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25.09.2020 SPECIAL ECONOMIC OPPORTUNITIES AT THE BORDER ON THE EUROPEAN UNION SPECIAL ECONOMIC OPPORTUNITIES AT THE BORDER ON THE EUROPEAN UNION

SPECIAL ECONOMIC OPPORTUNITIES AT THE BORDER ON THE

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25.09.2020

SPECIAL ECONOMICOPPORTUNITIESAT THE BORDER ON THEEUROPEAN UNION

SPECIAL ECONOMICOPPORTUNITIESAT THE BORDER ON THEEUROPEAN UNION

PSKOV REGION

55 300 km2

Total area of Pskov region

629 651 peoplepopulation

11Higher education

institutions

2316graduates annually

15Vocational schools

2316graduates annually

340 011 peopleEmployable population

2

St. PetersburgTallinn

Riga

Minsk Moscow

Pskov

The Industrial development zone Moglino SEZ, Pskov region

MOGLINO SEZ MAIN ACTIVITY AREAS

Land plots development

Facilities maintaining

Business development

The center of competence

3

Established by the Government Decree July 19, 2012 No. 729

Moglino SEZ is integrated with the common values and philosophy of the project “Russia. Special economic zones”

INSTITUTIONAL ENVIRONMENT

4

Ministry of Economic Development of the Russian

Federation

Administration of the Pskov Region

Ministry of Industry and Trade of the Russian Federation

Industrial Development Fund

INTERNATIONAL PARTNERS

Pskov State University

Russian Chamber of Commerce and IndustryRussian-Austrian Business Council Finnish-Russian Chamber of

Commerce and Industry

Russian-German Foreign Trade Chamber

World Free ZpnesOrganization

United Nations Conference on Trade and Development

World Association of Investment Promotion Agencies

United Nations Industrial Development Organization

Project Consultant Singapore Consulting Company

International Consulting Agency

International Consulting Agency

International private equity fund

International Consulting Agency

International Consulting Agency

International Consulting Agency

International trade consulting

Export support center of the Pskov region

Promsvyazbank

Russian Railways

MOGLINO SEZ USP FACTORS

MISSION OFMOGLINO SEZ

Ensuring the local community prospects for the economic transition by the innovative development model

We create world-class industrial infrastructure

5

Support at the regional and federal level governments

FREE land plots

Zero taxation and custom fee, except the only 2% of

corporate tax and utilities

Industrial infrastructure completed 100%

Adopted 11 Industrial Funding programs

“One stop-shop” integrated with European partners

ABOUT MOGLINO SEZ

6

Standard designed factory areaready industrial and production facility

Transport infrastructureOutbound and in-site automobile roads

300 ha

15 projects

5000 m2

120 MVA

122 th.n.m3/year

4900m3/day

3500m3/day

6,4 km

Gas supplyIn-site gas distribution network - 4.6 kmAverage tariff - $81 th/m3

ElectricityIn-site power substation - PS 110/10 kWAverage tariff - $0,044 kWt/h

Water5 artesian wells Average tariff - $0,5 /m3

Wastewater removalSPS — 2 pcs.Average tariff - $0,3 /m3

Moglino SEZ completed industrial infrastructure

SEZ duration guaranteed byFederal law No 116

the territory was granted SEZ status

15 residentsTenants are at different stages of project

implementation

Moglino SEZ the area under development

w.n: Moglino -2; Moglino -3

300 ha

49 years

from $95 /haland plot purchase (administrative fee only)

30%“One Stop-Shop” service for investors

✓Consulting and business plans development✓Market analyses and representation✓Legal issues on entity establishment* Tailored services

Free connection to the hub of utilities and resources

from $4,2 year/ha

land plot lease (administrative fee only)

Full project support for residents

✓Legal issues of land lease and purchase✓Construction supervision✓Maintenance facilities

7

Up to project’s economic benefit

FREE LAND PLOTS

MOGLINO SEZ COMPLETED SECTIONS FOR LOCALIZATION

TAX AND CUSTOMS EXSEMPTIONS

* The profit tax benefit becomes effective from the first profit. Federal Income Tax is 2%** In addition to light, water and air vehicles with an engine power of over 250 horse power***The Customs Union includes the Russian Federation, Kazakhstan, Belarus, Armenia, Kyrgyzstan

Upon obtaining of the resident status, the company gets the opportunity to use all the benefits and preferences that can significantly save the investor’s time and money, increasing the economic efficiency of the project.

PROFIT TAX LAND TAX PROPERTY TAX TRANSPORT TAX

DUTIES FOR DEPARTURE FROM RUSSIA AND THE COUNTRIES OF

THE CUSTOMS UNION ***

DUTIES FOR IMPORTING TO RUSSIA AND THE COUNTRIES OF

THE CUSTOMS UNION***

* * * **

8

99

LLC «SYNTECHNO»

Carbon monocrystal production

Peak production capacity 6000 carats per year

HPHT-technology(chemically, physically and optically identical to natural diamonds)

• Rough diamonds• Diamond Plates and Lenses

Funding volume – 607 mln. rub.

Start of production - September 2020

For more information about the project

Titan-PolymerLLC «Pskov Plant «Titan Polymer»

I PHASEBiaxially

oriented film production

• Sales volume – 70 thousand tons per year

• Start of production –2020

II PHASEthermoplastic

polyester granules

production• Sales volume – 170

thousand tons per year

• Start of production–2022 год

Areas of use• Food• Packaging• Medical• Electrical and other

Biaxially oriented film –polymer material for food, medical and other industries

Polyester – polymer material with unique plastic properties. Has the appearance of solid white granules

Areas of use• Films• Fiber• Threads• Sheets and stuff

Possibility of creating an industrial regional cluster and a scientific and technical center on the basis of an enterprise

Funding volume – 15 bln. rub.

11For more information about the project

Production of industrial liquefied gases(nitrogen, argon, oxygen)

LLC «ELME MESSER RUS»

Sales volume 90 thousand tons per year

Funding volume – 1,9 bln. rub.Start of production 2021

12For more information about the project

List of documents

1 stage SUPERVISORY BOARD TO BECOME A RESIDENT

PROJECT PREPARATION

2 stage EXPERT COUNCIL

Declaration your investment in an industrial project

business plan adoption with the form of the Ministry of Economic Development

The signing of a Tripartite Agreement by Tenant (a resident) & Pskov region

Governor & Moglino SEZ Management Company

III-V Level by production hazard class restrictions (National health and sanitary standards)

Legal entity registered in the Pskov region(local IRD number)

Project CAPEX request at least 120 million RUB (equaled by $1 600 k USD )

Starting investment within 3 years 40 million of RUB (equaled by $548 k)

✓Investor’s application form✓Business plan✓Copies of documents of incorporation✓Copy of certificate of state registration of legal person✓Copy of the tax registration certificate

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MOGLINO SEZ DEVELOPMENT STRATEGY BY 4 PARADIGMS

Regional specialization (biochemical direction)

IndustrialTechnopark Moglino

Regionallogistics hub

Scaling the valuechain

Cluster concept of Moglino SEZRaw materials base of the Pskov region

Center for the Developmentof Innovations andCompetencies

Intermodal «dry port»High-speed container transportation

R&D, technology commercialization,venture ecosystem

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CLUSTER COLLABORATION-SCALING OF VALUE CHAINS

15

Anchor resident

Titan-Polymer

Transfer of innovative bio-synthesis

technology

Broad involvement of the regional raw

material base in the production

processes

Film manufacturers

Manufacturers of filaments and fibers, nonwovens

Manufacturers of thermoformed products

PET

Household chemicalsConstruction and repair

Light industryElectronics

Heavy industryFood industry

Medicine / PharmaceuticalsCosmetics

Development the ecosystem of

innovations based on human capital

Developing industrial cooperation with SMEs

BASE FOR THE SCIENCE, R&D AND A CENTER OF COMMERCIALIZATION

16

Applied eco management

Fundamental research

special infrastructure AND COMPETENCE

CENTER

Highly qualified specialists in

biology-chemistry subjects

Dr. Taras K. Antal, Ph.D. in Biophysics and Hydrobiology,

vice-rector for science in Pskov State University

The regional specialization in thefield of cooperation with

the local University (Pskov state University)

China

Russia

Western Europe

Africa

East Asia and North Africa

Southern Europe

Pskov

St. PetersburgUst-Luga

Tallinn

Riga

Pärnu

Klaipėda

Duisburg

Литва

Латвия

Эстония

Беларусь

Россия

MoscowVelikiye Luki

LOGISTICS SOLUTIONS TO SUPPORT THE E-COMMERCE BUSINESSESon the cross point of three huge agglomerations.Use of natural economic and geographical advantages of the cross countries' cooperation, joying along with the "One belt " conception

17

South and Southeast Asia

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MOGLINO SEZ 1 to 3 AREA MAPPING

Territory of prospective development

Moglino SEZ - 3Pskov HEPP

200 ha

Moglino SEZ – 1 territory 215 ha

TERRITORY OF PROSPECTIVE DEVELOPMENT

MOGLINO SEZ – 3

Moglino SEZ – 2 territory 82,5 ha

Titan-Polymer82,5 hA

Territory of prospective development

industrial technology park

100 ha

Territory of prospective development

Multimodal«dry port»

25 ha

MOGLINO SEZ – W.N. 2 UNDER DEVELOPMENT

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Thank youfor your

attention!

+7 8112 33 33 33

[email protected]

180502, Pskov region, Pskov district, Moglino village , SEZ PPT Moglino, h.18

www.moglino.com

www.facebook.com/moglinosez

vk.com/moglino_sez

www.instagram.com/sezmoglino/