Investment in Moscow: Investment climate factors

Moscow’s economy exhibits a high level of investment activity.

The 2015 volume of capital investment in Moscow was RUB 1,611.5 bn (USD 26.3 bn at the average annual CBR exchange rate), or 11% of the total volume of capital investment in Russia. Over the last five years, Moscow’s capital investment has grown 61.3% in 2010 prices (the growth in the first nine months of 2016 was +3%).

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Moscow capital investments, RUB bn, % of the 2010 level (in comparable prices)

Source: Federal State Statistics Service.

Considerable capital investment is allocated to transport and telecommunications development (37.8% in 2015). 19.5% goes to business services development (including real estate operations, IT services and R&D). 9.4% of the investment was used for developing the energy and water supply sectors, while 5.1% was used for manufacturing.

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Capital investment structure, * by sector, %

*For big and medium-sized businesses.
Source: Moscow Office of the Federal State Statistics Service.

 

The total capital investment consists of about 70% in non-budgetary funds, including own capital (48%).

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Capital investment structure* in 2015, by funding source, %

*Ex. small businesses and investments not visible via direct statistical channels.
Source: Moscow Office of the Federal State Statistics Service.

 

Social and transport infrastructure as a budgetary investment priority.

The planned budget for Moscow’s investment programmes in 2017-2019 is RUB 1.43 trn. Over RUB 800 bn (70% of the target investment programme budget) will be used on the transport infrastructure and over RUB 200 bn (20%) for social infrastructure development. In the next three years, 41 new Metro stations are to be commissioned, 376 km of roads, over 160 social infrastructure facilities and nearly 2 m sq. m. of housing built.

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Moscow target investment programme spending in 2012–2019, RUB bn

Source: Orders of the Moscow Government dated 16 February 2012 No. 56-PP (as amended on 17.12.2012), 10 September 2012 No. 467-PP (as amended on 25.12.2013), 15 October 2014 No. 606-PP (as amended on 01.09.2015), 30 September 2015 No. 630-PP (as amended on 31.05.2016), and 11 October 2016 No. 665-PP.

Moscow as an FDI magnet.

As at 1 July 2016, Moscow had accumulated a total FDI of USD 189.3 bn, including USD 105.8 bn (56%) through equity investment and USD 83.5 bn (44%) through debt instruments. Predominant in the branch structure of investment is the sphere of financial and business services (41%), wholesale and retail trade (24%), IT and communications technologies (7%).

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Cumulative FDI structure (by sector) as of 1 July 2016, %

Source: CBR.

According to the Central Bank of Russia, in 2015, Moscow attracted USD 66.6 bn in FDI. Moscow-registered companies account for about 50% of all Russian FDI.

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FDI* in Moscow, USD bn

*Equity investment, profit reinvestment, debt instruments (for residents registered in Moscow).
Source: CBR.

Moscow capital investments, RUB bn, % of the 2010 level (in comparable prices)

Source: Federal State Statistics Service.

Capital investment structure, * by sector, %

*For big and medium-sized businesses.
Source: Moscow Office of the Federal State Statistics Service.

Capital investment structure* in 2015, by funding source, %

*Ex. small businesses and investments not visible via direct statistical channels.
Source: Moscow Office of the Federal State Statistics Service.

Moscow target investment programme spending in 2012–2019, RUB bn

Source: Orders of the Moscow Government dated 16 February 2012 No. 56-PP (as amended on 17.12.2012), 10 September 2012 No. 467-PP (as amended on 25.12.2013), 15 October 2014 No. 606-PP (as amended on 01.09.2015), 30 September 2015 No. 630-PP (as amended on 31.05.2016), and 11 October 2016 No. 665-PP.

Cumulative FDI structure (by sector) as of 1 July 2016, %

Source: CBR.

FDI* in Moscow, USD bn

*Equity investment, profit reinvestment, debt instruments (for residents registered in Moscow).
Source: CBR.