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

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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 of the Russian Federation. Those improvements on the basis of 2017 made it possible to reach the following results in terms of optimization and shorten timing of procedures: Connection to the electricity grid from 124 to 83 days; Connection to gas distribution networks from 350 to 330 days; Obtaining of permit on building and territorial planning from 140 to 129 days; Registration of ownership from 7 to 5 days; Registration of land lots in the cadastre from 68 to 50 days. TULA REGION IS AMONG LEADERS ON IMPLEMENTATION OF TARGET OPERATING MODELS OF IMPROVING INVESTMENT CLIMATE. In 2017 executive authorities have carried out an extensive work to achieve target values of indicators provided for under implementation of target operating models of facilitating business and improving investment attraction. On the basis of 2017 results, total percentage of the achievement of target values of indicators is 95%, in accordance with the data in Region-ID system. Five target operating models are implemented for 100%: Registration of property right to land parcels and real estate objects, Availability and quality of regional legislation about mechanisms of investors protection and support of investment activity, Effectiveness of feedback and activity of direct channels of communication between investors and management of constituent entity of the Russian Federation, Effectiveness of specialized organization on investment attraction and work with investors, Alexey Dyumin, Tula Region Governor Tula Region is involved in work for implementation of target operating models and we are ready to begin development of new directions. We propose to elaborate better the municipal aspect together with Agency for strategic initiatives. The work is systematized at regional level, but it is necessary to strengthen it at municipal level, where is immediate interaction with business

4 January 2018 5 such sites will facilitate attraction of small and medium-sized enterprises to cooperation with enterprises of defense industry. professional education. Machine-building college of Nikita Demidov is noted among the most successful. SEVERAL INDUSTRIAL MANUFACTURES WILL LAUNCH IN TULA REGION IN 2018 Another important area of work is participation in the program Productivity improvement and support for employment, which Tula Region joined in 2017 among 6 pilot areas. Turning to the issue of the tripartite agreements implementation on education the personnel for industrial enterprises, Dmitriy Lomovtsev noted, that agreements on training qualified personnel was signed in 6 branches of industry and have proved effectiveness. Boards of trustees have been established under agreements on the basis of leading training centers of On the basis of 2017 results, number of people entering the working specialities has increased significantly. Starting this year, Ministry of industry and fuel and energy complex of the region will provide substantive guidance on basic institution specialities. At the conclusion Dmitriy Lomovtsev added, that the book devoted to S.I. Mosin Award will be published in 2018. Research study conducted in preparation of book covers more than a hundred-year period of Award existing and contains information about almost three thousand its laureates. MINISTER OF INDUSTRY AND FUEL AND ENERGY COMPLEX OF THE REGION SUMMARIZED THE RESULTS OF 2017 AND OUTLINED PRIORITIES FOR THIS YEAR. To summarize 2017, Dmitriy Lomovtsev, Minister of industry and fuel and energy complex of Tula Region, stated, that it has been able to attract more than 1,7 billion rubles in the region through close cooperation with Industrial Development Fund of the Russian Federation. Six our enterprises received investment support at federal level. This allowed region to go on the 4th place in the Russian Federation by the volume of funds drawn from Federal Industrial Development Fund. Also Minister outlined priorities for 2018 year. There is launch of 3 sectoral electronic sites on promotion of products and services of regional industrial enterprises among them. It will allow to encourage retail demand for products of Tula Region and to strenghen intraregional cooperation. In particular, one of Dmitriy Lomovtsev, Minister of industry and fuel and energy complex of Tula Region The largest investment projects are being successfully implemented and 2018 year promises to be eventful. There will be launch of new major enterprises and the creation of new jobs.

January 2018 6 7 Events ALEXEY DYUMIN TAKES PART IN THE SEMIFINAL OPENING OF ALL-RUSSIAN MANAGER COMPETITION RUSSIA`S LEADERS IN THE CENTRAL FEDERAL DISTRICT. In Moscow Region Alexey Dyumin takes part in the semifinal opening of All-Russian manager competition Russia`s leaders in the Central Federal District. RANEPA Advanced Academy of Public Administration organizes a competition on the instructions of the President of the Russian Federation. COMPETITION ON LOGOS FOR 14 SMALL CITIES WILL BE ANNOUNCED IN THE REGION. Vladimir Allakhverdov, the Chairman of the Tula Region Tourism Development Committee, held a press conference on the topic Results of Committee`s activity in 2017, plans and challenges for 2018. Vladimir Allakhverdov stated that Tula Region becomes increasingly attractive for tourists. INDUSTRIAL TOURISM DEVELOPS IN TULA REGION SEARCHER`S ATLAS, THE PROJECT OF THE TULA REGION, IS PRESENTED WITH IN THE FRAMEWORK OF ALL-RUSSIAN MANAGER COMPETITION RUSSIA`S LEADERS The round table Russia is a land of opportunities took place within the framework of All-Russian manager competition Russia`s leaders. Such name was given for open platform of projects operated on the model of human and social mobility, which was created at the initiative of Vladimir Putin, the Russian President. Tatyana Ryibkina, Minister of Culture of the Tula Region, responded to the questions of citizens at the hotline. The first question was related to development of industrial tourism in the region, promotion of traditional industries and, in particular, destiny of well-known metallurgists Mosolovy estate in Dubna.

January 2018 8 9 ALEXEY DYUMIN SIGNED AGREEMENTS WITH MANAGEMENT OF "UNITED CONFECTIONERS" COMPANY ABOUT EXPANDING PRODUCTION OF GINGERBREADS IN TULA. In Moscow Alexey Dyumin, Tula Region Governor, and Sergey Nosenko, Chairman of the board of directors United Confectioners LLC, signed the agreement on cooperation in project implementation on establishment of new production line on site of Yasnaya Polyana Tula Confectionary OJSC with investments of 628,5 mln rubles. New production line will be put into operation in 2018. LABOUR PRODUCTIVITY PROGRAM WAS DISCUSSED IN THE REGION GOVERNMENT. Realization of program on labour productivity and support of unemployment was discussed at the weekly progress meeting headed by Alexey Dyumin. Dmitriy Lomovtsev, Minister of industry and fuel and energy complex of Tula Region, recalled that the Council for Strategic Development and Priority Projects under the Russian President incorporated Tula Region in the number of the first six region-participants of realization of priority program Labour productivity and support of unemployment. TULA IS IN TOP FIVE POPULAR TOURIST CITIES OF CENTRAL RUSSIA. Tula entered top five popular tourist cities of Central Russia. Rating was performed by Tvil.ru, one of the leading websites on booking hotels. Yaroslavl, Vladimir, Kostroma and Tver have joined the list of the best cities. 4 THOUSAND NEW JOBS WILL BE CREATED IN TULA REGION Dmitriy Milyaev, Minister of Agriculture of Tula Region, reported on investment projects in agricultural sector at the operative meeting headed by Alexey Dyumin. 5 projects with the value of 6 bln rubles were completed, about 650 new jobs were created in 2017. Implementation of 15 projects with the total value of over 73 bln rubles is continuing. Implementation period of these projects 2018-2020. Expected result is creation of almost 4 thousand new jobs. ПОДРОБНЕЕ

10 Announcement Tula Region delegation will participate in the Russian Investment Forum. The Russian Investment Forum will be held in the Main Media Center of Sochi Olympic Park on February 15-16, 2018. The Russian Investment Forum is the traditional site for discussion of issues about international economy development and its current trends, presentation of investment and economic potential of Russian regions, interaction and strengthen the linkages between foreign and Russian business representatives, political, expert and media communities. We invite everyone to visit Tula Region exhibition stand, which will be presented during the Forum at the address: 1 Olympic pr., Adler sett., the Main Media Center of Sochi Olympic Park, pavilion 5.5, stand 6. You can find the program of The Russian Investment Forum on the official website. See you in Sochi! SOCHI 18 RUSSIAN INVESTMENT FORUM TULA REGION DEVELOPMENT CORPORATION invest-tula.com uzlovaya.ru 4872-338-008 corporation@invest-tula.com