#1MMM START A SUCCESSFUL BUSINESS IN KURGAN REGION Loans Grants from 0% 0% from 0,1% up to 70 taxes 220 p.a. thousand of free land Subsidies roubles for recovery of logistics costs up to million a special econmic zone 50% compensation of the cost of equipment Kazakhstan#2TERRITORIES OF ADVANCED SOCIAL AND ECONOMIC DEVELOPMENT have been created in Kurgan region in monotowns such as Dalmatovo, Kataysk and Vargashi TAX EXEMPTIONS FOR RESIDENTS 12,4 thousand people KATAYSK from Ekaterinburg 150 KM from Kurgan 210 KM DALMATOVO 12,3 thousand people KURGAN 312 thousand people 200 KM from Kurgan, Chelyabinsk Ekaterinburg, Tyumen VARGASHI 9,1 thousand people 40 KM from Kurgan 0% 3% Federal income tax 7,6% 30% Insurance premiums 5% 10% 17% Regional income tax 0% 2,2% Property tax 0% 1.5% Land tax 5 years 10 years Currant rate I I I I I I 0% local taxes#3INDUSTRIAL PARKS Dalmatovo Kataysk ESTABLISHMENT OF A NETWORK OF 7 INDUSTRIAL PARKS 3 GREENFIELD Rent from 100 roubles per 1 ha Vargashisky Industrial Park Shadrinsk Kargapolye Krasny Oktyabr 28 ha Dalmatovsky Industrial Park 30 ha Mishkino Yurgamysh Vargashi Shchuchye Kurgan Makukushino Shumikha Lebyazhye Petukhovo Kurtamysh Industrial Park in village Ikovka 4 BROWNFIELD 131,9 ha Rent from 90 roubles per 1 sq. m Kurgan industrial park 24,7 ha и 45,9 th m² TAX EXEMPTIONS Kataysk industrial park 10,1 hа и 23,3 th m² Industrial park "TOR" 13,5% 0% 0% 0% 26,6 hа и 58,0 th m² income transport property land tax tax tax tax Industrial park located on the territory of KMZ (Kurgan Machinery Plant) 10,0 ha и 82,8 th m²#4REGIONAL INCOME TAX 0% 5% 13,5% 5 years 1 1 I 10 years Currant rate TRANSPORT TAX 0% FEDERAL INCOME TAX 2% A SPECIAL ECONOMIC ZONE OF INDUSTRIAL PRODUCTION TYPE FEDERAL AND REGIONAL TAX EXEMPTIONS KEY BENEFITS FOR RESIDENTS WELL-DEVELOPED INFRASTRUCTURE DISCOUNTED RENT AND LAND BUYBACK PARAMETERS OF THE INVESTMENT SITE: Land area ZPS (pressing and assembly plant) PAO (PJSC) «Kurgan Machinery Plant» of 10 ha located in: Shatrovo 17 Mashin ostroiteley prospect, Kurgan; Kataysk Dalmatovo Shadrinsk Kargapoly skoye Mokrousovo Chastoozerye CUSTOMS REGIME OF FREE CUSTOMS ZONE 0% land tax 0% property tax Land area of 53,1 ha located in: industrial district, Severny settlement, Kurgan; Land area of 43 ha located in: Omskaya street (at the intersection with the federal highway «Irtysh»), position 2, Kurgan; ➤ Land area of 131,9 ha located in: village Ikovka, Ketovo district, Kurgan region; Land area of 29,8 ha located in: 118 Burov-Petrov street, Kurgan, Kurgan region gan Mishkino Yurgamys Ketovo Vargashi Lebyazhye ShchuchyeShumikha Makushino Petukhovo Safakulevo Almenevo Kurtamysh Glyadyanskoye Polovinnaye Tselinnoye Zverinogolovskoye#5FINANCIAL SUPPORT BANK CREDIT GUARANTEES 50% of the credit amount/loan/banking guarantee To 3 years from 0,1% - Mini-plant- Equipment from 0,1% - Mini-plant- Construction To 5,0 mln. roubles No more than 19,1 mln. roubles for one contract FROM 0,1% Rate of return by guarantees - from 0,5% to 1% from 0,1% - Mono-town from 0,1% - Micro-IT from 0,1% - Special equipment from 0,1% - Micro-services from 0,1% - A farm of your own SUBSIDIES FOR EQUIPMENT LEASING Subsidies for up to 50% of costs (of a leasing item) connected with payment of the first contribution (down payment) when concluding an equipment leasing contract/contracts with Russian leasing companies MICROLOANS AT CONCESSIONARY INTEREST RATE 25AVLT ESDMO KIPOR#6Measure of support Subsidies for 1 kg of produced and realized milk MEASURES OF STATE SUPPORT IN LIVESTOCK INDUSTRY Main terms of receiving, subsidy rate Processing and realization of milk to reprocessing enterprises; production (milk yield) per 1 cow for the reporting financial year 3000 kg of milk and more. Estimated rate depends on the production and volume of realized milk (from 2 to 4 rub) breeding cattle stock of meat 20 heads. The rate 6000 rub. For head per year (2000 rub for 1,2,3 quarters) Subsidies for keeping commercial Commercial cows of meat breed Subsidies for keeping breeding stock Subsidies for purchase of young stock Subsidies for purchase of equipment for livestock facilities Subsidies for construction and reconstruction of livestock breeding complexes Preferential loans breeds no less than Rate for 1 head per year dairy cows from 6000 to 8000 rub. Depending on milking herd production, beef cow 2686 rub, sows, brood mares 3720 rub, breeding poultry stock 651 rub. For young breeder the amount of subsidy for 1 kg of live weight is 50% of costs incurred in connection with the purchase of 100 heads of cattle, no more than 131 rub; 65% of costs incurred in connection with the purchase of more than 100 heads of cattle, no more than 165 rub. For non young breeder: 60%, no more than 108 rub/kg For dairy farms, for a new construction from 100 to 400 cows) 50%, no more than 30 million rub; for pig- breeding unites: up to 300 sows 50% no more than 15 million rub; from 300 sows - 50%, no more than 30 million rub. For construction of dairy units of 400 and more heads of cattle and (or) heifers and (or) 100 and more casemates - cost recovery up to 25%; For reconstruction of dairy units of 200 cows and (or) heifers and 100 casemates – cost recovery up to 25%; For construction of sheep units - cost recovery up to 20% Lending direction: construction and reconstruction of livestock breeding facilities, purchase of animals and equipment, fodder, animal drugs; no more than 5%#7Measure of state support Subsidies for the development of unused crop land, irrigated land Elite seed production Decoupled support Technical and technological modernization Subsidies for the development of new capacities on processing of agricultural products Preferential loans in horticulture and livestock industry MEASURES OF STATE SUPPORT IN HORTICULTURE Main terms of receiving, subsidy rate Availability of legal title to land, design and estimate documentation and its expert examination. Rate up to 70% of actual expenditures Purchase of seeds of recognized varieties of the 9th region from organizations that specialize in the production of seeds and (or) their preparation before sowing, or from representatives of these organizations. Rate for spiked - 5000 rub per ton (exception - purchase of soft wheat and peas outside Kurgan Oblast, rate - 1000 rub) The land sown with certified seeds of recognized varieties of the 9th region is subsidized. For grain, legume, oil (except rape and soybeans), fodder crops the rate per 1 ha is applicable, multiplying coefficient of 2 with yield not less than average among regions. Rate for potatoes and vegetables - 3000 rub per 1 ha Preferential loans (rate up to 5% per annum); Discounts from plant-manufacturers according to the agreement with Agro-Industrial Complex (OOO (LLC) <Research and Production Company «TECHNOTRANS, AO (JSC) «Peterburgsky Traktorny Zavod (Tractor plant of Saint-Petersburg) - 5%); 40% for forage machinery and equipment, equipment for drying and grain conditioning (planned period of adoption - April 2020) Subsidies up to 50% of costs (of a leasing item) connected with payment of the first contribution (down payment) when concluding an equipment leasing contract/contracts Short-term: up to 1 year inclusively, no less than 1% and not more than 5%, in 2020 not more than 600 mln. rub per year to one borrower on the territory of the constituent entity of the Russian Federation Investment: from 2 to 15 years inclusively no less than 1% and not more than 5%%#8MEASURES OF GRANT SUPPORT, PEASANT FARM ENTERPRISES, AGRICULTURAL CONSUMER CO-OPERATIVES Measure of state support Grant to support beginning farmers Grant «Agrostartup >> Main terms of receiving, grant amount Peasant farm enterprise not operating for more than 24 months from the date of registration. Co-financing not less than 10% from the purchase price. Creation of new jobs. Maximum grant amount — 5 mln. rub for raising cattle of meat and dairy types, 3 mln. rub – other types Citizen of the Russian Federation or peasant farm enterprise registered this year. Co-financing not less than 10% from the purchase price. Creation of new jobs. Maximum grant amount - 5 mln. rub for raising cattle of meat and dairy types, 3 mln. rub - other types Grant for the development of family farms Peasant farm enterprise operating for more than 24 months from the date of registration. Co-financing not less than 40% from the purchase price. Creation of new jobs. Maximum grant amount - 30 mln. rub Grant for the development of material and technical base of agricultural consumer co- operatives Agricultural consumer co-operative, processing and (or) marketing, operating for not less than 12 months, consisting of not less than 10 agricultural producers. Co-financing not less than 40% from the purchase price. Maximum grant amount - 70 mln. rub#9MEASURE OF STATE SUPPORT FOR REALIZATION OF AGRICULTURAL PRODUCTS Main terms of receiving, subsidy rate Measure of state support Subsidies of OAO «RZD » (JSC «Russian Railways >>) for the provision of preferential rate for grain transportation by rail Transportation of grain cargo is subsidized. The volume of cargo is established by the order of the Russian Ministry of Agriculture more than 30 routes, as well as at the station of Murmansky and Leningradsky districts, Kransnodar and Primorsky Krai, Saint-Petersburg. Rate — 100 % of RZD tariff (to Novorossiysk on average for 1 ton of grain the reduction of the tariff is 1700 rub) Subsidies for partial reimbursement of costs for transportation of agricultural and food products Transportation of agricultural and food products. Rate up to 30% of costs for transportation of agricultural products by railway, road or water transport to the border of the Russian Federation. Preferential loans according to the agreement of competitive growth It is granted by an authorized bank to a borrower at a preferential rate for the realization of investment projects of construction, reconstruction of agricultural facilities for a term of up to 15 years. Rate up to 5 % per annum. - It is granted by an authorized bank to a borrower at a preferential rate for a term of up to 1 year. Rate up to 5% per annum for the purchase of raw materials for further processing -#10INVESTMENT PROPOSAL EQUIPMENT MANUFACTURING FOR HYDRAULIC FRACTURING (HYDROFRAC FLEET) Proposal for organization of joint ventures within the framework of the project: • Shut-off valves of process piping system with hydraulic drive (3D models, technical specifications, price); • quick-disconnect couplings of pressure lines (3D models, technical specifications, price); • centrifugal pump, analogue Mission Sandmaster 10x8x14 (3D models, technical specifications, price); ⚫flowmeters on the sides of suction and pressure (3D models, technical specifications, price); • radioisotope densimeter (3D models, technical specifications, price); ⚫dosing pumps for liquid chemicals (3D models, technical specifications, price); • diesel engine with an automatic transmission with an output of 530-550 hp, analogue Caterpillar C15 (3D models, technical specifications, price); • high pressure plunger pumps, analogue Weir SPM QWS 600S, TWS 2500SD (3D models, technical specifications, price). MADE SN RUSSIA MADE IN RUSSIA#11New production area INVESTMENT PROPOSAL CONSTRUCTION OF A CASTING AND MECHANICAL PLANT INVESTMENT SITE Shatrovo Old production area Kataysk Dalmatovo Shadrinsk Kargapolye Belozerskoye Mokrousovo Chastoozerye Kurgan Mishkino Yurgamysh Ketovo Vargashi Lebyazhye ShchuchyeShumikha Safakulevo Almenevo Kurtamysh Glyadyanskoye Polovinnoye Tselinnoye Zverinogolovskoye Makushino Petukhovo MARKET VALUE OF PROPERTY 175 mln. rub PROJECT DESCRIPTION плиз Available production facilities: ➤ Railway garage (old production area); ➤ Foundry; Administrative buildings. It is planned to create a special economic zone on the territory From the second half of 2018 the enterprise is not working and bankrupt#12INVESTMENT PROPOSAL FOR THE CONSTRUCTION OF A PLANT PRODUCING HIGH-TECH PIPELINE VALVES ECONOMIC ASSUMPTIONS ➤Import substitution of products for oil and gas industry; Extensive scientific and technical base, convenient geographical location; Import content of goods in the Russian Federation is 56%. INVESTMENT SITE Sharoyo Kataysk Dalmatovo Shadrinsk Kargapolye Mokrousovo Chastoozerye Yurgamych Shumikha Michkino Kurgan Ketovo Vargashi Lebyazhye Makushino Shchuchye Petukhovo Safakulevo Almenevo Kurzamysh Glyadyanckoye Tselinnoye Polovinno ye Zverinogolovskoye Territories of advanced social and economic development (Kataysk, Dalmatovo, Vargashi) Overall production from 400 products per year STATE SUPPORT Preferential loans (3-5%); ➤ Complex support of the project; ➤ Land is provided without bidding; ➤Subsidies for equipment leasing up to 50%, but not more than 50 mln. rub.#13INVESTMENT PROPOSAL FOR THE CONSTRUCTION OF A GLASSFACTORY STATE SUPPORT ➤ Preferential loans from 0,1%; Complex support of the project; ➤Land is provided without bidding; Subsidies for equipment leasing up to 50%, but not more than 50 mln. rub. INVESTMENT SITE ECONOMIC ASSUMPTIONS - The deposit of quartz sand Shatrovo -Potential site for a plant Kataysk Dalmatovo Shadrinsk Kargapolye Belozerskoye Mokrousovo Chastoozerye Kurgan Mishkino Yurgamysh Ketovo Vargashi Lebyazhye Shchuchye Shumikha Makushino Safakulevo Almenevo Kurtamysh Glyadyanskoye Tselinnoye Zverinogolovskoye Polovinnoye Petukhovo The largest deposit of glass raw materials in Kurgan region- Podbornovskoye deposit of quartz sand; Content in sand SiO2-87.33%, Al2O3-6.21%, Fe203-0.83%; Today there is not a single enterprise on the territory of Kurgan region producing glass containers#14INVESTMENT PROPOSAL FOR THE CONSTRUCTION OF A LOGISTICS CENTRE IN PETUKHOVO STATE SUPPORT ➤ Preferential loans from 0,1%; Complex support of the project; ➤ Subsidies for equipment leasing. INVESTMENT SITE Shatrovo Kataysk Dalmatovo Shadrinsk Kargapolye ПЕТУХ USOVO Chastooze Kurgan Mishkino Yurgamysh Ketovo Vargashi Lebyazhye Shchuchye Shumikha Makushin Petuk Safakulevo ПЕТУХОВО e ПЕТУХОВО 020 ECONOMIC ASSUMPTIONS on the border with Kazakhstan; dead end track; ➤ extensive number of transported goods. Export: Import: МТКОВО -pharmaceuticals; - metal products; - industrial wood; - special equipment, special vehicles; -fish, canned fish; - agricultural products. - food products; - products of light industry; - agricultural products. Compact self-contained complex of buildings with production areas (7077,8 sq.m)#15INVESTMENT PROPOSAL STATE SUPPORT FOR THE PRODUCTION AT RAW MATERIALS BASE OF PEAT Preferential loans from 0,1%; Complex support of the project; Land is provided without bidding. INVESTMENT SITES Peat resources of Kurgan region contain 49387 thousand tons INVESTMENT AMOUNT From 100 mln. rub Shatrovo - Peat deposit having standard peat moisture Katayskpa Day content at 40%. They are located in proved peat fields. Shadrinsk Kargapolye Belozerskoye Mokrousovo Chastoozerye Except peat deposits there are 179 peat formations in the region that are not included by the register of peat reserves in Kurgan region but included into the cadastral list with the total quantity of resources of 28346 thousand tons. Shchuchye Shumikha Kurgan Mishking Yurgamys Ketovo Vargashi Lebyazhye Makushino Petukhovo Safakulevo Almenevo Kurtamysh Glyadyanskoye Polovinnoye Tselinnoye Zverinogolovskoye Register of mineral resources of Kurgan region registered 75 proved peat fields. There are 63 of them with total (economic) reserves of 17805 thousand tons and 12 proved peat fields with non-commercial (potentially economic) reserves of 3236 thousand tons. Non-commercial reserves are shallow deposits with average thickness less than 1 m. ECONOMIC ASSUMPTIONS Huge peat reserves are located in 75 deposits that have high transport accessibility; Peat resources are used in various sectors: chemical (production of phenol, paraffin wax, alcohol, wax, acetic acid), agricultural (fertilizer manufacturing), energy (production of fuel briquettes); Today there is not a single peat mining enterprise on the territory of Kurgan region.#16INVESTMENT PROPOSAL FOR MINING OF BUILIND SAND AND PRODUCT OUTPUT STATE SUPPORT Preferential loans from 0,1%; Complex support of the project; Land is provided without bidding INVESTMENT SITES INVESTMENT AMOUNT From 100 mln. rub Shatrovo Deposits of building sand Register of mineral reserves of widespread mineral resources of Kurgan region included 15 deposits of building sand with the total quantity of 84944 thousand m3. Kataysk Dalmatovo Shadrinsk Kargapolye Belozerskoye Mokrousovo Chastoozerye Mishkino Yurgamysh Ketovo Vargashi Lebyazhye Kurgan Shchychye Shumikha Makushino لمي Petukhovo Wholly or partially 13 deposits are available for the development with reserves of 38 729 thousand m3. Safakulevo Almenevo Kurtamysh Glyadyanskoye Polovinnoye Tselinnoye Zverinogolovskoye Wholly or partially there are 6 deposits bearing reserves of building sands of 46 215 thousand m3 in the unallocated subsoil reserve fund. ECONOMIC ASSUMPTIONS High transport accessibility (Kosulenskoye-2, Chumlyakskoye-2 deposits are adjoining to the asphalt road. From Severny area of Karachelsky deposit to the asphalt road is less than 2 km, from Prosvetsky and Druzhininsky deposits - less than 5 km); Sand of Kosulinskoye-2, Chumlyakskoye-2 and Severny areas of Karachelsky deposit is suitable for the production of concrete and mortars after their benefication; Sand of Prosvetsky deposit is suitable for producing sand-lime brick, gas concrete, cellular concrete.#17INVESTMENT PROPOSAL FOR THE PRODUCTION OF CERAMIC BRICKS STATE SUPPORT Preferential loans from 0,1%; Complex support of the project; Land is provided without bidding. INVESTMENT SITES Register of mineral reserves of widespread mineral resources of Kurgan region included 52 deposits of brick and tile clays with the total quantity of 69,7 mln. m3. Wholly or partially 8 deposits are available with reserves of 11 157 thousand m3. Only 4 of these deposits are being developed now. Shatrovo INVESTMENT AMOUNT From 900 mln. rub Kataysk Dalmatovo Shadrinsk - Deposit of brick and tile products Kargapove Belozerskoye Mokrousovo Chastoozery Yurgamys Mishkino Kurgan Vargashi Ketovo Lebyazhye Shumikha Makushino Shchuchy Petukhovo Safakulevo Almenevo Kurtamyslyadyanskoye Polovinnoye Tseninnoye Zverinogolovskoye Products of clay derivatives are facing and common bricks of various brands produced at 2 plants, and terracotta facing tiles are produced at 1 plant. In the unallocated subsoil reserve fund wholly or partially there are 46 deposits bearing 58 518 thousand m³ of brick and tile clays ECONOMIC ASSUMPTIONS More than 70 mln. m3 of clays are located in 52 deposits and suitable for the production of ceramic bricks of various brands; ➤ Practically all deposits are located near asphalt roads; Prepared land is located close to the deposits and available for the construction of a plant with electricity and gas.#18INVESTMENT PROPOSAL FOR THE CONSTRUCTION OF A PLANT FOR PRODUCING KERAMZITE GRAVEL ECONOMIC ASSUMPTIONS Raw material base (unallocated reserves of brick and keramzite clays) Reserves - 13 271 thousand m3; It is favourably located near highways and railways. 2 options are possible: Opening of a plant at prepared production sites; Construction of a plant from scratch DEPOSIT OF KERAMZITE RAW MATERIALS Shatrovo Kataysk Dalmatovo Shadrinsk Kargapolye Belozerskoye Mokrousovo Chastoozerye Kurgan Mishkino Yurgamysh Ke Vargashi Lebyazhye Shchuchye Shumikha Makushino Petukhovo Safakulevo Almenevo Kurtamysh Glyadyanskoye Polovinnoye STATE SUPPORT ➤ Preferential loans from 0,1%; Complex support of the project; ➤Subsidies for equipment leasing up to 50%, but not more than 50 mln. rub; Land is provided without bidding. Tselinnoye Zverinogolovskoye Optimum location of the plant is near the clay deposit#19INVESTMENT PROPOSAL FOR THE CONSTRUCTION OF A DEEP GRAIN PROCESSING PLANT ECONOMIC ASSUMPTIONS 1500 1400 1.200 836 1000 BOO Wheat 5 class Wheat 4 class Wheat 3 class 500 313,9 234 357 400 193 176 62 200 234 100 138 127 166 0 Domestic Gross output consumption Required reserve Export Import INVESTMENT SITE Area of 9 ha; Close to rail lines; Paved regional road is adjacent. Kargapolye station site Kargapolsky disctrict Kurgan • STATE SUPPORT Preferential loans from 0,1%; ➤ Land is provided without bidding; ➤ Subsidies for equipment leasing up to 50%, but not more than 50 mln. rub PROJECT DISCRIPTION Production: 10 thousand tons of pharmaceutical leasing; 10 thousand tons of gluten; 8 thousand tons of bioethanol; 65 thousand tons of died fodder. Production facilities include: elevator for 170 thousand tons of grain; 2 mills with a capacity of 90 thousand tons and 58 thousand tons of flour per year.#20INVESTMENT PROPOSAL FOR THE PRODUCTION AND PROCESSING OF SOY BEANS ECONOMIC ASSUMPTIONS Production of soy beans in Kurgan region 930 1000 Expansion of cultivated land by 2 times. increase in gross output of 3 times 820,6 800 600 400 352 230 200 0 2018 2019 Cultivated land, ha Gross output, tons STATE SUPPORT Subsidies for equipment leasing up to 50%, but not more than 50 mln. rub; Preferential loans from 0,1%; Cost recovery up to 70% for land clearance operations; Land is provided without bidding. INVESTMENT SITE Kurgan Belozersky disctrict Vargashinsky disctrict#21INVESTMENT PROPOSAL INVESTMENT SITE FOR THE CONSTRUCTION OF A FISH BREEDING COMPLEX Reservoir on Barneva river, Krasnaya Zvezda village in Shadrinsky district of Kurgan region, volume of 4,35 mln. m³ Shatrovo Kataysk Dalma Shadrinsk Kargapolye Belozerskoye Mokrousovo Chastoozerye Kurgan Mishkino Yurgamysh Ketovo Vargashi Lebyazhye ShchuchyeShumikha Makushino Petukhovo Safakulevo Almenevo Kurtar Glyadyanskoye Polovinnoye Tselinnove Zverinogolovskoye Resevoir on Alabuga river, Krasnoznamenka village in Zverinogolovsky discrict, volume of 9,5 mln. m³ INVESTMENT PROSPECTS OF THE PROJECT Project cost- 50 mln. rub; New jobs - 25; ➤ Payback period - 4 years; Taxation system - ECXH. ECONOMIC ASSUMPTIONS Demand for fresh and live fish; Construction of a high-tech enterprise; High potential for industry development; Fish consumption in Kurgan region - 15 kg/year/person PROJECT DISCRIPTION Equipment for sturgeon breeding - 90,7% Equipment for trout breeding -2,7% Equipment and works on pond creation for carp breeding - 2,8% Other investments (car, redevelopment, etc.) - 3,7%#22INVESTMENT PROPOSAL FOR THE CONSTRUCTION OF A PLANT PRODUCING INFANT MILK POWDERS STATE SUPPORT Preferential loans from 0,1%; Subsidies for equipment leasing up to 50%, but not more than 50 mln. rub; Short term loans for the purchase of raw materials; Land is provided without bidding; Tax incentives: Property tax 0% Land tax 0% INVESTMENT SITE Shatrovo Kataysk Dalmatovo Shadrinsk Kargapolye Belozers Mokrousovo Nestle ECONOMIC ASSUMPTIONS ➤ The production of dried infant milk powders in Russia has been quite stable and over the past years it makes 19-20 thousand tons per year; Import volume reaches 80% of Russia's market, export volume 3 000 tons; The region can become a major supplier of products to any region in Russia and near abroad countries. Chastoozerye Kurgan Mishkino Yurgamysh Ketovo Vargashi Lebyazhye ShchuchyeShumikha Makushino Safakulevo Almenevo Kurtamysh Glyadyanskoye Polovinnoye Petukhovo Tselinnoye Zverinogolovskoye Territories of advanced social and economic development (Kataysk, Dalmatovo, Vargashi) PROJECT DISCRIPTION Production - 1 thousand tons per year#23INVESTMENT PROPOSAL CONSTRUCTION OF A PLANT PRODUCING ICE-CREAM STATE SUPPORT Subsidies for equipment leasing up to 50%, but not more than 50 mln. rub; Preferential loans from 0,1%; ➤Land is provided without bidding; Tax incentives: Property tax 0%; Land tax 0%. INVESTMENT SITE Sharoyo Kataysk Dalmatovo Shadrinsk Kargapolye Mokrousovo Chastoozerye Shumikha Michkino Shchuchye Safakulevo Almenevo Kurzamysh Glyadyanckoye Yurgamych Kurgan Ketovo Vargashi Lebyazhye Makushino Petukhovo Tselinnoye Polovinnoye Zveringslovskoye Territories of advanced social and economic development (Kataysk, Dalmatovo, Vargashi) ECONOMIC ASSUMPTIONS In 2018 439 thousand tons of ice-cream was produced. It is 16,5% higher than 2017 output. From 2015-2018 average consumer prices rose by 31,4%, from 147 rub/kg to 193 rub/kg; Share of import is about 3% of domestic production, share of export about 4,5%. PROJECT DESCRIPTION ➤ Payback period - 5,4 years; Production - from 2,5 up to 3 thousand tons.#24INVESTMENT PROPOSAL STATE SUPPORT FOR THE CONSTRUCTION OF A COMPLEX GROWING MUSHROOMS Preferential loans from 0,1%; ➤ Land is provided without bidding. INVESTMENT SITE Shatrovo Kataysk matovo Shadrinsk Kargapolye Belozerskoye Mokrousovo ShchuchyeShumikha Safakulevo Kurgan Mishkino Yurgamysh Ketovo Vargashi Lebyazhye Almenevo Kurtamysh Glyadyanskoye Tselinnoye Zverinogolovskoye Polovinnoye Chastoozerye Makushino Petukhovo ECONOMIC ASSUMPTIONS ➤ Low product supply, high demand; Year-round production; ➤ High yield; There is only 1 complex growing mushrooms on the territory of Ural Federal District that produces in industrial scale (1 thousand tons per year). PROJECT DISCRIPTION Payback period -2,7 years; EBITDA 43 617, 2 thousand rub; - NPV 276 546 thousand rub; ➤ Overall project profitability - 39%.#25INVESTMENT PROPOSAL STATE SUPPORT CONSTRUCTION OF A DAIRY CATTLE FARM Land is provided without bidding Cost recovery up to 50% to purchase the equipment for the livestock sector when constructing a dairy farm of up to 400 cows but not more than 30 mln. rub; Subsidies up to 25% of costs for the construction of dairy farms from 400 cows; Reimbursement of costs up to 65% incurred in connection with the purchase of young stock of agricultural animals; ➤ Preferential loans for the construction and reconstruction of livestock entities, purchase animals and equipment, fodder, animal drugs from 0,1%; Partial reimbursement of costs per 1 kg of realized and (or) shipped milk for cow's milk processing; INVESTMENT SITES - unused livestock houses potential free land ECONOMIC ASSUMPTIONS 1,7 mln. ha of natural grassland with average yields of 15 q/ha, cultivated not less than 35 g/ha; 220 thousand ha is ready to be used at minimal cost; Trans-Siberian electrified railway runs through the territory as well as the gas and oil pipelines, thus ensuring unfettered access of products to almost any region of Russia and near-abroad countries. SALES MARKET ASSESSMENT The production of milk was 29% of the volume of farms of all categories in Kurgan agricultural farms in 2019; In 2018 milk and dairy products transportation in Kurgan region was estimated at 48,5 thousand tons; Milk consumption per person in Ural Federal District in 2018 was estimated at 203 kg, in Russia - 229 kg, in Kurgan region - 235 kg (standard rate - 305 kg), milk deficit in Kurgan region - more than 16,3 thousand tons, self-sufficiency rate of milk- less than 93%.#26INVESTMENT PROPOSAL STATE SUPPORT FOR THE PRODUCTION OF CATTLE MEAT Reimbursement of costs up to 65% incurred with the connection of purchase of young stock of agricultural animals; Preferential loans for the construction and reconstruction of livestock facilities, purchase of animals, fodder, animal drugs from 0,1 %; Partial reimbursement of costs connected with keeping of meat cattle; Land is provided without bidding. INVESTMENT SITES - unused livestock houses - potentially free land ECONOMIC ASSUMPRIONS Self-sufficiency of beef in Kurgan region is 42%; Livestock population - 18,3 thousand heads; Potential increase up to 400 thousand heads; Farms are ready to deliver 5,0 thousand heads annually for further feeding, and 3,0 thousand heads of meat cattle for slaughter; 1,7 mln. ha of natural forage grasslands with the average yield of 15 c/ha, for cultivated not more than 35 c/ha; 220 thousand of ha is ready to be used at minimal cost. 88 8 PRODUCTION CAPACITY ➤ 2500 tons of beef; ➤ 40 tons of byproducts; 50 tons of raw leather; >100 tons of manure per year.#27INVESTMENT PROPOSAL STATE SUPPORT FOR THE PRODUCTION OF CHICKEN HATCHERY EGGS Preferential loans for the construction of poultry farms of egg farming and purchase of equipment for them from 0,1%; Land is provided without bidding; Subsidies for equipment leasing up to 50%, but not more than 50 mln. rub INVESTMENT SITES aysk Dalmatovo Shatrovo Shadrinsk Kargapolye Belozerskoye Mokrousovo Chastoozerye Shchuchyeikha Safakulevo Kurgan Mishkino Yurgamysh Ketovo Vargashi Lebyazhye Almenevo Kurtamysh Gyansko Tselinnoye Zverinogolovskoye Polovinnoye Makushino Petukhovo PROJECT DISCRIPTION Annual egg production - 18,2 mln. eggs, meat - 325 tons; ➤Sales profitability - 17,9%. ECONOMIC ASSUMPTIONS 220 thousand ha is ready to be used at minimal cost; Low egg supply - 39%; There is no production of chicken hatchery eggs; Stable demand for hatchery eggs, high profitability level of the industry, year-round production.#28INVESTMENT PROPOSAL FOR BREEDING, SLAUGHTER AND PROCESSING OF TURKEY MEAT STATE SUPPORT Preferential loans for the construction of poultry farms and purchase of the equipment for them from 0,1%; ➤Land is provided without bidding; Subsidies for equipment leasing up to 50%, but not more than 50 mln. rub. YEAR-ROUND MEAT PRODUCTION 27692 tons SALES PROFITABILITY 24% INVESTMENT SITES Shatrovo Kataysk Dalmatovo Shadrinak Kargapolye Belozerskoye Mokrousovo Chastoozerya Kurgan Yurgamysh "Ketovo Варгаши Mishkino Lebyazhye Shumikha Shchuchye Makushino Petukhovo Safakulevo Almenevo Куртамыш Glyadyanskoye Polovinnoye Taelinnoye Zverinogolovskoye ECONOMIC ASSUMPTIONS 220 thousand ha is ready to be used at minimal cost; ➤ Low poultry meat supply - 27%; ➤ Absence of competition; High level of profitability.#29INVESTMENT PROPOSAL FOR THE PRODUCTION OF DUCK MEAT Cost of duck meat production 20% 10% 5% 65% Fodder Maintanence of production Workers' salaries Others INVESTMENT SITES Katayak Dalmatovo Shatrovo Shadrinak Kargapolye Belozerskoye Mokrousovo PROJECT DESCRIPTION Chastoozery Petukhovo ➤Sales profitability - 18%; ➤ Preferential loans for the construction of poultry farms and purchase of equipment for them from 0,1%; ➤ Payback period - 6 years. CONDITION OF THE INDUSTRY Self-sufficiency in poultry meat in Kurgan region in total is 27% Kurgan Shumikha Mishkind Yurgamyah Ketovo Vargashi Lebyazhye Makushino Shchuchye Safakulevo Almenevo Kurtamyah Gyadyanskoye Polovinnoye Teelinnoye Zverinogolovskoye#30INVESTMENT PROPOSAL FOR PORK PRODUCTION STATE SUPPORT Preferential loans for the purchase of equipment and specialized vehicles, brood products and hybrid breeding stock for pig-breeding units from 0,1%; ➤ Complex support of the project; ➤ Land is provided without bidding; Cost recovery up to 50%, but not more than 15 mln. rub when constructing a pig-breeding unit of up to 300 sows and not more than 30 mln. rub when constructing a pig-breeding unit of more than 300 sows INVESTMENT SITES ECONOMIC ASSUMPTIONS Stable demand for pork; Pork supply in Kurgan region - 73%; ➤Surplus production of coarse grain; ➤ Construction of high-tech enterprise. PIG STOCK IN FARMS OF ALL CATEGORIES PIG STOCK IN FARM HOUSEHOLDS 45:04:012603 д. Осокина с. Кипель 45:22:011602 Land plots from 9 thousand ha for cultivation of fodder crops 76,5 thousand heads 33 thousand heads 2019 2019 Shatrovo Land plots from 100 ha 2018 77,9 thousand heads Kataysk 2018 34,4 thousand heads Dalmatovo Shadrinsk 2017 81,2 thousand heads Kargapolye 2017 33,7 thousand heads 635 Belozerskoye Mokrous 2016 87,8 thousand heads 44,1 thousand heads 2016 surga Mishkino Yurgamysh Ketovo Vargashi Lebyazhye Shchuch Shumikha Makushino Datukbove levo Almenevo Kurtamysh Glyadyanskoye Tselinnoye Zverinogolovskoye Polovinnoy 45:03:030403 Дубровное DISCRIPTION OF THE PROJECT Sales profitability - 40%; Internal rate of return- 15,9%.#31INVESTMENT PROPOSAL CONSTRUCTION OF A HEALTH CENTRE ON THE LAKE MEDVEZHYE Settlement resort "Medvezhye Lake "For tourism activities Resort Medvezhye Lake Береговая ул. Land plots in the village settlement "Novoye lyinskoye" for tourism activities Land plot is the property of Kurgan Oblast 45:14:011501:759 Sanatorium Zauralye resorts 45:14:011401:45 5-267262 .. Buldings management and maintenance on the territory of sanatorium "Medvezhye Lake 45:14:000000:1513 (2) 5-20 has areas) Property of Kurgan Oblast-Corporation 45:14:000000:1396 S-193 haz areas) cadastral value of the land plot Property of Kurgan Oblast-Corporation 500 230,00 rub 45:14:000000:1513 (1) 5-80 ha Property of Kurgan Oblast-Corporation 6 602 530,00 rub cadastral value of the land plot 45:14:000000:1513 INVESTMENT SITE Shatrovo Kataysk Dalmatovo Shadrinsk Kargapolye Belozerskoye Mokrousovo ShchuchyeShumikha Safakulevo Kurgan Cad. value 1 803 665,47 rub S-12 ha Land plot 45:14:011501:760 $4,7 Ha Novoye llyinskoye Prudy CHARACTERISTICS OF THE LAKE Chastoozerye Makushino Petukhovo Peloid reserves contain more than 14 mln. cu.m. These muds belong to mineral sludge sulphides, have high heat capacity and low thermal conductivity. Natural therapeutic factors: unique sludge mud (mineralization of the mud solution is 241,9 g/l, total content of iron sulfide is 180 mg per 100 g of sludge); brine of the lake (sulphate-sodium magnesium-sodium type with mineralization of 156-360 g/l); Mineral water << Medvezhye-11> (medical table sodium chloride with the content of mineral nutrients of 6,5 g/l). Mishkino Yurgamysh Ketovo Vargashi Lebyazhye Almenevo Kurtamysh Glyadyanskoye Tselinnoye Zverinogolovskoye Polovinnoye#32Shamelya Lake INVESTMENT PROPOSAL CONSTRUCTION OF A HEALTH CENTRE ON THE LAKE «SHAMELYA >> 030901 101 197 213 In legends since ancient times it has been called a place where dreams come true. It is a place where people come to restore their health and attract good fortune Land plot with a total area of 186000 sq. m: 24 plots of 960 sq.m; Mud structure: Mud solution 49,7%; ✓ Crystalline structure 40,6%; Colloidal complex 9,7%. ✓ INVESTMENT SITE Shamelya Lake is situated 16 km from a regional centre Safakulevo 9408 1621 Shatrovo 1 plot of 128000 sq.m; 1 plot of 33700 sq.m. 1520 taysk Dalmatovo Shadrinsk Kargapolye Belozerskoye Mokrousovo Chastoozerye Kurgan Mishkino Yurgamysh Ketovo Vargashi Lebyazhye ShchuchyeShumikha Makushino Petukhovo Safakulevo Almenevo Kurtamysh Glyadyanskoye Polovinnoye Tselinnoye Zverinogolovskoye CHARACTERISTICS OF THE LAKE SHAMELYA Natural therapeutic factors: annual input of organic matters into the lake from hydrobionts including Artemia Salina crustaceans reaches 5-7 thousand tons. Dead remnants of crustaceans accumulated at the bed of the lake over centuries and formed a thick layer of muds with therapeutic qualities; muds from Shamelya Lake has the same characteristics as lakes of the finest resorts in Russia and abroad. It can be placed among the fist therapeutic muds on the territory of Ural Federal District; brine of the lake (mineral water) colourless, odourless. Mineralization 80-200g/l. Characteristic feature is excess in bromine.#33INVESTMENT PROPOSAL CREATION OF A RETIREMENT HOME AT THE HOTEL COMPLEX STATE BUDGET PROFESSIONAL EDUCATIONAL INSTITUTION «KURGAN OLYMPIC RESERVE SCHOOL >>> Facility name Area, sq.m Book value, original Facility characteristics Main building of a camp for foreign specialists with improvements 10057,8 29155852,37 4 floors 423 Boiler house 315,5 Facility telephone and radio 582 1223240,8 792 035,19 1 floor INVESTMENT SITE 1A Kirov street, village Chumlyak, Shchuchansky district, Kurgan region Shatrovo Communication facility of 582.0000 m in total 2 floors Biological purification station-building 91,6 Local purification facilities 216 691830,98 10 967 812,54 Garage-building with a security checkpoint 397,9 14 27 533,89 2 floors (216 000 m) 1 floor (397,9 sq. m) No1 Rough price of immovable property - 193 673 075 roubles Land plot with a total area of 52380 sq. m INFRUSTRUCTURE 113 rooms that meet modern standards of hotel business for 200 people; sauna; swimming pool; vsk Dalmatovo Shadrinsk Kargapolye Belozerskoye Mokrousovo Chastoozery ShchuchyeShumikha Safakulevo Kurgan Mishkino Yurgamysh Ketovo Vargashi Lebyazhye Almenevo Kurtamysh Glyadyanskoye Tselinnoye Zverinogolovskoye Polovinnoye Makushino Petukhovo gym; billiards; banquet hall; bar; conference room; hairdresser's; canteen for 180 people. (20#34INVESTMENT PROPOSAL CREATION OF A HOLIDAY SKI HEALTH RESORT ON THE TERRITORY OF KARGAPOLSKY DISCTRICT INVESTMENT SITE Shatrovo It is planned to locate the ski resort <<Tamakulye>> at the village settlement of Tamakulye of Kargapolsky district 75 km from Kurgan Kataysk Dalmatovo Shadrinsk apolye Belozerskoye Mokrousovo Chastoozerye Kurgan Mishkino Yurgamysh Ketovo Vargashi Lebyazhye Shchuchye Shumikha Makushino Petukhovo Safakulevo Almenevo Kurtamysh Glyadyanskoye Tselinnoye Zverinogolovskoye Polovinnoye The territory with total area from 4 to 20 ha is necessary for the construction of the ski resort where ski trails and tubbing hills will be located of 2,5 km in total as well as other infrastructure facilities. Benefits of recreation in Kargapolsky district: picturesque nature; peaceful family holiday; acceptable price; wide range of activities; hunting and fishing (there are 8 hunting lands on the territory of Kargapolsky district); Favourable geographic location for locals (domestic tourism) and guests of the district; regional highway of good quality. PROJECT DISCRIPTION ➤ natural upland of about 200 m high; ➤ slope length: about 400 m; service market potential: 120 000-150 000 people/year (the number of target audience using the service at least once a year).#35INVESTMENT PROPOSAL INVESTMENT SITE CREATION OF A HEALTH CENTRE AT THE SANATORIUM «SOSNOVAYA ROSCHA>>> Shatrovo Kataysk Dalmatovo Shadrinsk Kargapolye Belozerskoye Mokrousovo Chastoozerye Kurgan Mishkino Yurgamysh Ketovo Vargashi Lebyazhye Shchuchye Shumikha Makushino Petukhovo Safakulevo Almenevo Kurtamysh Glyadyanskoye Polovinnoye Tselinnoye Zverinogolovskoye Natural therapeutic factors: medium-salt, medium-sulfide, high-ash sapropelic muds containing 30 g/l of minerals; brine of the lake (sulfate-chloride magnesium-sodium type with mineralization of 18,35 g/l) rich in micronutrients: bromine, iodine, boron, iron, potassium, calcium, chlorine; mineralization of mud solution is 21 g/l. Rough price of immovable property - 180 000 000 roubles Sanatorium «Sosnovaya Roscha>> is situated in Zverinogolovsky disctrict 150 km from Kurgan at the picturesque bank of Gorkoye- Zverinogolovskoye Lake Sanatorium territory of 16 ha The sanatorium is a 526-bed facility. All rooms have necessary furniture, a TV, separate bathroom with a shower. INSFRASTRUCTURE 3 residential blocks; canteen, cafe; medical centre; library; sports grounds; bath house and sauna; cosmetic room; equipped beach (in summer); gym.#36INVESTMENT PROPOSAL CREATION OF A HEALTH CENTRE AT THE SANATORIUM «LESNIKI >> INVESTMENT SITE Shatrovo Sanatorium «<Lesniki >> is situated 20 km to the south of Kurgan Kataysk Dalmatovo Shadrinsk Kargapolye Belozerskoye Mokrousovo Chastoozerye The sanatorium is a 373-bed facility. It consists of bedroom blocks with a medical centre in one of them. All rooms have the necessary furniture, a TV, separate bathroom with a shower, fridge and air-conditioner. Kurgan Mishkino Yurgamysh Ketovo Vargashi Lebyazhye Shchuchye Shumikha Makushino Petukhovo Safakulevo Almenevo Kurtamysh Glyadyan Tselinnoye Zverinogol Rough price of immovable property - 193 450 000 roubles Sanatorium territory INFRASTRUCTURE There is a park area around the sanatorium with a recreational area, pergola, dance floor with an open-air stage Natural therapeutic factors: of 15,9 ha Healing microclimate of pine forest (ionized, oxygen and phytoncide- rich air); Mineral water <«<Lesniki»> (hydro carbonate sodium-chloride with a content of minerals of 2,4 - 4,2 g/l). 3 residential blocks; canteen; gym (physiotherapy); cultural centre; medical centre; library; bath house and sauna; barbeque area; sports grounds; cosmetic room; banquet hall.#37Vladimir Arkhipov The Deputy Governor of Kurgan region. for Economic Policy Tel. +7 (912) 522-50-13 [email protected] Anna Agafonova The Director General of the Fund «Investment Agency of Kurgan region >> Tel. +7 (800) 250-47-31 [email protected] CONTACTS Kazakhstan Fund <<Investment agency of Kurgan region >> 112a Burov-Petrov street, Kurgan, Russia, 640007 Tel. +7 (800) 250-47-31 [email protected] www.invest45.ru