Management of investment projects in Moscow:

opportunities for businessmen and investors

October 8, 2012Munich

Pavel Gagarin, Chairman of JSC "Gradient Alpha Investments Group", expert in the fields of investment, finance, taxation and banking

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Investment seekers Investors Investment companies,

funds, banks etc.

Experts Other

68%

26%

6% 5%1%

Poll participants

Poll of participants of conference«East + West = Invest» Moscow, May 2012, 311 people participated in the survey:

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Moscow and Moscow Region,

41%

Central Russia, 18%

Europe and USA,13%

St. Petersburg and Leningrad region, 10%

other regions of Russia, 5%

CIS and Baltic States,5%

Volga Region, 3% other countries, 3% Southern Russia, 2%

Geography of acting investors

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42%

30%26%

19%

11%8%

In which region do you plan to realize your investment projects?

!!! 8 businessmen from 10

are willing to work in the Mos-cow agglomeration!!!

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0

5

10

15

20

25

Respondents represented the following segments of the market of the Moscow region

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Manufacturin

g industr

ies

Constructi

on

Innovations, R&D

Commerce

Real es

tate

HORECAOther

41%

23% 22% 20%14%

10% 10%

For what kind of activity do you need investments?

Where do you plan to invest?

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Federal law of 22.07.2005 No. 116-FZ «About special economic zones in the Russian Federation» + its further amendments:• FL of 03.06.2006 N 76-FZ «Amendments to the FL «About special economic zones in the Russian Federation»;• FL of 18.12.2006 N 232-FZ «Amendments to the Urban Development Code and selected legislative acts of the Russian Federation»;• FL of 30.10.2007 N 240-FZ «Amendments to the FL «About special economic zones in the

Russian Federation» and selected legislative acts of the Russian Federation»; FL of 23.07.2008 N 160-FZ «Amendments to selected legislative acts of the Russian Federation in relation to the improvement of the realization of power by the Government of Russia»;• FL of 18.07.2011 N 215-FZ «Amendments to the Urban Development Code and selected

legislative acts of the Russian Federation»;• FL of 30.10.2011 N 365-FZ «Amendments to the FL «About special economic zones in the

Russian Federation» and selected legislative acts of the Russian Federation».

Moscow agglomeration clusters: SEZ, innovation centers, technoparks. Possibilities in connection to the WTO entry

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Moscow agglomeration clusters: SEZ, innovation centers, technoparks. Possibilities in connection to the WTO entry

• SEZ Zelenograd (microelectronics, energy saving, biotechnologies, IT, other high-tech scientifical and industrial businesses)

Russian Government Decree of 21.12.2005N 779 «On the creation of an innovation special economic zone on the territory of Moscow city»

• SEZ Dubna (IT, nuclear physics, nanotechnologies, bio and medical technologies, design of complex technical systems

Russian Government Decree of 21.12.2005 N 781 «On the creation of an innovation special economic zone on the territory of the Moscow region»

• Skolkovo innovation center (bio and medical technologies, IT, space technologies, telecommunications, energy saving technologies, nuclear technologies)

• technology towns Troitsk, Reutov, Chernogolovka, Jukovsky, Pushino, Protvino etc.

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• build-to-suit (investment in the construction of industrial, logistic, industrial and research premises on request of particular customers for lease within 49 years).

• venture investments (IT and telecommunications, nanotechnologies and new mateials, energy saving and alternative sources of energy, pharmaceuticals, bio and medical technologies).

• construction of touristic and leisure objects and of the supporting infrastructure (hotels, beauty shops, sports & leisure centers, food production, dry-cleaners etc.).

Special economic zones: opportunities for the investors

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Special economic zones, innovative centers,technology parks of the Moscow agglomeration

The procedure for obtaining resident status

The agreementbetween

the Ministry and the investor is signed

The application is approved by

the ExpertCommittee of the

Ministry for EconomicDevelopment

The application is approved by

the SEZ SupervisoryCommittee

The investor submits the application and the business plan

40 days 10 days

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Assumptions and opportunities related to the investment climate in the Moscow agglomeration for 2013-2014

Investment risks

Characteristics of investment behavior of the Russian and foreign investors in the sector of medium and intensive investments

Most attractive segments of economy

Impact resulting from the integration of Russia in the WTO

Involvement of federal and Moscow authorities in investment activities

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Risks of investmentComplex aggregate index of pressure

on investment business in the Moscow agglomeration

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

200

400

600

800

1000

1200

1400

1600

1800

0,13 0,25 0,350,58

0,730,81

0,88

0,900,95

1,02

1,07

1,15

Количество административно-фискальных делКоличество проектов

Number of administrative & fis-cal cases

Number of administrative & fiscal cases

Number of projects

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Carry out marketing research, search for interesting companies, buy, pre-investment auditing

Determine the format of the entity to be registered in Russia

Formulate a medium-term business plan with detailed budgeting

Registration, authorization documents, legal basis

Establishment of business relations, contracts with counterparts and service agents

Steps for a successful realization of an investment project:

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Formulation of short and medium term financial results

Improvement of the corporate accounting system and feedback for appropriate management

decisions

Monitoring of the risks from economic activity

Risk diversification

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Backbone investment risks

-legal risks;

-financial risks (including tax exposure);

-market risks;

-management risks;

-information risks;

-administrative risks;

-technological risks

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Experience in supporting successful investment projects in Moscow

Construction of two office buildings in the south of Moscow (13,000 and 27,000 m2) – bringing foreign investors

Olam International (Singapore) – their front office and research units are located in Moscow, while they operate mostly in the regions

Innovation center "Skolkovo" – several French companies having applied to become members

Network of supermarkets and mini-markets on the territory of New Moscow

Cement mill in Kolomna (Moscow region): the front office and marketing networks are located in Moscow

Network of German clinics in Moscow – real estate support

Network of dry-cleaners in Moscow

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Pavel Gagarin, Chairman of JSC "Gradient Alpha Investments Group", expert in the fields of investment, finance, taxation and banking

Thank you for your attention!

Контактная информация:e-mail: inform@gradient-alpha.ru +7 (495) 740-12-64 www.gradient-alpha.ru

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