Presentation about the economy of Tatarstan Fulfilled: Khudoykulov G Chief: Khatamtaeva E

FACTS ABOUT THE REPUBLIC OF TATARSTAN TATARSTAN is one of the regions of Russia with highly developed economy and advanced technological infrastructure LOCATED in the heart of the large industrial area of the Volga Region, intersection of main roads connecting east and west, north and south of the country. TOTAL AREA : , 2 sqm POPULATION (PRIVOLZHSKY FEDERAL DISTRICT) : people. CAPITAL: Kazan (population people), 797 km. to the East from Moscow. INDUSTRIAL PROFILE of the Republic is made by oil and gas production, petrochemicals industry, mechanical engineering and metalworking, aircraft building, energy production, IT industry, electric and radio instrument-making. TATARSTAN WAS RECOGNIZED AS THE BEST REGION FOR BUSINESS IN RUSSIA BY THE FORBES MAGAZINE IN 2011 AND TOP RUSSIAN REGION FOR GERMAN INVESTORS IN

ECONOMY OF THE REPUBLIC OF TATARSTAN ABOUT 32 MLN. TONS OF OIL are produced in the Republic annually (6,5% of All- Russian index). OVER 1 BLN. TONS – confirmed oil resources and over 7 bln. tons of bitumen oil, as estimated by oil experts. 60% OF RUSSIAN POLYSTYROL PRODUCTS are made by Republican enterprises of petrochemical industry as well as about a half of polyethylene, over 40% of synthetic rubber and one third of car tires. OVER 55% OF RUSSIAN TRUCKS are manufactured by KAMAZ – Russian automotive giant, located in Tatarstan. 24% OF RUSSIAN TRACTORS are produced in Tatarstan. TATARSTAN SUPPLIES 4,7% OF RUSSIAN AGRICULTURAL PRODUCTS using 2,3% of its farmlands.

ECONOMY OF THE REPUBLIC OF TATARSTAN COMPLEX OF TANEKO OIL PROCESSING AND PETROCHEMICAL PLANTS HAS BEEN BUILT, supposed to process annualy 7 mln. tons of high-sulfur oil into a wide range of petrochemical products. OVER 120 FOREIGN COUNTRIES are involved in the active trade relationships with Tatarstan. Germany, France, Italy and Finland are major EU trade partners of the Republic. DEVELOPED NETWORK OF TECHNOPARKS. Successfully operating: Innovation and Production Park Idea OJSC, Kamsky Industrial Park Master, IT-park, Technopolis Khimgrad SPECIAL ECONOMIC ZONE OF INUSTRIAL- PRODUCTION TYPE ALABUGA with 31 residents for now. FOR TOTAL VOLUME OF INVESTMENT INTO THE BASIC CAPITAL THE REPUBLIC OF TATARSTAN TAKES THE FIRST POSITION AMONG REGIONS OF THE VOLGA FEDERAL DISTRICT AND THE 6 th AT THE FEDERAL SCALE.

KAZAN IS THE CAPITAL OF TATARSTAN ONE OF THE LARGEST INDUSTRIAL, FINANCIAL, TRADE AND TOURIST CENTERS OF RUSSIA. City number one of the Volga Region for investments into basic and capital construction. The third capital of Russia is the registered brand of the city. Millennium of Kazan was celebrated in Headquarters of 6 leading Tatarstan companies are located in Kazan. They rank among the top 500 largest for income enterprises of Russia. Among the largest enterprises of Kazan are Kazanorsintez chemical plants, Kazan Powder Plant, the oldest one in Russia, and cluster of three aircraft building companies – KAPO named by Gorbunov (producer of the strategic bomber Tu-160), Kazan Helicopters and KMPO (engines manufacturer), unique in Russia. Innovative economy in Kazan is presented by IT-park, the biggest in Russia, as well as by the technical park Idea, one of the largest in Europe.

Kazan is one of the largest industrial and financial centers of Russia, and a leading city of the Volga economic region in construction and accumulated investment. City's Gross Regional Product had reached 380 billion rubles in Total banking capital of Kazan banks is third in Russia. The main industries of the city are: mechanical engineering, chemical, petrochemical, light and food industries. An innovative economy is represented by the largest IT-park in Russia which is one of the largest of its kind among Eastern Europe science parks. Kazan ranks 174th (highest in Russia) in Mercers Worldwide Quality of Living Survey.

INTERNATIONAL ACTIVITY OF KAZAN Offices of foreign diplomatic-trade-cultural representations are located in Kazan Kazan Kremlin and Institute of World Culture are on the UNESCO World Heritage list. The city participates in partner movements, it is a member of the global entities of cities. The following events were held in Kazan : Summit of the CIS Heads, Summit of the World Safety Services and other global significant forums and conventions. Visits to Kazan: Head of China, State Secretary of the USA, about thirty presidents and prime-ministers of overseas states. International Airport Kazan provides flights to dozens destinations in different countries and accommodation for the biggest airbuses. International railway service is organized from Kazan.

EXHIBITION CENTER KAZANSKAYA YARMARKA THE ONLY EXHIBITION CENTER IN THE REPUBLIC OF TATARSTAN WITH SQM OF EXHIBITION SPACE ONE OF TOP FIVE RUSSIAN EXHIBITION VENUES

ACHIEVEMENTS OF THE KAZANSKAYA YARMARKA EXHIBITION CENTER Member of the Russian Union of Exhibitions and Fairs since Member of the Global Association of the Exhibition Industry (UFI) since 2002 Since 2007 the first and only exhibition center in Russia, with the quality management ISO certified Member of International Congress and Convention Association Member of the Russian-German Chamber of Commerce ( AHK) since exhibitions 273 business events visitors 7322 exhibitors In 2012

INDUSTRY SECTORS COVERED BY OUR EXHIBITIONS AND CONGRESS-EVENTS Oil, gas production, petrochemistry Power generation Nanotechnologies Travel industry Aerospace technologies Mechanical engineering Construction IT Health and beauty Ecology Geology Water resources Transport and logistics Furniture and woodworking Education Fashion and textile Landscape and floristry Arts Advertising technologies Health and beauty

TOP EVENTS TO BE HELD IN 2014 April December 3-5 JUNE 3-6 September 3-5 February CONSTRUCTION MECHANICAL ENGINEERING FURNITURE AND WOODWORKING AGROINDUSTRIAL COMPLEX AND FOOD October Health Industry April KITS-2014 ENERGY March

MECHANICAL ENGINEERING. METALWORKING. KAZAN 2013 Held since 2000 RUEF and UFI approved event 2nd place for professional interest among top Russian exhibitions for mechanical engineering and metalworking In 2013: 139 participants 5662 sqm of total weight exhibition space 1819 sqm of net exhibition space 275 sqm of non-equipped exhibition space 6230 visitors (95% trade visitors) International Contract Exchange Order volume at the International Contract Exchange in 2013 made over 15 mln. US dollars BUYER POTENTIAL OF THE EXHIBITION* US DOLLARS * (total buyer potential of visitors of the exhibition)

MECHANICAL ENGINEERING. METALWORKING. KAZAN 2014 EXHIBITION AREAS: Automobile production Production of machine-building enterprises Metalworking and metal cutting equipment Precision engineering Hydraulic and pneumatic equipment Equipment for heat treatment Coating equipment New technologies of metal Advanced materials and high technology

MECHANICAL ENGINEERING. METALWORKING. KAZAN 2013 BUSINESS EVENTS: International Scientific Conference "Education, science and production. New technology as a tool for implementing the development and modernization strategy of " Today`s challenges of education and staff in mechanical engineering" "Innovative development of young scientists and small high-tech enterprises to improve the competitiveness and efficiency." "Innovative engineering technologies, equipment and materials 2013" "Competitive activity of industrial enterprises in the WTO" "The competitive production problems of automotive components sector in the Republic of Tatarstan"

Subcontracts Exchange Subcontract Exchange was attended by 100 companies with more than 170 participants. The performers identified the cooperation areas and agreed on the main parameters of cooperative agreements. In 2013 the sold were long-term contracts in all areas of metal processing and rubber products manufacturing. The total volume of orders on the Subcontracts Exchange was more than 26 mln. US Dollars In 2012 Subcontracts Exchanges total order amount was 15 mln US Dollars

Machinery Engineering Industry Overview in the Republic of TATARSTAN Main Clustors Automotive building Vehicle components production Machine tool building sector

AUTOMOTIVE BUILDING SECTOR IN TATARSTAN Automotive industry is, traditionally, among key industry branches of Tatarstan with automotive components and vehicles production as a core part. The largest automotive producers located in Tatarstan: Kamaz OJSC (Kamaz Group) is a giant of the Russian automotive industry. Kamaz ranks No 16 among the leading world manufacturers of heavy trucks and No 8 by the diesel engines output. The Russian automotive giant signed a license agreement with Daimler Trucks proving Kamaz with technology of the Axor cabs for Kamaz trucks. Ford-Sollers Holding LLC is a new joint enterprise, established by Ford Motor Company ZAO and Sollers OJSC October 1, 2011 on the territory of Naberezhniye Chelny city and the Alabuga Special Economic Zone. In 2012 launched was production of Ford Transit commercial vehicles; since July have been manufactured also well-known Ford Explorer sport utility vehicles, Kuga crossovers and S-MAX and Galaxy minivans as well.

RELATED INFRASTRUCTURE IN TATARSTAN Special Economic Zone Alabuga (industrial production, automotive industry) Kama Industrial Park Master (automotive industry) IDEA Innovative Technopark (research-intensive production) 6 techno-parks 6 business incubators 4 industrial parks 2 industrial platforms Scientific project INNOPOLIS SMART-CITY-KAZAN

ZF Kama – manufacturing of automatic transmission gearboxes for Kamaz trucks (joint venture of ZF Friedrichshafen and Kamaz OJSC, the first enterprise in Russia, manufacturing high-tech products of world-scale); Joint enterprise for production of Euro-3 and Euro-4 standard CUMMINS diesel engines in Naberezhniye Chelny (Kamaz OJSC in cooperation with CUMMINS INC); Knorr-Bremse Kama Systems for Commercial Vehicles LLC – (Kamaz OJSC and Knorr-Bremse fur Nutzfahrzeuge GmbH); Joint enterprise for production of sleeve parts for Kamaz vehicles (Kamaz OJSC in cooperation with Federal Mogul Corporation); Innovative Engineering Center for Automotive Industry (Kamaz OJSC, LMS International, Kazan State Technical University); Kazan NORAUTO – Specialized Center for automotive parts distribution. Investment projects within the automotive cluster (already operating and those ready to be launched):

Machine tool building cluster is not a strength of the Tatarstan Industry nowadays. Just several well-known production enterpises operate in the cluster. Most of them have maintained their economic potential on the base of the scientific and engineering centers achievements of the Soviet period: Kazan Aviation Production Association (KAPO aft. Gorbunov, JSC) Kazan Motorbuilding Production Association (KMPO, JSC) Radiopribor, JSC Kazan Medical Instrumental Plant, JSC KamAZ, OJSC Zavod aft. Sergo, OJSC (Pozis) But! The demand for drilling, cutting machines and lathes is much higher than the supply, which has been covered by foreign companies from Germany, Japan, the USA. Dmitry Medvedev : … If the Russian machine tool industry is to bere-established this can be done only in Tatarstan, one of the most high-speed developing regions of the Russian Federation.

Machine tool building sector Within the period total demand for machine engineering equipment will increase no less than three times each year. With the adoption and implementation of government regulations the conditions for attracting foreign companies to the development of the Russian machine-tool industry were created. Denis MANTUROV, Minister of Industry and Trade of the Russian Federation: …. machine tool building clusters to be created. It will work with foreign companies. Agreement on the establishment of their own productions has been signed in four regions: Tatarstan, Rostov, Sverdlovsk and Ulyanovsk regions. … We recommend Tatarstan and these four regions to foreign investors, as there is the main potential of the domestic machine tool industry concentrated in these areas. Russian business Paper Mechanism Has Started April,

Machinery Engineering in Tatarstan OBJECTIVES FOR Development and deepening of international- and inter-regional cooperation and subcontracting, cooperation with major Russian and foreign companies; Improving the competitiveness between the enterprises of machine-building cluster, basing on quality management standards; Promote and coordinate the implementation of subordinate enterprises development programs; Modernization of production facilities; Preparation and implementation of the concept of the engineering center The automotive modeling design and technology in the city of Naberezhnye Chelny; Realization of the State Program "Development of the industry and increase of its competitiveness in the period up to 2020."

REPUBLIC OF TATARSTAN: One of the most developed Russian regions The best region for making business in Russia (Forbes magazine, 2011) The most attractive Russian region for investors (research of the Russian-German Chamber of Commerce members opinion) Platform for high-tech projects to be implemented (technoparks, business incubators, special economic zone) Government support of small- and medium-size enterprises

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