Victor KoksharovMinisterpräsident der Region Sverdlovsk/Prime Minister

Sverdlovsk Region, Russland/RussiaEffektive Entwicklung des Wirtschaftspotentials des Swerdlowsker

Gebiets als Faktor der regionalen WettbewerbsfähigkeitEffective Development of Economic Potential of the Sverdlovsk

Region as Factor of Regional Competitiveness

Victor KoksharovVictor KoksharovPrime-Minister of the Sverdlovsk RegionPrime-Minister of the Sverdlovsk Region

Effective DevelopmentEffective Developmentof Economic Potentialof Economic Potential

of the Sverdlovsk Regionof the Sverdlovsk Regionas a Factor of Regional as a Factor of Regional

CompetitivenessCompetitiveness Austrian Economic Forum for Central and Eastern Austrian Economic Forum for Central and Eastern

EuropeEurope19-21 September 200719-21 September 2007

• territory – 194 300 sq.km

• population – 4,4 mln. (5th place in RF)

• gross regional product – € 18 bln.

• industrial output – 3rd place in RF

• volume of foreign investments – 10th place

• volume of investments in the fixed capital – 7th place

• retail trade turnover – 5th place

• whole sale trade turnover – 4th place

• financial result – 5th place

Positions of thePositions of the SverdlovskSverdlovsk Region in Region in

RussiaRussia

• volume of shipped goods manufacturing industry– 1st place in UFD

• volume of consolidated budget – 2nd place

• retail trade turnover – 1st place

• volume of humanservices – 1st place

Positions of thePositions of the SverdlovskSverdlovsk Region in Ural Region in Ural

Federal DistrictFederal District

GrowthGrowth of Gross Regional of Gross Regional Product Product of the Sverdlovsk of the Sverdlovsk

RegionRegion

220,0

199,5

183,9169,8

157,1

145,7134,5

123,5113,4108,7

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

%, comparable terms%, comparable terms((20020000 = 100 = 100%)%)

Gross Regional Product Gross Regional Product Structure of the Sverdlovsk Structure of the Sverdlovsk

RegionRegion

6,0%

38,1%

55,9%

49,4%

3,8%

46,8%

20002000 20020066

TaxesTaxes

ProductionProduction

ServicesServices

CompetitiveCompetitive advantagesadvantages

Favorable geographical position at the border Favorable geographical position at the border of Europe and Asia, close to main marketsof Europe and Asia, close to main markets;;

Stable economic growth exceeding average Stable economic growth exceeding average in Russiain Russia;;

Long-term strategic Long-term strategic programmeprogramme of regional of regional development up to 2015development up to 2015;;

Developed innovation infrastructureDeveloped innovation infrastructure;; High scientific potential and educational level High scientific potential and educational level

of the populationof the population;; Developed transport infrastructure and Developed transport infrastructure and

communicationscommunications;; Deep integration to international trade Deep integration to international trade

systemsystem;;

CompetitiveCompetitive advantages advantages (2)(2)

Rich mineral and raw material resourcesRich mineral and raw material resources; ; Powerful diversified industrial complexPowerful diversified industrial complex;; Successful functioning of small-scale Successful functioning of small-scale

business sectorbusiness sector;; Dynamic development of service industry Dynamic development of service industry

and consumer market;and consumer market; Developed investment and finance Developed investment and finance

infrastructureinfrastructure;; Effective budget policyEffective budget policy;; Steady growth of the living standard.Steady growth of the living standard.

Growth of Macroeconomic Growth of Macroeconomic Indicators Indicators in 2015 vs 2000in 2015 vs 2000

2,8 - 3,4 2,5 - 2,7 2,1 - 2,4

6,5 - 7,6

3 - 3,7 3,4 - 4,2

Gross regional product

Industry AgricultureInvestment

s in the fixed

capital

Retail trade

turnover

Population money

revenues

timestimes

Investment PolicyInvestment Policy

Guarantees of the Government of the Guarantees of the Government of the Sverdlovsk Region for investorsSverdlovsk Region for investors

Budget and tax credits for investorsBudget and tax credits for investors Investment support Fund of the Governor of Investment support Fund of the Governor of

the Sverdlovsk Regionthe Sverdlovsk Region Foreign Investment CouncilForeign Investment Council Annual renewed Register of the most Annual renewed Register of the most

important objects for modernization and new important objects for modernization and new construction sitesconstruction sites

Internet siteInternet site « «Investment Portal of Sverdlovsk Investment Portal of Sverdlovsk RegionRegion»» http://sverdl-invest.midural.ruhttp://sverdl-invest.midural.ru

Investment PotentialInvestment Potential

Credit rating agency Credit rating agency ««Standard & Poor’sStandard & Poor’s» » upgraded the credit rating of the upgraded the credit rating of the Sverdlovsk Region to Sverdlovsk Region to BBBB in December in December 20062006

Russian credit rating agency Russian credit rating agency ««ExpertExpert»» sets the Sverdlovsk region among the sets the Sverdlovsk region among the five most investment attractive regions of five most investment attractive regions of Russia rating it toRussia rating it to 11BB

Ministry of Economic Development & Ministry of Economic Development & Trade of Russia put the Sverdlovsk Trade of Russia put the Sverdlovsk Region among 10 competitive regionsRegion among 10 competitive regions

Innovation Innovation InfrastructureInfrastructure

160 innovation industrial enterprises160 innovation industrial enterprises overover 150 150 small innovative enterprisessmall innovative enterprises 4 4 business incubatorsbusiness incubators 3 3 innovative technological centresinnovative technological centres 3 3 regional industrial centresregional industrial centres 2 2 centrescentres of technologies transferof technologies transfer 6 6 innovation and research companiesinnovation and research companies

Scientific PotentialScientific Potential

Higher education establishmentsHigher education establishments(31 (31 universitiesuniversities and institutions)and institutions)

The Ural Branch of the Russian Academy of The Ural Branch of the Russian Academy of Sciences Sciences ((RAS), including RAS), including 22 22 institutionsinstitutions

R&D institutionsR&D institutions (92 (92)) 12 12 Members of the RASMembers of the RAS, 31 , 31 Corresponding Corresponding

Members of the RASMembers of the RAS, , around around 11000000 Doctors Doctors of Sciencesof Sciences, , more more 55000000 Candidates of Candidates of ScienceScience

Over 30 000 researchersOver 30 000 researchers

EkaterinburgEkaterinburgMoscow

Erevan

Almaty

Prague

HanoverDusseldorf

Paris

Istambul

Dubai

Munich Vienna

AntaliaDushanbe

Frankfurt Kiev

Larnaka

London

Tashkent

Telaviv

Hurgada

Sharm-al-Sheikh

TianjinBarselona

Palma

International FlightsInternational Flightsfrom the Koltsovo from the Koltsovo

AirportAirport

CommunicationsCommunications

Entrance to main transit digital line Entrance to main transit digital line pathspaths

Ekaterinburg as one of the major Ekaterinburg as one of the major communication communication centrescentres in Russia for in Russia for interurban and international callsinterurban and international calls

5 5 mobile operators in GSM standard mobile operators in GSM standard and 1 in CDMA2000 standardand 1 in CDMA2000 standard

Net of optical trunks covering all the Net of optical trunks covering all the regionregion

Foreign TradeForeign Trade

6 months 2007

650 894

2 727

3 378

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

6'2006 6'2007

€ mlnImport Export

12 months 2006

1 235 1 618

4 787

5 977

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

2005 2006

€ mlnImport Export

Consulates & MissionsConsulates & Missionsof Foreign Countriesof Foreign Countries

Consulates Consulates GeneralGeneral

USAUSA

UKUK

GermanyGermany

Czech RepublicCzech Republic

ChinaChina

Kirghiz RepublicKirghiz Republic

MissionsMissions

HungaryHungary

BelorussiaBelorussia

BulgariaBulgaria

UkraineUkraine

Foreign InvestmentsForeign Investmentsin the Sverdlovsk in the Sverdlovsk

RegionRegion€ mln.

875

414

1 112

0

500

1000

1500

2004 2005 2006

Mineral and Raw Mineral and Raw Material ResourcesMaterial Resources

Tavda

TurinskayaSloboda

Tabory

Baikalovo

TugulymTalitsa

PyshmaKamyshlov

Suhoy LogAsbest

SysertPolevskoy

Nijniye Sergi

Revda

Bysert

Achit

Arty

ShalyaKirovgrad

Nevyansk

Krasnoufimsk

VerhnayaPyshma

Rej

YEKATERINBURG

Pervouralsk

Bogdanovich

Kamensk-Uralsky

Beloyarsky

Beryozovsky

Irbit

Artemovsky

Alapaevsk

NijnyayaSalda

Verhnya Salda

Krasnouralsk

Nijnyaya Tura

Nyzniy Tagil

Kachkanar

Karpinsk

Severouralsk

Novaya Lyalya

Gari

Serov

Ivdel

Krasnoturyinsk

Verhoturye

Chromites

Iron ores

Copper and copper-zinc groups

Manganese

Bauxites

Nickel

Gold

Mituminous and brown coal

Oil

Gas

Talcum

Semi-precious stones(gemstones)

Molybdenum

Asbestos

Fireclays

Industrial ComplexIndustrial Complex

Share of Industry in...

37 35

80

0%

25%

50%

75%

100%

Gro

ssReg

iona

lPr

oduc

t

Num

ber

ofPe

rson

nel

Con

solid

ated

Profi

t

Industry Other

Main Branchesof Industry:

■ MetallurgyMetallurgy

■ Mechanical Mechanical engineeringengineering

■ Power industryPower industry

■ Chemical industryChemical industry

■ Timber industryTimber industry

Small-Scale BusinessSmall-Scale Business

Annual growth by 2000 of Annual growth by 2000 of small firmssmall firms

Total number of small firms in Total number of small firms in Sverdlovsk region:Sverdlovsk region: 30 000 30 000

Turnover of small business in Turnover of small business in Sverdlovsk region amounts to Sverdlovsk region amounts to 1/31/3

Consumer MarketConsumer Market

Annual growth of shopping area by Annual growth of shopping area by 5–8%5–8%

350 sq.m of sales premises are 350 sq.m of sales premises are accounted per 1 000 citizensaccounted per 1 000 citizens

Major retail networks presentMajor retail networks present:: MetroMetro C&CC&C, , Auchan,Auchan, IKEA, OBIIKEA, OBI, , RamstorRamstor

Well known hotel brands: Well known hotel brands: Accor, Accor, Residor SAS, HyattResidor SAS, Hyatt

Finance SystemFinance System

€ number of financial organizations – 116116 (Raiffeisen Bank Austria(Raiffeisen Bank Austria, , Societe Generale Societe Generale EstEst, , KMBKMB––BankBank, , HomeHome CreditCredit & Finance& Finance BankBank, , CitibankCitibank, , International MoscowInternational Moscow BankBank, , International Bank of Azerbaijan)International Bank of Azerbaijan)

€ Stock and currency exchanges€ Consulting firms ((KPMG, Ernst & YoungKPMG, Ernst & Young, ,

EBRR)EBRR)€ Auditing firms network€ Insurance companies network (AIG branch (AIG branch

office)office)

Consolidated Budget Consolidated Budget IncomingIncoming

2,0

2,83,2

0

1

2

3

4

2005 2006 2007

billionbillionsseuroeuro

Cooperation with Cooperation with AustriaAustria

Marketing Office (structural unit of the Marketing Office (structural unit of the Federal Economy ChamberFederal Economy Chamber of Austria) of Austria) opened in opened in 20062006

Starting April 2006 Starting April 2006 ««Austrian AirlinesAustrian Airlines»» operate flights 3 times a week operate flights 3 times a week Ekaterinburg to ViennaEkaterinburg to Vienna

More than 10 Russian-Austrian joint More than 10 Russian-Austrian joint ventures registeredventures registered

InIn 2006 2006 turnover with Austria increased turnover with Austria increased by 78,9by 78,9%%

Special free economy Special free economy zonezone « «Titanium ValleyTitanium Valley»»

JSC VSMPO-AVISMA Corp. (Russia)

Boeing-Commercial Airplanes Group (USA)

Alfa-Laval (Sweden)

Goodrich Corporation(Canada)

Yamaha Motor Co., Ltd. (Japan)

TITAL® -Titan AluminiumFeinguss GmbH (Germany)

Rolls-Royce (UK)

Blades TechnologyInternational Ins (Israel)

Morimatsu Industry Co., Ltd. (Japan)

ТЕСT «Тurbine Engine Components Technologies» (USA)

Snecma, Groupe SAFRAN (France)

Austrian Manufacturesof Petroleum Equipment

Growth of MetallurgyGrowth of Metallurgyinin 2007–2012 2007–2012

Steel: 2 timesSteel: 2 times((up toup to 14 14 mlnmln. . tons per yeartons per year),),

Copper: 2 timesCopper: 2 times((up toup to 700 700 thousand tons per yearthousand tons per year),),

Aluminum:Aluminum: 2 2..5 5 timestimes((up toup to 850 850 thousand tons per yearthousand tons per year))

Growth of IndustryGrowth of Industry

Mechanical engineering: setting up Mechanical engineering: setting up production of main dc cargo locomotivesproduction of main dc cargo locomotives((€ € 130 130 mlnmln.),.),

Power industry: putting into operation Power industry: putting into operation additional power suppliers for additional power suppliers for 55..2 2 GWGW((€€ 7 7 blnbln.),.),

Building industry:Building industry: increasing by 3 times increasing by 3 times cement productioncement production((up toup to 10 10 mlnmln. . tons per yeartons per year) )

IP Ekaterinburg CityIP Ekaterinburg City

Iset Tower46 levels

Hotel HyattHotel Hyatt20 levels20 levels

Ural Tower60 levels

Tatishchev Tower50 levels

de Genin Tower40 levels

Demidov’s Yard Tower Ekaterina’s Boulevard Gallery

IP IP ««Ural GuardsUral Guards»»

Amount of Amount of investments:investments:$ 500 mln.$ 500 mln.

Two tower Two tower complex:complex:174 m and 154 m 174 m and 154 m highhigh

Office surface:Office surface:234 474 sq.m234 474 sq.m

Parking area:Parking area:1500 cars1500 cars

IP Multifunctional Centre IP Multifunctional Centre ««DemidovDemidov»»

Total surfaceTotal surface – –107107 thousand sq.m thousand sq.m

OfficesOffices « «AA»» class class – –15 15 thousand sq.mthousand sq.m

Congress HallCongress Hall Parking areaParking area

for 1400 carsfor 1400 cars

IP InternationalIP InternationalExhibition CentreExhibition Centre

IP IP Housing EstateHousing Estate ««AkademicheskyAkademichesky»»

IP IP Housing EstateHousing Estate ««Bolshoy BeriozovskyBolshoy Beriozovsky»»

Transport and Transport and Logistics HubLogistics Hub

container terminal container terminal world standard storage facilitiesworld standard storage facilities auxiliary infrastructureauxiliary infrastructure

IP Big Eurasian IP Big Eurasian UniversityUniversity

Founded by Government of the Founded by Government of the Sverdlovsk Region, Administration of Sverdlovsk Region, Administration of Yekaterinburg, Ural Branch of the Yekaterinburg, Ural Branch of the Russian Academy of Sciences and Russian Academy of Sciences and thirteen state higher education thirteen state higher education establishmentsestablishments

Area of 1500 ha at the Shartash Lake Area of 1500 ha at the Shartash Lake assigned for the constructionassigned for the construction

€€ 1122 billionsbillions investmentinvestment 130–150 130–150 thousandthousand studentsstudents 25 25 thousandthousand professors and teachersprofessors and teachers

Strategic DirectionsStrategic Directionsof Developmentof Development

Social priorities:Social priorities: Development of health-care systemDevelopment of health-care system

Health and regulations Health and regulations improvementimprovement

Increase of the level of employmentIncrease of the level of employment

Education accessibilityEducation accessibility

Preservation and development of Preservation and development of culturalcultural heritageheritage

Strategic DirectionsStrategic Directionsof Developmentof Development

Economic priorities:Economic priorities: Restructuring of the whole production Restructuring of the whole production

complex, increase of processing industry complex, increase of processing industry shareshare

Efficient economy, reduction of power Efficient economy, reduction of power consumption, modernization and technical consumption, modernization and technical reequipment of enterprisesreequipment of enterprises

Intensification of investment activities and Intensification of investment activities and formation of favorable investment climateformation of favorable investment climate

Development of natural resources base and Development of natural resources base and scientific potentialscientific potential

Taking advantage of high transport potentialTaking advantage of high transport potential

The Sverdlovsk RegionThe Sverdlovsk Region

invites youinvites you

toto

cooperation!cooperation!