INVESTMENT PRESENTATION OF THE PRIDNESTROVIAN MOLDAVIAN REPUBLIC

TABLE OF CONTENTS
General information State system

Power Supply and Gasification

PMR

Transport Infrastructure Agriculture and Industry

Touristic-Recreational Opportunities
Regional Peculiarities of Investment Policy

 The Pridnestrovian Moldavian Republic (Pridnestrovie)

is a state located in the south-eastern part of Europe which occupies the left bank of the Dniester River within the borders of the former Moldavian SSR and a number of localities on the right bank the city of Bendery with adjacent villages, as well as villages of the Slobodzeya region such as Kopanka, Kitskany,

Mereneshty, and Kremenchiug Pridnestrovie shares borders with the Republic of Moldova on the west (411 km) and Ukraine on the south-east (405 km)

Landlocked Total square is 4163 km (10% of the territory of the

MSSR)

Population 522 500

31.9 32 31 30 28.8 29 28 27 30.4

1. Moldovans 31,9% 2. Russians 30,4% 3. Ukrainians 28,8%

Official Languages
Moldovan, Russian, Ukrainian

Monetary Unit
Pridnestrovian Ruble 1 ruble = 100 kopecks

Administrative-Territorial System
Tiraspol

Bendery

Dnestrovsk

Slobodzeya

PMR

Grigoriopol

Dubossary Rybnitsa

Kamenka

PMRs State System

The Pridnestrovian Moldavian Republic is a Presidential Republic

President of the PMR

Head of the State, Guarantor of the PMRs Constitution and Laws, Human and Citizens Rights and Freedoms, the Commander-in-Chief of the Armed Forces of the Pridnestrovian Moldavian Republic

State Powers of the PMR

Executive Judicial Government

Legislative Constitutional
Arbitration Supreme Courts of general jurisdiction

Chairman of the Government Vice-Chairmen of the Government Ministers Heads of Public Administrations of Towns and Regions

Supreme Council
Consists of 43 deputies

Power Supply
Installed capacity is 12 energy blocks, makes up 2520 MW Major fuels are gas and coal

Export power energy to the CIS- and far-abroad countries

Dubossary GES

Installed capacity makes up 48 thousand kW, annual average output - 260 mln. kWh.

Gasification of Pridnestrovie
97% localities of the PMR are gasified
192 300 Dwelling houses and apartments are gasified

85% Dwelling houses

about 4.2 thousand km of high-, medium- and lowpressure gas pipelines are maintained

Transport Infrastructure

two trunk highways of international significance

three gas mains

two international trunk railroads

Territory of Pridnestrovie

Transport Corridors
IX Pan-European Transport Corridor
comprises road and railroad components
main routes length 3 400 km, total length 6 500

Transport Corridor Gdansk-Odessa

Corridors length 1816 km across Ukraine: railway line 918 km highways 1208 km

Cargo Ports
Black Sea Cargo Port in Ilyichevsk (Ukraine)
about 150 km from Tiraspol

Reni Port (Ukraine)

on the Danube (about 300 km from Tiraspol)

Giurgiuleti Port (Republic of Moldova)

on the Danube (about 300 km from Tiraspol)

Raw Materials Base for Construction Activities

Pridnestrovie features its own base of raw materials: cement, limestone, sand, gravel and others

Republic has functioning enterprises

JSC Moldova Steel Works (Rybnitsa)

CJSC Rybnitsa Cement Plant

JSC Moldova Steel Works

marketable continuous cast steel billets with cross section area 125x125 mm and length 8000-12000 mm

round bars in rods (diam.10-22 mm) and in coils (diam.5.5-14 mm)

reinforcing bar in rods and coils with nominal diam. 6-40 mm

wire rod for production of fasteners by cold heading (test lots) shape steel-rod stock (equal angle bars of 25 mm; 32 mm; 35 mm; 40 mm; 45 mm; 50 mm according to CIS and major international standards DIN, ASTM, BS, EU etc., steel channel 5)

CJSC Rybnitsa Cement Plant

Agriculture
Pridnestrovie has rich fertile lands, favourable climate conditions, sufficient water resources (the River Dniester) for land reclamation, large number of sunny days per year (the average July temperature is +21 C) and moderate winter temperature (average January temperature is -5 C)

Agriculture concentrates today 275,0 thousand ha of farmland, 230,2 thousand ha (83,7%) of which is arable and 21,0 thousand ha (7,6%) is occupied by perennial plantings.

Traditional and Priority Agricultural Sectors of Pridnestrovie

vegetable growing gardening growing of grapes

tobacco

beet

seed production

livestock farming

Challenges for Agricultural Infrastructure Facilities

restoration and modernization of water mains of the reclamation system establishing new and maintaining available centers for cereal, vegetable and fruit breeding formation of general republican structures for animal breeding, diary husbandry and poultry farming creating plant protection and veterinary centers opening of machine and tractor centers establishing the system of crop insurance futures lending and provision of financial services for purchase of agricultural equipment and leasing creating new and modernizing old enterprises for processing and conservation of agricultural products

Why Pridnestrovian Agriculture Is Investment-Worthy

free market of home-produced foodstuffs. Pridnestrovie imports over 11.4% of foodstuffs (73.7% of the volume of realized food products in the domestic market). Their volume makes up about 200 mln. U.S. dollars

existing rich traditions and production experience in vegetable growing, gardening, growing of grapes and wine and cognac production

Sectors of Industrial Complex

Power energy Iron and steel industry Light industry Building materials industry Machinery and metal working Electro-technical Chemical Woodworking Furniture Printing Vitreous

Types of Industrial Products

Pridnestrovian Industry comprises 144 enterprises

Power energy

Apparel

Big electric machines

Low-voltage equipment

Cable products

Cotton fabrics

Rolled steel products

Pumps

Cement

Fiberglass and fiberglass products

Furniture

Footwear

Equipment for foundry

Electric insulating materials

Touristic-Recreational Opportunities of Pridnestrovie

Dniester Health Resort in Kamenka

Dnestrovskie Zori Recreational Complex

Health Resort Dniester(Kamenka)

The health resort is located on the very bank of the Dniester. Parkland occupies more than 20 hectare and is surrounded by a hundred-meter rocky hill which fosters special climate conditions. .
It is a large specialized balneo-climatic health resort. This region is often called little Switzerland. Here one can find a successful combination of mountain and river air, mild winters, continuous warm summer, barometric pressure and relative humidity perfect for health improvement and proper rest. Diagnostic and treatment base of the health resort features all necessary modern methods of treatment and diagnosis. The main factors for good rest and fruitful treatment are aerotherapy, air and sun bathing, swimming in the water of the Dniester. Directly on the territory of the health center there is a functioning well of medical-mineral water Dnestryanka.

Recreational Complex
Dnestrovskie Zori(Dniester Dawns)
Health complex is located on the bank of the Dniester River in the village of Mereneshty, between Tiraspol and Bendery.

Plenty of sunny days, picturesque forest area, clear river air of the Dniester valley and available natural springs of mineral water of the Truskavets type create excellent conditions for rest and treatment. Health complex occupies 50 hectare of forest, has four doublestored capital residential buildings with rooms equipped with all modern conveniences. Main treatment features of the Dniester Dawns health center are climatotherapy and balneotherapy based on the use of natural mineral water. Chemical effects of the mineral water on the organism are directly connected with the presence of hydrogen sulfide, sulfates, chloride of sodium, iodine, bromine, and calcium in it.

Natural and Cultural-Historic Monuments of Pridnestrovie

Grigoriopol Region

Glinoye Village building of the Polish church of 1846 Teya Village building of the church of XIX c.

Karmanovo Village building of the Protestant Church of XIX c. Malayeshty Village nature reserve

Slobodzeya Region

Chubruchi Village National Park of Landscape Art named after D.K.Rodin (1958)

Kitskany Village Novo-Nyamensky Monestary Complex

Turunchyuk island (area - 8 800 ), Turunchyuk River, rapids opportunities for sport fishing, active leisure

Kapi Lake

Dubossary Region

Nature Reserve Yagorlyk

Rogi Village rocky monasteries

Rogi Village- Kochiery Village (river band, left bank) opportunities for hang-gliding

Novaya Lunga up to Grigoriopol - canyon, Tamashlyk Valley with a waterfall

Kamenka region
Oknitsa village Scythian burial mound, II century B.C. Nature Reserve natural landmark Deep Valley

Rashkovo village

Krasnaya (Red) Mountain (opportunities for hang-gliding)

Village Valia-Adynke Cave of Ustim Karmelyuk

Rybnitsa Region
Vykhvatintsy village
Rock shelter of the Paleolithic age, 350 B.C. the oldest early men site on the territory of the PMR, one of the few sites of this period in Eastern Europe Mafteya Ravine (area of 70 ha) is accumulation of instruments of labour of the Stone Age man Tripolye. Memorial sign near the burial ground. Monument to one of the most prominent cultures of the Ancient World. Building of the music school named after G. Rubinstein. The year of construction 1901 (1829-Russian composer was born in the village of Vykhvatintsy; 1901-music school was built; 1979-museum was opened).

Stroentsy village
The Tower of Winds is the monument to Field-Marshal Peter Wittgenstein erected by his granddaughter Emilia Trubetskaya, XIX c. Terraced vineyards built by Trubetskoy family in the middle of the XIX c. The Mill is the monument of the XIX c., one of the most advanced constructions of that period. Swiss equipment. The Church, built in 1829 on the means of P. Wittgenstein Stroyenetsky Ravine 1200 ha (stretched from the village of Yantarnoye to the village of Belochi): sinkhole, waterfalls, brooks, rocks of peripheral part of reef formations of limestone of different colours, springs with hydrogen sulfide and iron oxide.

Belochi village
Watermill on the small river Zolotaya (Golden) is a construction of 1884-1894; mechanisms of unique construction are from Zurich (Switzerland) Stone Cross a monument to fallen Cossacks in 1675 Building of the stable and kitchen of Matkovskys estate (ice storage room, cellar) a monument of XVIII - XIX cc.

Rybnitsa Region

Villages of Popenki and Zozulyany - ancient villages, ethnographic tourism is possible

Village of Bolshoy Molokish: canyon, springs. Dialect of the Moldovan language - opportunities for ethnographic tourism

Voronkovo Village: preserved traditions of carpet weaving and folklore

Butuchany Village: nice recreation area. Place opportunity for childrens camp.

Foreign investors in the PMR

Foreign states

International organizations

Foreign legal persons

Foreign citizens and, in cases expressly provided by the legislation, stateless persons Investment funds functioning on the territory of the PMR and carrying out investment activity based on attracted foreign capital

Types of Investment
freely convertible or other foreign currency which is the object of operations carried out by banks and investment funds

machines and equipment

property and non-property rights transferred by an investor, including the right to intellectual (industrial) property

Capital Expenditures of Organizations according to Forms of Property

2011
20% 49%
private ownership

31%

foreign ownership

state ownership

Competitive Advantages of the PMR

Convenient transport and geographic location which favours the development of industrial and agricultural potential
Important road and railroad main lines and gas lines running through the territory of Pridnestrovie and linking Russia and Ukraine with countries of Eastern and South-Eastern Europe

Republics location in the area with high agroclimatic and biological and soil potential
Availability of extensive production infrastructure and highly qualified personnel

PMRs Investment Legislation

Law on Investment Activity

Law on Foreign Investment on the Territory of the Pridnestrovian Moldavian Republic Law on Tax on Income of Organizations

Law on Customs Tariff

Law on State Support to Innovation Types of Activity

Customs Preferences
customs benefits when importing property for those enterprises whose share of foreign investment in the registered fund (capital) makes up no less than 30% and amount of foreign investment in the registered fund (capital) of the enterprise is more than 10 thousand U.S. dollars, or the sum of foreign investment in this enterprise exceeds 25 thousand U.S. dollars, regardless of the share amount in the registered fund (capital) of the enterprise

exemption from payment of customs duty, excise duty and import tax on tangible and intangible assets imported by a foreign investor to Pridnestrovie as a property deposit when forming or increasing registered capital of the enterprise

customs benefits in the form of tax-free import of goods, works and services for own production and export of goods, works and services of own production for those enterprises whose share of foreign investment in registered capital makes up no less than 30% and the sum of foreign investment in registered fund exceeds 50 thousand U.S. dollars, or the sum of foreign investment in the enterprise exceeds 150 thousand U.S. dollars regardless of the share amount in the registered fund

Tax Preferences
Organizations with foreign investment with more than 50% of revenue from sales of products (works, services) of own production are entitled, during 5 years after receiving the first income from sales of products (works, services) of own production, to reduced tax rate on income from sales of products (works, services) in the following amounts, depending on the amount of actually introduced foreign investment in the registered found (capital) of organizations:

by 10% - when amount of investment is between 10 000 U.S. dollars and 250 000 U.S. dollars

by 30% - when amount of investment is between 250 000 U.S. dollars and 500 000 U.S. dollars

by 50% - when amount of investment is more than 500 000 U.S. dollars

Preferences for Investors in Innovation Types of Activity for the Period of:
10 years in case of actual or planned investment in the building and (or) reconstruction of objects, purchase and adjustment of equipment as part of implementation of the registered innovation project of no less than 1.7 mln. Euros and creation of additional jobs with average number of employers of no fewer than 80 people

5 years in case of actual or planned investment in the building and (or) reconstruction of objects, purchase and adjustment of equipment as part of implementation of the registered innovation project of no less than 0.85 mln. Euros and creation of additional jobs with average number of employers of no fewer than 50 people

3 years in case of actual or planned investment in the building and (or) reconstruction of objects, purchase and adjustment of equipment as part of realization of the registered innovation project of no less than 0.3 mln. Euros and creation of additional jobs with average number of employers of no fewer than 20 people

up to 3 years in case of actual or planned investment in the building and (or) reconstruction of objects, purchase and adjustment of equipment as part of realization of the registered innovation project of less than 0.3 mln. Euros and creation of additional jobs with average number of employers of fewer than 20 people

Areas of Investment Activity

additional preferences for economic activity in the industrial sector, in the field of new technologies, in the sphere of processing of agricultural products (in the form of tax holidays for newly established manufacturing enterprises and free economic areas for depressive regions and localities)

shaping precise and stable legislation defining organization and conduct of business, introduction of simplified and preferential tax regimes for economic entities developing and implementing new types of production and IT technologies

drawing up simpler and faster administrative procedures for approval of new investment projects to be launched conclusion of direct agreements with investors on mutual and stable commitments to ensure state support of major investment projects providing for obligations for allocation of land, supply with infrastructure communications and tax incentives on the part of the state, and obligations to create jobs, ensure volume of production and provide employment in the specific territory on the part of the potential investors

protection of investors from monopolists abusing their dominant market position

final formation of existing normative-legal acts suggesting the possibility of building an efficient business-state tandem based on partnership, with sectors of production having all forms of ownership, not only state or private, since withdrawal of the state from all sectors of economy is unreasonable reforming accounting and financial reporting in compliance with international standards and that of the Russian Federation

final formation of transparent rules of carrying out foreign economic activity, simple, fast and open procedures of customs clearance and control over movement of goods across the border

introduction of good conduct of activity criteria for economic agents, according to which subjects (investors) with positive image of economic activity can get the so-called green corridor at all government authorities in order to minimize expenditures on relevant procedures, inter alia during customs control

attraction of foreign investments in the economy of the state by creation under auspices of the Ministry of Foreign Affairs of the Pridnestrovian Moldavian Republic of the network of Pridnestrovian trade-economic representations using opportunities of legal systems of hosting countries