5 Reasons to Invest in the Voron

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Government of the Voronezh Region

5

reasons to invest in 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

% against 2000

450

Voronezh Region

Russian Federation (RF)

300

377

207

1.8

times

150

0

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

2010: top-10 “Highest Level of Investment Attractiveness”

Decrease of investment risk

2007 2008

18

2009

7

68

According to RA “Expert”:

Russia’s leading rating agency

2010

3

5

5 reasons why investors choose the Voronezh Region

Favourable geographical position

»

Ample HR and research potential

»

A wide range of Regional Government incentives

»

Industrial Parks with developed infrastructure

»

Experience in implementation of large-scale investment projects

»

Favourable geographical position

1

2 3 4 5

7

Voronezh is located near

European and Asian markets

Moscow

Voronezh

Europe

Near East

Asia

1

2

3

4

5

8

Voronezh is a junction of transport and logistic routes

Transport corridors:

● “North – South”

● “West – East”

St. Petersburg

Kyiv

Moscow

Voronezh

Ufa

Novorossiysk

1

2

3

4

5

Well-developed transport infrastructure

Moscow

Rivers

Rail

Belgorod

Kursk

Tambov

Moscow

Voronezh

Saratov

Borisoglebsk

Transport hubs

Motorways

Lyski Volgograd

Astrakhan

International airport

Rossosh

9

Area of the Region =

52 200 km²

Novorossiysk

1

2

3

4

5

10

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

Moscow

Kaluga

Tula

Vladimir

Ryazan

Bryansk Orel

Saransk

Lipetsk

Tambov

Penza

Kharkov

Kursk

Belgorod

Lugansk

Voronezh

Saratov

Rostov-on-Don Volgograd

1

2

3

4

5

Ample HR and research potential

1

2

3 4 5

12

Investors can easily find skilled workforce

Population in millions:

2.3 — Voronezh Region

0.9 — the City of Voronezh

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

1

2

3

4

5

13

2 nd 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

3

4 5

15

Aleksey Gordeyev —

Governor of the Voronezh Region

The Government of the Voronezh Region guarantees full support to companies implementing investment projects in our Region

1

2

3

4

5

Regional Government incentives for “High Priority” projects

Profit tax reduction of rate: up to 8 years

16

Property tax

Land plot acquisition

Subsidizing of

Co-financing of exemption: up to 8 years preferential terms of land plots lease interest rate on credit acquisition of farm machinery, forage, cattle, fertilizer construction of engineering infrastructure

1

2

3

4

5

5 easy steps for obtaining preferences

17

Step 1

Agreement of intent

Step 2

Preliminary agreement on the facility location

Step 3

Step 4

Assignment of a “High Priority” status to the project

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

Step 5

Investment agreement

1

2

3

4

5

“One-stop” approach:

“Investment Attraction Agency”

18

● 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

4

5

Partial financing of infrastructure by the Government of the Region

Motorways

Electric power Rail

20

Gas

Treatment facilities

1

2

3

4

5

21

3 special-purpose Industrial Parks

Semiluky

2

1

Voronezh

Maslovka

3

Bobrov

1.

“Maslovsky” industrial production

2.

“Semiluksko-

Khokholsky” construction industry

3.

“Bobrovsky” food and foodprocessing industry

1

2

3

4

5

Industrial Park “MASLOVSKY”: area over 500 hectares

Voronezh

Highway М4

Moscow-Novorossiysk

Gas pipeline

EPS

(Electric power substation)

LTF

(Local treatment facility)

16 km

South-East Rail main

Motorway

Voronezh-Novovoronezh

1

2

3

4

5

Experience in implementation of large-scale investment projects

1 2 3 4

5

Significant investment projects and volume of investment, million rubles

131 000 16 000 7 900

24

3 400 900 400

1

2

3

4

5

25

Summary:

5

Reasons to invest in the Voronezh Region

Favourable geographical position

Ample HR and research potential

Wide range of Regional Government incentives

Industrial Parks with developed infrastructure

Experience in implementation of large-scale investment projects

26

Welcome to the Voronezh Region!

Alexander Gusev

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

+7 473 255–38–78

AGusev@ govvrn.ru

www.govvrn.ru

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