Question: Please evaluate russian investment enviroment based on rating scale method. Table 3-3 Rating scale method of investment factor Investigate factors score 1. Currency stability 4

Please evaluate russian investment enviroment based on rating scale method.

Please evaluate russian investment enviroment based on rating scale method. Table 3-3

Table 3-3 Rating scale method of investment factor Investigate factors score 1. Currency stability 4 to 20 freely convertible currency 20 The difference between the official price and the 18 black market price is no more than 10% at 10%~40% 14 At 40%~100% 8 more than 100% 4 2. Inflation rate in the past 5 years 2 to 14 less than 1% 14 1% ~ 3% 12 3% ~7% 10 7%-10% 8 10%~ 15% 15% ~ 35% NA a more than 35% 3. Capital outflow 0~12 unlimited 12 sometimes limited 8 Restrictions on capital transfers There are restrictions on capital and profit income ON A a Strict restrictions Totally not allowed outside 4. Foreign equity 0~12 Allow 100% and welcome 12 100% allowed , but not welcome 10 majority ownership allowed 8 Allow up to 50% Only a minority allowed Only allowed to account for less than 30% . O N No foreign control is allowed at all 5. Differential treatment and control between foreign and local 0~12 businesses Foreign and local companies are treated equally 12 Slight restrictions but no controls on foreign 10 businesses No restrictions but some controls on foreign businesses Restrictions and controls on foreign businesses Some control over foreign businesses with strict restrictions Strictly restrict and control Foreign investment is not allowed at all 6. Political stability 0-12 long-term stability 12 Stable, but dependent on an important person 10 Stable, but dependent on the policies of neighboring countries There are internal disputes, but the government has the ability to control the situation Strong domestic and foreign pressures have A implications for policy Potential for a coup or radical change O N Instability, coup highly likely Investigate factors score 7. Local capital supply capacity 0 to 10 Developed capital market, public securities trading 10 Have some local capital to invest in the securities market Limited capital market, lack of capital have short-term capital ONAS Strict restrictions on capital Capital has fled 8. Attitude towards tariff protection 2 to 8 full protection quite protected some protection very little or no protection N total 8-100

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