Investment in Moscow: Investment climate factors

Moscow’s economy is characterized by a high level of investment activity

The volume of investments in fixed assets in 2014 in Moscow was RUB 1 477 bn USD 38.3 bn, according to the annual average exchange rate from the Bank of Russia) or 10.9% of the total sum of investments in fixed assets in Russia. Over the last 4 years, the growth of investments in fixed capital has been at 52.2%, at comparable prices to the level of 2010.
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Volume of investments in fixed capital in Moscow, RUB bn , % by 2010 (in comparable prices)

Source: Rosstat, calculations by Moscow City Investment Agency

Within the investment structure for fixed capital, a significant amount of funds are directed towards developing transportation and connections, 37.7% in 2014. 19.4% of investments were spent on the development of business services, including real estate transactions, R&D and IT services. Energy and water accounted for 11% of investments, and machine manufacturing accounted for 4.7%.
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Investment structure in fixed capital* according to the type of economic activity, %

*according to large and medium-sized businesses
Source: Mosgorstat.

Within the investment structure of fixed assets, according to financial sources, the non-budget sources account for 64% of the investments, including 44% financed by enterprises’ own funds.
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Investment structure in fixed assets* according to financial sources, % in 2014

*excluding facilities from small businesses and the volume of investments not observed by direct statistical methods
Source: Mosgorstat.

Moscow is one of the most popular areas for foreign direct investments.

According to data from the Bank of Russia, the net inflow of foreign direct investments (FDI) in Moscow at the end of 2013 was USD 39.6 bn and for the 9 months of 2014, it was USD 12.6 bn. The companies which are registered in Moscow account for around half of the foreign direct investments going into Russia.
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Net inflow of foreign direct investments* to Moscow (USD bn)

*Participation in capital, the reinvestment of income, debt instruments (for residents who are registered in Moscow)
Source:Source: Bank of Russia (according to balance of payments data from the Russian Federation)

According to the amount of foreign direct investments in Greenfield projects in 2010-2014 (investment projects “from scratch” where capital costs create new jobs), Moscow takes 8th place in the world amongst metropolitan areas, and is comparable to Sidney and New York, ahead of Peking and Barcelona.
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Amount of foreign Greenfield projects in global cities, 2010–2014

Source: KPMG, Global cities investment monitor 2015.

The volume of foreign direct investments in the Greenfield projects over the last 10 years in Moscow has amounted to USD 32.5 bn (14th place in the world amongst metropolitan areas). According to indicators, Moscow is comparable to Sao Paolo, New York and Paris.
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Volume of foreign direct investments in Greenfield projects in 2005–2014 (USD bn)

Source: The Financial Times.

Volume of investments in fixed capital in Moscow, RUB bn , % by 2010 (in comparable prices)

Source: Rosstat, calculations by Moscow City Investment Agency

Investment structure in fixed capital* according to the type of economic activity, %

*according to large and medium-sized businesses
Source: Mosgorstat.

Investment structure in fixed assets* according to financial sources, %

*excluding facilities from small businesses and the volume of investments not observed by direct statistical methods
Source: Mosgorstat.

Net inflow of foreign direct investments* to Moscow (USD bn)

*Participation in capital, the reinvestment of income, debt instruments (for residents who are registered in Moscow)
Source:Source: Bank of Russia (according to balance of payments data from the Russian Federation)

Amount of foreign Greenfield projects in global cities, 2010–2014

Source: KPMG, Global cities investment monitor 2015.

Volume of foreign direct investments in Greenfield projects in 2005–2014 (USD bn)

Source: The Financial Times.