Economic and Investment Potential of Saratov Region

1. Economic and Investment Potential of Saratov Region

2. Saratov Region is a territory for investment • Regional center – Saratov city • Total land area – 101.200thousandkm2 • Population – 2,584 thousand people • Manpower resources – 1,647 thousand people • Distance from Moscow city– 858 km • Extent of state border with the Republic of Kazakhstan– 550 km • Southern temperate climate Saratov Region

3. Economic indices Commissioning of residential houses Agricultural production 2009 1129,9 thousand sq. meters 2009 72.9 billion rubles Growth 233% Growth 202% 2004 484.5 thousand sq. meters 2004 36.1 billion rubles

4. Investment potential of Saratov region Competitive advantages of the region: • Superfluous electric energy supply– Balakovo Nuclear Power Plant,Saratov Hydroelectric Power Station, 6 Thermoelectric Power Station – the volume of generated electricity is 41 billionkWh, regional intake is less than 30% of the volume output. Low cost of electric energy. • Own regionaloil-and-gas production,100% gasification ofinhabited localities and enterprises. • Own oil refining atSaratov Oil Refinery Factory, stability of fuel market. • Considerable deposits of hydrocarbon raw materials in bowels - gas, oil, petro-condensate, oil shale withshale gas and shale oil. • Considerable deposits of mineral raw materials - chalk, limestone, carbonate for use as cement raw material, clay rocks for brick manufacture, expanded clay, cement, sand and sandstones, mineral balneological waters, medical, high quality table waters, potassium and magnesium salts, sulfur, phosphates, siliceous rocks, mineral paint sienna, etc. • Availability of free agricultural lands(more than 650,000 hectares), lands of settlements, lands for industrial use with communications and power and heat capacities. • Low rental fee(agricultural lands – 0.3% of cadastral value, other lands – 2% of cadastral value), average level of cadastral value of land plot meant for manufacturing and office buildings, constructions, industrial buildings, communal service, material and technical supply, food supply, merchandising, and provision in Saratov is 16,825.5 rub./m2, in municipal areas it makes ≈399.0 rub./m2 depending on location. • Tried-and-true procedureof land plots assignment under investment projects in shortest and exact terms, according existing legislation. 6

5. Competitive advantages of the region: : • Low cost of labor force –2.5 lower than in Moscow region (average salary in the Region is 12 thousand rubles, in Moscow – 25-30 thousand rubles). • Low prime costof house making, construction of industrial and commercial real estate (and as a consequence short rental rates on the real property). • Intelligent transport, engineering and logistic infrastructure. Advantageousgeopoliticallocation of the region. Proximity to Moscowmega city (858 km) with the mighty consumption market. Southern moderately continental climate,duration of winter period is a month less than in Moscow that allows reducing charges for heating, illumination of premises and technical services. Region’s location in a favorable fourth light zone that considerably reduces the cost price of production of a hothouse complex. • High level of communications and telecommunications. • Low cost of holding nature protection and ecological measures. • Presence of skilled manpower resources. • Developed banking, insurance, stock and commercial sectors. • Significant cultural, medical and educational potential.

6. Competitive advantages of th region: Availability of the regional legislation providing the most preferential tax treatment for investors: • Law“On the Most Favored Nation Treatment for Investors in Saratov Region” №116-ZSO ofJune 28th, 2007. • Law“On Tax Rate on Organizations’ Profit with Regard to Investors Engaged in Investment Activity in • Saratov Region” №131-ZSOofAugust 1st, 2007. • Law “On Levy of Property Tax for Organizations at the Territory of Saratov Region” №73-ZSO ofNovember 24th, 2003. • Law “On Transport Tax Levy in Saratov Region” №109-ZSOofNovember 25th, 2002. • Law “On Pledge Fund of Saratov Region” №92-ZSOofOctober 2nd, 2006. • Regulation of the Government of the Saratov region “On Approval of Exemplary Form of Investment Contracts, Form of Investment Certificate, Written Application of Investors, Record of Investment Contracts’ Register and Its Form” №305-PfromAugust 27th, 2007.

7. Competitive advantages of Saratov region:low cost of technological connection and basic charges Gas rates Rates for services for gas transmission into gas distribution networks and customers groups, rubles /thousands m3 10

8. Competitive advantages of Saratov region:low cost of technological connection and basic charges Rates for technological access to electric power lines Water supply and disposal rates 11

9. Competitive advantages of the Saratov region: The following tax remissions have been introduced in Saratov Region in January 1, 2008: • the rate of profits tax to be transferred to the regional budget is reduced down to 13.5%; • property tax is reduced from 2.2% down to 0.1%; • full transport tax exemption. Period of validity of tax holidays is set up for 5 years from the date of starting investment activity.

10. By today, we have created exclusively favorable investment climate, which certainly will have a prosperous effect upon the outcome of your industrial and commercial activity in ourregion Contact information: REPRESENTATIVE OFFICE OF THE GOVERNMENT OF THE SARATOV REGION TO THE GOVERNMENT OF THE RUSSION FEDERATION 7 Podkopaevsky lane, building 3, Moscow 109028 Russia Tel.: +7(495) 917-06-96, 917-27-23, fax: +7(495) 917-23-62 E-mail: predstavitelstvoso@gmail.com, invest@saratov.gov.ru Deputy Chairman of the Government of the Saratov Region – Mr. Alexander Zhandarov MINISTRY OF INVESTMENT POLICY OF THE SARATOV REGION 72, Moskovskaya str., Saratov 410042 Russia Tel.: +7(845-2) 21-02-10; fax: +7(845-2) 27-73-22 E-mail: invest@saratov.gov.ru Minister – Ms. Irina Blohina

11. Thank you for your attention!