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Where we are:

• Located on the border between Europe and Asia• Area of 35000 sq.miles, as big as Indiana state, US• Developed transport infrastructure connecting Europe and Asia

(inc. Trans-Siberian Railway, 2 international airports etc.)• Located on the former Silk Road

Chelyabinsk – transportation hub

Chelyabinsk Region – Russia’s major transportation hub. Located at the intersection of key north-south and east-west routes and railroads: •Principal highways;•South Ural Railway, part of the Trans-Siberian Railway, crosses European and Asian continents;•International airports “Chelyabinsk” and “Magnitogorsk”; •Well developed transport infrastructure allows to create an effective logistics solutions.

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Population: 3.5 million Urban 2.85 million Rural 0.65 million

Number of employed in various brunches of economy:

over 1.879 million

Number of students: 186 thousand

Number of educational institutions 41 Higher Education Institutions 52 state founded scientific and research organizations

South Ural State University 4

Our labor and scientific resources:

Iron -24 Zinc and copper ores -11 Refractory raw materialsCaolin, the biggest deposit

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Chelyabinsk region is a monopolist in mining and processing in Russia:

magnesite (95%)

talc (70%) metallurgical graphite (95%) dolomite (71%)

Natural resources:

There are more than 300 deposits of

Gold - 42 GraphiteQuartzBarite

PhosphoriteMarble

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We rank among Russia regions in 2012:

• 1st in pasta production

• 3d in poultry production

• 6th in industrial production

• 8th in foreign investment

• 12th in agriculture production

Meat production dynamics in the Region (thousand tons)

2008 2009 2010 2011 2012Forecast

2016

Poultry 100,2 115,8 124,3 142,2 171,0 300,0

Pork 44,6 44,8 48,4 50,8 54,0 150,0

Total 144,8 160,6 172,2 193 225 450,0*

144,8160,6

172,2193

225 450,0

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8

Foreign Trade Turnover (million US dollars)

0

2000

4000

6000

8000

10000

12000

2006 2007 2008 2009 2010 2011 2012

51076734 7853

4973 5113 5465 4605

1623

2685

3854

2548 2667 20301771

6730

941911707

7521 77807495,6

6376

Export Import

*Since 01 June 2010 due to the Customs Union formation there has been no registered data as to mutual trading with Kazakhstan

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Foreign Trade Turnover Structure2012

BELGIUM12,4

IRAN 5,3 TURKEY

6,1 UKRAINE9,4

ITALY7,3CHINA

7,9

USA1,9GERMANY

4,4NETHERLANDS

6,9

UZBEKISTAN3,5

OTHER34,9

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Our major investors

Germany, Switzerland, France, Finland, USA, Great Britain, Italy, Czech Republic, Kazakhstan

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Foreign Investment(million US dollars)

1463,2 1325,8

3166,6

2557,6

3326,9

3795,2

2748,9

0

500

1000

1500

2000

2500

3000

3500

4000

2006 2007 2008 2009 2010 2011 2012

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Foreign companies’ success stories

SAINT GOBAIN (France) – construction products, investment of $110 million

REXAM (Great Britain) – beverage can production, investment of $80 million

HENKEL-BAUTECHNIK (Germany) – dry mortar production, investment of $13.8 million

ROCKWOOL (Denmark) – mineral wool board production, investment of $10.8 million

FORTUM (Finland) – electric energy generation, investment of $1880 million

TEREX (USA) – mining tip truck production, investment $12,5 млн.

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ROCKWOOL Success story• ROCKWOOL is a world leader in

production of heat noncombustible insulation made from rock wool;

• Investments total volume is $10.8 mln;

• Production line is put into operation on 25 September 2011 for test-operating;

• Rockwool technologies are implemented at Troitsk Mineral Wool Board Works for the purpose of increasing output capacities by 50% as to current production line of boards made from rock wool;

•  Production line of cylinders made from rock wool

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EMERSON success story• Company development

– Russian leader in process automation for all industries

– First products manufactured September 17, 1992

– 100% acquisition with Emerson Process Management, USA, 2009,

– More than $ 30 million investments in operations, R&D and Customer support

– More than $100 million revenue, 2011FY– Headcount – more than 900 employees– Building 24000 sq.m. more space capacity for

total 1600 employees in June 2013. More than $40 million investment.

• Research and Development• Modern Operations• Customer Support Center• Service Center

Carbo Ceramics success story

• CARBO Ceramics is the world largest manufacturer of ceramic proppants

• The Chelyabinsk plant was designed to produce proppants required to increase productivity of oil reservoirs on the territory of the Russian Federation

• With the support of the Chelyabinsk region Government, a plot of land with all required communications and utilities was assigned for the plant construction

• Capital investment exceeds was over 40 million USD • In 2008 the plant reached its 100% production capacity

of 45 000 t/yr

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Possible Directions in Cooperation with the USA

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Investment cooperation (establishing joint companies and productions ‘from scratch’)

Drawing investments into the sphere of agriculture and agriculture products processing: - all-mash making for poultry and animal husbandry branches; - pork and beef and poultry meat producing and processing; - oil-yielding crops producing and processing including biofuel production based upon that; - building up-to-date vegetables storage facilities.

Drawing technologies into the sphere of water treatment and purification

Drawing technologies into the sphere of industrial production, i.e., automated systems, energy generating and supplying equipment, municipal engineering, as well as consumer goods production.

Export increase as to products made in the Chelyabinsk region (ferrous and non-ferrous metallurgy, machine building, flour-milling industry)

Possible Directions in Cooperation with foreign partners

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Investment cooperation (establishing joint companies and productions ‘from scratch’)

Drawing investments into the sphere of agriculture and agriculture products processing: - all-mash making for poultry and animal husbandry branches; - pork and beef and poultry meat producing and processing; - oil-yielding crops producing and processing including biofuel production based upon that; - building up-to-date vegetables storage facilities.

Drawing technologies into the sphere of water treatment and purification

Drawing technologies into the sphere of industrial production, i.e., automated systems, energy generating and supplying equipment, municipal engineering, as well as consumer goods production.

Export increase as to products made in the Chelyabinsk region (ferrous and non-ferrous metallurgy, machine building, flour-milling industry)

Investment in ChelyabinskChelyabinsk Region was assigned BB+ long-term rating by Standard & Poor’s. Financial stability rating by national scale has been ruAA+. The forecast on both ratings is Stable.

Advantageous conditions for

investors

Tax incentiv

es

Ongoing support

Free of ‘red-tape’

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Rating Agency Fitch Ratings:Long-term rating BB+/Positive Short-term B, national long-term AA (rus)

What we provide:

Regional Government offers:

• Land grants;• Utility networks and infrastructure construction for the land lots;• Investment agreement with Chelyabinsk Government;• Single window system for regulatory documentation;• Tax exemption.

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Taxation regime for investors:Tax deductions for the period of 5 years

through the competition :

•Profit Tax reduced to 13,5%

•Property Tax reduced to 1,1%

•Land Tax Advantages (deductions) over the construction period

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Support Measures for Investors

Start office for foreign investors provides a coordinated approach

(we offer consulting and translation services for start-up foreign investors)

The website «Chelyabinsk Region Investment»

www.oblinvest74.ru

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WELCOME TO CHELYABINSK REGION

Ministry for Economic Developmen of the Chelyabinsk region

Address: 57 Lenin prospect, Chelyabinsk 454091

Phone: 007-351-263-7754 Fax: 007-351-263-0007 Internet: www.econom-chelreg.ruE-mail: cecon@chel.surnet.net