4. Budget credits.

5. Investment tax credits.

6. Privileges on immovable property rent.

7. Subsidies for compensation of a part of expenses on payment credit interests at Russian crediting organizations for realization of the investment projects or leasing payments paid to the Russian leasing companies for the property got under the leasing contracts for investment project realization.

8. Other financial and non-financial forms of support, including rendering information and consulting assistance to the investors within the limits of power given to the territorial state authorities by the current legislation.

Activity of investors at mineral raw-materials complex is regulated by Earth bowels Federal Legislative Act and Federal Legislative Act: Concession Agreement Act. Nowadays the entrepreneurial mechanism, based on tax schemes, which has much in common with product sharing agreements is the most expedient at mineral resources processing. That would let to achieve a long-term compromise between the State and an investor.

The product sharing agreement is a development contract for mineral resources searching, prospecting and extraction for a fixed period.

The product sharing agreements are signed by the government with competition or auction winner realized in the course of statutory legislation and coordinated terms, but not later than one year from the day of declaration of the results of the competition or the auction.

Deposit can be included in a field’s exploitation list if it has substantiations of the Government of Russia for inclusion that’s deposits in mentioned lists. Development of minerals is allowed at 30 percent interest of the explored and accounting reserves by the State. The investors can be legal persons or created on the basis of the contract associations of legal persons. License for right of development is given to investors by the terms of the Agreement.

Production is subject to division between the State and investor in accordance with the terms of the Agreement in the following way:

• fixing general quantum of output and production value;

• fixing of quantum part of output, which is passed to investor for compensation of its expenditure on execution phase by the Agreement (compensatory production).

The maximum level of compensatory production must not overdraw 75 % and 90 % on the assumption of mining on continental shelf of the Russian Federation – 90 % total volume of production output. The structure of costs for compensation to the investor at the cost of compensatory production finds its position in the legislation of the Russian Federation (Clause 8 FS Division of Production);

• division of profitable production (produced productions) between a state and an investor produced during realization of the agreement (Clause 8 FS Division of Production), except for the part of that production exploitable for discharge of natural resources for the use (Clause 8 FS Division of Production) of the earth bowels in accordance with the legislation of the Russian Federation and compensatory production;

• transfer the state-owned part of produced productions or its cost equivalent according to the terms of the Agreement;

• delivery of the produced productions belonged to the investor according to the terms of the Agreement.

According to the legislation of Russia the investor exempts of taxes, duties and excises, except for three following taxes:

1. Profit tax:

Taxable base is the produced production belonged to the investor according to the terms of the Agreement. Tax rate is fixed by the Agreement. At calculation of the profit tax the rate acting on date of signing of the agreement is applied. As agreed the profit tax is paid by the investor in natural or value form.

2. Natural resources use duty:

• non-recurring payments (bonuses) are paid when the Agreement is signed or when outcome obtains a fixed result;

• annual payments for research and prospecting works defined for a square unit of subsurface area under usage versus economical and geographical conditions, size of subsurface area, type of mineral, duration of the noticed works and geological exploration degree of subsurface area and risk degree;

• regular payments (royalty), fixed in percentage wise from volume of mineral resources output or from produced production cost and paid out by investor in money or as a part of extracted minerals.

3. Value added tax (VAT).

4. Social tax paid to Russian Pension Fund, Russian Social Insurance Fund, Russian Medical Insurance Fund.

Investors are free of other obligations of resources usage payments. The payment for the use of land and other natural resources is carried out by an investor on a contractual basis according to the legislation of the Russian Federation. The investor has the right to transfer in full or in part the rights and duties under the Agreement to any physical or legal person only with the consent of the state.