Investment climate of Mogilev region MOGILEV REGION Mogilev

Investment climate of Mogilev region

MOGILEV REGION ü Mogilev region is located in the East of the Republic of Belarus ü The population of the region exceeds 1. 1 million people ü The administrative center of Mogilev region – Mogilev city is located in 80 km. from the Russian Federation border at the intersection of the most important Trans-European corridors: M 1 (Brest-Moscow) and E 95 (St. Petersburg. Odessa)

ADVANTAGES OF THE GEOGRAPHICAL POSITION OF THE MOGILEV REGION Mogilev region links the CIS countries and the countries of the European Union. Its advantageous location is beneficial foreign companies that place their production and logistics units. Mogilev airport can accommodate modern aircraft used on international lines. A large railway junction is located in Mogilev. It can send and receive any type and kind of cargo.

EXPORT POTENTIAL OF THE EURASIAN ECONOMIC UNION FAVORABLE CONDITIONS FOR EXPORT: FREE ACCESS TO THE MARKET OF THE EURASIAN ECONOMIC UNION OF BELARUS, RUSSIA, KAZAKHSTAN, ARMENIA AND KYRGYZSTAN: THE COMMON CUSTOMS AREA THE FREE TRADE AGREEMENT 180 -MILLION CONSUMER MARKET

FREE ECONOMIC ZONES OF THE REPUBLIC OF BELARUS THE GOALS OF FREE ECONOMIC ZONES: ü CREATION AND DEVELOPMENT OF INNOVATIVE AND TECHNOLOGY-BASED ENTERPRISES ü ATTRACTION OF ADVANCED TECHNOLOGIES ü FORMATION OF A FAVORABLE INVESTMENT CLIMATE ü ATTRACTION OF DOMESTIC AND FOREIGN INVESTMENTS ü GROWTH OF EXPORT ü CREATION OF NEW JOBS

THE STRUCTURE OF THE “MOGILEV” FREE ECONOMIC ZONE ü The territory of Mogilev FEZ consists of 18 sites with the total area of 3, 339. 4 ha ü Free land plots area ≈ 500 ha ü Production facilities > 200, 000 sq. m. All Mogilev FEZ sites are located in industrial hubs Site 1 – 373 ha Site 2 – 182. 6 ha Site 3 – 65. 69 ha Site 4 – 925. 23 ha Site 5 – 78. 5 ha Site 6 – 187. 95 ha Site 7 – 237. 03 ha Site 8 – 58 ha Site 9 – 92. 14 ha Site 10 – 99. 23 ha Site 11 – 293. 92 ha Site 12 – 248. 12 ha Site 13 – 63. 73 ha Site 14 – 104. 05 ha Site 15 – 206. 75 ha Site 16 – 14. 33 ha Site 17 – 22. 13 ha Site 18 – 55. 48 ha

"MOGILEV" FEZ PREFERENCES TAX PREFERENCES: ü Exemption from Real Estate Tax ü Exemption from Profit Tax ü Exemption from rent for land plots CUSTOMS PREFERENCES: ü Are granted by the Free Customs Zone (FCZ) procedure ü The goods that have been placed under the FCZ procedure are exempt from customs duties and taxes ü All residents are fully exempt from customs duties and taxes (on raw materials that have been initially imported under the FCZ procedure) if manufactured products are finally exported outside the Eurasian Economic Union OTHER: ü Withdrawing and assigning land plots without holding an auction ü Exemption from compensatory payments

IMPLEMENTATION OF INVESTMENT PROJECTS GREENFIELD over 500 ha for construction of new facilities BROWNFIELD over 200 thousand sq. m. for rent or purchase

"MOGILEV" FEZ TODAY ü 41 residents from 10 countries and the Republic of Belarus ü Total volume of investments – more than 1. 3 billion EURO ü 34 enterprises have already started production ü Export to more than 70 countries

FOREIGN INVESTMENTS IN THE “MOGILEV” FREE ECONOMIC ZONE Austria China Netherlands Cyprus Germany Lithuania Turkey Russia Estonia Israel

SITE 4 OF "MOGILEV" FEZ

“KRONOSPAN OSB” FLLC Project: Setting up production of materials for furniture and construction industries Investor: Austria Production: OSB boards Full capacity: 700 thousand m 3 OSB boards per year Investments: Over 300 mln. Euro Release of the first products: September 2014

“KRONOCHEM” LLC Project: Establishment and further maintenance of the plant for production of the urea-formaldehyde resins and the phenol formaldehyde resins. This materials and other components are going to use for further manufacturing in Mogilev at the production site of the Mogilev FEZ Investor: Austria Production: Urea-formaldehyde resins and the phenol formaldehyde resins Full capacity: 351. 7 thousand tons per year Investments: Over 80 mln. Euro Release of the first products: March 2016

“VMG INDUSTRY” FLLC Project: Vertically integrated wood-processing complex Investor: Lithuania Production: Furniture, Peeled veneer, Particleboard Full capacity: 165 thousand m 3 of chipboard per year 18 thousand m 3 of rotary cut veneer per year 5 mln. m 2 of furniture Investments: Nearly 120 mln. Euro Release of the first products: July 2013

“OMSK CARBON MOGILEV” FLLC Project: Setting up an enterprise for carbon black production Investor: Russian Federation Production: Carbon black Full capacity: 200 thousand tons per year 17 mln. KWh per year Investments: Nearly 140 mln. Euro Release of the first products: 4 quarter of 2017

78 А Cheluskintsev Str. , 212003 Mogilev, Republic of Belarus Tel. : +375 222 62 66 01 Fax: +375 222 62 66 02 info@fezmogilev. by