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Investment Guide to the Republic of BashkortostanUfa 2019

MINISTRY OF ECONOMIC DEVELOPMENT

OF THE REPUBLIC OF BASHKORTOSTAN

Greetings from Radiy Khabirov, Acting Head of the Republic of Bashkortostan 3

Address by Rail Sarbaev, General Director of the Development CorporationoftheRepublicofBashkortostan 4

Foreword from the Managing Partner of Deloitte Ufa, Dmitry Chaban 5

Generalinformationaboutthe Republicof Bashkortostan 6

Keyfigures 8

Investmentpotential 14

Investorincentives 28

Development institution 29

Technologyparks,industrialparks,clustersandterritoriesofprioritysocialand economicdevelopment(TPSED)in the Republicof Bashkortostan 32

Statesupportforinvestors 40

Funds 47

Contacts 58

Dear Friends,

WelcometotheInvestmentGuidetotheRepublicof Bashkortostan!

BashkortostanhasgarneredareputationasanoutstandingRussian region for many reasons. The republic possesses advanced manufacturingandindustry,flourishingagriculture,andarobustsocialwelfaresystem.Bashkortostan’scapital,Ufa,isamillion-pluscityandoneofRussia’sbusinessandeventshubs.

SowhatcanBashkortostanofferinvestors?Firstly,therearevast opportunities for business growth. A wide range of options is available for ambitious and dynamic people who are ready to implement their ideas and invest resources in our republic.

OnceabranchoftheGreatSilkRoad,Bashkortostanisnowatthe crossroads of vital transportation corridors, connecting the republic with the rest of the world. This is why the region was chosen as the venue for the Shanghai Cooperation Organization andBRICSsummitsin2015,andhoststheannualSmallBusinessForumoftheSCOandBRICSregions

Bashkortostanhaslaunchedseveralhigh-techsocialandeconomicsustainabledevelopmentzonesthatbenefitfromstreamlinedadministrative regulations, as well as establishing several industrial parks.Ontopofthis,anextensivearrayoffederalprogramsisinplace to encourage investment activity.

Iholdmeetingswithinvestorsonaweeklybasistodiscussthe views of the business community. The decisions made at Investment Hour meetings help bring project completion dates forward and open up new inclusive opportunities.

We have developed customized approaches for all investors and guarantee the most straightforward business conditions for our partners.

Welcometoourrepublic!

Bestregards,Radiy KhabirovActingHeadoftheRepublicofBashkortostan

Greetings from Radiy Khabirov, Acting Head of the Republic of Bashkortostan

Investment Guide to the Republic of Bashkortostan

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Dear friends and partners,

Ourregionwelcomeslarge-scaleprojectsandongoingcooperationwith Russian and foreign investors.

We are ready to engage in the most ambitious construction, agricultural, healthcare, energy, utility, engineering, technology and energy-efficiencyprojects.

Bashkortostan’sgovernmentisintensivelybuildinginfrastructuretosupportregionalinvestment.Therepublichasfiveterritoriesofprioritysocialandeconomicdevelopment(TPSED),11industrialparks,newtechnologyparksandco-workingfacilitiesforstartups,andaplannedspecialeconomiczoneinIshimbayskyDistrict.Theregionhasintroducedlowertaxratesforbusinessesandamendedits laws and regulations to streamline cooperation with investors. Thiswasachievedthroughtremendouseffortsaimedatimprovingthe business and investment climate in the region and aligning the workofallofitsdevelopmentinstitutions.

TheRepublicofBashkortostanoffersuniqueopportunities.Ontheonehand,itisoneofRussia’smostdevelopedregionsintermsofitssocio-economicandtechnologicalbackground.Ontheotherhand,itisabeautifulplacewithuniquenaturalwonders.WithitsprivilegedlocationbetweenEuropeandAsia,robusttransportnetwork,abundantnaturalresourcesandunspoilednature,

Bashkortostanpresentsawealthofcompellingandrewardinginvestment opportunities.

TheDevelopmentCorporationoftheRepublicofBashkortostanis a government investment vehicle that has won recognition as a helpful and impactful platform, connecting the government and businesses.

Webelievethatourmissionistodeliverend-to-endsupportforinvestment projects from concept development to commissioning, andwestrivetodoeverythinginourpowertomaketheworkofinvestorsintheregionasseamlessandefficientaspossible.

WelcometoBashkortostan!

Kind regards, Rail Sarbaev General Director DevelopmentCorporationoftheRepublicofBashkortostan

Address by Rail Sarbaev, General Director of the Development Corporation of the Republic of Bashkortostan


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Foreword from the Managing Partner of Deloitte Ufa, Dmitry Chaban

Dear colleagues,

WearepleasedtopresentthesixtheditionoftheInvestmentGuidetotheRepublicofBashkortostan,acollaborationbetweenDeloitteCIS,thelocalMinistryofEconomicDevelopmentandtheregional Development Corporation. This guide will inform you about the development priorities of various regional industries and the government support options available for investors.

Bashkortostan’sattractivenessamonginvestorshasbeenrising,withregionalfixedinvestmentgrowthabovetheRussianaverage.CreatingfavorableconditionsfordoingbusinessinBashkortostanisakeyaspectoftheregion’seconomicpolicy.Thegovernmentaimstoestablishaneffectivesupportstructureforentrepreneurs,launchingthreebusinessincubatorsforinvestors,andexpandingstatesupportmeasuresforbusinesses.Investorscantakeadvantageofpreferentiallandleasesorleasestate-ownedplotswithout needing to undergo the tender process for regional priority investment projects. Subsidies are also provided as part of thestateprogramforthedevelopmentandsupportofsmall-andmedium-sizedbusinesses.

Deloittesupportstheregionalgovernment’svariousinitiativesto improve the investment climate and promote international cooperation.Deloitteprovidesaudit,consulting,financialadvisory,riskmanagement,andtaxandlegalprofessionalservices.Ourteamisreadytoofferadvisorysupporttopotentialinvestorsatanystage of the project.

This edition provides a summary of the most promising areas for investmentandweareconfidentthatitwillbeanindispensableguide for potential investors.

Bestregards, Dmitry Chaban Managing Partner, Deloitte Ufa


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St. Petersburg

Minsk Kaliningrad

Helsinki

StockholmOslo

Copenhagen

London

Rome

Zagreb

Kiev

Chisinau

Ankara

Sofia

MadridLisbon

Paris

Dublin

Berlin Warsaw

BratislavaVienna

Ljubljana Bern

Riga

Tallinn

Bucharest

Moscow

Voronezh

Arkhangelsk

Murmansk

Perm

Naryan-Mar

Volgograd

Samara

Rostov-on-Don

Kazan

General information about the Republic of Bashkortostan

Capital: UfaPopulation:1.1 million RankamongRussia’scitieswith a populationof over 1 millionpeople cities: 11th

Population of the Republic of Bashkortostan: 4.05millionpeopleProportionof urbanpopulation:62.2percentPopulation density: 28.3peopleper sq. km

Time zone: 2 hours ahead of Moscow

Official languages: Russian andBashkir

Ethnic composition:more than 100 ethnic groups; the predominantethnic groups are Russians(36.1percent),Bashkirs(29.5percent),andTatars(25.4percent).

Climate: continental, with warm, humid summers and moderate winters.Average temperature: –16°СinJanuary+20°СinJuly


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Moscow

Voronezh

Ufa

Arkhangelsk

Chelyabinsk

Tyumen

Salekhard

Surgut

EkaterinburgPerm

VolgogradRostov-on-Don

Kazan

Republic of Tatarstan

Perm Territory Sverdlovsk Region

Chel

yabi

nsk

Regi

on

Ufa

Beloretsk

Meleuz

Kumertau

Sibay

Baymak

Sterlitamak

The Republic of Bashkortostan

Bizhbulyak

Tuymazy

Dyurtyuli

Neftekamsk

Karaidel

Lemez-Tamak

Maloyaz

Salavat

Zilair

Akjar

Orenburg Region

Udmurt Republic

Total area:143,000squarekilometers(0.8percent of the total areaofRussia)


7

Key figures

RankingsTheregionhasamulti-industry,highlydiversifiedeconomywitha focus on manufacturing, construction, transportation and agriculture.Thecoreindustriesareoilrefining,chemicalsandpetrochemicals, as well as oil production.

BashkortostanmoveduptwoplacesinExpert-RA’s2017investmentattractivenessranking,joiningthetierofRussianregionswithaveragepotentialandminimalrisk(2A).*Therankingplaced the republic 11th among all Russian regions. **

In2018,FitchRatingsassignedalong-termcreditratingtotheRepublicofBashkortostanofBBB-withapositiveoutlook.*** Thisinvestmentgradedenotestherepublic’sabilitytoserviceitsfinancialobligationsontimeandreflectsthestrongbudgetaryperformanceachievedthroughadiversifiedeconomy.

The republic's creditworthiness is strengthened by its low debt burden,balancedliquiditypolicyandaconservativeapproachtospending.Today,theRepublicofBashkortostanhasthesamecreditratingastheRussianFederation.ExpertRAagencyassignedBashkortostanaratingofruAA+withastableoutlook.****

Since2015,theRepublicofBashkortostanhasbeenimplementinga best practices program as part of the National Regional Investment Climate Rating run by the Agency for Strategic Initiatives. It aims to improve the investment climate in Bashkortostanandsupportstheregion’srapidascentuptheNational Investment Climate Rating.

TheRepublicofBashkortostanguaranteesthattherightsofallinvestors will be protected and that the discussion of investment projects will be open and transparent.

* https://raexpert.ru/rankingtable/region_climat/2017/tab2** https://raexpert.ru/rankingtable/region_climat/2017/tab3*** https://www.fitchratings.com/site/pr/10054329**** https://raexpert.ru/database/regions/bash


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https://raexpert.ru/rankingtable/region_climat/2017/tab2

https://raexpert.ru/rankingtable/region_climat/2017/tab3/

https://www.fitchratings.com/site/pr/10054329

https://raexpert.ru/database/regions/bash/

Investment Development of the Republic of Bashkortostan

National rating

2015 2016 2017 2018

40th place

20th place

267.8 RUB billion

Volga Federal District

Total investment in 2018

2nd place

13th place

23rd place

Bashkortostan priority investment projects

Number of projects Investment, RUB billion Jobs, ‘000

Total as of 1 April 2019* 100 263.2 19

Total as of 1 January 2018 78 394.9 18.2

2017 (actual) 8 4.9 2.1

* Source: www.economy.bashkortostan.ru.


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www.economy.bashkortostan.ru

*Data provided by the Federal State Statistics Service of the Republic of Bashkortostan.

Industrial production

index

Construction Retail trade Real wages Inflation (% vs. December

2017)

Russia

RepublicofBashkortostan

Agricultural production indexIndustrial production index

Consumer price growth index Social and economic development of Russia and Bashkortostan in 2018

105

102.5

100

%

2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

103.9

102.9102.6

103.4

101.3

105

100

95

115

110

105

100

%

%

100.9 100.9

103.3

99.1

Economic indicators*

112.2110.9

104.9 104.3

101.6

102.9103.4

91.5

102.6

106.9104.3105.3

102.6

106.8104.3

110

105

100

95

90

85

80

%

103.1


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Export

Export breakdown by product, USD million (top 15 positions)

2018

Turbo-jet engines and gas turbines 645.7

Oil 253.6

Cyclic hydrocarbons 154.4

Carbonates 113.1

Synthetic rubber 112.8

Nitrogen fertilizers 101.7

Aromatic hydrocarbons 92.9

Other monocarboxylic acids and their derivatives 79.3

Chipboard 63

Plain steel wire 42

Polyvinyl chloride 31.9

Caustic soda and potassium hydroxide 27.8

Aluminium and aluminium alloys 10.4

Non-classified products 9.4

Oil products 2.1

Non-energy and non-commodity exports, USD million (top 25 positions)

2018

Turbo-jet engines and gas turbines 645.7

Cyclic hydrocarbons 154.4

Carbonates 113.1

Synthetic rubber 112.8

Nitrogen fertilizers 101.7

Other monocarboxylic acids and their derivatives 79.3

Chipboard 63

Plain steel wire 42

Polished glass 36.4

Plain steel wire rod 35.1

Acyclic alcohols 33

Polyvinyl chloride 31.9

Phenols 30.1

Caustic soda and potassium hydroxide 27.8

Fluid-flow pumps 18.8

Barley 16.9

Steel cables, ropes and similar products 12.7

Glass containers 10.9

Aluminium and aluminium alloys 10.4

Non-classified products 9.4

Timber 8.6

Polyethylene 2.8

Ketones, quinones and their derivatives 1.1

Plywood 0.8

Mineral processing equipment 0.03


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Exports by region 2018 USD

million2017 USD

millionShare of

exports, %Growth, USD million

(vs. 2017)Growth, %

(vs. 2017)

CIS 1,226.7 1,118.1 28.2 108.6 109.7%

Europe 2,405.4 2,393.1 55.2 12.3 100.5%

APAC 628.4 675.9 14.4 -47.5 93Middle East and Africa 150.3 137.7 3.5 12.6 109Americas 66.1 42.4 1.5 23.7 155.8Traders and offshores 14.8 9.1 0.3 5.7 162.6

Non-energy and non-commodity exports

2018 USD million

2017 USD million

Share of exports, %

Growth, USD million (vs. 2017)

Growth, % (vs. 2017)

CIS 541 542.9 28.9 -1.9 99.6

Europe 502.2 490.4 11.5 11.8 102.4

APAC 492.8 642.1 11.3 -149.3 76.7

Middle East and Africa 150.6 132.9 8.1 17.7 113.3

Americas 30.9 24.7 1.65 6.15 124.8

Traders and offshores 11.7 5.9 0.6 5.8 198.3

New partners for non-energy and non-commodity exports (topeightpositions)

Exports, USD million

Denmark 2.70

Honduras 2.44

Guatemala 0.30

Philippines 0.29Lebanon 0.10Myanmar 0.06New Zealand 0.04Panama 0.03

New products for non-energy and non-commodity exports (topninepositions)

Exports, USD million

Rapeseed oil 2.90

Copper wire 2.26

Safety glass 0.12

Cotton fabrics (>200 GSM) 0.12

Plastic and rubber additives 0.06

Antibiotics 0.06

Inert gases (e.g. argon) 0.01

Synthetic fibers 0.01

Aluminium tanks (>300 litres) 0.01


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Exports by country (top15positions)

2017 2018 2018 Growth in 2017-2018

USD million Share of exports, % USD million Growth, USD million Growth, %

Latvia 20.4 889.3 -18.4 -2China 546.7 9.6 419 -127.7 -23.3Netherlands 426.4 5 218.1 -208.3 -48.8Kazakhstan 354.8 7.3 315.8 -39 -10.9Belarus 351.8 13.6 592.3 240.5 68.4India 172.4 5.7 246.9 74.5 43.2Finland 160.1 5.2 228.2 68.1 42.5Turkey 148.1 5.4 233.8 85.7 57.8Germany 93 3 128.5 35.5 38.2Ukraine 85.1 2.7 117.3 32.2 37.8Poland 68.5 2.1 89.7 21.2 30.9Algeria 62.8 2 87.5 24.7 39.3France 19.9 1.7 72.9 53 266.3USA 42.4 1.5 66.1 23.7 55.9Uzbekistan 54.1 1.4 63.9 9.8 18.1

Non-energy and non-commodity exports by country, 2018(top15positions)

USD million, 2018

Share of exports, %

USD million, 2017

Growth, USD million (vs. 2017)

Growth, % (vs. 2017)

China 407.69 21.8 540.72 -133.03 75.4India 245.08 13.1 169.10 75.98 144.9Kazakhstan 239.22 12.8 239.43 -0.21 99.9Finland 160.53 8.6 111.36 49.17 144.2Turkey 94.45 5.04 60.13 34.35 157.1Belarus 88.36 4.8 101.82 -13.46 86.7Algeria 78.60 4.2 60.86 17.74 129.1Uzbekistan 63.02 3.4 53.77 9.25 117.2Ukraine 57.46 3.07 80.68 -23.22 71.2Lithuania 46.82 2.5 47.40 -0.6 98.7USA 30.87 1.64 24.72 6.15 124.8Germany 28.71 1.53 45.87 -17.16 62.6Netherlands 26.02 1.39 21.84 4.18 119.1Azerbaijan 25.59 1.36 17.28 8.31 148.1Kyrgyzstan 25.51 1.35 16.07 9.44 158.7


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Investment potential

Geography

TheRepublicofBashkortostanislocatedintheSouthernUrals,ontheborderbetweenEuropeandAsia,inthebasinsoftheVolga, Ural and Ob rivers. The republic is part of the Volga Federal District.

TheRepublicofBashkortostanbordershighlydevelopedPermTerritoryandSverdlovskRegiontothenorth(around340kmandover170km,respectively),ChelyabinskRegiontotheeast(over1,330km),OrenburgRegiontothesouthandsouth-west(around1,140km)andtheRepublicofTatarstanandtheUdmurtRepublictothewestandnorth-west(around420kmand100km,respectively).

Two thirds of the republic are covered by hilly valleys, one fourth bymountains(SouthernUrals),andoveronetenthbyhillyterrain(BashkirTrans-Urals).

Therearefourtemperatezones:mixedforest,broad-leavedforest,forest-steppeandsteppe.

Forest resources

5.7 million hectares,or40percentofthetotalarea, is covered by forests;

768.3 million cubic meters ofgrowingforeststock: birch,oak,mapleandconifertreesareprevalentinregionalforests;

69.6 percentofthetotalvolumeofwoodstockslistedinforestsareclassifiedasexploitable;

99.7 percent ofBashkortostan’sforest-formingspeciesarebirch,limetree,pine,aspen,firtree,oak,etc.

TherepublicishometoRussia’slargestexpanseoflimetrees;limes have the largest nectar capacity, which is useful for beekeepingandproducingBashkortostan’sworld-famoushoney.

The republic is the No. 4 producerofchipboardinRussia(andtheNo. 1 producerintheVolgaFederalDistrict).

Keygrowthareasareadvancedwoodworkingandthecreationofnewenterprisesforprocessinglow-gradewoodandtimberwaste.

1 2


14

Republic of Tatarstan

Perm Territory Sverdlovsk Region

Chel

yabi

nsk

Regi

on

Ufa

Beloretsk

Meleuz

Kumertau

Sibay

Baymak

Sterlitamak

The Republic of Bashkortostan

Bizhbulyak

Tuymazy

Dyurtyuli

Neftekamsk

Karaidel

Lemez-Tamak

Maloyaz

Salavat

Zilair

Akjar

Orenburg Region

Udmurt Republic


15

Water resources

Average annual renewable water resources comprise:

• Watercomingfromneighboringregions(PermTerritory,Chelyabinsk,SverdlovskandOrenburgRegionsandtheRepublicofTatarstan):9.5billioncubicmeters

• Water resources from within the republic: 25.5 billion cubic meters.

Watersupplyperperson:8,750cubicmetersperannum(24cubicmetersperday).

Therepublichasmorethan13,000riversand2,000lakes.

Wateravailabilityisensuredthroughtheregulationofriverflowsvia443reservoirsandponds,119ofwhichhaveavolumeofmorethan 1 million cubic meters.

Mineral resources

Bashkortostanisrichinminerals,withmorethan60typesinaround3,500mineraldeposits,including250oilfields.

In2018,therepublicincreaseditsmineralextractionindexto109.4percentfrom100.1percentin2017.

AccordingtoBashkortostan’sMinistryofEconomicDevelopment,the republic retained its role as a leading Russian center of resourceextractionin2018,rankingsecond in oil refining and ninth in oil production.

3

4

Therepubliccoversmorethan14millionhectares.Therearegrayforestsoils(alongtherightbankoftheBelayaRiver,belowtheSim River),soddy-podzolicsoils(northernBashkortostan),blacksoils(ontheleftbankoftheBelayaRiverandintheBashkirTrans-UralsRegion),andmountainsoils.

Industrial production

Bashkortostan’sindustrialproductionindexreached103.4percentin2018.Therepublic’sindustrialproductionincludesmining,manufacturing, as well as the generation and distribution of electricity, gasandwater.Themanufacturingsectoraccountsfor75percentof industrial products shipped and mechanical engineering sector contributesapproximately13percent.

TherepublicisoneofRussia’sleadingoilrefiners.

Bashkortostan’sdomesticrankingsfortheproductionofcertaintypesof industrial products:

• No. 1 producer of sodium carbonate, mobile concrete pumps*, thermallypolishedglassplates,trailersandsemi-trailers(max.weight3.5-10tonnes),inflatableboatsforsportandleisure,hydraulicandpneumatic(air)engines;

• No. 2 producer ofindustrialkilnsandchambers,hydrauliclime,coiledwire,ropesandstraps,hoistsandliftingequipment;

• No. 3 producer ofсold-drawnnon-alloysteelwireandnon-fireproofceramicbrick;

• No. 4 producer of buses.

Bashkortostan’smanufacturingproductionindexreached100.5 percentin2018,whichisa2.5percentincreasecomparedto 2017.

In2018,BashkortostanproducedandshippedproductsandservicesintheManufacturingProductioneconomiccategoryworthRUB1.3trillion(up19.1percentcomparedto2017)makingtherepublictheNo. 3 producer in the Volga Federal District**

5

*BashkortostanistheonlyproducerofconcretepumptrucksinRussia.**RussianFederalStatisticsService(TheReportonSocialandEconomicSituationinRussiain2018).


16

Map of mineral and other natural resources

Ufa

Amzya Yanaul

Neftekamsk

Blagoveshchensk

Mesyagutovo

Chekmagush

Chishmy

Iglino

Oktyabrsky

Nizhnetroitsky

Davlekanovo

Arkhangelskoye

Pribelsky

Krasnousolsky

Sterlitamak

Inzer

Beloretsk

Meleuz

Tirlyansky

Verkhniy Avzyan

Kumertau

Uchaly

Salavat

Ermolaevo

Raevsky

Kirghiz-Miyaki

Belebey

Ishimbay

Priyutovo

Kananikolskoye

Isyangulovo Baymak

Sibay

Kudeyevsky

Tuymazy

Verkhneyarkeevo

Dyurtyuli Krasny KlyuchBirsk

Ferrous metallurgy

Mechanical engineering

Oil refining

Gas processing

Chemical industry

Petrochemical industry

Timber and wood processing

Construction materials

Glass industry

Consumer products

Food industry

Brown coal

Oil

Natural gas

Iron ore

Copper ore

Sodium salt

Limestone

Plaster stone


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Priority sectors for development

1. Extraction and processing of natural resources

TheRepublicofBashkortostanisoneoftheRussia’soldestoil-producingregions,accountingfor2.9percentofnationaloilproduction,includinggascondensate.Itranksninth among Russian regions for oil production volumes and second for oil refining.

Bashkortostanistheleadingproduceroflightoilproductsinthecountry: it is the No. 1 producer of diesel fuel and No. 2 producer of petrol.

Theoilconversionratiois85.5percentcomparedtotheRussianaverageof82.2percent.

In2018,Bashkortostanproducedandshippedproductsandservices in the Mineral Resource Production economic category worthRUB275.84billion(up20.1percentcomparedto2017)makingtherepublictheNo.4producerofmineralresourcesintheVolga Federal District.**

Increasingtheoilconversionratio,improvingthequalityoffuelproduced and ensuring the environmental safety of production are thekeygrowthareasforthisindustry.

2. Chemicals and petrochemicals industry

Russia’slargestmanufacturingcomplexfororganicandnon-organicchemicalproductsislocatedinBashkortostan.

TheregionisoneofRussia’sleadingproducersofthefollowingchemicals products:

• No. 1 producer of sodium carbonate and benzene;

• No. 2 producer of plastics in primary forms, silica gels, ethylene, xylene,styrene,syntheticrubbers,andhydrauliclime;

• No. 3 produceroftechnical,gas-derivedsulfur;

• No. 4 producer of caustic soda.

Thefinechemicalindustryisthemaingrowthareaforthissector.

3. Automotive sector

TheRepublicofBashkortostanistheNo. 1 producer of trailers and semi-trailerswithtechnicalpermissiblemaximumtowablemassof3.5-10tonnes(witha69.6percentshareoftheRussianmarket).

TherepublicboastsacommandingshareoftheRussianmarketforrecreationalcraft(60.6percent),linearhydraulicandpneumaticmotors(33.0percent),aswellaselectriclights(31.6percent).

The region is the No. 2 producerofvehiclebodies,pulleyblocks,hoist winches, industrial furnaces and cabinets and the third biggest manufacturer of civil helicopters.

Agriculture

TheregionisoneofRussia’ssevenbiggestagriculturalproducers.Atotalof1.53millionpeopleliveinruralareas,over37.8percentofBashkortostan'spopulation.

Therepublic’sagriculturallandtotals:

7.3 million hectares of farmland;

3.6 million hectares of ploughed land.

TherepublicisaleadingRussianregionforkeyindicatorsofagricultural production:

Largest producer:Beef(186,300tonnes);Kumis(fermenteddiaryproduct)(3,200tonnes);Commercialhoney(5,400tonnes).

6

*BashkortostanistheonlyproducerofconcretepumptrucksinRussia.**RussianFederalStatisticsService(TheReportonSocialandEconomicSituationinRussiain2018).


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2005 2010 2016 2017 20182018 vs. 2017, %

Gross output value, RUB billion 60.4 88.6 168.8 171.8 152.2 88.6Food production index, % 106 96.3 103.3 105.0 97.9 -7.1p.p.Production output, ‘000 tonnes:

milk 2,083.4 2,078.1 1,730.8 1,718.4 1,623.9 94.5meat 381.6 467.1 397.4 410.2 400.1 97.54

Total harvest volume, ‘000 tonnes:grains 2,884 781 3,324 3,783 3,059 80.7sugar beet 1,176 377 1362 1,594 1,426 89.5sunflower 126 51 225 274 324 118.2vegetables and potatoes 1,501 663 1,439 1,346 1,165 86.6

Gross product mix

Agricultural enterprises

Household enterprises

Peasant(farm)enterprises

38%

51%

11%

Third largest producer: Greenhousevegetables(86,800tonnes);Horselivestock(112,000head);

Fourth largest producer: Potatoes(869,000tonnes);

Ninth largest producer:Sheepandgoatlivestock(774,000head);

Tenth largest producer: Cattleandpoultryforslaughter(400,100tonnesliveweight).

Bashkortostanrankssecond in the Volga Federal District for cattle population(975,200head),milkproduction(1,613,700tonnes)andpig population; third for the production of grains, grain legumes, and sugar beet; fourth for vegetables; fifthforsunflowersandsixth for eggs.

Thestrongperformanceandvastlandsavailabletotheregion’sagricultural sector create opportunities for food storage and processingprojects(canningfactories,ClassAwarehouseswithwashingandpackingfacilities,hideprocessingplants,etc.).

Principal agricultural products: grains, sugar beet, oil crops, vegetables, fodder, meat, and dairy.


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Agricultural sector development priorities up to 2020 Crop farming

• grains;

• sugar beet production and processing;

• fieldandgreenhousevegetables;

• oil crops.

Animal farming

• dairy cattle breeding;

• increasingcommercialmilkproduction;

• increasingproductionofcattle,poultry,porkandeggs.

Food and processing industry:

• cereal production, pastry and pasta products;

• dairyandmeatproducts,semi-finishedproducts;

• cheese and cheese products;

• honey and hive products.

Measures planned:

• Introducing new grain farming technologies, improving the fodder base and boosting production of oilseeds;

• Developingtheproductionofhighly-nutritiousfeed;

• Buildingplantstostoreandprocessagriculturalproduce,fruitand vegetables, as well as food canning facilities;

• Manufacturing products with medicinal and preventive properties, as well as baby food.


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arba

ev R

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Transportation

TheRepublicofBashkortostanliesatthecrossroadsofEuropeandAsia, where the most important waterways, railways, pipelines and highwaysthatconnecttheEuropeanpartofRussiawiththeUrals,Siberia and Central Asia intersect.

Bashkortostanhasmultipleadvantagesintransportationandlogistics,whichfacilitatestheimportandexportofrawmaterials,fuelandfinishedgoods,andthedevelopmentofeconomictieswith other countries:

• TheTrans-SiberianrailwaypassesthroughBashkortostanandconnectsCentralRussiawithSiberia,theFarEastandCentralAsia.

• Bashkortostanhasaccesstofiveseas(Caspian,Azov,Black,BalticandWhite)viatheBelaya,Kama,andVolgarivers.ThetownofAgidel serves as an inland port.

• TheM5UralandM7Volgahighways,aswellasP-240Ufa-OrenburgroadpassthroughBashkortostan.

Bashkortostanhastheninthlongesttoll-freehard-surfaceroadnetworkofRussia’sregionsandthelongestroadnetworkintheVolga Federal District.

UfaInternationalAirportwasthefirstregionalairportinRussiatoachievecompliancewithISAGOStandards(IATASafetyAuditforGroundOperations).ItsrunwaysaresuitableforlargecargoandpassengeraircraftsincludingBoeing747,Boeing777,aswellaswide-bodyaircrafts.

General information about Ufa International Airport:

• passengertraffic:upto2.3millionpeopleperyear;

• totalcapacity:800passengersperhour;

• number of runways: 2

7 Forthreeyearsrunning(2016-2018),UfaInternationalAirporthaswontheNationalAviationInfrastructureShow(NAIS)andtheFederalAirTransportAgency’s“AirwayGatesofRussia”Awardforthebestinternationalairportwithlessthan4millionpassengersperyear.Thewinnersaredecidedbyapanelofexpertsandpassengers via online voting.

Ratings agency AviaPort also gave Ufa International Airport four outoffivestarsin2015forthequalityofitsterminalinfrastructureand passenger services.

TheRepublicofBashkortostanhasarailwaynetworkofmorethan3,000kilometers

Railfreighttraffic:over30milliontonnesperyear.

Railpassengertraffic:over5millionpeopleperyear.

Transportnetworkdevelopmentoutlook:

• TheUfa-OrenburgroadwillbeconnectedtotheWesternEurope-WesternChinainternationaltransportcorridor(SilkRoad)in2020.

• TheEasternExittunnelwillconnectUfatotheM5UralHighway(thelargestBOTprojectinRussia).


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Orenburg 373 km

Orsk 640 km

Ekaterinburg 543 km

Perm 470 km

Kazan 529 km

Samara 460 km

Moscow 1,342 km

Chelyabinsk 418 км

Nur-Sultan 387 км

Ufa

Direct flight

Federal highways

Motorways

Railways

Pipelines

Western Europe-Western China International Transit Corridor


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Retail market

An advantageous geographic location, developed transport infrastructure, stable economic situation and high population density create a favorable environment for doing business in Bashkortostan.

Theregionhasapopulationofmorethan4millionpeople.Therearesixcitiesofoveronemillionpeoplewithina500-kilometerradiusofthecapital.Populationdensityis28.3peoplepersquarekilometer(comparedtothenationalaverageof8.3peoplepersquarekilometer).

In2018,retailsalestotaledRUB879.5billion,ora2.6percentincreaseon2017incomparableprices.

The republic is historically listed in the top ten Russian regions intermsofabsoluteretailturnover(eighthplacein2018),andisamong the top in the Volga Federal District.

Atotalof454retailtradefacilitiesopenedinBashkortostanin2018,including51retailmarkets(36agricultureproducemarkets,13multipurposemarkets,andtwospecializedmarkets).

8 Inabsoluteterms,foodproductsalesreachedRUB433.8billion(up2.6percentcomparedto2017),whilenon-foodproductsalestotaledRUB445.7billion(alsoup2.6percentcomparedto2017).

PubliccateringturnovertotaledRUB29.78billionin2018,a0.4percentriseon2017incomparableprices.

In2018,thepaidservicesmarketincreased0.2percentyear-on-yeartoRUB261.4billion.*

Wholesaletradeturnoverincreased2.7percentto RUB 653.85 billion.*

*TheRussianFederalStatisticsService(TheReportonSocialandEconomic

SituationinRussiain2018).

Republic of Bashkortostan

Kazan

Yekaterinburg

Samara UFA 500 km

Perm

Chelyabinsk


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Tourism

Richwaterresources,diverseanduniquefloraandfauna,stunning natural landscapes, protected conservation zones, as well as historical, cultural and natural monuments of national andinternationalimportanceprovideinvestorswithextensiveopportunitiestodeveloptheregion’stourismandrecreationindustry.

BashkortostanisoneofRussia’smostpopulardestinationsforhealth and medical tourism, as well as a major center for alpine sportsandskiing(OlympicPark,Abzakovo,Ak-Yort,ArskyKamen,Assy-Tau,Kandry-Kul,Kush-Tau,Mratkino,PavlovskyPark,etc.).

Thereareabout300karstcaves,13,000rivers,2,000lakes,mountainranges,threenationalparks,morethan3,000historical,artistic, cultural and archaeological monuments, and more than 60sanatorium-resortcenters(ZelenayaRoscha,Krasnousolski,Yumatovo,Yakty-Kul,Yangan-Tau,Talkas,Assy,Tanyp,Yubileyniy,Karagai,Ai,etc.).

Bashkortostan tourist attractions:

• picturesquenaturalscenery;

• culturalheritage(LakeKandrykulandShulgan-Tashnaturereserve,whicharepartoftheBashkirUralbiospherereserve);

• well-developedtransportinfrastructure.

Theregionoffersawiderangeofaccommodationoptions,includinginternationalhotelchains(HolidayInn,HiltonGardenInn,Hampton,CrownePlaza)andlocalhotels(Iremel,Azimut,Bashkiria,Tan,AMAKSHotels&Resorts,PresidentHotel).

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Bashkortostan’s tourism rankings

• No.2intheVolgaFederalDistrict;No.7inRussiabythevolumeofhospitalityservices(hotelsandsimilarfacilities)(RUB6.1billion,unchangedfrom2017);

• No.1intheVolgaFederalDistrict;No.6inRussiabythevolumeofspaandsanatoriumservices(RUB4.7billion,down6.8%comparedto2017);

• No.2intheVolgaFederalDistrictandNo.6inRussianbythevolumeoftourismservices(RUB5.9billionup3.3percentcomparedto2017).

Tourism development priorities:

• ecotourismandextremesports(horseriding,hiking, snowmobileriding,rafting);

• further developing more traditional recreational and health activities and winter sports;

• increasing investment in the hospitality industry and healthcare.

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Science

Bashkortostanhasoneofthemostdevelopedhighereducationsystems in Russia. There are about 25 institutions in the region covering a wide spectrum of disciplines, including Ufa State PetroleumTechnologicalUniversity(themainhighereducationinstitution),UfaStateAviationTechnicalUniversity,BashkirStateUniversity,BashkirStateMedicalUniversity,M.AkmullahBashkirStatePedagogicalUniversity(theleadinguniversityforhumanities, specializing in promoting Russian language in Shanghai CooperationOrganizationmemberstates).

Therepublichas74researchanddevelopmentinstitutes.Morethan eight thousand people are employed in the science and researchindustry,andapproximatelyhalfofthemareresearchers.Morethan60percentofscientistsinBashkortostanarespecialistsin engineering sciences. New technologies developed by Bashkortostan'sresearchinstitutesandcentersarealreadybeingusedinthepetroleum,refiningandpetrochemicalindustries,aswell as in medicine, engineering and agriculture.

Ufa Science Center of the Russian Academy of Science and technoparksestablishedwiththesupportoftherepublic’suniversitiesplayanimportantroleinscientificandtechnicaldevelopment.Theseinstitutionsspecializeinfieldssuchasoilandgas, chemicals, IT, ecology and geology.

11Finance

TheRepublicofBashkortostanhasawell-developedlocalbankingnetwork:

• three regional credit institutions;

• fifteenbranchesofbanksfromotherregions.*

In10M2018,banksoperatinginBashkortostanissued271,000creditcards(up6.8percenton2017).Loanstoindividualsandlegalentities/entrepreneurstotaledRUB289.9billionandRUB425.8 billionrespectivelyattheendof2018.

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*CentralBankdataasat1March2019.

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Investor incentives

TheRepublicofBashkortostanismakingconsiderableeffortstoimprove the local business climate.

The Public Council for the Improvement of the Investment Climate,headedbythePresidentofBashkortostan,wascreatedinordertoencourageinvestmentactivityandattractfinancingto the region,aswellasestablishinganoperationalstandardforlocal government aimed at improving the investment climate.

TheProjectOfficewasestablishedtoswiftlyresolveanyissuesandqueriesofthebusinesscommunityarisingfrominvestmentand business activities, and to implement best practices across the board to create a favorable business environment, in line with Bashkortostan’sgoalsfortheNationalRegionalInvestmentClimateRanking.

ThePublicCouncilmeetstwiceaweekandtheProjectOfficehasweeklymeetings.Proposalsputforwardbybusinessmenareputonto the agendas and discussed at both meetings.

DecisionsonnewinvestmentprojectsintheregionaretakenatInvestmentHourmeetings.RadiyKhabirovholdsweeklyinvestormeetingswheremajormarketplayerscanputforwardinvestmentproposals and secure support from the government. Decisions made at Investment Hour meetings allow investors to reduce the project lead time and increase viability.

Therepublichasaneffectiveinvestmentsupportframeworkinplace.Investorscanusethreebusinessincubators:BusinessSupport Center, Regional Integrated Center – Republic of BashkortostanandBashkortostanSocialInnovationCenter.

Thereareseventechnologyparks,11industrialparks,threetechnologytransfercenters,theBashkortostanVentureFund,22start-upsathighereducationalandscientificorganizations,threesharedknowledgecenters,twoprototypingcenters,andtheBashkortostanRegionalEngineeringCenter.

For information about available capacities and gas and power gridconnectionpoints,visittheBashkortostanInvestmentPortal:http://map.bashkortostan.ru/.

Informationabouttheregion’savailableinvestmentsitesandinvestment proposals can be found on the website of the DevelopmentCorporationoftheRepublicofBashkortostan: http://kr-rb.ru/.

SMEsareparticularlywelcome:

• government-fundedfinancialsupportinitiatives;

• investment infrastructure;

• qualityroadnetworksandtelecommunicationservices;

• availabilityofbusiness-focusedrealestateandleaseprocedures.


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Development Corporation of the Republic of Bashkortostan

TheDevelopmentCorporationoftheRepublicofBashkortostanserves as the regional development institution.*

The corporation provides integrated support for local projects: from investment intent to commissioning.

Itoffersawholerangeoffull-scope/targetedprojectsupportservices, including business plan preparation and ongoing project

Development institution

maintenance in liaison with regional government agencies, all the way to the approval stage.

The procedure for interaction between investors, regional government agencies, and the Corporation throughout an investmentprojectisdefinedbytheOneStopShopRegulation(approvedbyBashkortostanGovernmentResolutionNo. 490dated16November2016).

Investment projects are supported by a specialized organization over the course of the project and until the completion of the investment phase. This includes:

а)providingadvicetoinvestorsregardingtheimplementationofinvestment projects;

b)educatinginvestorsaboutinvestmentopportunitiesandtheinvestment potential of the republic as a whole, as well as specificcities;

c)establishinginteractionbetweeninvestors,local,federaland regional government agencies, local governments and organizations dealing with preparatory, conciliation and licensing procedures during investment projects;

d)assistinginthesearchforpotentialpartnersforinvestmentprojects;

e)establishingrelationshipsbetweeninvestorsandnon-governmental investment support institutions;

f)arrangingnegotiations,meetings,conferencesandconsultationsto resolve issues arising during investment projects;

g)assistingintheselectionofinvestmentsitessuitableforspecificinvestment projects.

*EstablishedbyOrderofthePresidentofBashkortostanNo.UP-730dated20 December 2010.

**TheRegulationwasapprovedbyBashkortostangovernmentresolutionNo. 490dated16November2016.


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In addition to the services indicated in the Regulation, the Corporationalsooffersconstructionsupervisoryservicesandtechnicalclientservices(industrialconstruction,transportandengineeringinfrastructureprojectsinBashkortostan),includingthe construction of railways, highways, power, gas, and water networks,etc.

Pre-project phase services:

• surveys of the future construction site to assess architectural, legal,engineeringandenvironmentalrisks;

• assistance with the allocation of land plots;

• help obtaining preliminary permits;

• preparationofSOWforsurvey,designandgeneralcontractwork;

• assistance with contracts for engineering surveys, project documentation and general contractor services.

Design phase services:

• interaction with design institutes during the preparation of project documentation;

• supportduringtheexpertreviewofprojectdocumentationtoaccelerate the project;

• assistance with obtaining building permits;

• preparationofthedocumentsetforworkrequests(wherenecessary)toreduceprojectcosts.

Construction phase services:

• comprehensive supervision throughout the construction process;

• assistance with obtaining commissioning permits.

Legal services:

• legal advice: document review, issuing an opinion on regulatory compliancewithdueregardforexistingcourtpractice;

• due diligence: legal due diligence of documents, company audits;

• legal advice on investments: comprehensive legal support for investment projects, including foreign investment;

• incorporation of legal entities with foreign investment: preparationofallrequireddocuments,communicatingchangestothetaxauthorities;

• representation in court: comprehensive litigation support, professionalprotectionofinvestors'interestsinBashkortostanand other regions;

• subscriptionlegalservices:end-to-endsupportwithalllegalmatters;

• debtcollection:pre-trialrecoverythroughnegotiation/supportwith enforcement proceedings;

• private partnership: preparation, development and maintenance ofdraftpublic-privateandpublic-localpartnerships(includingliaisonwithgovernmentagencies).


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Investment in Bashkortostan in 2018

RUB 249.9 billion

The total amount invested in supported projects

103 The number of supported

projects

7 The number of projects

on Bashkortostan priority investment project register

RUB 179.8 million

The total amount invested in TPSED projects

8.700 The number

of jobs created

31 The number of projects on

Bashkortostan’s priority investment project list

2 The number of projects granted

the status of territories of priority social and economic

development (TPSED)

7 The number of investment projects supported within public/municipal private partnership concessions

+50% vs. 2017

+158% vs. 2017

+47% vs. 2017

+250% vs. 2017

+715% vs. 2017

+133% vs. 2017


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Industrial parks

Industrial parksBashkortostanhascreatedspecialzonesfornewindustrialenterprises(industrialparks).

Anindustrialparkisagroupofpropertiesmanagedbyasingleoperator(managementcompany)andcomprisinglandplot(s)with industrial, administrative, warehousing and other facilities, powerunits,utilitiesandtransportinfrastructure,andofferingthe necessary administrative and legal conditions for industrial enterprises.

Anindustrialparkhostsseveralindependentbusinessesacrossone or multiple industries. TheRepublicofBashkortostanhas11industrialparks.

Advantages of industrial parks:

• accelerated project launch;

• availability of necessary permits, project, legal and other documentation;

• well-developed,readilyaccessibleinfrastructure;

• opportunitytoengageinaJV/secondlinebusiness;

• services of the management company.


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Technology parks, industrial parks, clusters and territories of priority social and economic development (TPSED) in the Republic of Bashkortostan

Existing industrial parks (brownfield)

Territories of priority social and economic development (TPSED)

Technology parks

Clusters

Existing industrial parks (greenfield)

Number of parks, if more than one at the location

4

Ufa

Neftekamsk

Blagoveshchensk

BelebeyBeloretsk

Sterlitamak

Salavat

Meleuz

KumertauSibay

Chishminsky district

Ufa District

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2

2

Agidel


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Industrial parks

Year of establishment

Number of residents

Total area*

Prikamye Industrial Park Neftekamsk 2010 19 100 hectares

Construction materials of Bashkortostan Industrial Park

Agidel 2010 9 223.88hectares

Salavat Industrial Park

Salavat 2011 15 14.5hectares

Ufimsky Industrial Park

Ufa District 2013 17 298.5hectares

First Urals Industrial Park

Sibay 2014 3 13.6hectares

Promcenter Industrial Park

Ufa 2014 16 58,600squaremeters

GlavBashStroy Industrial Park

Ufa District 2014 3 56.9hectares

Zubovo Industrial Park

Ufa District 2015 - 37.3hectares

Veles Industrial Park

Sterlitamak 2015 24 8.3hectares 17,898.7squaremeters

BashInvest Industrial Park

Ufa 2016 - 10,646squaremeters

Industrial Park in Chishminsky district

Chishminskydistrict 2019 1 60hectares


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Greenfield, agro-industrial operations

* Hectares are used to indicate thetotalareaofalandplot;squaremeters are used to indicate the total area of the facilities.

Production of construction materials

Universal

Advanced woodworking

Woodworking

Manufacturing

Production of petrochemicals

Heavy machinery and metalworking


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Monocities and TPSED

Bashkortostanhassetupspecialeconomiczonesthatofferresidentscertaintaxbenefitsandsimplifiedadministrativeprocedures.

Territories of priority social and economic development (TPSED)

On29December2016,theRussianGovernmentissuedaresolutionassigningTPSEDstatustothecitiesofBelebeiandKumertau. On 12 February 2019, the Russian Government issued ResolutionsNo.121,127,and129stipulatingthelaunchofTPSEDsinBlagoveshchensk,Neftekamsk,andBeloretsk.

CompaniesincludedintheregisterofTPSEDresidentsreceivespecialpreferencesandbenefits.

Tax benefits for TPSED residents

Income tax

Regional budget:*

5%(firstfiveyears)10%(inthefollowingfiveyears)

Social security contributions (10 years)

6%(PensionFund) 1.5%(SocialSecurityFund)0.1%(ObligatoryMedicalInsuranceFund)

Mineral extraction tax

0%(first24years);0.2%(years25-48);0.4%(years49-72);0.6%(years73-96);0.8%(years97-120);

1%insubsequentyears.

VAT

TPSEDresidentscanreceiveacceleratedVATrefunds(ifappliedfor).

Simplified Tax System

TPSEDresidentsthatmakeuseofthesimplifiedtaxsystemcanreceiveataxratereductionofbetween6%to2%forthetaxableitem“income”andbetween15%to5%forthetaxableitem“incomewithcostsdeducted”.

Regional tax benefits

Landtaxrelief**

* The respective regional laws were passed by the Bashkortostan State Assembly on 22 February 2017.** Set by the municipality.

Federal budget:0%(firstfiveyears)

Propertytaxrelief*


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Six monocities (single-industry municipalities)

InaccordancewithRussianGovernmentResolutionNo.1398-rof 29July2014,monocitystatuswasgrantedtothefollowingcities:

• BelebeiandKumertau(Category1);

• NeftekamskandBeloretsk(Category2);

• UchalyandBlagoveshchensk(Category3).

Support offered by the Monocity Development Fund:

1 construction (or reconstruction) of infrastructure for investment projects in monocities;

issuance of low-interest loans to investment projects in monocities;2

Blagoveshchensk

Uchaly

Beloretsk

Neftekamsk

Belebey

Kumertau

Monocities of the 1st

category2nd

category3rd

category

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Management Company

AOBashkirScientificResearchInstituteof PetroleumRefining

http://www.inhp.ru/ Ufa AOOilandPetrochemicalRefiningInstituteof theRepublicofBashkortostan

NPAAviationTechnologyPark http://technopark-at.ru/ Ufa NPAAviationTechnologyParkMembers of the Association: PAOODKUMPO,FGBOUVOUGATU,AO UfaAvia-Gaz,AOBETO,OOOAviaPromLeasine

EcolineTechnologyPark http://ecoline-himprom.com/ Meleuz OOOEcoline

MedtekhnikaTechnologyPark http://www.ormed.ru/ Ufa OOOResearchandDevelopmentEnterpriseOrbita

UfaAviationInstituteSelf-SustainingCreativeCenterTechnologyPark

http://rosoil.ru/ Ufa OOOUfaAviationInstituteSelf-SustainingCreative Center

BashkiriaTechnologyPark [email protected] Meleuz OOOMeleuzMilkCanningPlant

InmashTechnologyPark http://inmash.org/ Sterlitamak OOO KIT STAR

Technology parks

Technologyparksaredesignedtoencourageandmanageknowledgesharingbetweenuniversities,researchinstitutions,businessesand markets.Atechnologyparksimplifiesthecreationanddevelopmentofinnovativecompaniesthroughbusinessincubatorsandspin-offprocesses.


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Innovative infrastructure facilities

Radioelectronic Cluster https://cpt-rek.bashkortostan.ru/

Ufa Center for creating production prototypes for radioelectronics equipment:LaboratoryforonlinetechnologyandroboticsLaboratoryforcommunicationnetworktestingLaboratoryforprotectivecoveringandelectronicsequipmenttestingLaboratoryforprojectdevelopmentLaboratoryforelectronicequipmentdesignandmodelingLaboratoryforcreatingproductionprototypesformicroelectronicsTrainingworkshopsTestingandexperimentalproductionfacility

Low-TonnagePetroleumChemistry Cluster

[email protected] Ufa Center for creating production prototypes for petrochemicals:Spectrochemical analysisElementanalysisofnon-organicandorganicpetrochemicalproductsChromatographic research methodsThermal research methodsX-rayresearchmethodsCloud designing

BiotechnologyCluster [email protected] Ufa Regional engineering center: Fungi unitUnitforproductrecoveryandpurificationSpore unit NormalmicrofloraunitPathogenicfloraunitFinalproductunit(mixingandpacking)

A cluster is a group of related businesses concentrated in a certain area


39

Public-private partnership

Bashkortostan’sMinistryofEconomicDevelopmentisauthorizedtoimplementstateinvestmentpolicythroughpublic-privatepartnerships(PPP).

The agencies responsible for reviewing PPP proposals in various economic segments include the respective industry regulators in Bashkortostan.

TheDevelopmentCorporationoftheRepublicofBashkortostanprovidessupporttopublic-privatepartnershipsandinvestmentprojects implemented in concession agreements with the regional government.

In2018,Bashkortostanrankedfourth among all Russian regions in thePPPmaturityrating(risingonepositionfromthepreviousyear).

Bashkortostanisimplementing34concessionagreementprojectworthatotalofRUB36.9billion.

The main areas of PPP/concession development include:

• transportation infrastructure, including public transportation;

• publicutilitiesinfrastructure(onlyunderconcessionagreements);

• healthcare;

• education, culture, sports, tourism;

• social welfare;

• environmentally-friendlyinfrastructure(solidwastetreatment,recyclingandwastedisposal).

State support for investors

2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019

PPP ranking* 51 16 11 11 7 5 4

* According to ANO National PPP Development Center data.


40

Government support initiatives for investors implementing PPP projects

On28November2003,LawNo.43-z“OnCorporateProperty”wasapprovedbytheRepublicofBashkortostan,introducingazeropercentpropertytaxrateforinvestorsenteringintoaPPPorconcession agreement with the regional government.

Therepublicisworkinginthreemainareastosupportthedevelopment of PPPs:

• regulatory support;

• development of the institutional environment;

• information and methodological support.

PotentialareasfortheapplicationofPPPsinBashkortostaninclude:

• tourism;

• IT(informationtechnology,software,databasesorITfacilities).

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Law No. 386-z of the Republic of Bashkortostan

“On the participation of the Republic of Bashkortostan in public-private

partnerships projects”

The procedure for inter-agency interaction for the consideration of proposals from entities intending

to conclude concession agreementsResolution No.56 of the Government

of the Republic of Bashkortostan of 21 February 2017

The procedure for inter-agency interaction of EA of RB* during the compilation and approval of the list of objects that are objects of concession

agreementsResolution No.56 of the Government


The procedure for inter-agency interaction for the preparation

and implementation of PPP projects in the Republic of Bashkortostan

Resolution No.336 of the Government of the Republic of Bashkortostan of 16 August 2017

Regulation on the Interagency Commission responsible

for the preparation and implementation of investment projects under PPPs

Resolution No.103 of the Government of the Republic of Bashkortostan

of 23 March 2017

Authorized bodies for the development of concession agreements — Sectoral executive authorities

of the Republic of Bashkortostan

AuthorizedbodyforPPPadministration — Ministry of Economic Development


The procedure for inter-agency interaction of EA of RB* for the preparation and implementation of

concession projects initiated by the EA of RB*Resolution No.56 of the Government


Investment project support — AO Development Corporation


* EA of RB — Executive authorities of the Republic of Bashkortostan.** CA – concession agreement.


42

Government support initiatives for capital investments

1 Tax incentives

Corporate profit tax relief

TheCPTrateforpriorityinvestmentprojectsandfixedinvestmentsinproductionfacilitieshasbeenreducedto13.5percentandwillbeloweredto12.5percentin2017-2020.Thereliefperioddependson the amount invested:

• RUB100million-RUB1.5billion:threeyears

• RUB1.5billion-RUB5billion:fiveyears;

• overRUB5billion:tenyears;

• RUB10milliontoRUB1.5billion(forinvestorsengagedininvestment projects in municipal entities of the Republic of Bashkortostanthatarelistedontheintegratedeconomicorsocial and economic development programs for municipalities approvedbytheBashkortostanGovernment):threeyears.*

• The CPT rate for entities participating in regional investment projects listed in the Regional Investment Project Participant Registry is set at 10 percent for investors implementing high priorityinvestmentprojectsinBashkortostanmunicipalitiescovered by the integrated social and economic development roadmaplistapprovedbytheBashkortostanGovernment).

Capital investments should not be lower than:

01. RUB50million:forcapitalinvestmentswithathree-yearhorizon, starting from inclusion in the registry of organizations engaged in investment projects in municipal entities of the RepublicofBashkortostanthatarelistedontheintegratedeconomic or social and economic development programs for municipalitiesapprovedbytheBashkortostanGovernment;

02. RUB100million:forcapitalinvestmentswithathree-yearhorizon, starting from inclusion in the registry;

03.RUB100million:forcapitalinvestmentswithafive-yearhorizon, starting from inclusion in the registry.

Corporate property tax relief

Organizations engaged in priority investment projects are exemptedfromCPTonpropertiesacquiredinthefirstthreeyearsoftheproject(fiveyearsforinvestmentsexceedingRUB5billion),depending on the amount invested:

• RUB100million-RUB1.5billion:threeyears;

• RUB1.5billion-RUB5billion:fiveyears;

• OverRUB5billion:fortentaxperiods;

• RUB10milliontoRUB1.5billion(forinvestorsengagedininvestment projects in municipal entities of the Republic of Bashkortostanthatarelistedontheintegratedeconomicorsocial and economic development programs for municipalities approvedbytheBashkortostanGovernment):threeyears.

2 Land and property support

Information on the facilities available for lease is posted on the investmentroadmapoftheRepublicofBashkortostan.

PreferentialleaseratesforSMEs(small-andmedium-sizedbusinesses):

• 40percentofthetotalannualleaseamount(inthefirstyear);

• 60percent(inthesecondyear);

• 80percent(inthethirdyear);

• 100percent(inthefourthandsubsequentyears).

* CPT rates reduced by the laws of Russian regions before 1 January 2018 are applicable until 1 January 2023. Reduced CPT rates can be increased in accordance with the laws of the Russian Federation during 2019-2022.


43

Preferential lease rates apply to priority investment projects in the RepublicofBashkortostan:thereductionfactorremainsat0.6forfiveyears,oruntilallprojectconstructionstagesarecompleted.

Simplified(notender)leasearrangementsforlandsownedbytherepublicormunicipalities,andlandplotswithundefinedstateownership apply in the following cases:

01. ListedpriorityinvestmentprojectsinBashkortostanwith50percentoffinancingsourcesconfirmed;

02. Investment projects involving social, cultural or public utilities (providedtheprojectownerassumestheirobligationstofulfillthesocialcommitmentsstipulatedinthegovernmentprogramsoftheRepublicofBashkortostan).

3. Collateral

TheCollateralFundprovidessupportforBashkortostan’spriorityandsignificantinvestmentprojects.

Eligibility:

• totalcollateralvaluedoesnotexceedRUB500million;

• the use of only one facility as a collateral under the loan agreement;

• theBorrowershouldprovideatleast50percentofthecollateral,subject to the consent of the Strategic Committee if collateral exceedsRUB100million.

Pledging facilities of the Collateral Fund shall be subject to the guaranteeandcounter-guaranteeoftheBorrower’sobligationsintheformofequitystakes(shares)intheBorrowerorGuarantor’schartercapital,belongingtoparticipants(shareholders)oftheBorrowerorGuarantor,orotherassets.

Pledging facilities of the Collateral Fund is conditional on the obligationoftheBorrowertoreleasethefacilitiesoftheCollateralFund by replacing them with pledges of real estate built by theBorroweraspartoftheinvestmentproject,asandwhenconstruction phases are completed.

Decisions on pledging facilities of the Collateral Fund are made by thegovernmentofBashkortostan.

4. The government program for agricultural development and agricultural, commodity and food market regulation in 2013-2020

As part of the government program for agricultural development andagricultural,commodityandfoodmarketregulationin2013-2020, subsidies are granted for the following purposes:

• acquisitionofchemicals;

• interestpaymentsoninvestmentloansissuedafter1January2017;

• interestpaymentsoninvestmentloansissuedbefore1January2017;

• acquisitionofagriculturalmachineryandequipment;

• interest payments on loans issued by Russian lending institutions withtheaimofdevelopingaquaculture(fisheries)andsturgeonfarming;

• acquisitionoffishfarmingequipment,compoundfeed,andfishseed;

• acquisitionofdairycattleyoungbreeders;

• productivity enhancement for dairy cattle breeding;


44

• compensation for damages resulting from natural disasters;

• soil fertility improvements;

• decoupled support for crop producers;

• supportforselectedanimalandcropfarmingsub-industries,payment of insurance premiums in the animal and crop farming segments;

• interestpaymentsonloansissuedtoSMEsbyRussianlendinginstitutions;

• reimbursementoflossesrelatedtoproductionlaunch(grantstonewfarmers,family-runanimalfarmsandagriculturalconsumercooperatives);

• development of agricultural consumer cooperatives;

• partial reimbursement of costs arising from interest payments on short-termloansissuedafter1January2017;

• partial reimbursement of direct costs incurred on the launch/upgradeofagro-industrialfacilities;

• preferential loans.

Contacts

Ministry of Agriculture of the Republic of Bashkortostan

106 Pushkin Street Ufa 450008Tel.: +7 (347) 218 06 00Fax: +7 (347) 218 05 [email protected]


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5. As part of the government program to develop and support SMEs in Bashkortostan (in accordance with Resolution of Bashkortostan Government No. 548 of 14 November 2018 “On the State Program to Develop and Support SMEs in the Republic of Bashkortostan”), subsidies are granted to municipal entities and monocities (on a tender basis) for the following purposes:

Co-financingofmunicipalprograms:

• subsidies at the initial stages of business development;

• subsidies covering part of leasing payments;

• subsidiestoSMEs(smallbusinessentities),providingsupportservices to government and municipal authorities.

• subsidiestofundpartoftheplannedexpensesofSMEsandinfrastructure organizations for the establishment and/or developmentof"co-workingcenters.”

Co-financingformonocityprograms:

• subsidies covering part of leasing payments;

• support for social entrepreneurship.

Partial reimbursement of the expenses incurred by infrastructure development organizations for the implementation of SME and social entrepreneurship support projects in the Republic of Bashkortostan (on a tender basis):

• support is granted to organizations included in the Registry of OrganizationsEngagedinSME/SEInfrastructureDevelopmentEntities;

• supportwillonlybeprovidedforprojectstodevelopSMEsinBashkortostan;

• subsidyamountwillnotexceed90%oftheprojectedcost,orRUB500,000perproject.

Contacts

The State Committee for Business and Tourism of the Republic of Bashkortostan

95 Pushkin StreetUfa 45000Republic of Bashkortostan Tel.: +7 (347) 218 08 25Fax: +7 (347) 218 08 [email protected]


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1. Regional Fund

The fund aims to support priority investment projects and attract investmentinBashkortostan’spriorityindustries.

Theworkundertakenbythefundincludes:

• managingthestateinvestmentresourcesofBashkortostan;

• investing in companies that create new jobs in the republic and makeproductsusingnewtechnologiesorprovideinnovativeservices;

• financinginvestmentprojectsbyissuingloans,leasingoutequipment,andmakingportfolioanddirectinvestments.

Thefundsprovidesfinancialsupportvia:

• loans(uptoRUB2billion);

• participationinthecapitaloftheprojectcompany(from33to49percentofthechartercapitalofalimitedliabilitycompanyandfrom25to49percentofthechartercapitalofajoint-stockcompany);

• provisionofloancollateral(uptoRUB2billion).

2. Industry Development Fund

The Industry Development Fund was established with the objective of modernizing industrial production in Russia, encouraging new industrial facilities and promoting import substitution.

Thefundofferspreferentialprojectco-financingtermstodevelopnewhigh-techproducts,supporttechnicalupgradesandcreatenew competitive enterprises based on the best technologies available.

ThefundprovidestargetedloansofRUB50to750millionatarateof1-5percentperannumforupto7yearsfornewindustrialprojects, directly investing into the real sector of the economy.

Contacts

6 Lyalin Lane, Building 1Moscow 105062Tel.: +7 (495) 789 47 [email protected]

Funds

Contacts

3B Karl Marx StreetUfa 450008Republic of BashkortostanTel.: +7 (347) 276 12 [email protected]


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3. Bashkortostan Industry Development Fund

Thefundwassetupin2017toprovidepreferentialfinancialsupport to enterprises implementing industrial projects. ThefundprovidesloansrangingfromRUB5-100millionatalowinterestrateofbetween1-5percentperannum(dependingonthematurity,availabilityofabankguarantee,andthecountryoforiginoftheacquiredequipment).

4. MSP Bank

Establishedin1999,thebankprovidesloanstoSMEcompaniesfromRUB1milliontoRUB1billionatarateof8.9-10.6percentper annum.

MSPBankisaccreditedtoprovidelow-interestloanstoagricultural enterprises as part of the respective programs of theRussianAgricultureandEconomicDevelopmentministries.Lendingcanbeprovidedonpreferentialtermsdependingonthefinancingproductsavailableandsubjecttocompliancewiththerequirementsoftheabove-mentionedprograms.

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Contacts

79 Sadovnicheskaya StreetMoscow 115035Tel.: +7 (495) 783 79 [email protected]

Contacts

3-303 Karl Marx StreetUfa 450008Republic of BashkortostanTel.: +7 (347) 286 58 [email protected]


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5. Bashkortostan Regional Leasing Company

BashkortostanRegionalLeasingCompanywassetupinOctober2017byMSPCorporationandtheRepublicofBashkortostan.

Thecompanyofferspreferentialleasingtermstoindividualandsmallenterprisesthatareplanningtosetup,expandormodernizeproductionviatheacquisitionofnewRussianand/orimportedequipment.

Thelistofpriorityoperationseligibleforlow-interestlendingincludeshigh-techmanufacturingproducts(includingforprocessingandstoringagriculturalproduce)withexportpotential.

TheamountoffinancingforSMEequipmentacquisitionrangesfromRUB3milliontoRUB200millionat6percent(Russianequipment)or8percent(foreign-madeequipment).Thefirstinstallment should be no less than 15 percent of the loan.

6. Rosagroleasing

AORosagroleasingisstate-ownedleasingcompanysetupin2001to facilitate the technical and technological modernization of the Russian agroindustrial sector in accordance with objectives set by the Russian Government.

Rosagroleasing aims to achieve the targets set in the State Program for Agriculture Development and Regulation of Product, CommoditiesandFoodMarketsfor2013-2020,aswellastheRussian Federation Food Security Doctrine.

Rosagroleasing leases agricultural machinery, trailers, attachments, unitsandequipmentforanimalfarming,processingandhigh-yieldcattle breeds.

Afinancialleaseisprovidedfor10yearswithaninterestrateofupto3.5percent.Thefirstinstallmentshouldbenolessthan15percent.

Contacts

16 Tsurupy StreetUfa 450057Republic of BashkortostanTel.: +7 (347) 222 46 16, +7 (347) 222 46 [email protected]

Contacts

26 Pravda StreetMoscow 125124Tel./Fax: +7 (800) 200 [email protected]


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7. SME Development and Support Fund of the Republic of Bashkortostan

Thefundwassetupon12July1999inaccordancewithDecreeNo.UP-455ofthePresidentoftheRepublicofBashkortostan.

Focus areas:

• implementing state support measures as part of the DevelopmentandSupportofSMEsintheRepublicofBashkortostanprogram;

• providing advisory and educational services;

• setting up a hot line for businesses;

• supportingtheoperationsoftheCenterforBusinessSupportoftheRepublicofBashkortostan;

• providingfinancialsupporttosmallbusinesses;

• issuing guarantees using the Guarantee Fund;

• leasingproperty,plantandequipment;

• extendingloansusingtheInvestmentInitiativeFund.

ThefundsupportsSMEsby:

• IssuingguaranteesusingthefinancialresourcesoftheGuaranteeFund(jointlywithpartnerbanks).Theguaranteecannotexceed70percentoftheborrower’sobligationprincipalamount.ThemaximumguaranteeisRUB25million.

• Leasingproperty,plantandequipment.Leaseditemsincludeindustrialandtechnicalequipment,specialtyequipment,vehicles(exceptforcarsandmotorcycles)costinguptoRUB5million.Theleasetermis5years.TheinterestrateishalfoftheCBR’skeyrate.Thefirstinstallmentshouldbenolessthan10percent.

• LoansofRUB0.1-0.5millionareprovidedbytheInvestmentInitiative Support Fund on a tender basis. The lending period is up to three years and the interest rate is less than two thirds of theCBR’skeyrate.

Contacts

37 Karl Marx Street, Building 2, Floor 3 Ufa 450052Republic of BashkortostanTel./Fax: +7 (347) 251 67 52, 251 67 59, 251 67 63 Hotline: +7 (347) 216 40 [email protected] www.fondmb.ru


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8. Russian Direct Investment Fund (RDIF)

The Russian Direct Investment Fund is an investment fund created to attract foreign investment to the leading companies in the fastest growing sectors of the Russian economy.

Goals:

• makeprofitableinvestments;

• attract direct foreign investment to the Russian economy.

Core objectives:

• ensureaninflowofforeigninvestment;

• maximizereturnoninvestedcapital;

• facilitate the modernization of the Russian economy;

• attracttheworld’sbesttechnologiesandprofessionalstoRussia;

• ensure transparent fund management.

RDIFactsasaco-investorandpartnerforinternationaldirectinvestment funds, sovereign funds and the largest strategic investorsmakingdirectinvestmentsinRussiancompanies.RDIFsharesriskswithitsco-investorswhilestrivingtoachieveencouraging results.

Theco-investmentmechanism:

• RDIFcanonlyinvestifthereisaco-investor/agroupofco-investorswhoseshareintheinvestmentisequaltoorgreaterthan that of RDIF;

• theco-investormustmanageassetsworthmorethanUSD1billion,havemarketcapitalizationofmorethanUSD1billion,oraturnoverofmorethanUSD1billionandEBITDAofmorethanUSD 150 million;

• atransactionmaybeinitiatedbothbyRDIFandtheco-investor;

• whenimplementinganyproject,RDIFandtheco-investorconclude a joint investment agreement to determine project management principles.

The investment process:

• RDIF’sinvestmentprocessconformstointernationaldirectinvestment standards;

• the target deal amount is between USD 50 million to USD 500 millionequityinvestment(RDIFshare);

• up to 50 percent interest in the company;

• expectedexitfrominvestment:fivetosevenyears;

• infrastructuralprojectsimplementedfromscratch(greenfield)mayhavealongerexitperiod.

On16May2012,BashkortostanGovernment,RussianDirectInvestmentFundandAgencyforStrategicInitiatives(ASI)signedacooperation agreement.

Contacts

City of Capitals, Southern Tower, Floors 7-88 Presnenskaya Embankment, Building 1Moscow 123112Tel.: +7 (495) 644 34 14Fax: +7 (495) 644 34 13www.rdif.ru


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9. Fund for Assistance to Small Innovative Enterprises (FASIE)

TheFundforAssistancetoSmallInnovativeEnterprisesisastate-ownednon-profitorganizationestablishedasafederallyfundedinstitution.

Core objectives:

• implementing government policy to develop and support R&D activities;

• creating and developing a support infrastructure;

• assistinginthecreationofnewjobstoensuretheeffectiveuseofRussia’sscientificandtechnicalpotential;

• providingfinancial,informationalandotherassistance;

• engaging young people in innovation;

• attractingnon-budgetaryinvestmentstosmallinnovativeenterprises.

FASIEprovidesgrantsuptoRUB25millionforscientificresearch,R&D, and the commercialization of R&D output. Some programs requirenon-budgetaryco-financinginvolvingindependentorinvestorfundstotaling30-100percentofthegrantamount.

10. AO VEB Infrastructura (AO InfraVEB)

TheobjectiveofAOVEBInfrastructura(AOInfraVEB)istopreparedevelopment projects for implementation without using budgetary investments.

AOInfraVEBfocusesonprojectstargetingsocial,transportation,public utilities and energy infrastructure, as well as government administration infrastructure and the development of land for public infrastructure and social/economic development.

AOInfraVEB

• offersinvestmentconsultingservicestogovernmentauthoritieson the preparation of projects;

• providesdebtfinancingforinvestmentprojects;

• solicitsinvestorstofinanceprojectsatthepreparationstage.

Contacts

3rd Obydenskiy Lane, Building 5 Moscow 119034Tel./Fax: +7 (495) 231 19 [email protected]

Contacts

7 Masha Poryvaevaya Street, Building BMoscow 107078Tel.: +7 (495) 777 39 93Fax: +7 (495) 777 39 [email protected]


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11. Monocity Development Fund

Goals:

• tocreatenewjobsinsocially-andeconomically-challengedmonocities(otherthanjobsatthebackboneenterprise);

• to attract investments to monocities through infrastructural and investment projects.

Core objectives:

• assembling and training monocity development project teams;

• helping prepare and participating in new investment projects in monocities;

• serving as the PMO for investment projects in monocities.

TheFundoffersthefollowingsupport:

01. Subsidizingexpensesincurredwhenlaunchingfacilitiesfor individual entrepreneurs and legal entities as part of investmentprojectsinmonocities(upto95percent ofthetotalamountperfacility);

02. Providinglow-interestloansforinvestmentprojectsinmonocities:RUB10million-1billionat0percentperannum(forloansuptoRUB250million)orat5percentperannum(forloansoverRUB250million),withuptoa15yearstayofpayments for loans maturing within three years. Initiators arerequiredtocontributeatleast20percentoftheprojectfinancing.

Requirementsfortheprojectandtheinitiator(borrower):

• no overdue debt to the budget and other funds;

• nodependenceonmonocities(financial,administrative,infrastructuraletc.);

• demonstrating a social and economic impact on monocities in terms of investment and job creation.

Limitations:

• theFund’sparticipationintheprojectshouldnotexceed80percentoftheproject’stotalvalue;

• theFund’sfinancialresourcescanonlybeusedforcapitalinvestment;

• the Fund must enter into a general agreement with the a subject of the Russian Federation.

Contacts

Golden Gate Business Center2 Entuziastov BoulevardMoscow 109544 Tel: +7 (495) 734 79 [email protected]


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12. Federal Corporation for SME Development

TheSMECorporation’sobjectives:

• toextendsupporttoSMEsandorganizationsengagedindevelopingtheSMEsupportinfrastructure;

• toattractfinancialresourcesfromRussianandinternationalorganizationstoextendsupporttoSMEs;

• toprovideinformation,marketing,financialandlegalsupportforinvestmentprojectsimplementedbySMEs;

• toprovidefinancialsupportforSMEsbyengagingavailablelendingresourcesofatleastRUB3millionat9.6percent(forpriorityeconomysectors)orat10.6percent(inotherindustries).

13. Microcredit small business company of the Republic of Bashkortostan

EstablishedtoprovideaccessforsmallbusinessesinBashkortostantofinancialresourcesviamicro-financingandotherformsofsupportinaccordancewithstateprograms/sub-programsin the Russian Federation.

Micro-financingloanstotalRUB3millionat7.5-10percentperannum. The loan maturity is three years.

Contacts

4 Slavyanskaya Square, Building 1Moscow 109074Tel.: +7 (495) 698 98 [email protected] www.corpmsp.ru

Contacts

82 Chernysevskogo StreetUfa 450076 Tel.: +7 (347) [email protected]


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14. The Russian Foundation for Technological Development (RFTD)

The Russian Foundation for Technological Development provides financialsupporttoscientificandtechnologyprojects,andexperimentalprojectsthatarerelatedtotheFund’stechnologyplatforms.Theprojectsareselectedonatenderbasis.EnterprisesthatinitiateorconducttechnologyprojectsthatinvolvesignificantR&Deffortsareeligibletoparticipateinthetenders.

Thewinnerofthetenderisawardedaspecial-purposeinterestfreeloan:

• TheloanisprovidedtofinanceR&Dfortechnologydevelopmentprojects.

• TheloanrangesfromRUB10milliontoRUB300millionandshouldnotexceedtheborrower’sNAV.

• Theloan’smaturitycanbeupto60monthswitharepaymentperiodof37-60months.

TheapplicantorganizationsshouldhavesufficientresourcestopayfortheFoundation’sservices(0.75percentoftheloanamount)onaquarterlybasis.

TheRFTDcloselycooperateswithGKVnesheconombank,OAOMSP-BankandotherdevelopmentinstitutionsinordertoprovidesustainablefinancingtoSMEprojectsandimplementmajorintegrationprojectsinvolvingsignificanteffortstodevelopinnovative products.

15. Russian Export Center

Thestate-runinstitutiontosupportexportsofnon-commodities.Thecenteroffersawiderangeoffinancialandnon-financialsupporttoRussianexporters.TheCenterliaiseswithindustry-specificministriesandagencies,aswellaskeyindustryandbusinessplayerstoimprovetheexportenvironmentinRussiaandeliminateexistingbarrierstoexporting.TheRussianExportCenterispartoftheVnesheconombankGroup.

Lendingandguaranteeissuancesupport:

• financingexportcontractexpenditures(upto85percentoftheexportcontractoragencyagreementamountforaperiodofuptofiveyears);

• financingexportcontractexpenditures(upto85percentoftheexportcontractoragencyagreementamountforaperiodofuptotwoyears);

• financingexporttradecredits(upto85percentoftheshippingdocumentamountforaperiodofuptofiveyears);

• financingviaaletterofcredit(upto100percentoftheletterofcreditamountforaperiodofuptofiveyears);

• financingloanstoforeignbuyers(upto100percentoftheexportcontract(s)oragencyagreementforaperiodofuptotenyears);

• providingtradefinancing(upto85percentoftheexportcontract(s)foraperiodofuptotwoyears);

• providingloanstobanksofforeign-basedbuyers(upto100percentoftheexportcontractexcludingprepaymentand/or 100 percent of the insurance premium under the insurance agreementwithAOEXIARforaperiodofuptooneyear);

• providingguaranteesforprepaymentrefund,guaranteesfortaxauthorities, tender guarantees, performance guarantees, and payment guarantees.

Contacts

31 A Leningradskiy Prospect, Building 1Moscow 125284 [email protected]


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Specialexportsupportprograms:

• partialreimbursementofexpendituresfortransportationofagriculturalandfoodproducts(upto50percentofactualcostsincurredbyexporters);

• placementofproductsattastingeventsandexhibitionsabroad;

• reimbursementforexportloansfromtradefinancingbanks(inaccordancewithFederalLawNo.459-FZof29November2018“OntheFederalBudgetfor2019andthe2020-2021planningperiod”);

• assistanceparticipatingattastingandexhibitionevents;

• partialreimbursementofexpendituresattributabletothetransportationofproducts(upto80percent);

• financingexpendituresincurredtopromotehigh-techproductsonexternalmarkets.

Support available:

• insurancesupportforRussiangoodsandservices(upto90percentofthepotentialloss),aswellasRussianinvestmentsabroad;

• financingexportoperations.

16. Russian venture investments with state participation

Russian Direct Investment Fund (RDIF)

Key project selection criteria:

• availabilityofaclearinvestmentutilizationplan,financialmodel,pre-projectmarketandcompetitionresearch;

• the economic feasibility of the project and an acceptable level of risk;

• investmentofownfinancialresourcesintheproject;

• adequateguaranteesforthereturnoninvestmentsmadebytheRFID(collateraloraguarantee);

• investmentsintheprojectbytheRFIDandpartners:uptoRUB1billion.

www.rdif.ru

Project financing support for investment low-interest loans at below the Russian Central Bank’s key rate for a given state support program plus 2.5 percent per annum.

Project Financing Factory

• syndicatedprojectfinancing(withVEBactingasthecreditmanager);

• hedginginterestrisksforborrowersandlendersviasubsidiesfrom the Government of the Russian Federation;

• special-purposestateguaranteeoftheRussianFederation;

• specialprocedureforcalculatingcapitaladequacyandcreatingprovisions for loans and borrowings from Russian credit institutions.

Contacts

12 Krasnopresnenskaya Embankment, Entrance 9Moscow 123610Tel.: +7 (495) 937 47 [email protected]


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www.rdif.ru

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Russian Venture Company (RVC)

Provides incentives to develop the Russian venture investment industryandsignificantlyincreasethefinancialresourcesofventure funds.

Provides support in the form of investment from one or several fundswithRVC’sparticipation.

www.rvc.ru

ROSNANO

ImplementstheGovernment’spolicyaimedatdevelopingthenanotechnologyindustryandactsasaco-investorinnanotechnologyprojectswithsignificanteconomicandsocialpotential. ROSNANO invests in various nanotechnology projects including alternative energy, biomedicine, new materials, and metal processing. Projects aimed at creating new production facilities or expandingandmodernizingexistingfacilitiesareapriority.

Support available:

• contributions to the charter capital of the project company;

• loansorguaranteesrequiredtofinancetheprojectcompany’sobligations to third parties.

The Foundation for Infrastructure and Education Programs

Financing for nanotechnology development centers, engineering technology companies and small innovation companies.

www.rusnano.com

Skolkovo Foundation

GrantsrangingfromRUB30milliontoRUB300million,aswellasmini-grantsofuptoRUB5millionandmicro-grantsofuptoRUB1.5 million.

www.sk.ru


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www.rvc.ru

www.rusnano.com

www.sk.ru

Government of the Republic of Bashkortostan46TukaevaStreetUfa450101RepublicofBashkortostanTel.:+7(347)2502401Email:[email protected]

Deputy Chief of Staff of the Government of the Republic of BashkortostanAlexanderNikolaevichSheldyayevTel.:+7(347)2808418Email:[email protected]

Ministry for Economic Development of the Republic of Bashkortostan46TukaevaStreetUfa450101RepublicofBashkortostanTel.:+7(347)2808306Email:[email protected]

Acting Economic Development Minister of the Republic of Bashkortostan LiliyaMarsovnaMazitovaTel.:+7(347)2808602Email:[email protected]

Development Corporation of the Republic of Bashkortostan110PushkinStreetUfa450057RepublicofBashkortostanTel.:+7(347)2149070Еmail:[email protected]

General Director of the Development Corporation of the Republic of BashkortostanRailSalikhovichSarbaevTel.:+7(347)2149070Email:[email protected]

Contacts


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Deloitte CIS5LesnayaStreetMoscow125047Tel.:+7(495)7870600Fax:+7(495)7870601www.deloitte.ru

Deloitte UfaNesterovBusinessCenter6VerkhnetorgovayaSquareUfa450077Tel.:+7(347)2267292Fax:+7(347)[email protected]

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