Kaliningrad Region: Russian Europe Moscow 09 June 2014 - - PowerPoint PPT Presentation

Kaliningrad Region: Russian Europe

Moscow 09 June 2014

Copenhagen Hamburg Berlin Warsaw Moscow Vilnius Riga

The Kaliningrad Region is Russia's westernmost province situated on the south-eastern coast of the Baltic Sea, at the junction of key trade routes Distances from Kaliningrad:

• 1250 km to Moscow;
• 940 km to Saint Petersburg;
• 160 km to Gdansk;
• 360 km to Warsaw;
• 600 km to Berlin.

Destination: Kaliningrad

Kaliningrad

Travelling time from Kaliningrad:

• 36 hours by sea to Hamburg;
• 48 hours by railway to Moscow

for a container train;

• 1 hour by car to the EU.

The Region's logistical advantages, or five reasons

to place a production facility in the Kaliningrad Region

• 1. Geographic position in the centre of Europe;
• 2. A year-round ice-free seaport;
• 3. A well-developed infrastructure (including one of the

densest road and railway networks in Russia);

• 4. Availability of both ‘Russian’ and ‘European’ railway

gauges;

• 5. Low-cost and less time-consuming haulage to Europe

(compared to other Russian regions).

Extensive railway network with both Russian and European gauge Russia's only ice-free port on the Baltic Sea An international airport (Khrabrovo Airport) 22 border crossings European transport corridors: 1A«VIA HANSEATICA» (Riga – Kaliningrad – Gdansk) IX D (Kaliningrad – Vilnius – Minsk) Four lanes of traffic Two lanes of traffic Trans-European corridors

9D

Moscow Saint Petersburg Warsaw Vilnius Berlin Riga Tallinn Minsk

• Unique business environment provided by the Kaliningrad Oblast’s legal status
• f a Special Economic Zone, which is effective on the whole of its territory;
• Well-developed engineering and manufacturing infrastructure;
• Administrative support for investment projects, provided by the Government of

the Kaliningrad Region;

• Numerous tourist and recreation areas, including seaside resorts, historical and

cultural sites;

• Comfortable conditions for living, relaxation and leisure;
• A low crime rate and low social tension in the community;
• Availability of skilled workforce and good HR development facilities.

More PRO arguments:

28 Higher education

institutions including 5 state universities

23 vocational

colleges

11,200 trainees 40,900 students

The Kaliningrad Region's population as of beginning of 2013: 946,800 The Region's working population: 531,500 82% of the workforce employed in the Kaliningrad Region hold vocational qualifications

Population, men and women, by age groups as of 2013

Region's Human Resources

Men Women

Region's economic potential and progress

The region's annual industrial production growth rates had been over 25% - ranking it one of the highest among Russia's Northwest regions

Доля экспорта Калининградской области, %

Индия Литва Голландия Германия Норвегия

Structure of the Kaliningrad Region's exports

India Lithuania Netherlands Germany Norway

nearly

20 000

people

moved to Kaliningrad Region under the Compatriots Repatriation Programme since 2007. Kaliningrad Region ranks second, among all Russian regions in this respect. 59% 12% 12% 10% 7%

Kaliningrad was ranked by Forbes Magazine as the best city for doing business among TOP 30 cities in Russia

Structure of the Region's economy

As of the end of 2013, 5 601 industrial companies were operating in the region, including 103 in mineral production, 5 230 in processing industries, and 268 in the production and distribution of electric power, gas and water.

Mining industries

Other activities

Agriculture & fishing

Industrial production

Trade and services Transport & communication

19,9% 18,8% 14,7% 11,6% 8,1% 26,9%

Deepwater port construction project in the Kaliningrad region

Vessels with a draft of up to 15 m for the transport

• f bulk liquid and bulk cargo deadweight of 100-150

thousand tons. As well as container ships with a capacity of 8 - 10 thousand TEU The main general cargo, transferred by port terminals will be: petroleum and petroleum products, fertilizers and metals Estimated volume of containers handled amounts to 3.5 million TEUs per year :

• The main containerized cargo can become spare

parts and vehicle sets for Autotor, as well as other goods in transit

• It is assumed to actively develop the transit of

containerized cargo to the other regions of Russia

To existing ports and terminals

Vistula Lagoon PORT - HUB

Prospects for high-quality beef exports from Kaliningrad region

Since 2012, there is a program «Development of beef cattle in the Kaliningrad region». The total funding of the program is 6.3 billion rubles, of which 650 million rubles are the regional budget, 5.6 billion rubles are the federal budget and extra- budgetary sources. In 2013 rubles are from the regional budget 200 million rubles.

18 000 hectares of land are in operation management of agro-

industrial group "Miratorg" More than 16 000 of heads are imported into the region The export of high-quality beef will be possible upon reaching

45000 heads.

Amber sector

Production-mining complex Amber reserves in the region amount to more than 160 thousand tonnes; Volumes of annual amber extraction are approximately 340 tonnes; More than 150 companies in amber processing sector and approximately 200 companies in specialized trade sector are registered on the territory of the Kaliningrad region. The major companies in the sector are joined in “Yantarniy sojuz” (Amber Union) -22 companies .

Investors enjoy substantial tax benefits and are given a number of additional guarantees during the first 12 years of project implementation

Tax preferences for SEZ-resident corporations

State guarantees given to SEZ-resident corporations

 The land rental rate remains flat throughout the term of a lease agreement;  A simplified procedure is in place for issuing visas to foreign nationals representing SEZ- resident corporations;  SEZ-resident corporations are given Government guarantees that the overall tax burden shall not to be increased throughout the investment project lifecycle.

Federal Law No. 16-FZ "On the SEZ in the Kaliningrad Region“ : till 2031

General taxation SEZ taxation Income tax

20% 0% - during the first 6 years

and 50% of the effective rate in the 7th through 12th years Property tax

2,2%

The Kaliningrad Region's Special Economic Zone: A Success Story

Investment influx into the Kaliningrad region's economy

60,5 55,8 63,2 71,7 10 20 30 40 50 60 70 80 1 2009 2010 2011 2012

RUB bln

Over 100 SEZ-resident companies 14,500 new jobs RUB 73.5 bln of attracted investments RUB 25.1 bln paid as taxes New industrial clusters created Steadily improving key economic indicators

The Kaliningrad Region is a first-class destination for tourists from both Russia and Europe, inviting them: To get to know the rich and unique cultural and historical heritage of a region at the junction of Russia and Europe; To go on ecological tours to wild-country areas; To benefit from local wellness services; To visit fascinating world-class recreational facilities, such as entertainment parks and casinos; To enjoy a safe and pleasurable stay environment. To enjoy a relaxing and productive business tourist stay in the region;

FIFA World Cup Games 2018

 A new stadium with 45,000 seats;  Sports complexes comprised of 4 training bases and 2 football fields (RUB 3 billion);  A sports complex including a football field, a four- star hotel, a spa center and a gym;  All associated engineering, transport, social and tourist infrastructure. A number of major hotel operators are planning to build new facilities in Russia by the beginning

• f the 2018 World Cup's finals. In Kaliningrad, in

particular, such hospitality actors as Accor, Hotel Group, Russian groups of companies and Polish Dwor Oliwski are developing plans to construct new hotels. New cafes and restaurants will be opened. But this is not enough, and Kaliningrad is anticipating new investors!

Specialists of NACO Holland company have developed the concept of the airport

• reconstruction. It is planned to increase

passenger flow to 3 million people till 2014 and to 5 million till the beginning of the World Football Сhampionship 2018. In 2008 the quantity of passengers in “Khrabrovo” airport amounted to more than 1 million people .

At the moment the length of the air strip is 2,5 km. For the purpose of Kaliningrad to take aircrafts with a takeoff weight of over 80 tons, the strip will be increased to 3.3

• kilometers. "Aeroinvest“ company invests 2.4

billion rubles in the reconstruction of Kaliningrad airport “Khrabrovo“.

“Khrabrovo” International airport reconstruction

Kaliningrad Region Development Corporation JSC is a development institution established to implement governmental industrial and investment policies in the Kaliningrad Region The Company was set up pursuant to Decision No. 285 dd. 23 April 2012 of the Kaliningrad Region Government The Government of the Kaliningrad Region is the Corporation’s sole stockholder.

ПРАВИТЕЛЬСТВО КАЛИНИНГРАДСКОЙ ОБЛАСТИ

ОАО "Корпорация развития Калининградской области"

Goals:

• Provides support for large investment projects by

assigning a personal manager to each investor;

• To construct five industrial parks with different

specialisms, provided with the necessary transportation, power, engineering supply and other infrastructural components;

• To construct infrastructural facilities for innovation-

driven economy, including a technology park and an IT park, with a view to commercialise the Kaliningrad Region's scientific and technological potential

Objective:

• To present investors with opportunities for

launching industrial projects within short time frames by providing specially prepared sites equipped with all the necessary engineering and infrastructural components

• To create an innovative industrial cluster that

would amalgamate the key resources and innovative activity vectors in the Region

Industrial parks, technology park and IT park in the Kaliningrad Region

ПРАВИТЕЛЬСТВО КАЛИНИНГРАДСКОЙ ОБЛАСТИ

ОАО "Корпорация развития Калининградской области"

Khrabrovo Industrial Park

Specialization:

• Small and medium-sized mechanical engineering (including

manufacturing of automotive and shipbuilding components in the special clusters);

• Manufacturing of amber jewellery and wares;
• Manufacturing of biopharmaceuticals and drugs;
• Innovation and nanotechnology companies (some in cooperation with

ROSNANO JSC). AVTOTOR GK Kaliningrad Pharmaceutical Corporation OJSC Morton Holding Company Total land plot area: 271,6 ha Distance to Kaliningrad City: 20 km Distance to the airport: 3 km Road Access Railway access Employable population: Electric power Gas supply Water supply Wastewater disposal Available Available 369 600 40 MW 24152,020 m3 600 m3 per day 2000 m3 per day

Specialization:

• Transport and logistics;
• Manufacturing of construction materials;
• Small and medium-sized mechanical engineering;
• Glass production.

Gleichen Service LTD

JSC «Baltiyskiy provod»

Chernyakhovsk Industrial Park

Total area: 957 ha Distance to Kaliningrad City: 80 km Distance to the nearest border crossing (to Lithuania): 50 km Distance to the nearest border crossing (to Poland): 42 km

Road access: available Railway access: available

Employable population: Electric power Gas supply Water supply Wastewater disposal 66 000 63 MW 82126,065 m3 4000 m3 per day 4500 m3 per day

ПРАВИТЕЛЬСТВО КАЛИНИНГРАДСКОЙ ОБЛАСТИ

ОАО "Корпорация развития Калининградской области" Specialization:

• Food production (including processing, prepacking and

packaging);

• Manufacturing of TV sets and other electronic appliances;
• Manufacturing of construction materials.

Estate LLC

Konstantinovka Industrial Park

Total area: Projected area: 80 ha 250 ha Distance to Kaliningrad City: 7,5 km Distance to the airport: 11,4 km Road access: available Railway access: available Employable population: Electric power Gas supply Water supply Wastewater disposal 311 400 25 MW 15429,571 m3 per day 150 m3 per day 1500 m3 per day

ПРАВИТЕЛЬСТВО КАЛИНИНГРАДСКОЙ ОБЛАСТИ

ОАО "Корпорация развития Калининградской области" Specialization:

• Wood chemistry (production of carbon black and wood

charcoal from wood processing waste);

• Wood processing;
• High-tech industry and R&D including IT.

Sovetsk Industrial Park

Total area: 100 ha Distance to Kaliningrad City: 120 km Distance to the nearest border crossing (to Lithuania): 5 km Road access: available Railway access: available Employable population: Electric power Gas supply Water supply Wastewater disposal 53 800 63 MW 19861,148 m3 200 m3 per day 700 m3 per day

ПРАВИТЕЛЬСТВО КАЛИНИНГРАДСКОЙ ОБЛАСТИ

ОАО "Корпорация развития Калининградской области" Specialization:

• Food production;
• Agricultural stock processing.

JSC «Infuzion»

Pravdinsk Industrial Zone

JSC AGRO-PARK

Total area of the first stage site: 88 ha Total area of the second stage site: 147 ha Distance to Kaliningrad City: 57 km Distance to the Russian-Polish border: 28 km Railway access available Road access available Employable population: Electric power Gas supply Water supply Wastewater disposal 53 600 40 MW 20198,906 m3 100 m3 per day 800 m3 per day

First stage site Second stage site

JSC «Policomplex»

ПРАВИТЕЛЬСТВО КАЛИНИНГРАДСКОЙ ОБЛАСТИ

Specialization:

• Electronics;
• Information and telecommunications systems;
• Software development and testing for knowledge-intensive

industries (such as healthcare, finance and banking, power engineering, automotive manufacturing and shipbuilding);

• Mobile and cloud technologies and web-based applications;
• Data processing and storage (data-centre).

Kaliningrad IT Park

Total land plot area: 5,3 ha Built-up area: 43 255 m² Location: Kaliningrad City Distance to the airport: 15 km Employable population: Electricity Gas supply 369 600 25 MW 1027,115 m3 per day

I-CITY — THE CITY OF PROGRAMMERS

ПРАВИТЕЛЬСТВО КАЛИНИНГРАДСКОЙ ОБЛАСТИ

Area 413 ha Distance to the border with Poland 30 km Distance to the border with Lithuania 117 km Distance to the airport 37 km The population of I-CITY up to 25 thousand people Key infrastructure objects Project Initiators Technology Park, IT-University and

• ther elements of

the innovation infrastructure The Government of the Kaliningrad Region, the largest IT-companies in Russia Goal: The innovative "smart city" with developed infrastructure, which suits the modern notion of comfortable accommodation at affordable prices, will be created in the suburb of Kaliningrad.

19 Serzhantskaya St. Kaliningrad 236041, RUSSIA +7 4012 534562

www.kgd-rdc.ru e-mail: office@kgd-rdc.ru

Kaliningrad Region Development Corporation JSC Governor

• f the Kaliningrad Region

N.N. Tsukanov

1 D. Donskogo St. Kaliningrad 236007, RUSSIA +7 4012 599001

e-mail: first@gov39.ru http://gubernator.gov39.ru https://gov39.ru

19 Serzhantskaya St. Kaliningrad 236041, RUSSIA +7 4012 534562

www.kgd-rdc.ru e-mail: office@kgd-rdc.ru

WE ARE READY TO COOPERATE!