76 enterprises get support from the city

76 enterprises get support from the city

This information was shared by Head of the Moscow City Investment Agency Leonid Kostroma in his interview to VM.

Moscow accounts for about 12 percent of all investments in Russia and more than half of foreign direct investments. Just in the last year, the volume of funds invested in fixed assets amounted to about two trillion rubles, Leonid Kostroma said.

- Leonid, let's start by summing up the results of 2017. How was it for the Moscow City Investment Agency in general?

- To begin with, our goal is to make Moscow more attractive for investors. In cooperation with investors, the Agency is working out economic and legal project conditions. Last year, we achieved significant results: it is the second consecutive year, in which Moscow has topped the national rating of the public-private partnership development. In the national rating of investment conditions in the Russia's constituent territories, Moscow has moved up to the third place, against the tenth a year earlier.

The city is among the leading regions according to such indicators as: the efficiency of electricity connection and legal entity registration; the quality of the investment agency and investment portal operation; the availability of credit and labor resources; the development of technoparks and business incubators. 2017 also became an important milestone for Moscow: for the first time, the city used an entirely new industrial investment attracting method, namely offset contracting. In early October, the first long-term government contract in Russia for drugs and medical items supply was signed, with production to be located in Moscow.

- Could you please tell more about offset contracting?

- Under the contract terms, the investor should build a high-tech pharmaceutical full cycle plant in three years and then supply the city with 22 medicinal products produced, for seven years. The company undertook to ensure the full cycle production of at least two of these products, including biological substance release.

In turn, the city undertook to purchase the products produced at the plant. The production site is planned to be located in Technopolis Moscow; the investor has already became a resident and selected a suitable land plot. This form of cooperation will benefit all the interested parties: the city will receive a high-tech production, and the investor will enjoy the guaranteed long-term demand for its products. The city is planning to conclude offset contracts not only in the pharmaceutical and medical production field, but also in the fields of transport, housing and communal service equipment production and other industries.

- Generally speaking, how attractive is Moscow for investors?

- Moscow is one of the largest urban economies in the world and an investment leader. Moscow accounts for about 12 percent of all investments in Russia and more than half of foreign direct investments.

In 2017, the volume of funds invested in fixed assets amounted to about two trillion rubles. Along with large investment projects for transport and urban infrastructure development, the city pays great attention to supporting industrial and high-tech enterprises. Both existing companies and new projects are taken into account. Thanks to such support measures, business enterprises are also actively investing in production development. I would like to note that we are discussing the initiatives for developing the city capacities with business companies and leading business associations. The opinion of the business community is very important for us and helps us to analyze the situation and make decisions.

- How does the Moscow government stimulate the industry development?

- In Moscow, the mechanism of economy real sector support was relaunched in 2016. By being assigned with special statuses, such as technopark, industrial complex, and industrial park, active enterprises can reduce their regional tax burden by 17 to 25 percent. Today, 76 enterprises are getting this kind of support. Support is provided to the real sector enterprises that pay high salaries, actively invest funds and economically use their land. We support the new projects having an investment priority project status by actually zeroing the land and property tax payments (which are cut by 99.3 percent), decreasing an income tax by a quarter, and providing subsidies for engineering connection costs reimbursement (up to half of the costs, but no more than 100 million rubles can be reimbursed).

- The Technopolis Moscow Special Economic Zone is one of the key points of high-tech industry growth in Moscow. What is so special about that?

- It is an important innovation infrastructure component. Many companies economically benefit from being the technopolis residents, since they get an extended package of tax exemptions: the regional income tax is completely abolished until 2028; the time limits for land and transport tax exemptions are increased from 5 to 10 years. With account of proposed changes, the reduction in the regional tax burden may reach 47 percent.

In addition, for the Special Economic Zone, preferential land purchase conditions after construction completion have been approved, with only a percentage of the land cadastral value to be paid. A potential resident may both use a vacant land plot and rent the necessary production, laboratory and office premises. In general, by 2025, the amount of funds invested in the Moscow Special Economic Zone until by the city and by investors is expected to make over 23 billion rubles, with a total number of jobs reaching 7,500.

- How can entrepreneurs learn more about the terms and conditions, business opportunities, and support provision?

- This information can be found at the Moscow Investment Portal, which is the leading specialized information resource on investments in Moscow. The portal is in great demand among Moscow businessmen and foreigners (20% of the total number of the portal visitors in 2017).

The most popular sections are: Auctions, Investor's Guide, Investment Map, Industry&Innovations and Investor's Personal Area over 13,000 entrepreneurs have already signed up for.

The Investment Portal offers 14 online services, which can be used to apply for acquiring an industrial complex status, renting premises in an industrial park or locating your enterprise in a special economic zone, to send an investment project for review, to ask a question via the direct line, to subscribe to the monthly Investment Digest and much more.

This year, the portal will be provided with the new services that will make doing business in Moscow even more comfortable.