Begishevo are federal airports.

Tatarstan’s international airports operate scheduled fl ights to Germany, Greece, the Czech Republic, Cyprus, Turkey, Azerbai-jan, Uzbekistan and Tajikistan. In 2011, Kazan Airport hosted fl ights to 22 countries worldwide on over 50 routes. In 2011 Kazan Airport’s passenger traffi c increased 28% to reach 1.23 million, a record high since the airport was built in 1979.

A new terminal at Kazan Airport is due to open in July 2012. It will be able to handle up to 2 million passengers annually. To date, over RUB 1 billion has been spent on the project to modernise and develop airport infrastructure. By 2013 investments in the airport complex will exceed RUB 2 billion. The project is due to be completed by 2025, with completion taking place in three stages, increasing the passenger service facilities’ capacity to 5 million passengers per year (3,500 passengers per hour).

Company name Website Telephone

Kazan Airport www.airport.kazan.ru +7 (843) 267-8807+7 (843) 267-8792

Kazan Railway Terminal www.pass.rzd.ru +7 (843) 294-0400+7 (843) 294-0500

Kazan River Port www.sk-tatfl ot.ru +7 (843) 233-0982+7 (843) 233-0969

Distance from potential markets

Moscow797 km

St. Petersburg1515 km

Ekaterinburg930 km

Sochi2015 km

Kazakhstan1910 km

Uzbekistan2590 km

Ukraine1725 km

Belarus1550 km

Latvia1755 km

Finland1905 km

КазаньKazan

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One of the large-scale projects, being implemented in Tatarstan is the construc-tion of a section of the Europe-Western China international transport corridor. This corridor will reduce travel time by 3.5 times and signifi cantly decrease transpor-tation costs, becoming the key freight route in the Cent-ral Asian region.

Tatarstan’s logistics development pro-gramme links the construction of a section of the international transport corridor with the project to create the Sviyazhsk Inter-regional Multi-modal Logistics Hub, thus creating an important logistics network.

The fi rst phase of the Volga region’s largest logistics hub construction is scheduledfor 2013.

The hub’s key objective will be develo-ping infrastructure for China-Europe freight fl ows. Completing the project to build the Sviyazhsk Interregional Multi-modal Logistics Hub will enable freight to be shipped to any region in Russia, re-directing freight fl ows away from Central Russia. This solves the following pressing issues: taking pressure off the transport in-frastructure of the greater Moscow region, and creating social and economic infra-structure along the length of the corridor.

Distance from potential markets

Moscow797 km

St. Petersburg1515 km

Ekaterinburg930 km

Sochi2015 km

Kazakhstan1910 km

Uzbekistan2590 km

Ukraine1725 km

Belarus1550 km

Latvia1755 km

Finland1905 km

КазаньKazan

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• chemicals and petrochemicals• machinery and metal processing• IT and telecommunications• agriculture and food processing• construction• health care and pharmaceuticals• services and tourism• halal industry

The Republic of Tatarstan has set the objective of creating an invest-ment infrastructure that can help attract both Russian and foreigninvestors in the coming years.

The following priority areas for Tatarstan’s economic developmenthave been established to help achieve this objective and improveTatarstan’s investment climate while also ensuring internationalinvestors are offered competitive terms:

The Republic of Tatarstan’s strategic economic development priorities

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Chemicals and petrochemicals

The chemicals and petrochemicals industry encompasses the following:

• chemical production• rubber and plastics production• petroleum product manufacturing

In 2011 the republic’s petrochemical compa-nies earned RUB 770 billion. This represents a 25% year-on-year increase. Corporate pro-fi ts reached RUB 139 billion, with profi tabi-lity increasing by almost 7%.

The largest petrochemicals companies inc-lude ОАО TANEKO, ОАО TAIF, ОАО Nizh-nekamskneftekhim, ОАО Nizhnekamskshina, ОАО Kazanorgsintez, ОАО TAIF-NK andОАО Nefi s-Cosmetics.

Foreign investment in the industry:ООО Pixar Coatings (Italy), Clariant(Switzerland), ООО P-D Tatneft-Alabuga Steklovolokno (Germany) and ООО Air Liq-uide Alabuga (France).

Dynamics of chemicaland petrochemical

production, RUB billion

2009

250.0

77.9

39.7

Oil products manufacturingChemical productionRubber and plastics production

104.8 98.4

51.7

161.5154.3

56.5

196.4200.0

150.0

100.0

50.0

02010 2011

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Machinery and metal processing

Machinery and metal processing encompasses the following:

• metallurgical production and production of fi nished metal goods

• machinery and equipment production• the production of electronics, electrical

and optical equipment• the production of transport vehicles

and equipment

The industrial production index for machinery and equipment in 2011, as compared to 2010, was 108.0%; 113.7% for electronics, electrical and optical equipment production; 107% for the production of transport vehicles and equip-ment; and 109.5% for metallurgical produc-tion and production of fi nished metal goods.

The largest manufacturers are:ОАО KAMAZ, ОАО S.P. Gorbunov KAPO,ОАО Kazankompressormash, andОАО A.M. Gorky Zelenodolsk Plant.

Foreign investments in the industry:ООО Ford Sollers Holding,Daimler AG (Germany), Honeywell (US),ZAO Schneider Electric (Germany) andZAO Cummings Kama (US).

Production of transport vehicles

2009

27.9

2.1

trucks, thousands of unitspassenger cars, thousands of unitsbuses, thousands of units

5.3

45.1

2.9

11.5

57.5

2.0

20.0

80.0

60.0

40.0

20.0

02010 2011

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IT and telecommunications

Over the past few years, Tatarstan has taken a leading position in the IT and high-tech sector.

IT and telecommunications include the fol-lowing types of activity:

• mobile telecommunications• Internet access• software development

In 2011 gross earnings were RUB 40 billion with a 112.6% growth rate.

The industry’s gross earnings accountedfor 3.1% of the republic’s GRP.

Capital investment in the industry fromall sources reached RUB 7.86 billion.

The mobile phone network covers around 96% of Tatarstan.

Tatarstan’s largest software developersinclude: ICL-KPO VS, BARS Group, OCS, Softline and TAXNET.

Foreign investments in the industry:Fujitsu Russia GDC.

Trends in numbers ofcellular subscribers (thousands)

2009

6,075.8

5,973.8

6,151.16,200

6,150

6,100

6,000

6,050

5,950

5,900

5,8502010 2011

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The agricultural sector includes:• crop production;• livestock production.

The output for all agricultural producers (agricultural entities, residential households and farms) was RUB 165,647.3 million in current prices, or 152.6% versus the 2010 level. Crop production increased 2.8 times over the period, while livestock production decreased by 0.1%.Sustainable agricultural development in Ta-tarstan is based on the following:

• top priority status - 10% of the republic’s budget is allocated to agricultural sub-sidies;

• multi-format nature - over half of farm-land and livestock are owned by large investors, ordinary agricultural busi-nesses and small enterprises develop in a balanced way;

• innovative technologies - over 70% of the land is cultivated and seeded using resource-saving technologies, 15% of the farmland is seeded with elite seeds (10% for Russia) and 24% of the livestock is pedigree cattle (12% for Russia);

• insured farmland accounts for 45.8% (the average for Russia is 13%).

With 2.2% of Russia’s arable land,Tatarstan produces around 5% of all agricul-tural products.Family farms are at the heart of a new and promising approach to the development of rural small businesses. As of the beginning of 2011, there were 23 family farms in vari-ous districts of the republic. Their number increased to 400 by the end of the year.The largest companies: OAO VAMIN,ZAO Agrosila Group, OOO Chelny Broiler and Krasnyi Vostok Agroholding.

Agriculture and food processing

Gross agricultural production

2009

116.5104.1

165.6

100.8

67.8

152.6

200

150

100

50

02010 2011

RUB billionYear‐on‐year percentage change in comparable prices

Crop production(thousands of tonnes)

2009

1,900.8

304.9

4,441.8

1,501.9

521245

661 682

1,393

319

4,868

1,936

5,000

4,000

3,000

2,000

1,000

02010 2011

Potatoes Vegetables Grain Sugar beetPotatoes Vegetables Grain Sugar beetPotatoes Vegetables Grain Sugar beet

Trends in production of beef cattleand poultry (by live weight)

by agricultural entitiesof all types (thousands of tonnes)

2009

412.9

426.3427.5

430

425

420

410

415

4052010 2011

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ConstructionThe construction sector encompasses the fol-lowing:

• construction of residential houses;• construction of non-residential buildings;• construction of infrastructure.

Currently, the real estate market is shaped by a number of key factors:

• construction of facilities forthe Universiade;

• a wide-scale majorrenovation programme;

• active development of infrastructureand road interchanges.

These factors have a substantial impacton consumer preferences and price levels in different quality segments of Tatarstan’s housing market.

In 2011, the average cost per sq mRUB 35,750.10 in the primary market,and RUB 38,386.57 in the secondary market.

Foreign investments in production of con-struction materials: ООО Rockwool-Volga (Denmark), ООО Wienerberger-Kurkachi (Germany) and ООО Custamony Integrated Wood Industry (Turkey).

New housing commissioned (sq m)

2009

2,010,200 2,027,267

2,396,091

2,600,000

2,400,000

2,000,000

2,200,000

1,800,000

2010 2011

Construction volume

2009

165,221.5179,931.3

233,206.4

103.9

104.9

106.8

250,000

200,000

150,000

100,000

50,000

02010 2011

Construction volume, RUB million

year-on-year percentage change in comparable prices

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Health care and pharmaceuticals

Health care and pharmaceuticals encompass the following:

• production of medical equipment and phar-maceuticals;

• provision of health care services;• pharmacy chains.

Foreign-made pharmaceuticals accounted for 76% of the market in value terms while do-mestic medicines dominated the local market (63%).In 2011, the average cost of treatments pre-scribed to out-patients increased 1.62% in Ta-tarstan (with infl ation at 6.1%), while in Russia as a whole it increased 2.17%, and in the Volga Federal District it rose 2.27%.The largest companies in this sector are:OAO Kazan Medical Instrument Plant, one of Russia’s largest medical instrument compa-nies, producing over 3,000 different medical products.OAO Tatkhimfarmpreparaty, a major phar-maceutical company, including two modern plants: a chemical and pharmaceutical plant and a surgical suture materials factory.OAO Tatkhimfarmpreparaty is the only catgut producer in Russia.

Foreign investments in the industry:OOO Saria Bio-Industries Alabuga.The size of the republic’s pharmaceutical mar-ket increased 7% in 2011 to reach RUB 16.27 billion.

Tatarstan retail market

2009

1,213

pharmaceutical institutions pharmacies

621

1,280

672

1,351

709

1,600

1,200

800

400

02010 2011

2009

4.4

15.116.318.0

16.0

12.014.0

10.0

6.08.0

4.02.00.0

2010 2011

Volume of the Tatarstanpharmaceuticals market, RUB billion

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Services and tourism

Services and tourism encompass the fol-lowing:

• hotels• restaurants• tourism

Over the past five years, the republic’s internal tourist flow has seen an average year-on-year increase of 12%, and today stands at 1.2 million visitors annually. That puts Tatarstan among the leadersnot only in the Volga region but in Russia as a whole.

Today 550 tour operators providing travel services are registered and operate in the republic. These tour operators include 50 companies engaged in domestic tourism, 10 firms involved in international tourism and 7 providing both international and domestic travel services.

Number of hotels (2011)• Tatarstan total: 152

(hotel room capacity: 6,000)• Including Kazan: 97

(hotel room capacity: 4,500)• Other than Kazan: 55

(hotel room capacity: 1,500)

As of 1 January 2012 there were 4,852 catering enterprises with a total seat-ing capacity of 286,000 in the republic, 2,600 of which are widely available chains (restaurants, cafeterias, pubs, snack-bars and canteens), 1,800 are school canteens, more than 400 are manufacturing enter-prises canteens and cafeterias.

Foreign investment in the industry: Marri-ott, Ibis, and Park Inn (hotels); Lufthansa, FlyDubai, and Turkish Airlines (airlines); and the McDonald’s restaurant chain.

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Halal industry

The halal industry encompassesthe following types of activities:

• food products;• halal services;• for halal pharmaceuticals;• for halal cosmetics.

Tatarstan is Russia’s halal industry leader, which is proved by numerous facts:

• the large-scale KAZANHALAL Interna-tional Trade Fair, which the region has hosted for the third time;

• the opening of the Kazan Halal Hub, Russia’s fi rst halal transport and logistics centre for storing and distributing halal products made by domestic and foreign producers in both Russia and the CIS countries;

• establishing the Baltach agricultural park.

International Islamic conferences are held on an ongoing basis. Tatarstan has beena pioneer among Russian regions in attrac-ting Sharia-based Islamic investment. Islam-ic banking structures have been established, and a new economic model is being created in the republic.

In 2005 a Halal Standards Committee was set up under the Spiritual Board of Muslims of Ta-tarstan (DUM) for overseeing the production and sale of halal products, which has been gro-wing rapidly in Russia in recent years.

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The Republic of Tatarstangovernment offers investors the following benefi ts:

Investment climate

Over the past several years Tatarstan has been one of the Russian regions with the least risk exposure for foreign investors. According to the international rating agencies Moody’s and Fitch, Tatarstan ranks as one of the most investor-friendly regions:

2007 2008 2009 2010 2011

Moody’s Ba1 Ba1 Ba1 Ba1 Ba1

Fitch BB+ BBB- BBB- BBB- BBB-

Tax benefi tsUnder Tatarstan law, investors that carry out investment projects in the republic are granted tax benefi ts for the payback period of the given investment project, which may not exceed seven years (13 years for the heavy en-gineering industry) after the project begins.

Current system Benefi cial rate

Profi ts tax

20% 15.5%

Property tax

2.2% 0.1%

Land tax

1.5%* 0%*

* given a decision by the local legislative council of the relevant Republic of Tatarstan municipality

Government regulationand support:

• publicly funded loans;• partial compensation

of bank loan interest ratesand bond coupon payments;

• government guarantees;• provision of industrial space

and infrastructure;• tax preferences;• co-fi nancing;• grants.

Tatarstan’s regulatoryframework includes,among other things,the following legislation:

• Republic of Tatarstan Law “On In-vestment Activity in the Republic of Tatarstan”

• Republic of Tatarstan Law “On For-eign Investment in the Republic of Tatarstan”

• Republic of Tatarstan Law “On Public-Private Partnerships in the Republic of Tatarstan”

• Republic of Tatarstan Cabinet of Ministers Resolution “On Approv-ing Regulations on the Procedure for Rendering State Support to Entities and Organisations Carrying Out In-vestment Projects in the Republic of Tatarstan”

• Republic of Tatarstan Cabinet of Ministers Resolution “On Approving the Investment Memorandum of the Republic of Tatarstan for 2012”

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Government non-profi t organisations

The government has worked to increase the availability of investment resources through joint fi nancing arrangements with banks, private and non-state investors. The following institutions are involved in this process:

State Non-profi t OrganisationInvestment and Venture Fundof the Republic of Tatarstan

• developing research-intensive production and introducing new, cutting-edge technolo-gies,• formulating new regional approaches to innovation-driven development activities,• creating favourable conditions for boosting the number of venture capital fi rms, and en-hancing support systems for research-intensive small and medium-sized enterprises (SME).

50 Peterburgskaya St., Kazan, 420107Tel.: +7 (843) 570-4017Fax: +7 (843) 570-4000E-mail: [email protected]: www.ivf.tatarstan.ru

Tatarstan Export and InvestmentPromotion CorporationOAO (TATEXIM) *

• supporting export-oriented SMEs;• promoting Tatarstan-made goodswithin Russia and in foreign markets.

50 Peterburgskaya St., Kazan, 420107Tel.: +7 (843) 570-4001Fax: +7 (843) 570-4005E-mail: [email protected]: tida.tatarstan.ru

Tatarstan DevelopmentCorporation OAO (TDC) *

• setting up infrastructure for land sites aimed at investment project implementation;• creating new industrial parks and develo-ping existing ones.

50 Peterburgskaya St., Kazan, 420107Tel.: +7 (843) 570-4001Fax: +7 (843) 570-4005E-mail: [email protected]: tida.tatarstan.ru

* in process of development

Non-profi t OrganisationTatarstan Guarantee Fund

• a guarantee fund for helping Tatarstan SMEs meet their credit obligations;• bank loan guarantees for SMEs of up to 50% of an individual SME’s overall liability.

50 Peterburgskaya St., Kazan, 420107Tel.: +7 (843) 570-4001Fax: +7 (843) 570-4005E-mail: [email protected]: tida.tatarstan.ru

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International investment forums

KAZANINVEST: FDI & WAIPA

Objectives of the KAZANINVEST Interna-tional Investment Forum:• sharing experience in attracting invest-ment• discussing ways to enhance the invest-ment appeal of Russia’s regions• reviewing new tools for attracting direct investment in SME sector projects• creating the necessary conditions for at-tracting foreign direct investment (FDI) and effi ciently developing the region’s potential

Participants in the event include representa-tives of the federal and regional govern-ments, leading Russian development insti-tutions engaged in investment promotion, members of the World Association of Invest-ment Promotion Agencies (WAIPA), and in-ternational companies.www.tida.tatarstan.ru | www.tida.tatarstan.ru/eng

KAZANSUMMIT: Economic coopera-tion of Russia and OIC countries

Russia’s premier economic summit focused on Islamic business and fi nance.The key objective of this event is to facilitate the development of economic and fi nancial ties between businesspeople that are gro-unded in the principles of Islam.Among the Summit’s main focus areas are:• determining the strategic prospects for developing international economic ties be-tween Russia and the Muslim world;• laying the groundwork for cooperation in direct investment by the private sector in both Russia and Islamic countries;• conducting a public discussion and devel-oping recommendations concerning how the Islamic fi nance system functions.www.kazansummit.ru | www.kazansummit.com

Kazan Venture Fair

Every year since 2005, Investment and Venture Fund of the Republic of Tatarstan, together with the Russian Association of Direct and Venture Investments, holds the Kazan Venture Fair, representing a platform for the ma-nagement of innovation-driven small- and mid-cap companies to present their businesses to potential investors.www.ivf.tatarstan.ru | www.ivf.tatarstan.ru/eng

Investment website

The Invest in Tatarstan Internet siteis a convenient and comprehensivetool for investors.It provides essential information aboutthe region, including:• recent data on social and economic

conditions in Tatarstan;• information on federal, regional

and local-level investment projects;• details on Tatarstan’s investment

legislation;• information about industrial

and investment platforms;• data on Tatarstan’s credit and

investment ratings;• utility rates for electricity,

water and gas supply;• investment-related presentation

and reference materials.

Other advantages of the website are:• a unique interactive card;• functional search engine;• option of posting information

on investment projects on the website.www.invest.tatarstan.ru www.invest.tatarstan.ru/en

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Investment infrastructure

The Republic of Tatarstan has put in place set of legislative and organisational measures to foster a favourable environment for all busi-nesses, aimed at accelerating investment and innovation-driven activity, spurring economic growth, increasing productivity and resolving social issues.

Tatarstan’s innovation-related infrastructure includes:

• Special Economic Zone Alabuga• Technopolis Himgrad • 4 industrial parks• 6 techno-parks• 6 business incubators• 3 agricultural parks• 2 industrial platforms

Name Production GeneralSpace

Available Space Website

Special EconomicZone Alabuga Industrial production 2,000

hectares938

hectares www.alabuga.ru

Industrial ParkKamskiye Polyany Polymer processing 260

hectares250

hectares www.kamapark.ru

Technopolis HimgradSmall-tonnage chemistry and processing of polymer products

131hectares

45hectares www.himgrad.ru

Agro-Industrial Park of the Republic of Tatarstan

Processing, storageand sales of agriculturalproducts

8hectares

4.5hectares www.tida.tatarstan.ru

Kama Industrial Park (KIP) Master Heavy engineering 43

hectares9

hectares www.kipmaster.ru

IDEA InnovativeTechnopark

Research-intensiveproduction

28,700sq. m

1,500sq. m www.tpidea.ru

IT ParkHigh-Technology Park High technologies 3.2

hectares – www.itpark-kazan.ru

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Samara region

Udmurtia

Mariy-El

Chuvashia

Bashkortostan

Kirov region

Ulyanovsk region Orenburg region * Planned projects

Kazan

Chistopol

Baltasy

Leninogorsk

Elabuga

Bugulma

Naberezhnye ChelnyAktanysh

Nizhnekamsk

Naberezhnye Chelny• Kama Industrial Park (KIP) Master• Prikamya Technology Park Research and Industrial

Non-Commercial Partnership• Naberezhnye Chelny Business Incubator• Zarital Agricultural Park• Prikamya Technopark

Nizhnekamsk• Industrial Park

Kamskiye Polyany

Bugulma• Bugulma Industrial Park*

Baltasy urban settlement• Baltach Halal Agricultural Park

village of Aktanysh• Industrial Platform of the

Aktanysh Municipal District

Zelenodolsky District• M-7 Industrial Park

Chistopol• Vostok Innovation and

Production Technology Park• Chistopol Business Incubator• Chistopol Industrial Park

Leninogorsk• Idea-South-East Innovation

and Technology Park

Elabuga• Special Economic

Zone Alabuga• The Alabuga Industrial Site• The Elabuga Business

Incubator

Kazan• Technopolis Himgrad• IDEA Innovative Technopark• IT Park High-Technology Park• Agro-Industrial Park of the Republic of Tatarstan *• Centre for Innovative Activity Scientific-Technical Park at

Kazan State University• KINAT Innovation-Technology Centre Technopark for

Industrial Technologies• Sviyaga Business Incubator• Volga Region Business Incubator for Light Industry• Scientific-Technical Park at the A.N. Tupolev Kazan State

Technical University• Derbyshki Industrial Park*

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Samara region

Udmurtia

Mariy-El

Chuvashia

Bashkortostan

Kirov region

Ulyanovsk region Orenburg region * Planned projects

Kazan

Chistopol

Baltasy

Leninogorsk

Elabuga

Bugulma

Naberezhnye ChelnyAktanysh

Nizhnekamsk

Naberezhnye Chelny• Kama Industrial Park (KIP) Master• Prikamya Technology Park Research and Industrial

Non-Commercial Partnership• Naberezhnye Chelny Business Incubator• Zarital Agricultural Park• Prikamya Technopark

Nizhnekamsk• Industrial Park

Kamskiye Polyany

Bugulma• Bugulma Industrial Park*

Baltasy urban settlement• Baltach Halal Agricultural Park

village of Aktanysh• Industrial Platform of the

Aktanysh Municipal District

Zelenodolsky District• M-7 Industrial Park

Chistopol• Vostok Innovation and

Production Technology Park• Chistopol Business Incubator• Chistopol Industrial Park

Leninogorsk• Idea-South-East Innovation

and Technology Park

Elabuga• Special Economic

Zone Alabuga• The Alabuga Industrial Site• The Elabuga Business

Incubator

Kazan• Technopolis Himgrad• IDEA Innovative Technopark• IT Park High-Technology Park• Agro-Industrial Park of the Republic of Tatarstan *• Centre for Innovative Activity Scientific-Technical Park at

Kazan State University• KINAT Innovation-Technology Centre Technopark for

Industrial Technologies• Sviyaga Business Incubator• Volga Region Business Incubator for Light Industry• Scientific-Technical Park at the A.N. Tupolev Kazan State

Technical University• Derbyshki Industrial Park*

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Kama Industrial Park (KIP) Master

The Kama Industrial Park (KIP) Master is the sole example of a functioning industrial park with an exclusive focus on the heavy engineering sector. Its major goal is to pro-vide for the robust development of advanced automotive component manufacturing. More than half of the park’s resident compa-nies cooperate closely with OAO KAMAZ.

Address: 45 Proizvodsnvenniy Proezd, Industrial Zone, Naberezhnye Chelny, 423800 Tel.: +7 (8552) 388-883 E-mail: [email protected] Website: www.kipmaster.ru

Technopolis Himgrad

Technopolis Himgrad offers the favourable environment for developing innovative SMEs in the petrochemicals and polymer process-ing sectors. Technopolis Himgrad is the first Russian industrial park certified by the As-sociation of Industrial Parks in the Russian Federation.At present Technopolis Himgrad boasts:• over 250 small companies;• over 100 developed products;• over 60 patents and trademarks;• about 20 items of “know-how”.Product consumers: Major Russian com-panies including OAO Gazprom, OAO NK Rosneft, OAO Lukoil and OAO Nestle Russia. Export sales to the CIS and other countries account for 10% of all goods produced.

Address: 100 Vosstaniya St., Kazan, 420095 Tel.: +7 (843) 227-4140 E-mail: [email protected] Website: www.himgrad.ru

IDEA Innovative Technopark

IDEA Innovation and Production Tech-nopark is Tatarstan’s most important techno-park and includes:• An innovative business incubator with of-fice premises for innovative projects in the early development stages (2,500 sq m);• An innovation technology centre with of-fice premises for young innovation-driven companies (14,200 sq m);• A business park with office premises for service companies and companies at the ex-pansion stage (total area of 10,300 sq m).

Over the five years it has been in operation, 117 companies have become residents of IDEA Innovation and Production Techno-park. These resident companies employ ap-proximately 1,600 people, whose salaries are above the average level for the republic.

The technology park is one of Europe’s lar-gest in size (30,000 sq m on 2 ha of land in the centre of Kazan).

IDEA Innovation and Production Tech-nopark was one of the winners in the first-ever competition to create a nanotechnology centre in Russia. The competition was held by the Rosnano State Corporation.

Its anchor residents include representative offices of DHL, McDonalds, Siemens, NPP GKS, Yokogawa Electric CIS and ZAO GE Money Bank.

Address: 50 Peterburgskaya St., Kazan, 420107 Tel.: +7 (843) 570-6850 E-mail: [email protected] Website: www.tpidea.ru

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IT Park High-Technology Park

The IT Park is newest facility within Ta-tarstan’s regional innovation support system. It is Eastern Europe’s largest deve-lopment institute aimed at promoting the large-scale commercialisation of IT and communications projects. The IT Park’s main goal is to ensure the most favourable conditions possible for start-up and growing high-tech companies at the design, develop-ment and market-entry stages for high-tech products, including providing funding, tech-nological and methodological support based on international standards. One of the key areas of specialisation for IT Park resident companies is software development, includ-ing applications for “electronic government” and “electronic public services”.

Another IT Park site, now under construc-tion, is designed for localising innova-tion-driven SMEs in the chemical and petrochemical industries. Construction is also under way on a second IT park in Naber-ezhnye Chelny, which is intended as a uni-versal platform for serving businesses in the Kama Economic District, which is home to the Alabuga Special Economic Zone, OAO Kamaz, OAO Sollers, OAO Taneko and OAO Ammoniy, among others.

Address: 52 Peterburgskaya St., Kazan, 420074 Tel.: +7 (843) 235-1475 E-mail: [email protected] Website: www.itpark-kazan.ru

Agro-Industrial Park of the Republic of Tatarstan

The Republic of Tatarstan Agricultural Park is a cluster of real estate facilities located on a 8.4-hectare plot of land which is dedicated to helping agricultural SMEs grow their businesses.The Agricultural Park’s top priority is pro-viding the region’s agricultural producers with the essential material and technical infrastructure for doing business in the agri-cultural sector, particularly the production, storage, processing and sale of diverse agri-cultural products.The facility is scheduled to open in 2Q-3Q 2012.Republic of Tatarstan Investment Promotion Agency

Address: 50 Peterburgskaya St., Kazan, 420107 Tel.: +7 (843) 570-4001 Fax: +7 (843) 570-4005 E-mail: [email protected] Website: www.tida.tatarstan.ru

Baltach Halal Agricultural Park

The Baltach Halal Agricultural Park is Rus-sia’s first-ever halal agricultural park for SMEs active in the halal industry or opening a halal-based business.

Address: 1 Polevaya St., Baltasy urban settlement, Tatarstan Tel.: +7 (843) 682-6374 +7 (960) 041-1220 Fax: +7 (843) 682-6375 E-mail: [email protected] Website: www.hip-baltach.ru

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Special Economic Zone Alabuga

Special Economic Zone (SEZ) Alabuga plays a leading role among Tatarstan’s develop-ment institutions. It serves as centre of attracting investors and carrying out pro-mising high-tech projects in such fundamen-tal economic clusters as the petrochemicals, automotive and construction industries.

SEZ Alabuga resident companies have in-vested a total of USD 2.6 billion.

Brief overview of SEZ Alabuga:• SEZ Alabuga was established on 21 De-

cember 2005 within the Elabuga munici-pality;

• It occupies a 20 sq km site;• It has 25* resident companies;• It provides 11,707 jobs*;• The minimum investment threshold for

obtaining resident status is EUR 3 million;• Total public investment in the project

amounts to RUB 15.2 billion.

* as of 1 March 2012

SEZ Alabuga has access to federal highways and railways. The following modes of trans-port are available for freight forwarding:

• air – Begishevo Airport;• rail – branch railway line of over

5 km integrated with the federalrailway network;

• road – on-site road network of over13 km plus the federal M7 Highway;

• river – river cargo ports at Naberezhnye Chelny and Nizhnekamsk.

Special tax regime

Current taxationsystem

for SEZ Alabugaresidents

Profi ts tax

20% 15.5%

Value added tax

18% 18%

Property tax

2.2% 0%

Land tax

1.5% 0%

Transport Tax

* 0%

* rates depend on the type and capacityof the transport vehicle

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SEZ Alabuga residents comprise 25 major Russian and international companies that have invested over USD 2.6 billion (RUB 80 billion), including such internationally known brands as Rockwool, Ford-Sollers, Armstrong, Isuzu, Air Liquide, Sisecam, Saint Gobain, Kastamonu Integre, Saria Bio- industries Volga, Preiss-Daimler, Tatneft and many others.

Among the SEZ Alabuga’s other competitive advantages are:

• All essential industrial infrastructure is already in place.

• Residents are not charged any fee for connecting to utility systems.

• Residents are granted tax benefits for up to 10 years.

• The special economic zone customs regime exempts imports of modern high-tech equipment, raw materials and components from both import duties and VAT.

• The SEZ has its own customs post, al-lowing resident companies to promptly resolve any customs-related issues. An electronic customs declaration system is available.

• The “one-stop-shop” combines the of-fices of 16 regulatory agencies under one roof within the SEZ’s administrative and business centre. This allows residents interact with governmental authorities without lea-ving the SEZ.SEZ Alabuga offers free hook-ups

to the power grid.

Cost of connecting to the power grid:• Moscow – RUB 29 billion per 1 MW• Tatarstan – RUB 6.25 billion per 1 MW• Alabuga SEZ – RUB 0

OutlookSEZ Alabuga’s long-term development strategy calls for putting into ope-ration the production facilities of about 35 resi-dent companies by 2013, which will cre-ate about 16,000 new jobs and bring in at least RUB 100 billion in investment in the domestic economy.

Alabuga Industrial Space 4/1 Sh-2 Elabuga municipal district City of Elabuga, 423602, Tatarstan Tel.: +7 (85557) 59-005 Mob.: +7 (927) 480-0221 Website: www.alabuga.ru E-mail: [email protected]

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Brief data points illustrating Tatarstan’s economic and investment potential

In 2011 locally produced goods shipped, and work and services performed locally were worth RUB 1,294.5 billion.

GRP per capita, RUB thousand

2009

234.5265.4

329.4

400

300

100

200

02010 2011 (estimate)

GDP of the Russian Federationand GRP of the Republic of Tatarstan

2009

885.1

96.6

92.2

1,400

1,200

1,000

800

600

400

200

0

110

105

100

95

90

852010 2011 (estimate)

1,004.7

104.3

104.3

1,250.0

104.6

104.3

Tatarstan GRP, RUB billionTatarstan GRP, year�on�year percentage change in comparable pricesRussia�wide GDP, year�on�year percentage change in comparable prices

Industrial production rates

2009

867.6

95.6

90.7

1,400

1,200

1,000

800

600

400

200

0

110

105

100

95

90

852010 2011 (estimate)

1,062.8

108.4

108.2

1,294.5

105.7

104.7

Volume of shipped goods, RUB billion

Tatarstan industrial production index, year‐on‐yearpercentage change in comparable prices

Russia‐wide industrial production index, year‐on‐yearpercentage change in comparable prices

GRP and GDP Industrial production

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In 2011 the following types of economic activity had the greatest share in the total volume of shipped goods: energy and mine-rals (28%), chemicals (15.2%), transport vehicles and equipment (15%), oil refining (11.9%), power, gas and water production and distribution (7.7%).

Oil predominates in Tatarstan’s wealth of subsoil resources. Estimated reserves amount to around one billion tonnes.

In 2011 Tatarstan produced 32.5 million tonnes of oil, representing a year-on-year increase of 0.4%.

Thirty-six oil companies operate in Ta-tarstan, the largest of which is OAO Tatneft.

Structure of shipped goodsby field of business

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2009

2010

2011

Energy and mining

Oil products, chemicals, rubber and plastic goods

Machinery and equipment

Power, gas and water production and distribution

Food production

Metals and finished metal goods

Mineral resource production excluding energy;production of other non-metallic minerals

Other production

Trends in crude oil production,million tonnes

2009

32.4132.38

32.50

32.6

32.4

32.5

32.32010 2011

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Investment in fi xed capital

Among the regions in the Volga FederalDistrict, the Republic of Tatarstan has tradi-tionally been one of the leaders in terms of volume of investment.

According to state statistics agencies, fi xed capital investments amounted to RUB 386.1 billion in 2011 (107.8% growth versus 2010).

Regarding the distribution of investment among industries, manufacturing is thekey sector.

Tatarstan has seen an improved indicator for per capita volume of investment in fi xed capital (with the exception of budget funds) in 2003 prices, which stood at RUB 33,516 for 2011.

Tatarstan capital investmentby field of business

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2009

2010

2011

manufacturing

transport and communications

real estate, leasing and services

mining

agriculture, hunting and forestry

power, gas and water production and distribution

construction

other services

Per capita capitalinvestment volume (RUB)

2009

27,305.731,155.2 33,516

40,000

35,000

30,000

25,000

5,000

10,000

15,000

20,000

02010 2011 (estimate)

Trends in capital investment

2009

277,573.2

96.7

84.3

450,000

400,000

350,000

300,000

250,000

200,000

150,000

100,000

50,000

0

120

100

80

40

20

02010 2011 (estimate)

328,943.9

113.6

106.0

386,144.7

107.8

108.3

Tatarstan capital investment, RUB million

Tatarstan capital investment, year‐on‐year percentagechange in comparable prices

Russia‐wide capital investment, year‐on‐yearpercentage change in comparable prices (estimate)

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Foreign investments Foreign trade

For 2011, the Tatarstan economy brought in an estimated USD 856.8 million including RUB-denominated proceeds converted into USD.

As of 1 January 2012, the cumulative foreign in-vestment in Tatarstan was USD 4,578.4 million.

In 2011 Tatarstan’s foreign trade balance stood at around USD 26 billion. The repub-lic’s biggest foreign trading partners are Ger-many, Italy, Turkey, the Czech Republic and Poland, among others.

Tatarstan's foreign tradeturnover (USD billion)

2009

11.8 17.0 21.9

1.7

2.6

3.330

10

20

0

2010 2011

exports imports

Russia's foreign trade turnover(USD billion)

2009

301.7 400.4 522

167.4

248.7

323.21,000

800

600

200

400

0

2010 2011

exports imports

Tatarstan's export composition by product

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2009

2010

2011

crude oil

oil products

synthetic rubber

machinery, equipment, instruments and transport vehicles

plastics and plastic products

tyres

other

Tatarstan's import composition by product

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2009

2010

2011

machinery, equipment, instruments, transport vehicles and vehicle components

plastics and plastic products

organic chemical compounds

ferrous metals

other

Flow of foreign investment intoTatarstan (USD thousand)

2009

2,240,308

Foreign investment inflowAggregate foreign investment as of 1 January

* Including RUB‐denominated investments converted into USD

5,843,141

4,149,679

856,837

4,870,5394,578,375

8,000,000

6,000,000

4,000,000

2,000,000

02010 2011

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Leading banksoperating in Tatarstan

Bank Contacts

OAO AK BARS Bank

1 Dekabristov St., Kazan, 420066Tel.: +7 (843) 519-3999Fax: +7 (843) 519-3975E-mail: [email protected]: www.akbars.ru

OAO AIKB Tatfondbank

43/2 Chernyshevskogo St., Kazan, 420111Tel.: +7 (843) 291-9999 / 291-9810Fax: +7 (843) 291-9895 / 291-9804E-mail: [email protected]: www.tfb.ru

OAO AKB Spurt

2 Spartakovskaya St., Kazan, 420107Tel.: +7 (843) 291-5000Fax: +7 (843) 291-5015E-mail: [email protected]: www.spurtbank.ru

OAO Joint-Stock CommercialMortgage Bank AKIBANK

88a Prospekt Mira, Naberezhnye Chelny, 423818Tel.: +7 (8552) 773-333 / 773-380Fax: +7 (8552) 722-377E-mail: offi [email protected]: www.akibank.ru

OAO AB Devon-Credit

77 Lenina St., Almetyevsk, 423450Tel.: +7 (8553) 456-777Fax: +7 (8553) 317-513E-mail: [email protected]: www.devoncredit.ru

OAO Sberbank of Russia28 Peterburgskaya St., Kazan, 420107Tel.: +7 (843) 519-2326Website: www.sbrf.ru/tatarstan/

OAO Alfa-Bank29B Nikolaya Yershova St., Kazan, 420045Tel./fax: +7 (843) 291-1222Website: www.alfabank.ru

OAO Rosselkhozbank80 Dostoevskogo St., Kazan, 420097Tel./Fax: +7 (843) 524-9944E-mail: [email protected]: www.rshb.ru

ANKOR BANK (OAO)47 Bratyev Kasimovykh St., Kazan, 420101Tel.: +7 (843) 229-8111E-mail: [email protected]: www.ankorbank.ru

AKB BTA-Kazan (OAO)58 Prospect Ibragimova, Kazan, 420066Tel.: +7 (843) 525-7474Website: www.bta-kazan.ru

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AKB Energobank (OAO)32 Sary Sadykovoi St., Kazan, 420021 Tel./Fax: +7 (843) 293-9393 Website: www.energobank.ru

ZAO AIB Ipoteka-Invest58 Vosstaniya St., Kazan, 420000 Tel.: +7 (843) 542-4637 Website: www.ip-bank.ru

ZAO GKB Avtogradbank43 Prospect Khasana Tufana, Naberezhnye Chelny, 423831 Tel./Fax: +7 (8552) 325-000 E-mail: [email protected] Website: www.avtogradbank.ru

OAO Bank Kazansky162 Dekabristov St., Kazan, 420039 Tel./Fax: +7 (843) 544-8522 E-mail: [email protected] Website: www.bik.ru

OAO IntekhBank

24 Chausse Marjani, Kazan, 420021 Tel.: +7 (843) 221-1700 Fax: +7 (843) 221-1701 E-mail: [email protected] Website: www.intechbank.ru

OOO Kamsky Commercial Bank

21 Gidrostroitelei St. (P.O. Box 96), Naberezhnye Chelny, 423807 Tel.: +7 (8552) 704-918 Fax: +7 (8552) 704-842 E-mail: [email protected] Website: www.kamkombank.ru

OOO KBER Bank of Kazan

1 Soldatskaya St., Kazan, 420066 Tel.: +7 (843) 518-9898 Fax: +7 (843) 516-8880 E-mail: [email protected] Website: www.bankofkazan.ru

GE Money Bank (ZAO GE Money Bank)

5 Karla Marxa St., Kazan, 420111 Tel.: +7 (800) 700-1010 Website: www.gemoney.ru

Home Credit and Finance Bank (OOO Home Credit and Finance Bank)

1a Nikolaya Yershova St., Kazan, 420045 Tel.: +7 (843) 567-2222 Website: www.homecredit.ru

Raiffeisen Bank (ZAO Raiffeisenbank)

35a Nikolaya Yershova St., Kazan, 420045 Tel.: +7 (843) 299-0909 +7 (800) 700-9100 Website: www.raiffeisen.ru

Intesa Bank (ZAO Bank Intesa)13 M. Chuikova St., Kazan, 420094 Tel.: +7 (843) 519-1250 (51) +7 (843) 519-7619 Website: www.bancaintesa.ru

UniСredit Bank (ZAO UniCredit Bank)

11 Dzerzhinskogo St., Kazan, 420111 Tel.: +7 (843) 292-1501 Website: www.unicreditbank.ru

Credit Europe Bank (ZAO Credit Europe Bank)

66 Baumana St., Kazan, 420111 Tel.: +7 (843) 292-1197 Website: www.crediteurope.ru

Absolut Bank (KBC Group) (ZAO AKB Absolut Bank)

14 Ostrovskogo St., Kazan, 420111 Tel.: +7 (843) 533-3344 (45) E-mail: [email protected] Website: www.absolutbank.ru

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Republic of Tatarstan

Rustam MinnikhanovPresident of the Republic of Tatarstan

Kremlin, Kazan, 420014Tel.: +7 (843) 567-8901Fax: +7 (843) 292-7088Website: www.president.tatarstan.ru

Ildar KhalikovPrime Minister of theRepublic of Tatarstan

1 Svobody Sq., Kazan, 420060Tel.: +7 (843) 264-7702 +7 (843) 292-8551Fax: +7 (843) 264-3264Website: www.prav.tatarstan.ru

Linar YakupovChief Executive of TatarstanInvestment Development Agency

50 Peterburgskaya St., Kazan, 420107Tel.: +7 (843) 570-4001 +7 (843) 570-4005Website: www.tida.tatarstan.ru

PwC Russia

Moscow

White Square Offi ce Center10 Butyrsky Val, Moscow, 125047Tel.: +7 (495) 967-6000Fax: +7 (495) 967-6001Website: www.pwc.ru

Kazan

35/2 Pravo-Bulachnaya St., Kazan, 420111Tel.: +7 (843) 233-0707Fax: +7 (843) 233-0717

Denis DerevyankinDirectorHead of the Kazan offi ce of PwC Russia

Tel.: +7 (843) 233-0711E-mail: [email protected]

Damir DaulyatshinBusiness Development Senior Specialist

Tel.: +7 (843) 233-0707E-mail: [email protected]

Contacts

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