Investment climate factors

Moscow is the capital of Russia, the country’s political, financial, economic, academic and educational centre. Russia’s leading business and financial organisations are headquartered in Moscow and major Russian and international companies open offices in the city.

Moscow is Europe’s largest city, an agglomeration with the population of about 20 million, making it the biggest consumer market in Russia and Eastern Europe and a centre of investment activity.

In 2016, Moscow was ranked among Russia’s TOP 10 regions in investment climate quality and came in first place in the Public-Private Partnership Development Ranking. 

At the end of 2015, investments in fixed assets has grown 61.3% in comparable prices compared to 2010 and had increased by 3% over the first nine months of 2016 year on year, totalling RUB 913.6 bn. Moscow’s share in overall investments in fixed assets in Russia is about 10%.

Support measures used to encourage private investment include granting special status, tax benefits, subsidies, and the option of concluding offset contracts with the Moscow City Government.

The city is developing dynamically. High fiscal capacity coupled with low sovereign debt (less than 1% of GRP) allow the city to undertake large-scale public investments in developing the transport and social infrastructure, the education system and healthcare. The volume of the Targeted Investment Programme (TIP) in 2017–2019 will exceed RUB 1.4 trn.

Moscow’s budget expenses in 2016 were over RUB 1.7 trn, or over USD 26 bn. This puts Moscow among the world’s largest metropolises. Moscow’s budget is treble than that of Los Angeles (US), double that of Paris (France) and is comparable to that of London (Great Britain).

In 2016, Moscow’s budgetary investment expenses reached nearly RUB 420 bn or USD 6.3 bn.

This section contains detailed information on the key factors of Moscow’s appeal to investors and on individual areas of the city’s development.