The Moscow Department of Investment and Industrial Policy in cooperation with the Moscow City Investment Agency presents you the next digest of the main investment events in the Russian capital.
The Moscow Investment Portal has launched a new service. Moscow businessmen can use it to ask questions to the Moscow Government officials about investment activity, to declare a problem and to submit their offers. The new service will enable more entrepreneurs to invest in the city and to enjoy various support programs.
It includes five active start sections: Property and Land Relations, Auctions, Support for Industry, Localization in SEZ, Taxation. The number of sections will be expanded: Support for SME, Utility Connection and others are coming soon.
The service mechanism is simple and clear. A user chooses a suitable topic from the list, then an issue, fills in a special form and attach additional files if needed. The message is sent directly to the relevant office to prepare a reply. All stages of consideration are automated and transparent. The reply time is min.10 working days. The reply will be sent to the applicant's profile and to the e-mail indicated when signing-up.
Stage 1 of the open tender for construction and operation of two sludge eco-processing plants in South-East Moscow is over. Three investors have entered stage 2, one of them will sign a concession 20-year agreement, the investments in two plants will amount to RUB 25+ bn.
“Stage 2 foresees the companies to submit their offers with the main project implementation term by February 19, 2021. The concession agreement will be signed with the tender winner in March 2021. The investor will have to construct two modern sewage eco-treatment plants investor within three years and to operate them for the next 17 years,” Deputy Moscow Mayor for Economic Policy and Land and Property Relations Vladimir Efimov said.
The agreement obliges the investor to undertake heat treatment (drying) and subsequent sludge disposal: the output product will be supplied to cement plants as an inexpensive solid biofuel. The city will provide sites in the Lyuberetsky and Kuryanovsky treatment facilities to accommodate these plants. The project won’t be funded from the city budget, and Moscow will filly own the plants upon commissioning.
The Moscow Government Presidium has approved the Moscow Targeted Investment Program for 2021-2023. The document contains a list of facilities under construction and design to be financed from the city budget.
The new program has kept the investment policy priorities set in 2011. About 740 urban facilities are intended to be built and commissioned in the next three years. The program’s key priority remains the transport infrastructure development in Moscow.
The 23-hectare South Butovo industrial zone and a land plot in the Nikulinskaya Street with an incomplete multifunctional center are to be re-developed. The investor plans to invest RUB 25.5 bn in the project.
“The South Butovo industrial zone is intended to accommodate industrial, public and business facilities, required social infrastructure and residential houses. The total area will be about 364,000 square meters. 3,000+ jobs will be created. The planned project investments are RUB 23.9 bn. About 20,400 square meters of public facilities will be built in the Nikulinskaya Street. The investor will invest about RUB 1.6 billion within the project. 675 new jobs will be created,” Deputy Moscow Mayor for Economic Policy and Land and Property Relations Vladimir Efimov said.
The total tax benefits received by the Technopolis Moscow Special Economic Zone (SEZ) residents in three quarters of 2020 amounted to RUB 687 m. 95% of this amount are within the regional tax part.
“The Technopolis residents are exempt from property, land and transport taxes. The companies save 17% on the reginal profit tax as well. The make contributions to the federal budget at a reduced rate of 2% instead of the usual 3%. All tax preferences helped the SEZ residents to save RUB 687 m in the first nine months of 2020, RUB 656 m of them are within the regional tax part. The residents also created 1,068 jobs during this period of time - almost twice as many as in the same period in 2019,” Deputy Moscow Mayor for Economic Policy and Property and Land Relations Vladimir Efimov said.
In the first nine months of 2020, the amount of all taxes and social contributions paid by residents amounted to RUB 4 bn, and their total volume for the entire period of the SEZ existence is RUB 16.1 bn.
“The localization of new enterprises helped to attract personnel. Electronics and educational equipment manufacturers attracted the biggest number of new employees this year. During this period, the number of SEZ residents’ employees increased by 12% and reached to 7,000 people. As a result, the total social contribution paid by the residents for nine months amounted to RUB 1+ bn,” Head of the Moscow Department of Investment and Industrial Policy Alexander Prokhorov explained.
“Moscow currently is one of the largest urban economies in the world. One of the most important investors for the Russian capital are US companies. According to the latest data, the accumulated US direct investment is USD $2.7 bn. At the same time, we are witnessing systematic dynamic growth, this indicator increased by 34% within a year,” Deputy Moscow Mayor for Economic Policy and Land and Property Relations Vladimir Efimov said at the round table of the Moscow Government with American business.
Foreign business keeps investing in Moscow financial, insurance, retail, industrial and high-tech companies even in the time of the current world economy downturn caused by the coronavirus pandemic.
The volume of Moscow exports to the USA has also increased this year. “Thus, this indicator amounted to USD 1.5 bn in January-August 2020, which is almost 7% of the total Moscow exports, and it was USD 1.1 bn in the same period last year,” Head of the Moscow Department of Investment and Industrial Policy Alexander Prokhorov said.
“We work very closely with business, analyze feedback, propose new models of interaction and make changes to existing mechanisms as well. For example, it was recently decided to reduce requirements for investors, the list of documents for obtaining a special status entitling to support measures was shortened, the requirements for calculating the development density of industrial parks and industrial complexes were adjusted,” CEO of the City Investment Management Agency Svetlana Ganeeva said.
The Moscow non-resource non-energy exports increased by 41.2% from January to September 2020 and amounted to USD 27.11 bn. This figure was USD 19.2 bn at the end of the same period last year.
The industrial exports increased by 44,8% and made up USD 24,83 bn in the structure of Moscow non-material non-energy exports, and the exports of agro-industrial products grew up by 11% and amounted to USD 2,28 bn. The January-to-August exports of Moscow pharmaceutical products increased by 32% and amounted to USD 197.8 m: last year, this figure exceeded USD 150 m. Th exports of Moscow chemical products increased by almost 15% and amounted USD 2+ bn.
Moscow products were exported to 176 countries - mostly to the UK, the USA, Kazakhstan, Belarus and China. Almost half of the Russian non-resource non-energy exports are to Japan: the volume of supplies to the Land of the Rising Sun from January to August amounted to USD 751 m.
The machinery and equipment manufacture (4.6 times) and the chemical industry (2.4 times) have been demonstrating high growth rates in Moscow since the beginning of 2020. The total growth of production volumes in the manufacturing industry over the ten months was 2.2% compared to the same period last year.
“As for the manufacture of machinery and equipment, significant growth was recorded in the production of elevators and their components. Moscow manufacturers produced 13,400 elevators in ten months - 17.1% more than in the same period last year. The chemical industry enjoyed a growing production of antiseptics, perfumes and cosmetics. Substantial growth rates are maintained in industries linked with essential goods. Meat semi-finished products, bakery products and tea contributed the food production increase of 55.6%. The production of drugs went up by 28% due to a high demand,” Deputy Moscow Mayor for Economic Policy and Land and Property Relations Vladimir Efimov said.
“The city policy to incentivize investment activity and to preserve previous investment programs is playing a significant role in ensuring a stable growth rates of the manufacturing industry. Many Moscow companies with industrial complex, technopark and anchor resident statuses are enjoying a package of tax benefits. 58 industrial complexes, 36 technoparks and 15 anchor residents are currently receiving support from the city,” Head of the Moscow Department of Investment and Industrial Policy Alexander Prokhorov explained.
2,300 Moscow entrepreneurs received 4-month rent free holidays for city premises within the anti-crisis business support initiative. They saved RUB 2.36 bn.
Retail companies already enjoyed the largest amount of support - they received a RUB-282.56-m exemption from rent payments, while the consumer services with RUB 274.82 m are on place 2, the third one was taken by hotels: their total exemption from rent payments amounted to RUB 215.47 m. Existing businesses can apply for rent free holidays until the end of the year, the measure is designed for almost 11,000 entrepreneurs, and the city will allocate RUB 6.5 bn rubles to provide this support.
Organizations and individual entrepreneurs received a RUB-15.42-bn deferral in Q2 2020 rent payments for the city property. 3,500 entrepreneurs already enjoyed this measure. All other recipients may use their right until the end of the year.
“The Q2 2020 deferral in property and land payments can be applied until the end of the year. 3,600+ organizations and individual entrepreneurs can take advantage of this support measure. The total support amount is estimated at RUB 16.7 bn. This measure was in great demand, and the vast majority of recipients already enjoyed it,” Deputy Moscow Mayor for Economic Policy and Land and Property Relations Vladimir Efimov said.
The Moscow Investment Portal provides information on city property available for purchase or rent. 7,000+ different premises are currently available on the portal: from buildings with land plots to car places and apartments. Applications for electronic auctions can also be submitted here.
Information about e-auctions is daily updated in the dedicated Property From The City section. It offers to read the documentation for every lot, to see pictures of premises, to ask questions to experts and to apply for a site visit. The portal has special filters for a better user convenience. The help to select units by type, space, type of auction and address. Premises can also be chosen on the map.
The city put up for sale 20 car places in a three-storey free-standing parking house in West Moscow in the Vernadsky Avenue. The initial lot price varies from RUB 1.2 to 1.3 m.
The offered car places are separate bays of 17.9 to 21.5 square meter. They are located on the second floor of a three-storey reinforced concrete garage built in 2007 and located inside a residential area. Any legal entities and individuals may submit an application for the auction by January 13, 2021, the auction will be held on January 21, 2021.
A one-storey wooden building with a plot of land in Kuntsevo in the Vasiliy Botylev Street near the Moskva River is for sale. The initial price of the single lot is RUB 40.2 m.
The 360.7-square-meter building is for sale together with a 0.24-hectare land plot. The lot has a free purpose if use and is suitable for a cafe, shop or office. The initial lot price is RUB 40.2 m. It will be sold through a public offer, so its price may be reduced down to 50% during the auction. Auction applications are to be submitted by January 27, 2021 and the auction will take place on February 4, 2021.
The city will rent 18 non-residential units in the center of Moscow through electronic auction. Lot sizes range from 15.3 to 522.3 square meters.
All presented units have a free purpose of use, are connected to required utilities and are ready for use by investors for commercial purposes. 10-year rent agreements will be concluded for every unit.
Five of the offered units are available on preferential terms for small and medium-sized businesses. The annual rent rate starts from RUB 1,000 per square meter for basement units and from RUB 4,750 - for units on the first floors and above.
The digest archive is available on the Moscow Investment Portal.