Transcript Invest in New Bulgaria

REPUBLIC OF TATARSTAN –
INVESTMENT IN FUTURE
Geneva
Kazan
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Most attractive FDI destinations 2005
FDI Confidence Index 2005, top 25
Turkey
1,133
China
2,197
India
1,951
United States
1,42
United Kingdom
1,398
Poland
1,363
Russia
1,341
Brasil
1,336
Australia
1,276
Germany
1,267
Hong Kong
1,208
Hungary
1,157
Czech Republic
1,136
Low Confidence
High Confidence
Values Calculated on a 0 to 3 Scale
Source: A.T.Keamey
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Tatarstan is a centre of East European part of Russia
Republic of Tatarstan
is situated in the centre
of a large industrial
area of Russia, 800
kilometres away to the
East from Moscow, at
the junction of the
Volga and the Kama
rivers.
It borders with 8
Russian regions.
Казань
It has free access to the
markets of regions with
over 40 million
customers.
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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The Republic of Tatarstan
 Territory - 67,800 sq. km.
 Population – 3.8 million
 Population density - 55,8 persons per
sq. km.
Natural Resources
Oil - 800 million tonnes
Gypsum - 72 million tonnes
Oil bitumen - 12.5 billion tonnes
Peat - 800 peat bogs
Construction stone - 35,3 million
cubic meter
Brick clay - 73,5 million cubic meter
Chalkstones, dolomites, etc.
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Investment Attractiveness
Favourable geographic
location
Well-developed transportation
infrastructure
Advanced manufacture
Legislation supporting
investment activities
Availability of raw material
resources
Significant industrial and
scientific potential, qualified
labour resources
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Real Growth of Gross Regional Product
20
18,2
2005
GRP of the Republic of Tatarstan
15
14,1
2004
2003
10,4
10
2002
8,3
7,2
7,5
2001
5
2000
0
20
40
60
GRP of the Russian Federation
0
2000
2001
2002
2003
2004
2005
80
100
120
140
GRP of the Republic of Tatarstan
GRP of the Republic of Tatarstan and Russia
per capita
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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GRP Structure of Tatarstan
Industry
47%
Trade & Food
11,7%
Construction
9,0%
Agriculture
8,0%
Transport
6,0%
others
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
18,3%
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Financial Stability
Quality of life: consumer price index
111%
Predictable business environment
110%
109%
Tatarstan
108%
Russia
107%
Improvement of business
climate and growth of economy
Quality of life: real wages
12,80%
Promotion of consumption
7,80%
Russia
Tatarstan
0%
2%
4%
6%
8%
10%
12%
14%
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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«Quality of life» index
1. Tyumen Region
2. Moscow
3. The Republic of Tatarstan
4. Saint-Petersburgh
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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«Quality of life»
Income of population
130,0%
(2005 in % to 2004)
128,2%
Growth of
purchasing
capacity
118,9%
108,9%
Real income
Average wages
Tatarstan
Russia
Retail business turnover
6,00
5,40
5,00
4,00
4,08
3,00
3,25
2,50
2,00
2,05
1,50
1,00
1,14
0,65
0,00
1998
1999
2000
2001
2002
2003
2004
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
2005
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Main Areas of Economic Development
of the Republic of Tatarstan
Raising the
competitiveness of
production
Rise in living
standards
Doubling the GRP
Maintaining stable
economic growth
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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ACHIEVEMENT OF MAIN OBJECTIVE
Promotion of
innovations
Development of
hi-tech production
Doubling the
GRP by 2010
SME Support
Attraction of
investments
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Programme of Social and Economic Development
in 2005-2010
Areas of growth of the
economy
Oil-Gas-andChemical Complex
Chemical and
petrochemical
companies of the
republic produce
about 10 per cent of
Russia’s chemical
and petrochemical
products.
Small and MediumSized Enterprises
Mechanical
Engineering
Complex
In the last 4 years, the
contribution of SME to
Represented by
the GRP has increased
from 12.7 to 16.5 per aircraft-building,
automotive
cent.
industry
By 2010, the figure
shipbuilding,
should not be less
and production
than 30 per cent and
of equipment.
37 per cent by 2015.
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Share of enterprises of Tatarstan
in the total industrial output of Russia
5%
50%
50%
71%
95%
94%
6%
Oil
50%
50%
Centrifugal pumps
Diesel motor
vehicles
30%
Tyres
Enterprises of the Republic of Tatarstan
Gas turbines
Enterprises of other regions of Russia
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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PROMOTION OF INNOVATIONS
 Programme for Development of Innovation Activities for
2005 -2010;
 Development
of economic clusters which ensure the
competitiveness of the republic’s economy;
 Creation
of a network of technoparks and business
incubators, industrial production areas, technology
transfer and new production mastering centres;
 Development
of scientific research centres based on
institutions of higher education as research centres;
 Increase in the proportion of scientific sector in the gross
regional product;
 Organisation and conduct of fundamental and applied
R&D aimed at republic’s programmes.
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Share of innovative production in GRP
of Tatarstan
%
14
Share of innovative
production in GRP of
Tatarstan
12
13,0
10,7
9,8
10
8
6
4
3,5
3,8
2
0
2001
2002
2003
2004
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
2005
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Education and science
Number of Students per 10,000 persons
500
399
424
436
Tatarstan is the region with strong
educational and scientific potential.
170,000 persons are engaged in the
sphere of education.
363
400
328
Persons
286
300
200
100
0
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
Kazan State University, Kazan State
University of Technology, Kazan State
Technical University, Kazan University of
Economics and Finance are among the
best Russian universities.
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
PROMOTION OF SMALL BUSINESS
small business crediting
direct promotion of small business
creation and development of the infrastructure of
support to small businesses engaged in the field of
research and technology;
 favourable conditions for working in business
incubators
 subsidising exporter companies
competition «The best exporter of the Republic of
Tatarstan» in the category «small business
enterprises »
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Innovation Activities in the Republic of Tatarstan
Innovation Production
Technopark «Idea»
Investment Venture Fund of the
Republic of Tatarstan
supports the introduction of
innovations into the manufacturing
industry
accumulates investment
resources and directs them to the
implementation of innovative
projects
concentration of the most
promising and perspective
innovative companies
coordination and support on every
stage of development
commercialization of innovative
ideas
www.ivfrt.ru
www.tpidea.ru
Stabilisation Pledge and Insurance Fund of the Republic of
Tatarstan
provides financing for investment programmes
and projects of economic аnd social development
of Tatarstan including projects of small and
medium-sized businesses
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Share of small and medium enterprises in
GRP of Tatarstan
18%
16%
14%
16,2%
16,5%
2004
2005
14,6%
12,7%
12%
10%
8%
6%
4%
2%
0%
2002
2003
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Investment Rating of the
Republic of Tatarstan
Credit Rating of the Republic of Tatarstan :
Foreign exchange borrowings rating
Ba1 stable outlook
Long-term credit rating
BB - positive outlook
Long-term rating in foreign exchange and
local currency:
 «BB» – forecast ”stable”
Investment rating among 89 Russian
regions:
(“Expert RA”, a Russian rating agency )
 5th in investment risk
 8th in investment potential
Since 2005 the rating of Tatarstan raised five times
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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INVESTMENT FOCUS
• Republic of Tatarstan is a
“supporting leader region”;
20
04/
05
20
03/
04
20
02/
03
20
01/
02
19
99/
200
0
20
00/
01
19
98/
99
19
97/
98
19
96/
97
19
95/
96
STUDIES
of Expert RA Rating Agency
0
1
• 6th place in the general rating
of Russian regions;
2
3
4
4
4
5
5Risk rank 5
6
6
• 5th place in the minimal
investment risk in 2004/05;
7
8
8
9
8
9
9
9
10
10
12
Potential rank
14
14
•
5th place in the steadily low
investment risk over the last
decade;
14
15
16
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Capital investment
6
%
$ Billion
Fixed capital expenditures
4,9
5
4
3
3
2,3
2
1,9
1,8
1
0
2001
2002
2003
2004
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
2005
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Accumulated Direct Investments
Chemical and petrochemical
2,6%
Other
7,5%
Finance
3,1%
Food
52,8%
Crude oil processing
3,8%
Agriculture
7,2%
Communications
11,4%
Crude oil production
11,5%
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
Accumulated Investment (1995-2005)
0
200000
400000
600000
800000
1000000
1200000
Switzerland
Germany
United Kingdom
Cyprus
USA
Luxembourg
Austria
Ireland
Turkey
Other
As of 1 January 2006, Tatarstan has accumulated foreign investment
in the total amount of US$1.43 billion
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Advisory Board for Foreign Investments
in the Republic of Tatarstan
Chairman of Supervisory Council– Prime Minister of Tatarstan R.N. Minnikhanov
Advisory Board
for Foreign Investments
Government authorities
Enterprises
and organisations of
the Republic of Tatarstan
Large
foreign investors
Goals :
 to
protect interests of domestic and foreign investors
to contribute to creation of a favorable investment climate in the republic
through timely resolution of issues arising in the course of attraction of foreign
investments and implementation of topical investment projects.
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Investment Legislation of the Republic of Tatarstan

Law No.2180-XII of the Republic of Tatarstan of July 19,
1994 "On Foreign Investments in the Republic of
Tatarstan" (as amended on June 27, 2001 and on
September 23, 2003)

Law No. 1872 of the Republic of Tatarstan of November 25,
1998 "On Investment Activity in the Republic of Tatarstan"
(as amended and added on June 24, 2003)

Resolution No. 123 of the Cabinet of Ministers of the
Republic of Tatarstan of March 11, 2001 "On Additional
Measures of State Support for Enterprises (Organisations)
of the Republic of Tatarstan Implementing Investment
Projects"
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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State Guarantees for Protection of Foreign Investments

The guarantee of legal protection of foreign investors;

The guarantee of compensation in the event of
nationalisation and requisitioning of assets of a foreign
investor or a commercial organisation with foreign
investments;

The indemnification and compensation for damages to
foreign investors;

The guarantee of transfer of payments in connection with
foreign investments;

The guarantee of use of payments in the currency of the
Russian Federation in the territory of the Republic of
Tatarstan;

The guarantee against unfavourable changes in legislation of
the Republic of Tatarstan.
(Provided for by Chapter 2 of the Law No.2180-XII of the Republic of Tatarstan
of July 19, 1994 "On Foreign Investments in the Republic of Tatarstan"
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
)
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Tax Privileges for Foreign Investors
Tax
Rate
1. Profit Tax
24%
for investors
20%
2. Property Tax
2.2%
for investors
0.1%
Granting of privileges for transportation tax, land tax, and
import duties is also possible.
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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The Special Economic Zone of Industrial Production Type in the
territory of Yelabuga District of the Republic of Tatarstan is
situated near Yelabuga of Yelabuga District of the Republic of
Tatarstan, 25 km. from Naberezhnye Chelny, 40 km from
Nizhnekamsk, and 215 km. from Kazan (capital of the Republic of
Tatarstan). The area of the Special Economic Zone is 20 sq. km.
Symbols
Railway
Highways
Kazan 210 km
Kazan
Distance up
to locality
River port
Territory of
SEA
«Alabuga»
Airport
Elabuga
Railway
station
Nab. Chelny
TATARSTAN
Polyanka
Izhevsk
180 km
Mendeleevsk
Elabuga
River port
Kamaz
Nizhnekamsk
Kazan 210 km
Naberezhnye Chelny
Nizhnekamsk
Chistopol 170 km
Elabuga
Nizhnekamsk
Krugloe pole
Ufa
385 km
Naberezhnye
Chelny
Airport “Begishevo”
Nizhnekamskneftehim
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
Naberezhnye
Chelny
Airport
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Tax Privileges for Participants
of Special Economic Zone
Tax
Rate
Distribution by Budgets
Federal
Regional
Local
24.0%
6.5%
17.5%
-
20.0%
6.5%
13.5%
-
2.2%
-
1.1%
1.1%
0%
-
0%
0%
1.5%
-
-
1.5%
For SEZ residents
0%
-
-
0%
4. Transport Tax
Rates depend on
type and horse
power capacity
of the vehicle
-
Rates depend on
type and horse
power capacity of
the vehicle
-
For SEZ residents
0%
-
0%
-
1. Profit Tax
For SEZ residents
2. Property Tax
For SEZ residents
(for 10 years)
3. Land Tax
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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To become a resident of Special
Economic Zone, one should:
Sign an agreement on industrial production activities with SEZ
management authority
Invest in its production assets no less than EUR 10 million, of
which at least EUR 1 million during the first year of
development.
WHY MAKING BUSINESS IN THE SEZ?
 Advantageous geographical location
 Readily available complete industrial production structure
 No importation and exportation customs duties
 Exemption from some taxes
 Privileges for basic taxes
 Up-to-date equipment and efficient services
 Closely adjacent potential users of the products
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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INVESTMENT PROJECTS
Chemical and Petrochemical Industry
Project
Participants
Description
Estimated cost of the project –
130.3 billion roubles.
Complex of oil-refining and
petrochemical plants in
Nizhnekamsk
OAO Tatneft
Payback period – 10.1 years
ZAO Nizhnekamsk Refinery
OAO Svyazinvestneftekhim
Construction of an oilextraction plant rated at 300,000
tonnes of seeds per annum
Estimated cost of the project – 1.75
billion roubles
Payback period – 4.75 years
OAO Nefis Cosmetics
OAO Kazan Fat Production Plant
Total cost of the project – 251.6
million US dollars
Establishing the production of
expandable polystyrene (EPS)
rated at 50,000 tonnes per
annum and ABS plastics rated
at 70,000 tonnes per annum
Payback period – 5.4 years
OAO Nizhnekamskneftekhim
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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INVESTMENT PROJECTS
Transport and Logistics
Project
Participants
Description
Total cost of the project - 16 billion
roubles
Toll road
“AlexeyevskoyeAlmetyevsk” (140 km)
Payback period - 9 years
Investment required -16 billion roubles.
Ministry of Transport and
Roads of Tatarstan
Total cost of the project – 12.02 billion
roubles
Toll road
Payback period - 15 years
“Shali-Sorochy Gory”
Investment required – 7 billion roubles
Ministry of Transport and
Roads of Tatarstan
Sviyaga Interregional
Multimodal TerminalLogistics Centre of
Kazan Transport Hub
Ministry of Transport and
Roads of Tatarstan
Total cost of the project – 5.99 billion
roubles
Investment required - 770 million
roubles
Form and volumes of state support
requested – 3.594 billion roubles
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Foreign Trade Turnover
11
Billions of dollars
10
9
8
7
6
5
4
Ukraine
Nitherlands
Turkey
Great Britain
Poland
Germany
Italy
Finland
Hungary
Belorus
Kazakhstan
Sweden
Czechia
Lithvania
Others
3
More than 100 countries
are trading partners of
TATARSTAN
2
1
0
1998 1999 2000 2001 2002 2003 2004 2005
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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COMMODITY TURNOVER BETWEEN TATARSTAN AND
SWITZERLAND
US$ million
120000
Exports in 2005
Exports
Imports
FTT
Balance
100000
80000
COMMODITY
EXPORTS
Mineral fuel,
crude oil and oil
products
97.3%
Plastics and
plastic products
2.6%
Other
0.1%
60000
Imports in 2005
40000
20000
COMMODITY
IMPORTS
Mechanical
equipment
52.5%
Ferrous metals and
products
19.9%
Electric equipment
11.9%
Other
15.7%
0
2004
2005
1st Q 2006
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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Khafiz Salikhov
The Ministry of Trade
and Foreign Economic Cooperation
of the Republic of Tatarstan
Address:
4 Ostrovsky St., Kazan 420111
TEL.: 7-843-299-10-07
FAX: 7-843-292-16-45
E-mail: [email protected]
Url: www.tatarmintorg.ru
The Ministry of Trade and Foreign Economic Cooperation of the Republic of Tatarstan
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