TULA REGION DEVELOPMENT CORPORATION. December 2017 REGION FOR BUSINESS. 4 th. in rating of investment attractiveness of Russian regions.

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1 TULA REGION DEVELOPMENT CORPORATION December 2017 REGION FOR BUSINESS 4 th place in rating of investment attractiveness of Russian regions

2 December 2017 3 The Slogan of the message for 2018 - ʺNew knowledge new possibilities.

THE REGIONAL DUMA, TO THE GOVERNMENT AND RESIDENTS OF THE REGION The Governor instructed to elaborate a program of their motivation to work in government

Alexey Dyumin pay a special attention to continuous education, early professional orientation, practice-oriented approaches and advanced training.

According to the Governor, the cluster will be a center of attraction for active young people.

2 2 December The Slogan of the message for ʺNew knowledge new possibilities. ʺ Alexey Dyumin made the main emphasis to education, enabling new knowledge and technologies, economic development, creating a comfortable environment for young people s self-realization. The aim is to create personnel reserve for the national and municipal service, including among the best students and among the members of ʺClub of those who passed exams on 100 gradeʺ. ALEXEY DYUMIN ANNOUNCED 2018 YEAR IN THE TULA REGION WOULD BE A YEAR OF EDUCATION AND NEW KNOWLEDGE THE GOVERNOR WILL DELIVER HIS ANNUAL ADDRESS TO THE MEMBERS OF THE REGIONAL DUMA, TO THE GOVERNMENT AND RESIDENTS OF THE REGION The Governor instructed to elaborate a program of their motivation to work in government authorities of various levels. The Tula Region successively relies on training professionals within the framework of educational policy. Alexey Dyumin pay a special attention to continuous education, early professional orientation, practice-oriented approaches and advanced training. ʺOktavaʺ creative and educational cluster is being opened in the region. According to the Governor, the cluster will be a center of attraction for active young people. Alexey Dyumin proposed to announce upcoming 2018 year in the Tula Region as a Year of Education and New Knowledge. In his message, Tula Region Governor stressed importance of the strategic initiatives of the President of Russia Vladimir Putin for the region, in particular, in the field of interbudgetary relations and improving the demographic situation. Alexey Dyumin affirmed the commitment to the Program of social-economic development up to According to him, ʺwe are strictly following the plan for implementation of the key goals of the Program. ʺ The Head of the region has introduced a number of initiatives, which develop the main objective of the Program creating a comfortable environment for residents of the region.

4 December 2017 5 HEAD OF THE RGEION PROPOSED THREE MAINSTREAM OF ECONOMIC DEVELOPMENT: KEY RESULTS OF THE REGION DEVELOPMENT IN 2017 1.

3 4 December HEAD OF THE RGEION PROPOSED THREE MAINSTREAM OF ECONOMIC DEVELOPMENT: KEY RESULTS OF THE REGION DEVELOPMENT IN It is planned to establish scientific and production cluster ʺComposite valleyʺ on the territory of the ʺUzlovayaʺ SEZ. It is referred to establish a whole scientific and production core in the region, including productive capacities on the territory of the ʺUzlovayaʺ SEZ, creating a serious research base in Tula State University ( ). Establishment of the special cluster in the Tula Region, traditionally strong in the field of Alexey Dyumin, Tula Region Governor defense and chemical industries, is open doors to the world market for special advanced materials 2. Implementation of a number of infrastructural projects by the mechanism of Infrastructural mortgage. The Governor confirmed plans to construct Tula East circumvention, automobile bridge through the Upa river. Alexey Dyumin also paid special attention to the need to work out visions and mechanisms of development for the Tula Region agglomeration, including several towns of the region with a population of approximately a million people. Growth of investment index in fixed assets amounted to 125.4% in January-September to the same period last year. According to the results for 10 months 2017, agricultural index reached 112.6%. The index of industrial production reached 102.1%. The index of consumer inflation in the region is one of the lowest over the last 5 years. The lowest index of the registered unemployment rate for 20 years is 0.55%. Wage increased by 7% over the first 10 months to the same period last year against the background of growth the economic indicators. There are more than subjects of small business and individual entrepreneurs, which operates in the region. The region stably keeps the 4th place in the National Investment Climate Ranking. The Region signed 22 agreements for 83 billion rubles within the framework of the St. Petersburg International Economic Forum. 3. Increase in labor productivity. The Region was among 6 pilot regions, where the profiled government program implements. 13 Tula enterprises participated in the program. Alexey Dyumin, Tula Region Governor We consider, that new knowledge and technologies for productivity improvement will be successfully worked out and extended to other enterprises of the region Alexey Dyumin, Tula Region Governor On the New Year s Eve, I want to wish you that all everything good in our lives will continue and enhance. That together we can make easily overcome all obstacles and move forward confidently. May next year will bring success and well-being for everyone, will give you the best ideas and will help to bring them to life. Dear friends, I sincerely wish us all an optimism and faith in yourself! New victories!»

6 December 2017 7 company, which was implementing investment project for full cycle automobile plant construction in the Uzlovaya District with a capacity of 150 thousand cars annually.

Technical facilities of the enterprise under construction will be started with the opening of the railway line. Construction of the buildings is reaching completion.

RAILWAY TRAFFIC IS LAUNCHED IN THE ʺUZLOVAYAʺ INDUSTRIAL PARK The first railway line was opened in the ʺUzlovayaʺ industrial park.

Alexey Dyumin, Tula Region Governor, recalled during the solemn ceremony that the region was committed to complete construction of the railway line before the end of the year within the framework of

4 6 December company, which was implementing investment project for full cycle automobile plant construction in the Uzlovaya District with a capacity of 150 thousand cars annually. It is planned to create 2500 new jobs. The investment volume of the project amounts to 500 million dollars. The enterprise launching is planned in Technical facilities of the enterprise under construction will be started with the opening of the railway line. Construction of the buildings is reaching completion. Buildings for painting and welding workshops have been completed. It is planned to start first pre-commissioning activities in September RAILWAY TRAFFIC IS LAUNCHED IN THE ʺUZLOVAYAʺ INDUSTRIAL PARK The first railway line was opened in the ʺUzlovayaʺ industrial park. The line will provide an anchor resident Great Wall Motor (GWM) with transport connection. Alexey Dyumin, Tula Region Governor, recalled during the solemn ceremony that the region was committed to complete construction of the railway line before the end of the year within the framework of investment agreement with GWM. The builders made these tasks as soon as possible. us with so remarkable event for the region! I thank our Chinese partners for the trust. Hope for further cooperation, ʺ - Alexey Dyumin said. Azer Talybov, Deputy of Ministry of Economic Development of the Russian Federation, noted that the launching of railway traffic would give a new impetus for industrial zone development. The Ministry of Economic Development will provide the necessary support for project implementation on the territory of the industrial park. All necessary infrastructure, gas supply, electricity, water supply, is established in the industrial park. It is important to complete motorway construction. I am sure that the ʺUzlovayaʺ industrial park will be not only one of the largest sites of the Central Russia, but the most effective! Alexey Dyumin, Tula Region Governor ʺProviding industrial parks with railway line will contribute to attract new residents. I congratulate to all of Zhan Junxue, General Director of the company-investor, reminded that GWM was Chinese automobile

4 December 2017 9 THE FIRST ENTERPRISE WAS OPENED IN THE ʺUZLOVAYAʺ SPECIAL ECONOMIC ZONE A solemn opening ceremony of the first resident Engelsspetstrubmash (ESTM) was held on the territory of the

Alexey Dyumin, Tula Region Governor, Azer Talybov, Deputy Minister of Economic Development of the Russian Federation, Dmitry Kolosov, General Director of ʺESTMʺ LLC symbolically launched the plant.

Sochi. ʺA unique products for gas industry will be produced in Russia for the first time. It is import substitution in their pure form. Today s opening is only the beginning.

5 4 December THE FIRST ENTERPRISE WAS OPENED IN THE ʺUZLOVAYAʺ SPECIAL ECONOMIC ZONE A solemn opening ceremony of the first resident Engelsspetstrubmash (ESTM) was held on the territory of the ʺUzlovayaʺ special economic zone (SEZ). Alexey Dyumin, Tula Region Governor, Azer Talybov, Deputy Minister of Economic Development of the Russian Federation, Dmitry Kolosov, General Director of ʺESTMʺ LLC symbolically launched the plant. Alexey Dyumin reminded that a cooperation agreement between the Tula Region Government and Engelsspetstrubmash Company was signed in September within the framework of the Russian Investment Forum in Sochi. ʺA unique products for gas industry will be produced in Russia for the first time. It is import substitution in their pure form. Today s opening is only the beginning. A number of enterprises will be launched soon, ʺ - Alexey Dyumin commented. Dmitry Kolosov, General Director of ESTM, reported that ʺEngelsspetstrubmashʺ was implementing a project for manufacturing coiled tubing or, as we usually called it in Russia, producing flexible pumping and compression pipes. They are used by oil field service companies for operation on coiled tubing equipment in service delivery by oil and gas producers, including shelf and slaty production. The investment volume of the project is up to 1.5 billion rubles. It is planned to reach full production capacity no later than the first quarter of Azer Talybov, Deputy Minister of Economic Development of the Russian Federation, noted the work of the region in creation comfortable business-environment. The results of its activity were an opening the first enterprise in the special economic zone. The enterprise will produce the products, which have no equals in the world. For the reference: He also stressed that special economic zone gave more opportunities for the region due to advantageous location and creating comfortable conditions for investment attraction. Alexey Dyumin reminded that the ʺUzlovayaʺ SEZ had been established last year. Eight companies have already signed agreements for project implementation on its territory. Alexey Dyumin, Tula Region Governor, noted: ʺ ʺWe understand, how important economic stability, tax revenues, new jobs. That s why we pay a great attention to the territory development. We will work to attract new residents, who will establish new enterprises. It will give the opportunity to work and gain worthy wages in front of their houses. The ʺUzlovayaʺ SEZ was established in Total area amounts to hectares. There is a wide range of tax incentives for enterprise location on the territory of the ʺUzlovayaʺ SEZ. Among the tax incentives are reduced income tax, property tax, transport tax. The regime of a free customs zone is available on the territory.

December 2017 10 11 Events ʺPRODVIZHENIEʺ TOURIST FORUM WAS HELD IN THE REGION ʺPROДвижениеʺ was held at the platform of park-hotel ʺGrumantʺ, which was organized by the Tula Region Committee for

Representatives of the government authorities in the field of culture and tourism from 20 regions, tourism industry organizations, tourism industry organizations, tour operators, marketers and

TAX PRIVILEGES HAVE BEEN INTRODUCED FOR RESIDENTS OF ADVANCED SOCIAL-DEVELOPMENT TERRITORIES Alexey Dyumin, Tula Region Governor, signed an Act of the Tula Region ʺAbout preferential taxation for

Poly Group Chinese company in conjunction with ʺKuban Oil Yefremov s Butter Factory ʺ will build the plant for processing soybean and rape in the Tula Region Delegation of Poly Group Chinese

The Representatives of Poly Group get acquainted with ʺKuban Oil Yefremov s Butter Factory ʺ LLC and examined potential sites for the location of the production facilities in Yefremov and Venyov.

6 December Events ʺPRODVIZHENIEʺ TOURIST FORUM WAS HELD IN THE REGION ʺPROДвижениеʺ was held at the platform of park-hotel ʺGrumantʺ, which was organized by the Tula Region Committee for tourism development, supported by Federal Agency for Tourism. Representatives of the government authorities in the field of culture and tourism from 20 regions, tourism industry organizations, tourism industry organizations, tour operators, marketers and experts participated in the event. Altogether over 500 participants. TAX PRIVILEGES HAVE BEEN INTRODUCED FOR RESIDENTS OF ADVANCED SOCIAL-DEVELOPMENT TERRITORIES Alexey Dyumin, Tula Region Governor, signed an Act of the Tula Region ʺAbout preferential taxation for residents of advanced social-economic development territories, established in the Tula Regionʺ. The major goal of the Act is to improve the investment climate in the region. Poly Group Chinese company in conjunction with ʺKuban Oil Yefremov s Butter Factory ʺ will build the plant for processing soybean and rape in the Tula Region Delegation of Poly Group Chinese Corporation, headed by Jin Chunshen, Senior Adviser to the President, made a working visit to the Tula Region. The Representatives of Poly Group get acquainted with ʺKuban Oil Yefremov s Butter Factory ʺ LLC and examined potential sites for the location of the production facilities in Yefremov and Venyov. Follow up the meeting between ʺKuban Oil Yefremov s Butter Factory ʺ and Poly Group, the parties signed an agreement of intent for processing soybean and rape. Furthermore, the parties signed three party protocol, governing further jointly working. ʺKuban Oil Yefremov s Butter Factory ʺ and Poly Group began to align the contract of technological design of the plant. VLADIMIR MEDINTSKIY AND ALEXEY DYUMIN NEGOTIATED IMPLEMENTATION OF LARGE-SCALE CULTURAL PROJECTS IN THE TULA REGION A meeting between Vladimir Medinskiy, Minister of Culture of Russia and Alexey Dyumin, Tula Region Governor was held. Head of the region thanked the Minister for responding to our request regarding allocation of funds for completion the exposition of the Museum of Weapons and help for development Museum complexes of the region. Vladimir Medinskiy noted activity of the region in cultural development. According to him, the Minister of Culture of the Russian Federation pays special attention to the Tula Region, which is rich by its museums, monuments and tourist attractions.

12 TULA REGION S CAKE CAN ENTER THE MENU OF PUBLIC FOOD FOR WORLD FOOTBALL TOURNAMENT 2018 The Head of the

football match will be held in 2018. Among them may be Tula s cake.

THREE TULA S FESTIVALS ARE AWARDED ʺNATIONAL EVENT OF THE YEARʺ TITLE Based on the results of the competition

7 12 TULA REGION S CAKE CAN ENTER THE MENU OF PUBLIC FOOD FOR WORLD FOOTBALL TOURNAMENT 2018 The Head of the region informed that just 7 products had entered the menus of public meal at the stadium, where World Cup football match will be held in Among them may be Tula s cake. ʺThere is another breakthrough of our brand to the global level, ʺ - the Governor stressed. THREE TULA S FESTIVALS ARE AWARDED ʺNATIONAL EVENT OF THE YEARʺ TITLE Based on the results of the competition ʺNational event of the yearʺ, three events of the Tula Region have been included in the TOP 200 best eventful projects in Russia. These are international war-historical festival ʺKulikovo Fieldʺ, ʺTolstoy Weekendʺ theatrical festival and ʺDay of Cakeʺ new Tula s festival. They received an active informative support within the framework of the project National calendar of events EventsInRussia.com.

8 13 Happy New Year and Merry Christmas! We sincerely congratulate you on upcoming holidays! We wish you all the best in New Year: financial stability, pleasant discoveries, success in your endeavors, great opportunities and the brightest events! Thank you for cooperation and we look forward to a fruitful collaboration in a future! We wish you good health, happiness, family welfare, fortune, welfare and great mood! TULA REGION DEVELOPMENT CORPORATION invest-tula.com uzlovaya.ru corporation@invest-tula.com

TULA REGION DEVELOPMENT CORPORATION. January 2018 REGION FOR BUSINESS. 4 th. in rating of investment attractiveness of Russian regions.

TULA REGION DEVELOPMENT CORPORATION January 2018 REGION FOR BUSINESS 4 th place in rating of investment attractiveness of Russian regions January 2018 2 3 Quality of Investment Gateway of constituent entity