GENERAL DATA

Territory – 45,800 sq.km –

more than the territory of Belgium, Switzerland or Holland

Over 150 000

enterprises

Population – 6,7 millions –

2 place among the regions of

Russia

378 municipalities

including

36 municipal districts

36 urban districts

306 urban districts

MOSCOW REGION ADVANTAGES

Economic growthAnnually 9%

Efficient productionIn 2007 GRP has exceeded 32,5

billion Euros

StabilityUnemployment rate 0,83%:

Investment Potential2007: investments in basic capital

– 10,25 billion Euros, includingforeign investments – 3,6 billion Euros

Dynamicallydeveloping region

Favorableeconomic – geographical

position

Well -developed transport network

Presence ofhigh – skilled

manpower resources

High purchase power6,7 million consumers

MR + Moscow – 20 million consumers

In 2007 the Moscow region was taking the following positions among subjects of the Russian Federation:

According to the Federal Agency of Statistics the regional macroeconomic volume has exceeded 102 billion Euros, i.e. 47% more than in 2006

Domestic house commissioning

Wholesale and retail trade turnover

Gross Regionalproduction volume;

Paid Consumerservices volume;Poultry and milk

production

Investments incapital stock

ECONOMIC GROWTH

GROSS REGIONAL PRODUCT (GRP)B

illion

Eu

ros

REGIONAL BUDGET

Billion

Eu

ros

TAX STRUCTURE

Federal taxes (capital): Tax on the profit of organizations (24%) Value added tax (0, 10 or 18% depending on the output production) Individual income tax (13%, for some types of income the tax rate can

make 35, 30, 9 and 6%). Unified social tax (the tax rate is differentiated depending on incomes

and activity statuses of organizations, paying the tax)

Regional taxes (capital): Corporate property tax (2,2%) Transport tax (depending on category of transport facilities)

Municipal taxes: Land taxes (the rates are stated by regulatory legal acts of

municipalities’ representative bodies of the Moscow region and not to exceed 0,3% and 1,5% (depending on the category and use of land plots)

INDUSTRIAL DISTRICTS

INDUSTRIAL DISTRICT – a territorial part of one or more municipalities, equipped under the unified site design, with all the elements of engineer, transport, business and social infrastructure, necessary for accommodation and normal functioning of various manufactures and their associated services

Forms of industrial districts:

Industrial parks Agro industrial parks

Logistic parks

Techno parks

Multifunctional centers

LAYOUT OF INDUSTRIAL DISTRICTS

SPECIAL ECONOMIC ZONES

Special economic zone is defined by the Government of the Russian Federation as a territorial part of the Russian Federation, where a special mode of business activity works

According to the Federal law special economic zones of four types are formed: industrial - commercial, technical - implementation, touristic – recreational zones, port areas.

The state support of creation SEZ

Tax benefits and customs regulations for SEZ residents

TECHNICAL – IMPLEMENTATION SPECIAL ECONOMIC ZONE in the city of DUBNA

1

2

3

4

Panorama of programmers camp site

Total territory of SEZ 187,7 ha

Quantity of new-made working places

13 800

Planned annual production volume

450 million Euros

Area of industrial premises 340 thousand sq. mHousing development 595 thousand sq. mTotal planned volume ofcapital investments

811 million Euros

AGRO INDUSTRIAL COMPLEX

480 large and average collective farms 300 farm households 700 thousand individual household plots

3,3 per cent of agricultural gross output in the Russian Federation at 0,3 per cent of the Russian farmlands from the total area

The leading position in the Central federal district: 1 place in milk and vegetables production 2 place in meat, egg and potato production

DEVELOPMENT OF REAL ESTATE MARKET

Average price for a square meter of a multistory house,Euros

Quantity supply of storage real estate,thousands sq. m

Quantity supply of office real estate in the Moscow regionthousand sq. m.

Quantity supply of qualitative trade real estatethousand sq. m.

CONSTRUCTION SPHERE

The construction sphere of the Region is in a definite sense the motive power of the Region social and economic development and the leader of the Russian construction branch. Since the year 2004 the Moscow Region has been putting more housing into operation than any other constituent entity of the Russian Federation.

More than 7000 organizations with the total number of employees about 700 thousand people work in the construction sphere of the Moscow Region (engineering survey, engineering, construction, building industry).

In the year 2007 the amount of work and services accomplished by the enterprises of the construction industry has grown by 16,1 % and made 9,5 billion US dollars

HOUSING CONSTRUCTIONM

illio

n s

qu

are

met

ers

LABOR FORCES AND EMPLOYMENT OF POPULATION

Annual population of the Moscow region in 2008 has made 6 659,2 thousand inhabitants

Annual number of people employed in the Moscow region economics in 2007 made 2 818,9 thousands

Wage level of a worker has made 440 euros a month

TRANSPORT

The Moscow region is the largest traffic centre of Russia

About 160 hundred people are employed in the transport system of the Moscow Region

Every day regional transport organizations carry about three million passengers. Transportations are mostly carried out by motor and railway transport

Cargo transportation scope in the Region has increased almost in 2 times during the last six years

The Government of the Moscow Region adopted the program “Transport and logistics system development in the Moscow Region in the years 2006-2010”. Private investments in the realization of the program will make up about 7,2 billion Euros

AIR TRANSPORT

3 international airports 1 domestic airport

ROADS & HIGHWAYS

22 822 km general purpose roads 2 450 km highways

Central Ring Road

516 km 30 road junctions (flyovers) 95 overpasses 56 bridges

RAILWAYS

Average 200 million passengers p/year

More than 2 000 trains p/day

SCIENTIFIC POTENTIAL

At present 9 from 14 scientific centers of the Russian Federation are located in the Moscow region: Dubna, Korolyov, Reutov, Fryazino, Putschino, Troitsk, Zhukovsky, Protvino and Chernogolovka

Scientific complex of the Moscow region includes about 200 scientific – research and scientific – industrial organizations

Over eight thousand research workers have got a scientific degree. Among them there 25 academicians and 38 corresponding members of the Russian Academy of Sciences

INVESTMENTS

The consolidation of the financial standing of enterprises enables to change fundamentally the investment activity situation. In the year 2007 the volume of investment in the main capital passed 10 billion Euros in the Region as a whole. That is 1,3 times more than in the year 2006

The number of the employees of the Region enterprises and organizations in 2007 grew by more than 100 thousand people with the general growth of the employees number in so called “new economy sectors”

Food and processing industry, building materials production, logistics, road construction and service, high-tech goods production, etc. are highly profitable and very attractive for the investors

INTERNATIONAL CREDIT RATING

DIRECT FOREIGN INVESTMENTS IN MOSCOW REGION ECONOMICS

Billion

Eu

ros

EXTERNAL TRADE TURNOVER

Billion

Eu

ros

STRUCTURE OF FOREIGN INVESTMENTS IN VARIOUS TYPES OF BUSINESSES

TOTAL FOREIGN INVESTMENTS IN MOSCOW REGION ECONOMICS IN 2007 (10 COUNTRIES-LEADERS)

Billion Euros

Germany

Sweden

France

United Kingdom

Finland

Republic of Korea

Austria

Italy

Denmark

USA

FOREIGN ENTERPRISES GERMANY

FRANCE

ITALY

BELGIUM

USA

AUSTRIA

DENMARK

SWEDEN

UNITED KINGDOM

REPUBLIC OF KOREA

FOREIGN ENTERPRISES, GERMANY GERMANY

FRANCE

ITALY

BELGIUM

USA

AUSTRIA

DENMARK

SWEDEN

UNITED KINGDOM

REPUBLIC OF KOREA

FOREIGN ENTERPRISES, FRANCE GERMANY

FRANCE

ITALY

BELGIUM

USA

AUSTRIA

DENMARK

SWEDEN

UNITED KINGDOM

REPUBLIC OF KOREA

FOREIGN ENTERPRISES, ITALY GERMANY

FRANCE

ITALY

BELGIUM

USA

AUSTRIA

DENMARK

SWEDEN

UNITED KINGDOM

REPUBLIC OF KOREA

FOREIGN ENTERPRISES, USA GERMANY

FRANCE

ITALY

BELGIUM

USA

AUSTRIA

DENMARK

SWEDEN

UNITED KINGDOM

REPUBLIC OF KOREA

FOREIGN ENTERPRISES, BELGIUM GERMANY

FRANCE

ITALY

BELGIUM

USA

AUSTRIA

DENMARK

SWEDEN

UNITED KINGDOM

REPUBLIC OF KOREA

FOREIGN ENTERPRISES, REPUBLIC OF KOREA GERMANY

FRANCE

ITALY

BELGIUM

USA

AUSTRIA

DENMARK

SWEDEN

UNITED KINGDOM

REPUBLIC OF KOREA

FOREIGN ENTERPRISES, AUSTRIA GERMANY

FRANCE

ITALY

BELGIUM

USA

AUSTRIA

DENMARK

SWEDEN

UNITED KINGDOM

REPUBLIC OF KOREA

FOREIGN ENTERPRISES, SWEDEN GERMANY

FRANCE

ITALY

BELGIUM

USA

AUSTRIA

DENMARK

SWEDEN

UNITED KINGDOM

REPUBLIC OF KOREA

FOREIGN ENTERPRISES, UNITED KINGDOM GERMANY

FRANCE

ITALY

BELGIUM

USA

AUSTRIA

DENMARK

SWEDEN

UNITED KINGDOM

REPUBLIC OF KOREA

FOREIGN ENTERPRISES, DENMARK GERMANY

FRANCE

ITALY

BELGIUM

USA

AUSTRIA

DENMARK

SWEDEN

UNITED KINGDOM

REPUBLIC OF KOREA

GERMAN INVESTMENTS IN ECONOMICSOF THE MOSCOW REGION

In 2004 a wallpaper factory of ERISMANN Company was brought into operation in the city of Voskresenk. Now already 3 industrial lines are functioning with the total output of over 6 million wallpaper rolls a year. About 100 new working places have been made. ERISMANN Company works on further development of production.

In 2005 REHAU Company constructed a factory producing plastic window profile in Gzhel settlement of the Ramensky district in the territory of 22 ha. The number of working places makes 130. This factory in the Moscow region has become one of the largest investment projects of REHAU Company in the East Eurospe, it has considerable opportunities for further production development. Technological process of profiles production is fully automated and controlled by powerful computer – driven systems.

GERMAN INVESTMENTS IN ECONOMICSOF THE MOSCOW REGION

“KNAUF Insulation” Ltd. – an associated company of KNAUF Group in October, 2007 accomplished construction of a factory producing insulating materials in the Stupinsky district. The number of new working places - 200. The enterprise output at the designed capacity is to be 40 thousand tons of fiber glass.

In August 2008 a complete re-equipment of “KNAUF Gyps” factory making gypsum plaster products in the city of Krasnogorsk was accomplished and as a result, the enterprise output has 2,5 times increased. Investment volume in construction - 93 million Euros.

GERMAN INVESTMENTS IN ECONOMICSOF THE MOSCOW REGION

In 2007 “METRO Group” Company constructed two retail complexes in the Lyuberetsky and Leninsky districts, the company plans further construction of hypermarkets in the Moscow region.

Now in the municipal district of Noginsk a first line construction of the largest in Russia and the second in Eurospe (after FRG) company logistic – distribution complex of 32 thousand sq. m. has been completed. 700 new working places have been made.

In April 2008 “Robert Bosch GmbH” Company has started constructing its Russian head office in the city of Khimki. Besides office premises, a storage complex and three training centers will be built.

MOSCOW REGION OUTLOOK

Personal income growth – purchase

power increaseDevelopment of social and

transport infrastructure

Industrialdevelopment

Efficient economic policy, realized by the government

of the Moscow region

Success factors

Development of scientific potential

State support of business activity