МИНИСТЕРСТВО РОССИЙСКОЙ ФЕДЕРАЦИИ ПО РАЗВИТИЮ ДАЛЬНЕГО ВОСТОКА Government of Russian Federation Ministry for the development of the Russian Far East 1 National Priority for the Entire 21st Century Moscow, 12 December 2013 г. «Developing Siberia and the Far East is our national priority for the entire 21st century. » 1. «I suggest creating a network of Special Advanced Economic Development Zones in the Far East and Eastern Siberia with special conditions for organizing non-extractive production, including that intended for export». 2. «New companies located in such zones, in such territories, should be provided with five-year exemptions for income tax, mineral extraction tax (with the exception of oil and gas, which is a profitable sector), land and property taxes, as well as preferential insurance rates, which are very important for high-tech manufacturing». 3. «Create conditions here that will be competitive with key business centres of the Asia-Pacific region. Such conditions should apply to authorization procedures for construction, connecting to electricity networks, and passing through customs. We will make active use of the Far East Development Fund in order to resolve infrastructure issues in these territories». 4. «We will need to decide on the exact location of these territories by July 1, 2014, and adopt all the legal regulatory acts necessary for them to operate». 2 Asia-Pacific export markets for Far East of Russia Myanmar Laos Vietnam Thailand Hainan Cambodia Russia Beijing 1300 км China Khabarovsk Vladivostok Hong Kong Seoul 700 км Nahodka Korea Malaysia Taiwan Singapore Japan Tokyo 900 км Philippines Indonesia 3 Target audience of investors Over 4,400 large manufacturing companies have been exporting products to the Asia-Pacific region in the amount of $ 10 trillion USD, including raw exports 7 trillion USD ①Exporters in Asia Pacific have become investors in the Russian Far East ②Need to focus on the priority sectors and countries Countries: Industries: • Japan • construction materials • agro-industrial complex • South Korea • timber-processing complex • autoparts • China • fish processing • logistics • USA • tourism • oil and gas chemistry • Canada • metallurgy • infrastructure • Germany • Finland • Turkey 4 New structure for Investors support Deputy Prime Minister Commission on the implementation of investment projects Yuri Trutnev Ministry for the Development of the Russian Far East Alexander Galushka AGENCY for Investment and export support Investor connections CORPORATION For Development of the Russian Far East Site preparation Fund for Development of the Russian Far East Agency for labor development Funding Labor power supply 5 Law of Special Advanced Economic Development Zones Goal of the law Legislative support of the International Competitiveness Steppingstone Legislative consolidation best rules and regulations used in the Asia-Pacific region Implementation Giving Management company the right to determine the best and competitive in the Asia-Pacific region rules and regulations 6 Law of Special Advanced Economic Development Zones Sphere of special regulation Creation 1. 2. 3. 4. 5. 6. Attracting foreign labor Providing the land plots for the construction Use of State and Municipal property for construction Easements set up Environmental Impact Assessments The construction works Management and operation Issues Land transfer from one category to another 2. The establishment of Technical Regulations 3. The establishment of Sanitary Standards 4. Urban areas Planning 5. State construction Expertise and construction Supervision 6. Technical conditions and Connection Fee 7. Attracting domestic and foreign skilled employees 8. Customs regulations and procedures 9. Medicine and Education 10. Certain powers of public authorities and local self-government 11. Subsoil use 12. Tax exemptions 1. 7 Create conditions for will be competitive Institutions creation 1. Creation and capitalization 2. Funding for the creation of 3. Creation new law for the 4. Participation of the of development institutions of the Far East advanced development areas Development of the Far East will fix special socioeconomic regimes Regions and the complicity of regional development institutions, development of social infrastructure and human resource capacity Аttractive conditions 1. Dealing with Construction Permits 2. Intellectual 3. Payroll taxes 4. Export support 6. Availability of 7. Connection to 8. Аvailability of 9. Profits tax Human Resource the power supply system suppliers 5. Energy costs Property Protection Effective management 1. Investor search 2. Sites creation 3. Financing 4. Human Resource ensuring for investors 8 Our mission - make The Best conditions in region CONDITIONS in Asia-Pacific countries RUSSIA Korea China Singapore USA Canada Japan RUSSIAtoday - target for the model SEZ unit Profit tax 10 15 17 33 23,5 26,4 13,5 10 % Of profit Inbound and Outbound logistics cost 700 550 440 1 320 1 660 970 1 800 440 U.S. dollars per 20foot container Power cost 7,3 7,4 13,6 6,9 7,4 17,9 11,7 6,9 U.S. cents per 1 kWh of electricity Payroll taxes 8,8% 26,7% 16% 7,7% 8,7% 25,6% 14% 7,7 % Of payroll Dealing with Construction Permits 29 67 26 27 163 193 244 26 days Connection to the system power supply 28 41 36 68 142 105 254 28 days Export support 5 4 4 4 5 3 2 5 score based on the volume of export support measures Protection of intellectual property 2 3 4 5 4 5 3 5 rank score rating IPRI Labor power High High High High middle High low High Availability of suppliers High High High High middle High low High 9 Advanced Economic Development Zones development stages Three spheres structure and development phases : Kernel: from tens to hundreds of hectares - an export-oriented special economic zone, industrial park, industrial park, a free trade zone. Environment: tens of square kilometers – technic and social security infrastructure for Kernel support. Ecosystem: territory of advancing social and economic development the territory-wide municipal or urban district, internationally competitive in attracting investment and new residents. SEZ main structure: Criteria for selecting sites for SEZ in the Far East*: Modern production facility. Ice-free ports.. International transport and logistics Hub. In the long term favorable conditions for life. Residential infrastructure providing accommodation of Existing infrastructure and human employees of the resident companies. * In general, the criteria for setting the SEZ are indicative, not HR and pro education facility prescriptive. 10 Collection data from territories Checked more then 140 parameters from more than 400 plots. RUSSIA Currently collected data from territories and have start identify the 15 best sites for SEZ Chukotka Magadanskaya oblast Kamchatka Yakutia Khabarovskiy kray Sakhalin Amurskaya oblast ЕАО Primorskiy kray 11 Special Advanced Economic Development Zones 1. Komsomolsk Svobodny 2. Belogorsk 11 3. Khabarovsk Belogorsk 1 Komsomolsk 2 4. 5. 3 Leninsk Khabarovsk 4 Zarubino 6 6. Lazo 7. Ussuriysk 8. Mikhailovka 9. Nahodka Yuzhno-Sakhalinsk 8 7 Ussuriysk 10. Nadezhdinskoe 5 9 Vladivostok 10 11. Svobodny Nahodka 12. Nagorny Technological Manufacturing Agro-Industrial Logistic 12 Faces of the Ministry Alexandr Galushka Minister of the Russian Federation On Development of the Far East Alexandr Osipov First deputy minister Maxim Shereykin Deputy minister Oleg Skufinsky Deputy minister 13 Contacts Khabarovsk 680000 г. Хабаровск, ул. Муравьева-Амурского, 18 Moscow 109544, г. Москва, ул. Школьная, 25 E-mail: info@minvostokrazvitia.ru Phone: +7 4212 97-00-10 Fax: +7 4212 97-00-11 E-mail: msk@minvostokrazvitia.ru Phone: +7 499 605-19-10 Fax: +7 495 671-46-04 14