Old Industry Modernization

Manufacturing

Фото

Main advantages for investors:
  1. A large market, a high import substitution potential.
  2. Significant scientific, industrial and personnel potential of the city.
  3. Availability of a developed qualification training and retraining system for all industries.
  4. Moscow has 18.8 thousand hectares of industrial and communal territories, the city has vacant land plots for investment projects implementation.
  5. Active support from the Moscow Government. The possibility of obtaining investment priority project, industrial complex, industrial park or industrial park statuses, non-commercial risk guarantees, sales possibilities in exchange for investment commitments.
Main advantages for investors:
  1. Creation of high-paying and high-performance jobs.
  2. An increase in the number of competitive, resource-efficient industries and restructuring of inefficient enterprises.
  3. Creation of new enterprises, development of new product types in priority industries.
  4. Satisfaction of consumer demand on the markets of goods and services with a high import share (pharmaceuticals, food, textiles, electronics).
  5. Development of industrial zones with the preservation of a production profile.
Private investment areas:
  1. Modernizing existing enterprises, increasing labor productivity.
  2. Introducing resource-saving technologies, increasing industrial objects safety.
  3. Creating new import-substituting production sites in priority industries:
    • pharmaceuticals,
    • electrical equipment,
    • food and beverages,
    • optical, electronic, radio, and computer equipment,
    • medical equipment,
    • transport means
    • building materials.
Support measures:
  1. Tax burden reduction for existing efficient enterprises by 17-25% when industrial complex and industrial park statuses are obtained.
  2. A support mechanism for new investment projects, including tax benefits (total tax burden reduction to 25%), non-commercial risks guarantees and other support measures.
  3. Benefits in exchange for investments: in 2013-2018, a reduced income tax rate (13.5%) and property tax exemption for Moscow automobile companies are provided.
  4. The possibility to conclude an offset contract with the counter obligations: of an investing supplier to create, modernize and (or) develop a production site in Moscow that would cover the city procurement needs and guarantee the long-term products sales to the Moscow Government.
  5. Land provision without bidding for large-scale investment projects implementation.
  6. Subsidies to partially reimburse loan interests, leasing payments and employee training costs:
    • A subsidy to pay a loan interest for purchasing certain types of equipment (up to 200 m RUB.)
    • A subsidy to pay an interest under finance leasing contracts - up to 100 m RUB.
    • Subsidizing up to 50% of utility connection costs.
  • Tax benefits for technopark residents and Technopolis Moscow SEZ residents.
  • Possibility to obtain preferential loans: The Moscow Fund for Industry and Business Support grants loans at 5% per annum for up to 5 years at a rate of 10 to 50 m RUB. (no more than 70% of the project funding)
  • Provision of guarantees (additional collaterals) for loans, bank guarantees, leasing contracts, up to 100 m RUB. (no more than 70% of the total collateral demand) through the Moscow Small Business Credit Assistance Fund.
Regulations:
  1. Law of the City of Moscow dated 7 October 2015 No. “On the investment policy of the city of Moscow and state support for entities carrying out investment activity.”
  2. Law of the City of Moscow dated 7 October 2015 No. 52 “On establishing the rates for profit tax for companies carrying out investment activity, managing companies of technoparks and industrial (production) parks, anchor residents of technoparks and industrial (production) parks”.
  3. Law of the City of Moscow dated 7 October 2015 No. 51 “On amending Article 4 of the Law of the City of Moscow dated 5  November 2003 No. 64 “On corporate profit tax” and article 3.1 of Law of the City of Moscow dated 24 November 2004 No, 74 “On land tax”  
  4. Law of the City of Moscow dated 25 June 2014 No. 34 “On establishing corporate property tax for car manufacturers on the territory of Moscow”
  5. Resolution by the Moscow City Government dated 11 February 2016 No, 38-PP “On measures for implementing the industrial and investment policy of the city of Moscow”
  6. Resolution by the Moscow City Government dated 20 April 2012 No. 152-PP “On approving the procedure for granting subsidies from the Moscow budget to companies operating in Moscow in the sphere of manufacturing”.
Investment initiatives:

If you have your own investment ideas or projects or if you want more detailed information on existing Moscow investment projects, please contact the Moscow City Investment Agency.