INVESTMENT PRESENTATION LENINGRAD REGION Geography and transport - - PowerPoint PPT Presentation

INVESTMENT PRESENTATION

LENINGRAD REGION

2

Murmansk (1,106 km) Arkhangelsk (878 km) Helsinki (246 km) Oslo (1,165 km)

Таллин (284 км)

Мinsk (647 km) Moscow (598 km) Rome (2,814 km) Madrid (3,884 km) London (3,884 km) Beijing

(5,880 km)

Paris (1,593 km) Каzan (1,265 km) Novosibirsk (2,909 km)

Population – 1.8 million people Area of the region – 83.9 thousand km² Border with the European Union (Finland and Estonia) Close proximity to Saint Petersburg Access to the Baltic Sea 4 seaports Pulkovo International Airport in Saint Petersburg

Geography and transport infrastructure

#lenoblinvest

Vysotsk Ust-Luga

70 million tonnes

planned cargo turnover

98.7 million tonnes

cargo turnover (2018)

12 already operating

terminals

20

terminals under construction

7 18.8

million tonnes cargo turnover (2018)

3 already operating

terminals

Primorsk

+

terminals under construction

+

Baltic Sea cargo categories Project on construction of a multipurpose reloading complex

Port infrastructure

3

2

#lenoblinvest

1,9 million tonnes

cargo turnover (2018)

Viborg

STRUCTURE OF GROSS REGIONAL PRODUCT (GRP) billion USD

36%

GRP growth since 2015

17.8 >3

trillion RUB expected volume

• f GRP in 2035

36.3%

Real estate transactions Other Industry Transport and communications Wholesale and retail trade Construction Agriculture

13.7% 12.0% 10.3% 7.6% 4.7% 15.4%

Economy

4 #lenoblinvest

GRP in 2019

(according to estimates)

+26.8%

in comparison with 2017

Volume of investments in fixed assets, billion RUB

44%

253,6 178,8 225,9 264,2 338,6 among all Russian regions in terms of the volume

• f attracted foreign direct

investment

2013 2014 2015 2016 2017 2018

466.9

share of investments in the GRP of the region

17%

share of investments in Russia's GDP

506,1*

2019

among all Russian regions in terms of the volume

• f investments per capita

billion USD

6 place 4.8

Investment climate

5

volume of foreign direct investment

8 place

#lenoblinvest

*according to estimates

9

2016 2017 2018 2019

34

Aim:

to stay in TOP 10 and enter TOP 5 2020 2021

20

5 place

Ranking of the Russian regions in terms of achievement of high rates of increasing economic (tax) potential of a territory

BB+, forecast “‎

Stable”

5 place

Ranking of the Russian regions in the nomination “Minimal risk” Ranking of socio-economic situation in the Russian regions

10 place

Ratings

6 #lenoblinvest

12

place place place place Long-term credit rating

1 place

Ranking of the Russian regions in the nomination “Financial stability”

Construction industry Food industry Wood processing industry

4.8%

Leningrad region Russia

2.3%

Industry of Russia and Leningrad region, % in comparison with 2018

Priority development areas of Leningrad region

7 #lenoblinvest

Processing of raw materials near the ports Automotive industry Shipbuilding

Investors Informational support

FRONT OFFICE

Associations, chambers of commerce and industry, trade representative offices Local authorities Regional executive authorities Federal executive authorities “One-stop-shop” for investment projects support Administrative support Tax benefits Infrastructural support

Front Office for Investor Relations of Leningrad Region

8 #lenoblinvest

Important investment projects

9 #lenoblinvest

Complex for processing ethane-containing gas 750 billion RUB RusKhimAlyans Complex for transshipment

• f grain and food cargo

46.5 billion RUB Dry cargo transshipment complex Port of Vysotsk 24 billion RUB Expansion of mineral fertilizers production facility 23.6 billion RUB Creation of Vysotsky grain terminal 7 billion RUB Construction of a carriage- repair plant 1.5 billion RUB Terminal for transshipment

• f mineral fertilizers

6 billion RUB Production and warehouse transshipment complex 10 billion RUB Development of shipbuilding complex 6.5 billion RUB Construction of a carriage- repair plant 6.5 billion RUB Dry cargo transshipment complex Vysotsk

Soft loans

loan, million RUB

5 – 500 1% – 5%

interest rate

Tax benefits Regional investment projects Reduction of tax

(regional part) corporate income tax

Up to 13.5%

corporate property tax

Up to 0% Minimum volume of investments

for several districts – from 50 million RUB manufacturing industry revenues from the sale of goods

Duration From 3 to 6 years

Valid up to 01.01.2023 up to 8 years for automotive manufacturers

300 million RUB

corporate income tax (regional part)

Up to 10%

corporate property tax

0%

Duration Until 1 January 2027 Conditions From 50 million RUB

volume of capital investments within the period

Russian National Classifier of Types

• f Economic Activity

Not less than 90%

Financial measures of support

10 #lenoblinvest

Reduction of tax

Saint Petersburg Pikalevo Тerritory of advanced development Pikalevo was established

• n 16 March 2018

for 10 years

Requirements to investment projects:

From 10 jobs <25% foreign labour force From 2.5 million RUB

Benefits for the residents

Territory of advanced social and economic development Pikalevo

11

Corporate property tax

0% first five years 1.1% next five years

Payments to extrabudgetary funds Reduction from 30.2% tо 7.6% Land value tax

0% ten years

Corporate income tax Regional part

5% first five years 10% next five years

Federal part

0% first five years

#lenoblinvest

100,000

People – labour resources

244

km

Investment portal provides access to the integrated regional information system INVESTMENT DEVELOPMENT OF LENINGRAD REGION Available industrial sites Engineering and transport infrastructure facilities Unified information and analytical center

• f business support in Leningrad region

Available in 4 languages: Russian Chinese English German

Investment portal of Leningrad region (www.lenoblinvest.ru)

12 #lenoblinvest

Leningrad region has:

industrial parks, including:

27

10 operating 10 under construction 7 planned Information about industrial parks is included in the integrated regional information system Investment Development of Leningrad Region (map.lenoblinvest.ru) investment sites which differ in terms of available engineering infrastructure Over 200 industrial parks

3

industrial parks

25

Greenfield sites: without buildings and facilities Brownfield sites: with buildings and facilities state-owned private

Industrial parks

#lenoblinvest 13

to Saint Petersburg

131

Territory of prospective development near the seaport of Ust-Luga

availabe area

4,843 ha

Chemical industry Oil and gas processing cargo turnover in 2018

98.7

Commercial seaport of Ust-Luga

+12%

since 2015

#lenoblinvest

million tonnes km

Baltic Sea

Ust-Luga Saint Petersburg

14

Head of Export Support Centre, Industry Development Centre Mobile phone: +7-964-614-35-20 E-mail: skorohodova@crplo.ru Website: www.crplo.ru

Olga Skorokhodova

Industry Development Centre

15

AUTOMOTIVE INDUSTRY CLUSTER TIMBER INDUSTRY CLUSTER SHIPBUILDING CLUSTER FOOD INDUSTRY CLUSTER

Development of clusters in Leningrad region Export Support Centre

• Export audit
• Marketing research
• Organization of business missions
• Selection of counterparties
• Organization of seminars, presentation
• f cases
• Organization of education
• Access to international online trade services

Investors support

Front Office for Investor Relations Industry Development Centre Entrepreneurship Support Fund Promotion of the image of the region Investment projects support Clusters Cooperation Export Support Centre Financial Consulting Legal support Education Investment Council Governor of Leningrad region Economic team of Leningrad region Investment team

16

Success stories 2019

17 #lenoblinvest

Manufacturer of box board and linerboard for production of gypsum building boards in Russia Since 1982 Production of ammonia Since 2019

55.8

billion RUB

6.4

billion RUB

3.5

billion RUB

0.7

billion RUB

1

billion RUB

2.5

billion RUB Production of solid medicines (pills, capsules) Since 2001 Production of gear units, frequency converters, servomotor, drive systems for decentralized installation, industrial gear units, system solutions for drive units and automation Since 1993 Production of instant coffee Since 2000 Production of dry construction mixes Since 2002

Follow us:

lenoblinvest www.lenoblinvest.ru lenoblinvest