PRESENTATION OF THE INVESTMENT & INDUSTRIAL POTENTIAL OF THE KALININGRAD REGION 2016
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1 KALININGRAD REGIONAL GOVERNMENT Kaliningrad PRESENTATION OF THE INVESTMENT & INDUSTRIAL POTENTIAL OF THE KALININGRAD REGION 2016
2 GENERAL INFORMATION ABOUT REGION Total area km 2 Population (2015) people Foreign direct investment amount (2014): $ 109 million Gross Regional Product (2014): million TOKYO Travelling time from Kaliningrad 36 hours by sea to Hamburg; 48 hours by railway to Moscow for a container train; 1 hour by car to the EU 2
3 Vilnius MAIN TRANSPORT CORRIDORS European transport corridors: 1A«VIA HANSEATICA» (Riga Kaliningrad Gdansk) IX D (Kaliningrad Vilnius Minsk) Extensive railway network with both Russian and European gauge Russia's only ice-free port on the Baltic Sea An international airport (Khrabrovo Airport) 22 Automobile border-crossing points 4 Railway border-crossings points Riga Four traffic lines Two traffic lines Trans-European corridor Tallinn Saint Petersburg 9D Berlin Warsaw Minsk 3
4 THE REGION'S ADVANTAGES TO INVEST The Region's logistical advantages, or six reasons to place a production facility in the Kaliningrad Region 1. Geographic position in the centre of Europe; 2. A year-round ice-free seaport; 3. A well-developed infrastructure (including one of the densest road and railway networks in Russia); 4. Availability of both Russian and European railway gauges; 5. Availability of skilled workforce and good HR development facilities; 6. Low-cost and less time-consuming haulage to Europe (compared to other Russian regions). 4
5 TOURISM The Kaliningrad Region is a first-class destination for tourists from both Russia and Europe, inviting them: To visit fascinating world-class recreational facilities, such as entertainment parks and casinos; To get to know the rich and unique cultural and historical heritage of a region at the junction of Russia and Europe; To go on ecological tours to wild-country areas; To enjoy a relaxing and productive business tourist stay in the region; To benefit from local wellness services; To enjoy a safe and pleasurable stay environment. 5
6 SPECIAL ECONOMIC ZONE: SUCCESS STORY SEZ Residents and companies (selected): INCOME TAX Tax preferences Государственная for SEZ-resident corporations корпорация «Банк развития и General taxation внешнеэкономической SEZ taxation деятельности «Внешэкономбанк» 20% PROPERTY 2,2% TAX 0% - during the first 6 years and 1/2 of the effective rate in the 7 th through 12 th years THE AMOUNT OF ANNOUNCED INVESTMENTS ACTUALLY INVESTED CUMULATIVE TOTAL ACTUALLY INVESTED IN 2014 Over 100 SEZ-resident companies on million rubles Финансирование строительно-монтажных работ в рамках программы «Новая индустриализация» (ОАО «Сбербанк России») million rubles Сниженная процентная ставка, увеличен кредитный срок million rubles Federal Law No. 16-FZ "On the SEZ in the Kaliningrad Region : till
7 HOW TO START A MANUFACTURE IN SEZ At least 50 mln. rub. Fixed capital expenditures Import of foreign raw materials and components No customs duties and VAT Finished products manufacturing Export of finished products to the Eurasian Economic Union countries Payment of Obtainment of duties and VAT government on finished subsidies products Investment phase The investment project operating phase 1 year 2 year 3 year 4th year 5th year 6th year 7th year 8 12th years INCOME TAX: 0% PROPERTY TAX: 0% LAND TAX: 0% 50% OF THE EFFECTIVE RATE 50% OF THE EFFECTIVE RATE 100% OF THE EFFECTIVE RATE 7
8 EXEMPTIONS FOR INVESTORS (RESOLUTIONS) Russian Federation Government Resolution of Provides the procedure of other inter-budget Государственная корпорация transfers from the federal budget «Банк to развития the и Kaliningrad region budget to внешнеэкономической ensure the creation and maintenance of workplaces деятельности and to improve economic and social«внешэкономбанк» conditions of living in the Kaliningrad region through the support of the Kaliningrad region Special Economic Zone residents Russian Federation Government Resolution of Provides the regulations of other inter-budget transfers from the federal budget to the Kaliningrad region budget for partial compensation to Russian legal entities of the transportation costs. Compensations covers transport of finished goods produced in the Kaliningrad region from the territory of the Kaliningrad region to the territory of the Russian Federation by public rail transport; as well as transportation of raw materials, building materials and components for the production of goods in the territory of the Kaliningrad region from the territory of the Russian Federation 8
9 AUTOMOBILE MANUFACTURE AUTO CLUSTER DEVELOPMENT ON THE BASIS OF JOINT VENTURES Creation of automotive industries cluster on the basis of GC "AVTOTOR" with a general output of 250 thousand cars per year VEHICLES & COMPONENTS Currently AVTOTOR manufactures vehicles using autopackages from SKD- 1 to CKD levels which based on a complex of modern, high-tech production and testing equipment POTENTIAL PRODUCTION OF AUTOMOTIVE SPARE PARTS Seats Exhaust systems Chassis components Driveshafts Light alloy profiles Plastic injection molding Wire harnesses Electronic control units Interior upholstery Noise- / vibration isolation Rugs Mechanical assembly production Heat exchangers Fittings Press production 9
10 SHIPBUILDING Shipbuilding and ship repairing industry in the Kaliningrad region is represented by 12 enterprises, where about 6,000 people are employed. The production capacity of the Yantar" shipyard allows to build ships and boats with the launching weight up to tons. The plant has two shipbuilding complexes. PROSPECTIVE LINES OF DEVELOPMENT Shipbuilding with the displacement up to 20 thousand tons. Floating platform and dock construction, tugboat building. Ship parts and components production Ship repair. SHIPBUILDING CLUSTER A shipbuilding cluster will be set up in Kaliningrad before 2017 at the site of the Baltic shipbuilding plant Yantar. Yantar plans to build special-purpose vessels, such as hospital ships, ferries, service vessels for sea oil and gas production and others. 10
11 INVESTMENT SITES 11
12 KHRABROVO INDUSTRIAL PARK (Greenfield) TOTAL AREA: 271 ha DISTANCE TO KALININGRAD CITY: 20 km DISTANCE TO THE AIRPORT: 3 km Specialization: small and medium-sized mechanical engineering (including manufacturing of automotive and shipbuilding components in the special clusters); manufacturing of amber jewellery and wares; manufacturing of biopharmaceuticals and drugs; innovation and nanotechnology companies (some in cooperation with ROSNANO JSC). Industrial park INFRASTRUCTURE Irkutskoye Lugovskoye Khrabrovo 12
13 CHERNYAKHOVSK INDUSTRIAL PARK (Greenfield) TOTAL AREA: 1116,3 ha DISTANCE TO POLAND: 42 km DISTANCE TO LITHUANIA: 50 km Specialization: transport and logistics; manufacturing of construction materials; small and medium-sized mechanical engineering; glass production. INFRASTRUCTURE 13
14 PRAVDINSK INDUSTRIAL PARK (Greenfield) TOTAL AREA: 188,16 ha DISTANCE TO POLAND: 28 km Specialization: food production; agricultural stock processing; production of biotechnological components. DISTANCE TO KALININGRAD CITY: 57 km INFRASTRUCTURE ROAD & RAILWAY ACCESS Kurortnoye Pravdinsk Town Pravdinsk industrial Park The first stage CURRENT RESIDENTS The second stage «Policomplex» 14
15 ECOBALTIC Business Park (Brownfield) TOTAL AREA: 50 ha CUSTOMS TERMINAL: 200 m DISTANCE TO KALININGRAD CITY: 37 km Specialization: pharmaceutical products production; cultivation of agricultural ornamental plants; confectionery production; warehousing and customs clearance. INFRASTRUCTURE HIGHWAY ACCESS CURRENT RESIDENTS ОJSC Dart Plus" 15
16 BALTIC INDUSTRIAL PARK (Brownfield) ZONE «А» AREA: 119 ha ZONE «B» AREA: 127,6 ha DISTANCE TO THE AIRPORT: 20 km Specialization: production of granular "edible polyethylene terephthalate; PET granules processing; road deck board production; warehousing and customs clearance. INFRASTRUCTURE ROAD & RAILWAY ACCESS CURRENT RESIDENTS Kaliningrad Baltic Industrial Park 16
17 INDUSTRIAL PARK DANOR (Brownfield) TOTAL AREA: 13 ha DISTANCE TO KALININGRAD CITY: 2 km Specialization : manufacturing of building materials; regional engineering center. DISTANCE TO POLAND : 35 km DISTANCE TO LITHUANIA: 135 km INFRASTRUCTURE ROAD & RAILWAY ACCESS CURRENT RESIDENTS JSC BALTBETON 17
18 GS TECHNOPOLIS (Brownfield) TOTAL AREA: 230 ha DISTANCE TO KALININGRAD CITY: 118 km DISTANCE TO POLAND AND LITHUANIA: 37 km Specialization: high-tech goods production; production of satellite antennas (Tricolor TV); production of cardboard corrugated packaging; housing. INFRASTRUCTURE HIGHWAY ACCESS CURRENT RESIDENTS 18
19 CONTACTS WE ARE READY TO COOPERATE! KALININGRAD REGIONAL GOVERNMENT 1 Donskogo St. Kaliningrad , RUSSIA +7 (4012) Serzhantskaya St. Kaliningrad , RUSSIA +7 (4012) office@kgd-rdc.ru WELCOME TO KALININGRAD! 19
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