TRANSLATION

AUTHORIZED BYV.I. Shport,

the Khabarovsky krai Governor

November 15, 2013

INVESTMENT DECLARATION OF THE KHABAROVSKY KRAI

1. Investment Declaration of the Khabarovsky krai sets the key concepts of interaction between the executive power agencies of the Khabarovsky krai and commercial and investment entities as to granting and protecting the investor rights in the Khabarovsky krai.

2. Investment Declaration aims at shaping a favourable investment climate, and a comfortable business environment in view of accelerated socio-economic development of the Khabarovsky krai.

A favourable investment climate is a set of social and institutional conditions under which the commercial and investment entities have opportunities and an incentive for investing in order to launch new production and generate new jobs, broaden the scale of operations, develop healthy competition in business and build the foundation for improvement of the standard of living for the Khabarovsky krai citizens.

3. To guarantee a favourable investment climate in the region is a priority task for the Khabarovsky krai Government.

4. The Khabarovsky krai investment policies are based on an efficient system of communication between the executive power agencies and the commercial and investment entities.

5. The Khabarovsky krai recognizes the key role of public associations of entrepreneurs as efficient tools of interaction between the executive power agencies and the commercial and investment entities.

6. In order to provide a favourable investment climate the Khabarovsky krai Government is holding the following policies:

shaping a favourable administrative environment; building an accessible infrastructure for deploying the production and other

facilities; improving the krai legislation and enhancing the efficiency of state support

to investment activity; developing investment activity on the principles of public-private

partnership; promoting investment activity in the sectors that are considered potential

points of growth; drafting measures to shorten the time for and easing the procedures of

issuing permits and reducing the administrative barriers; developing a system of “one stop shop” in support of investment projects; providing staff support of the investment process, including improvement

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of the education system, advance education of executive state civil officers of the Khabarovsky krai and staff of the specialized agency for attraction of investments and work with investors.

7. Commercial and investment entities in the Khabarovsky krai have access to favourable terms of implementing their investment projects in accordance with the legislation in force.

8. The executive power agencies of the Khabarovsky krai in collaboration with commercial and investment entities are guided by the following principles:

trust, respect and regard of common interest;clearness and sustainability of the Khabarovsky krai economic policies; equality as non-discriminating treatment of all commercial and investment

entities under the publicly available system of pre-determined priorities;involvement as participation of commercial and investment entities in the

process of drafting the decisions of public concern taken by the Khabarovsky krai state authorities, and also in the assessment of the implementation of such decisions;

transparency as openness and accessibility of information for all commercial and investment entities except the classified state and other information protected by federal law; glasnost of procedures in granting the krai state support to the commercial and investment entities;

publicity as regular informing of the commercial and investment entities on the course of work via mass media, the Internet information and telecommunication network and also in the Annual Public Message of Governor, Chairman of the Khabarovsky krai Government called “Investment climate and investment policies of the Khabarovsky krai” to the Khabarovsky krai legislative Duma deputies, the representatives of the executive power agencies of the krai and public associations of entrepreneurs;

implementation of best practice as orientation of administrative procedures and regulation at the best practice, from the viewpoint of interests of the commercial and investment entities, interaction of the Russian Federation regional public authorities and the commercial and investment entities;

competence as granting lead roles to professional business partners and expert community at all stages of investment processes;

9. In the Khabarovsky krai the commercial and investment entities according to the legislation in force are granted the following:

protection of lawful rights and interests; equal-opportunity access to getting rights for land sites, buildings and other

real estate; equal rights to self-sustained decision-making as to the volumes and

directions of capital investment and also signing contracts with the other economic operators;

protection of investments, regardless of their property form; equal business opportunities excluding discriminatory measures that would hinder management and disposal of investment;

protection against unfavourable change in the tax legislation; access to public information of the Khabarovsky krai executive power

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agencies; personal liability of public individuals for unlawful decisions made, for

unlawful action (inaction) that entail a substantial infringement of rights and legally protected interests of commercial and investment entities in implementation of investment projects;

solving complex matters in negotiations, also via the collegiate advisory bodies on entrepreneurship and investments;

safety of the entrepreneurial and investment activity in the Khabarovsky krai, in that:

- protection of capital investments from unjustified withdrawal of land from users, for state and municipal needs;

- non-interference of state agencies and public individuals in the activity of commercial and investment entities in their signing agreements (contracts), choice of partners, identifying obligations that do not contradict law.

10. According to the Khabarovsky krai legislation in force the commercial and investment entities are provided the following:

a comprehensive organizational support in rendering information and consulting and organizational assistance; presenting investment projects on platforms in Russia and abroad; accompanying investment projects;

state financial support of the investment activity is shape of tax benefits as to lowering the corporate income tax rate and the estate tax rate; land rent allowance, investment tax credits, state guarantees, compensation of a part of costs that commercial and investment entities bear and other measures of the krai state financial support according to the krai target programs.

11. A system of professional training and advance training in the Khabarovsky krai follows the demand of commercial and investment entities.

12. In case of changes in the Khabarovsky krai legislation interests of commercial and investment entities are taken into account through their participation in the Public Chamber of the Khabarovsky krai, Council for Entrepreneurship and improvement of the investment climate in the Khabarovsky krai and different entrepreneurial and public associations.

13. Commercial and investment entities have a vested right to turn to the Investment Ombudsman of the Khabarovsky krai for assistance in different issues relating to the implementation of investment projects.

14. Drafting proposals and specific measures to overcome the conditions unfavourable for entrepreneurship and competition, suppression of unlawful action of public individuals who restrict entrepreneurship, removal of current and prevention of new barriers hindering entrepreneurship is all carried out by the inter-agency Council with the Khabarovsky krai Government for elimination of barriers to entrepreneurship and competition.

15. The outstanding issues affecting the interests of commercial and investment entities that hinder the business development in the Khabarovsky krai and that have a systemic character, are brought forward to the Council of entrepreneurship and improvement of the investment climate in the Khabarovsky krai.

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Based on the discussion at the Council the recommendations and proposals are executed in shape of written Resolutions of the Council of entrepreneurship and improvement of the investment climate in the Khabarovsky krai. They form the basis for drafting Task Order of the Khabarovsky krai Governor to the Khabarovsky krai executive power agencies.

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