Roszeldor and Ural Industrial - Ural Polar have signed the investment agreement on realization of the investment project

Moscow, January, 30th, 2008

Federal agency of railway transportation (Roszeldor) and OJSC "Corporation Ural Industrial - Ural Polar" have signed the investment agreement "About working out of the design documentation for realization of the investment project "Ural Industrial - Ural Polar" at the expense of resources of Investment fund of the Russian Federation and OJSC "Corporation Ural Industrial - Ural Polar".

Within the limits of the agreement working out of the design documentation for realization of the investment project including for new line of railway "Polunochnoe-Obskaya-Salekhard-Nadym" is provided. The investment project consists of 2 parts:

• Working out of the design documentation on designing of railway infrastructure, including, new line of railway "Polunochnoe-Obskaya-Salekhard" (1st part of the Investment project);
• Working out of the design documentation on designing of railway infrastructure, including, new line of railway "Salekhard-Nadym" (2nd part of the Investment project).

Building of two railways with extent of 1250 kilometres will be led on terms of state-private partnership. According to the Decree of Government of the Russian Federation ¹ 21-r from January, 17th, 2008 in 2008-2009 financing is planned from Investment fund of the Russian Federation and OJSC "Corporation Ural Industrial - Ural Polar" resources. Total volume of financial resources necessary for working out of the design documentation for realization of the investment project is estimated in 6,5 billion roubles.

The project "Ural Industrial - Ural Polar" assumes creation of industrially-infrastructural complex on the basis of development of natural-source of raw materials of Subpolar and Polar Ural and building of key elements of basic transport and power infrastructure. In practical sense it is formation of new contour of powerful industrial macro region.

Main objectives of the present project are:

1.Radical improvement of raw-material base of industry and increase of its competitiveness. As a result of project realization the problem of raw import-dependence of Russia industry on iron ore, coal, chromites, manganese and copper ores, a number of other minerals will be solved. Their reserves in region of new economic development should be enough for more than 100 years.
2.Perfection of transport and power infrastructure of the Russian Federation. New transport scheme having formed a transport ring will connect industrial Ural with mineral deposits of Subpolar and Polar Ural on the shortest way, the perspective zone of oil and gas extracting - Yamal peninsula, provide an access to Northern Sea way, thereby, increasing transport safety of Russia.Building of power stations and power transmissions will solve a problem of power deficiency and electrical supply decentralisation.
3.Release at the expense of reduction of prices on raw materials of resources for full modernization of metallurgical and machine-building branches and creation of competitive manufactures on their base.
4.According to Head of Roszeldor Igor Romashov and General Director of OJSC "Corporation Ural Industrial - Ural Polar" Oleg Demchenko, this project is beyond both territories and separate branch on its scales and value it's not only overgrow borders of this or that region, but also goes outside the limits of federal region. As a matter of fact it is a question of the project of the national scale which realization will provide essential growth of GNP which results will be used by all-Russian economy.

Realization of the project "Ural Industrial - Ural Polar" together with Investment fund of the Russian Federation is a bright example of mutually advantageous cooperation of state and private business.