Investment potentialof Stavropol region

(Russian Federation)

The unique feature of the region is its resorts of the Mineral Waters: Pyatigorsk, Kislovodsk, Essentuki and Zheleznovodsk. These resorts gain their edge from Stavropol’s unbeatable leisure resources, and unique natural and sanative factors. –

130 mineral springs of 20 types – the greatest variety in the world. (In Karlovy Vary there are about 60 springs, in Baden-Baden – around 20).

Situated southward of Russia

Population: 2,705 million people

GRP per head in 2010 year: $ 4250

Stavropol region spreads across 285 km from north to south and 370 km from west to east. It is located in the central part of Southern Russia between the Black and Caspian Seas. Stavropol region lies on the 45th parallel exactly halfway between the Equator and the North Pole. It is the motherland of the first President of USSR Mikhail Gorbachev.

Stavropol region

Geopolitical location of the Stavropol region

• Advantageous geographic location between the Black, Azov and Caspian seas;

• geographic center of the Southern Russia;• Crossing trade flows «North-South» and

«Europe-Asia» (previously «The Great Silk Way»);

• Entrance for European, Mediterranean, Middle Asian, Turkish and Iranian markets;

2 international airports:Stavropol Mineralnye Vody

Agriculture is the most important sector in Stavropol region. Agricultural complex uses 91.1% of the total regional land. The mild climate is favourable for growing most of the crops. The highly fertile black soil combined with modern technologies allows harvesting high yields of grain, sunflower and vegetables. 3.5 tonnes of grain are produced per head of population. It is the Stavropol wheat that is used as a standard by Weights and Measures Association of London. The average rate of return in the regional agriculture is about 38%.

Resorts and tourism are among of the most attractive investment areas of the regional economy. Within the framework of the all-Russia health resorts development program, the regional government intends to increase the resort area by two times.

The regional economy is greatly diversified, which provides for its stability and is reinforced by the resource base. Stavropol land is rich in gas, oil, rare-earth metals, building materials and mineral water. The total value of proven and forecast reserves of various mineral resources exceeds $80 billions.

Stavropol region

7674

8533

3621

4532

- Regional export, mln. US dollars- Regional import, mln. US dollars

15

7931

MAJOR PARTNERS OF STAVROPOL REGION

Regional industrial park in the city of Nevinnomyssk

750 hectares

Full access tothe engineering

and transport infrastructure

Some benefits and incentives of industrial parks in Stavropol region

• a number of tax and other incentives for the residents of industrial parks:

• 4,5 % income tax reduction • assets tax exemption • land fee is not higher than 0,02 % of cadastral value

(no more than $170 per 1 ha / year);• land tax exemption; • access to the main transport highways

• Reduced production costs due to centralized rendering of infrastructure;

The land plot of 60 hectares has a full access to the necessary infrastructure

- Power supply- Natural gas supply- Heat supply- Water supply and disposal- Highways and railways

Regional industrial park in the town of Budennovsk

Cost of a project: 5,7 billion roubles (211 mln $)Initiator of a project : «New solar stream», Stavropol; FTI by

A.F.Ioffe, St-Petersburg; North Caucasus State Technical University, Stavropol

Location of a project : StavropolCommissioning period : 2015 Number of working places : 500Financial resources : - «Rusnano» – 1,2 billion roubles (45 mln $)-own funds– 4,5 billion roubles (167 mln $)Estimated Tax proceeds per year: 9 133 million roubles (338 mln $)

Large-scale manufacture of new generation solar electric installation using nanotechnology

Main point of a project : Large-scale manufacturing of competitive highly effective solar electric installations on basis of concentrate photovoltaic modules of new generation, with cascaded nanoheterostructure solar elements with total capacity of more than 75 MVt per year.

Cost of a project: 106,4  billion roubles (3.94 bln $)Initiator of a project: «Lukoil» JSCLocation of a project: BudennovskCommissioning period: 2016 Financial resources:- own funds – 103 billion roubles (3.82 bln $) - federal funds – 3 billion roubles (111 mln $)- region funds – 440 million roubles (16 mln $)Number of working places: 1500Estimated amount of tax revenue per year into all level budgets will be 12 billion

roubles (440mln $) by 2019

North Caspian complex of gas processinginto ethylene, polyethylene, polypropyleneMain point of a project: establishment in Russia

large-scaleproduction of polyethylene and polypropylene using

worldhigh technologies

Pharmaceutical cluster

Manufacture of genericmedicinal products

Development of modern industrial base corresponding

to GMP standards

Development and Manufacture of

innovative medicinal products

Science IndustryManufacturing

Components of pharmaceutical cluster

4

Industry

Scientific institutions

Managementcompany

Small and medium enterprises (SME)Science

Statesupport

Industrial infrastructure

Cluster infrastructure

Investment trends

Investment in the operational enterprises

Formation of the newly built factories in the industrial park

Scientific organisations

«Pyatigorsk State Pharmaceutical Academy» is a unique pharmaceutical academy in region, recognized leader of pharmaceutical education in Russia. Registered in HIGH SCHOOLS of UNESCO

«Stavropol State Medical Academy» is in the top decile of leading higher educational medical institutions of the Russian Federation and the largest educational-scientific and methodical center in the field of medicine in the south of Russia

«Stavropol Research Antiplague Institute» - included into global federal centralized system of antiplague establishments carrying out sanitary-and-epidemiologic supervision for plague, and other especially dangerous infectious, works under development, improvement and realization of scientifically-grounded preventive measures, diagnostics and struggle against these diseases

«Stavropol State University» (biomedical and chemical faculty) – is the leading scientific - educational center in the South of Russia, enters into Association of classical universities and ranks 14 position among 90 classical universities of Russia

• « Pulse + » produces medical supplies

• «Biokom» produces firm medical products (generic) on a full work cycle. Has international quality standard GMP certification.

• Branch «Allergen» of FSUE RMA «Microgene» - is the leading pharmaceutical enterprise. Has the leading position by assortment structure of medical drugs, quantity of full industrial employment and geography of sales markets.

• «Stavropol Biofactory» is in the top of leading domestic producer of immune biological veterinary preparations. Assortment has more than 45 names

• «St-Mediafarm» produces more than 70 kinds of products. More than 40 kinds of medicinal herbs are constantly shipped within the territory of Russia. Assortment of production contains packed and filters - bags medicinal herbs, teas.

Industrial infrastructure «Escom» is the largest producer of infusion solutions in

Russia, ( more than 30 names of various infusion solutions)

Airport «Stavropol»

Reconstruction of Stavropol airport

According to the civil aviation experts the Stavropol airport is the only airport in the South

of Russia which can be transformed into the transfer center (hub).

Cost of a project : 3 510,5 million roublesInitiator of a project : «Eskom» JSCLocation of a project : Stavropol Commissioning period : 2013 Number of working places : 385Financial resources : - «Rosnanoteh» SC – 2 973,3 million roubles-own funds– 537,2 million roublesTax proceeds per year: 270 million roubles

Industrial engineering of new generation of pharmaceutical drugs based on construction technology of liposomal

nanocontainers (health-related biotechnologies)Main point of a project :industrial engineering of new generation of pharmaceutical

drugs based on construction technology of liposomal

nanocontainers (health-related biotechnologies)

Project of lysine manufacturing biotechnological complex

Annual output: 50 000 tons of lysineDeep grain processing (240 000 tons annually). Production of: fibrin (17 000 tons), starch (40 000 tons),crystalline dextrose (30 000 tons), fodder yeast (68 000 tons) and lysineInvestments needed: 189 mln $Payback period: 7 years

Cost of a project : 21 400,0 mln roubles (750 mln $)Initiator of a project : «INTRALL» ConsortiumLocation of a project : Shpakovskiy municipal districtCommissioning period : 2012Number of working places : 8100Financial resources : - state guarantees of the Russian Federation–  272 mln$- own funds –  115 mln$

Automobile technical complex – technological park «INTRALL»Main point of a project :creation of scientific-technical

center and productive capacities for development and manufacturing of advanced light-weighted commercial truck models

• property tax exemption for enterprises located in the territory of regional industrial park;

• favorable terms of connection to engineering services;• land tax exemption;• land plots buy-out on favourable terms;• administration of investment projects in the «one-stop window» mode;• subsidies for credit interest rate for realization of fast-payback capital

investment projects (at the rate of 3/4 refinancing rate of the Central Bank of the Russian Federation);

• subsidies for credit interest rate for working capital financing (at the rate of 2/3 refinancing rate of the Central Bank of the Russian Federation);

• state guarantees of Stavropol region;• Microfinancing fund, venture fund, guarantee fund, mortgage fund;• grant support for aspiring entrepreneurs;• subsidies up to 80% of actual expenses for the project;• subsidies of the expenses on payment of interest and leasing contracts;• business incubator.

State support for investors• 4,5 % income tax reduction for payback period of investment

project and 2,5 % reduction after payback period of investment project;

• 95% reduction of rent rate while using infrastructure projects, which are the property of Stavropol region;

Stavropol region welcomes you!

Thank you for your attention!

Contacts: Yuri Yagudaev, minister of Stavropol region for

Economic DevelopmentTel.+007 (8652)357851invest@stavinvest.ru