THE M URMANSK REGION INVESTMENT STRATEGY UP TO YEAR 2020 AND FOR THE PERIOD UP TO YEAR 2025

1. THE MURMANSK REGION INVESTMENT STRATEGY UP TO YEAR 2020 AND FOR THE PERIOD UP TO YEAR 2025

2. 2 Ground for elaboration of Investment Strategy Amplification of principal provisions of the Murmansk Region Social and Economic Development Strategy up to year 2020 and for the period up to year 2025 Shaping system of long-term objectivesfor investment activity as well as the most efficient ways of their achievement Implementation of May’s Decrees of the President of the Russian Federation Amplification of principal provisions of the North-West Federal District Social and Economic Development Strategy for the period up to year 2020 Implementation of the National Arctic policy of the Russian Federation, including The Strategy of Development of the Arctic Zone of the Russian Federation and National Security Protection for the period up to year 2020 Implementation of the Standard of activities of the executive authorities of the subject of the Russian Federation on the provision of congenial investment climate in the region

3. 3 Fixed capital investments behavior Note: evaluated data used for the period of 2013.

4. 4 Branch analysis of the Murmansk region development Priority economic activities Mining industry Aquaculture, fisheries and fish processing Tourism Organizations’ fixed capital investments structure behavior (exclusive of small business entities) by economic activities (in percents vs total)

5. 5 Murmansk region positions in the international and Russian ratings and in investment climate reports In the Russian regions investment attractiveness rating the region was referred to IC5 group (average investment attractiveness - secondlevel) The 4th place in the North-West Federal District according to the 2012-2013 Russian regions investment-grade rating The 11th placeamong 39 Russianregions in the rating for the index of conditions for small and medium business development The city of Murmansk held the26th place In the World Bank’s Doing business international rating The 43rd place among 83 Russian regions in the rating of regions for development of private-public partnership (PPP)

6. 6 SWOT analysis of Murmansk region investment attractiveness

7. 7 Scenarios of implementation of various strands of investment policy in Murmansk region (TOWS analysis)

8. 8 Objectives and indicators of Investment Strategy

9. 9 Objectives and indicators of Investment Strategy Objective 1. Creation of institutional conditions for consistent growth and development(comprised of 24 tasks) Achieved by measures implementationtowards: improvement of investment process management system; improvement of the regional investment legislation; developing regional programs and projects, and making changes in the existing programs; increasing the information transparency of the investment process; Improvementof cooperation among state, regional and municipal government’s mechanisms; reducing the administrative barriers; supporting small, medium and innovative enterprise.

10. 10 Objectives and indicators of Investment Strategy Objective 2. Infrastructure’s development(comprised of 16tasks) Achieved by measures implementationtowards: transport infrastructure power infrastructure; information and telecommunications infrastructure; social infrastructure; communal infrastructure.

11. 11 Objectives and indicators of Investment Strategy Objective3. Ensuring the human resources investment activity (comprised of 19tasks) Achieved by measures implementationtowards: implementationion of forecast & planning for regional labor market development; ensuring a balance in the regional labor market; human investment, retraining and enhancement of competencies of the economically active population

12. 12 Objectives and indicators of Investment Strategy Objective4. Providing innovation-based development of economy and social sphere of Murmansk region(comprised of 7tasks) Achieved by measures implementationtowards: creating and developing mechanisms of complex support of innovative activities at all stages of the innovation process; development of the innovative infrastructure, including the support infrastructure for small and medium enterprise; coordinating the regional cluster initiatives.

13. 13 Objectives and indicators of Investment Strategy Objective5. Technical reequipment and modernization of priority sectors and development of newly created activities (comprised of 17tasks) Achieved by measures implementationtowards: mining complex fishing complex agro-industrial complex commercial exploitationof hydrocarbon potential of arctic continental shelf tourism and recreation

14. Formation of clusters and allocation of industrial growth centers

15. 15 Financial mechanisms for the implementation of the Investment Strategy Total financial costs on the implementation of the Strategy (including activities and investment projects) are449 billions rubles, including costs fromfederal,regional and municipalbudgets as well as extra-budgetary funds Financing sources: government programs of the Russian Federation and Murmansk region private investments foreign investments

16. 16 Expected resultsof implementation of the Investment Strategy The city of Murmansk would take place in first among first10cities of Russia in regard of business environment in the international and Russian ratings Murmansk region would play a leading role in realization of the national interests of the Russian Federation in the Arctic region Murmansk would strengthen positions of head scientific, skilled, cultural,business and financial center of the Arctic, as well as leading core of maritime activities service providing in the Arctic Zone of the Russian Federation

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