Investment in Moscow: Investment climate factors

The Moscow economy is characterized by a high level of investment activity.

In 2016, the volume of investments in fixed assets in Moscow amounted to 1703.1 billion rubles  (25.4 billion US dollars according to the average annual rate of the Bank of Russia) or 11.6% of the total investments in fixed assets in Russia. Over the past five years, investments in fixed assets increased by 55.6%, in comparable prices against 2010.

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Volume of investments in fixed assets in Moscow, billion rubles, % against 2010 (in comparable prices)

Source: Rosstat.

In the structure of investments in fixed assets, a significant amount of funds is being spent on transport and communications development, in particular, 8% in 2016. 21.7% of investments were spent on the development of business services (including real estate transactions, IT services, research and development). 7.4% of investments account for energy and water supply, and 4.5% for manufacture.

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Structure of investments in fixed assets* according to economic activities, %

*Large and medium-sized organizations.
Source: Mosgorstat.

 

In the structure of investments in fixed assets according to financing sources, about 71% of investments are financed with extrabudgetary funds, including 56% financed with enterprises' own funds.

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Structure of investments in fixed assets* according to financing sources in 2016, %

*Excluding small business entities and investments not measured by direct statistics.
Source: Mosgorstat.

 

The budgetary investment priority is social and transport infrastructure development.

The volume of the Moscow Targeted Investment Programme planned for 2017-2019 is 45 trillion rubles. Over 997 billion rubles (68.6% of TIP expenses) will be spent on transport infrastructure development, and over 270 billion rubles (about 20%) on social sphere development. In the next three years, it is planned to open 47 new metro stations, build 368 km of roads, more than 160 social infrastructure facilities, almost 2 million square meters of housing.

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Expenses of Moscow Targeted Investment Programme in 2012-2019, billion rubles

Source: : Decrees of the Moscow Government No. 56-PP dated 16.02.2012 (as amended on 17.12.2012), No. 467-PP dated 10.09.2012 (as amended on 25.12.2013), No. 606-PP dated 15.10.2014 (as amended on 01.09.2015), No. 630-PP dated 30.09.2015 (as amended on 31.05.2016), No. 665-PP dated 11.10.2016.

Moscow is a major center attracting foreign direct investments.

According to the Bank of Russia, Moscow received 65.7 billion US dollars of foreign direct investments in 2016. The companies registered in Moscow account for about 50% of foreign direct investments coming to Russia.

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Foreign direct investment flow* to Moscow, USD, billion

** Equity participation, reinvestment of income, debt instruments (for registered Moscow residents).
Source: Bank of Russia

As of January 1, 2017, Moscow accumulated 3 billion US dollars of foreign direct investments. The largest investors are the developed countries: Germany, France, Italy, Austria, USA, Japan.

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Volume of accumulated foreign direct investments (in terms of instruments), as of January 1, 2017, USD, billion

Source: Bank of Russia

Volume of investments in fixed assets in Moscow, billion rubles, % against 2010 (in comparable prices)

Source: Rosstat.

Structure of investments in fixed assets* according to economic activities, %

*Large and medium-sized organizations.
Source: Mosgorstat.

Structure of investments in fixed assets* according to financing sources in 2016, %

*Excluding small business entities and investments not measured by direct statistics.
Source: Mosgorstat.

Expenses of Moscow Targeted Investment Programme in 2012-2019, billion rubles

Source: Decrees of the Moscow Government No. 56-PP dated 16.02.2012 (as amended on 17.12.2012), No. 467-PP dated 10.09.2012 (as amended on 25.12.2013), No. 606-PP dated 15.10.2014 (as amended on 01.09.2015), No. 630-PP dated 30.09.2015 (as amended on 31.05.2016), No. 665-PP dated 11.10.2016.

Foreign direct investment flow* to Moscow, USD, billion

* Equity participation, reinvestment of income, debt instruments (for registered Moscow residents).

Source: Bank of Russia

Volume of accumulated foreign direct investments (in terms of instruments), as of January 1, 2017, USD, billion

Source: Bank of Russia