reasons to investin the Voronezh Region5

Government of the Voronezh Region

The Voronezh Region boasts a favourable investment climate

Investment increase rate in the Voronezh Region is considerably higher than that for RF

377

207

Voronezh RegionRussian Federation (RF)

1.8times

% against 2000

year0

150

300

450

'01 '02 '03 '04 '05 '06 '07 2009'08

2010: top-10 “Highest Levelof Investment Attractiveness”

Decrease of investment risk

According to RA “Expert”:Russia’s leading rating agency

2007 2008 2009 2010

33771818

6868

5

reasons why investors choose the Voronezh Region5

Favourable geographical position »

Ample HR and research potential »

A wide rangeof Regional Government incentives »Industrial Parks with developed infrastructure »Experience in implementation of large-scale investment projects »

1 2 3 4 5

Favourable geographical position

2 3 4 51

7

Voronezh is located nearEuropean and Asian markets

Voronezh

Moscow

EuropeEurope

AsiaAsia

Near EastNear East

2 3 4 51

8

Voronezh is a junction of transport and logistic routes

Transport corridors:

●“North–South”

●“West–East” Voronezh

Moscow

St. Petersburg

Novorossiysk

Ufa Kyiv

2 3 4 51

9

Rivers

Well-developedtransport infrastructure

Area of the Region = 52 200 km²

Transport hubs

Rail

Motorways

Voronezh

Lyski

Rossosh

Borisoglebsk

Novorossiysk

Belgorod

Kursk

Moscow

MoscowTambov

Saratov

VolgogradAstrakhan

International airport

2 3 4 51

10

Vast product market: about 35 million customers within a radius of 500 km

Kursk

Bryansk

Kaluga

Lipetsk

Moscow

Tambov

Saransk

PenzaOrel

Saratov

Rostov-on-Don

Voronezh

Ryazan

Vladimir

Tula

Volgograd

Kharkov

Belgorod

Lugansk

1 2 3 4 5

Ample HR and research potential

1 3 4 5212

Investors can easily find skilled workforce

secondary

vocational

higher

Population in millions:2.3 — Voronezh Region0.9 — the City of Voronezh

HR — 1.4 million people (61%),with education:

1 3 4 5213

2nd place after Moscow according to number of Schools of Higher Learning and students (Central Federal District)

39 schools of Higher Learning

130 000 students

220 majors

50 technical/vocational schools 25 000 students

66 R&D organizations

1 2 3 4 5

Wide range of Regional Government incentives

1 2 4 53

“The Governmentof the Voronezh Region guarantees full supportto companies implementing investment projectsin our Region

15

Aleksey Gordeyev —Governor of the Voronezh Region

”

1 2 4 5316

construction of engineering infrastructure

Regional Government incentives for “High Priority” projects

Co-financing of

interest rate on credit

acquisition of farm machinery,forage, cattle, fertilizer

Subsidizing of

preferential terms of land plots lease

Land plot acquisition

exemption: up to 8 yearsProperty tax

reduction of rate: up to 8 yearsProfit tax

1 2 4 5317

5 easy steps for obtaining preferences

Step 1Agreement of intent

Step 2Preliminary agreement on the facility location

Step 3Assignment of a “High Priority” status to the project

Step 4

Inclusion of the project in the Program of Social and Economic Development of the Region

Step 5Investment agreement

1 2 4 5318

“One-stop” approach:“Investment Attraction Agency”

●Selection of plots

●Investment project support from the start of implementation

●Effective interaction with Government Authorities

1 2 3 4 5

Industrial Parks with developed infrastructure

1 2 3 54

20

Partial financing of infrastructure by the Government of the Region

Motorways

Electric power

Treatment facilitiesGas

Rail

1 2 3 54

21

33

22

3 special-purpose Industrial Parks

1.“Maslovsky” industrial

production

2.“Semiluksko-Khokholsky”

construction industry

3.“Bobrovsky” food and food-processing industry

Semiluky

Bobrov

Maslovka11 Voronezh

1 2 3 54

Industrial Park “MASLOVSKY”: area over 500 hectares

16 km

LTF(Local treatment facility)

South-East Rail main

Highway М4Moscow-Novorossiysk

MotorwayVoronezh-Novovoronezh

Voronezh

EPS(Electric power substation)

Gas pipeline

1 2 3 4 5

Experiencein implementation of large-scaleinvestment projects

1 2 3 4 5

24

Significant investment projects and volume of investment, million rubles

16 000

400900

7 900131 000

3 400

25

Reasons to investin the Voronezh Region

Favourable geographical position

Ample HR and research potential

Wide range of Regional Government incentives

Experience in implementation of large-scale investment projects

5Summary:

Industrial Parks with developed infrastructure

26

Welcome to the Voronezh Region!

Alexander Gusev

Vice-Governor, First Deputy Chairman of the Voronezh Region Government

+7 473 255–38–78AGusev@govvrn.ruwww.govvrn.ru