The Moscow Department of Investment and Industrial Policy and the Moscow City Investment Agency present you the next digest of the main investment events in the Russian capital.
The Moscow Government has signed a concession agreement with Senior Group PM on creating a geriatric center in West Moscow.
“The agreement is concluded for 20 years: the investor shall reconstruct and equip the facility within two years, and will provide patient care services and do maintenance, current repair and overhaul of the facility during the following 18 years. The investments in establishing and equipping the boarding house for the elderly people will be at least RUB 450 m,” Deputy Mayor of Moscow on Economic Policy and Land and Property Relations Vladimir Efimov said.
The project engages no Moscow budget funds while remaining owned by the city. The geriatric center will provide at least 100 beds to accommodate elderly people and to provide team a permanent care. The center will be equipped with all the necessary facilities taking into account the peculiarities of life, health and needs of the elderly.
According to the preliminary Rosstat data, the investments in fixed capital amounted to RUB 3.6 tn in Moscow in 2020 and exceeded the 2019 level by 1.7%. Moscow now accounts for 18% of all Russian investments in fixed capital and for about half of the foreign direct investments in Russia. The total investments in fixed capital in Moscow increased 2.7 times in comparable prices over 10 years.
The system of support measures, which has already been in place in Moscow for five years and has been improving every year, considerably helped to keep the investment activity last year. It includes the provision of special infrastructure for investors to locate production facilities on preferential terms, financial support - various subsidies and soft loans, tax relief through special statuses: for example, new projects can get the investment priority project status, and existing enterprises can get the industrial complex status.
“123 Moscow companies are currently taking advantage of the tax benefit package: 58 industrial complexes, 37 technoparks, 15 anchor residents, 13 priority investment projects. Companies with industrial complex, technopark and anchor resident statuses have invested RUB 94.8 bn in Moscow over the past five years: Technoparks have engaged RUB 54 bn, industrial complexes - RUB 32.4 bn and anchor residents - RUB 8.4 bn. The investments in investment priority projects amount to about RUB 32 bn,” Head of the Moscow Department of Investment and Industrial Policy Alexander Prokhorov said.
Three investment promotion and protection agreements have been signed in the capital. All of them are concluded between the Russian Federation, Moscow and investor companies.
“The total investments in projects will amount to about RUB 25 bn. At the regional level, Moscow will independently start concluding IPPAs from April 2, 2021. These agreements will also guarantee the state support to investors for their whole life time,” Deputy Mayor of Moscow on Economic Policy and Land and Property Relations Vladimir Efimov said.
The first agreement was concluded with R-Opra LLC and stipulates the terms for creating a pharmaceutical plant in the Technopolis Moscow special economic zone, this project intends to attract RUB 8,6 bn. The second agreement was signed with R-Pharm, it is about the implementation of an initiative to produce the Sputnik V vaccine. The planned volume of investments will amount to RUB 8.4 bn (RUB 7.32 bn are investments in Moscow, RUB 1.066 bn - in Rostov, in the Yaroslavl region). The third agreement was signed with Medsi Group of Companies to create a multifunctional medical center in the Michurinsky avenue, the project intends to gather RUB 7,83 bn of investments.
Three industrial technoparks will be open in Moscow within the large-scale investment projects (LSIP). The first one of 28,000 square meters will be built in South Medvedkovo. The technopark will become a convenient site for industrial enterprises of various profiles, and 200 jobs will be created there. The second technopark of almost total 8,000 square meters will appear in the Tsaritsyno: a complex for hi-tech companies will be built here in line with modern eco-standards. The technopark will create 130 jobs. Another technopark will be built in the Molzhaninovsky subdistrict on an area of 3.37 hectares. About 350 jobs will be created here.
A manufacturing facility for musical percussion instruments will also be set up within an LSIP& It will appear in the Sokolinaya Gora subdistrict. The plant of ca.l 2,000 square meters will be located on a 0.29-hectare land plot. The LSIP will help the company to increase the staff up to 50 people.
Moreover, 24 new medical facilities - outpatient care centers for children and adults, ambulance sub-stations, infectious disease, diagnostic and treatment facilities will be constructed in Moscow within LSIPs. It is planned to open them in the upcoming years. The city allocated 48+ hectares of land for construction. Moscow will fund the construction of 21 facilities and three units will be financed by investors.
The investment map is available on the Moscow Investment Portal. It helps users to quickly find urban facilities of required use purpose, to select a site for business and to get information on Moscow investment projects.
There are new sections in the Moscow Investor service. Entrepreneurs can now report a problem or suggest an idea to support small and medium-sized businesses as well as to connect to utilities. The Miscellaneous category is added to covers issues not related to the sections available on the portal.
“The Russian non-resource non-energy exports exceeded USD 161 bn, this is a record achievement over the past few years. And almost a quarter of this volume - USD 39.86 bn - was provided by Moscow,” Sergei Sobyanin wrote in his blog.
The total export volume of Moscow companies increased by 31%. The products were supplied to 183 countries including Belarus, Kazakhstan, China, including Hong Kong, the USA, Germany and Japan.
Moscow exports mechanical equipment, machinery and computers, vehicles, chemical products (for example nonwoven materials and polyethylene) and food products (candy, beverages and deli meat products).
The last year volume of Moscow industrial exports exceeded by 54.3% the indicator set in the International Cooperation and Export national project.
“Moscow industrial companies managed to exceed the annual regional indicator of the national project even in the first nine months of 2020. Producers of agro-industrial products need 11 months to do the same. Then, the last year Moscow industrial exports amounted to USD 36.05 bn, which is 54.3% more than budgeted, and the agricultural exports reached USD 3.81 bn, which is 18.8% above the budget,” Deputy Mayor of Moscow on Economic Policy and Land and Property Relations Vladimir Efimov said.
The Elta company - a developer and manufacturer of the first Russian express blood glucose meter - received a soft loan of RUB 100 m from the city. The decision to grant the loan was made by the Moscow Industry and Entrepreneurship Support Fund. The company received the funds for 5 years at a preferential annual rate of 2%& It plans to spend the money to purchase new equipment for setting up a line to produce and pack components for blood glucose meters.
“In 2018, the company started building a plant at the Alabushevo site in Zelenograd. It is planned that the enterprise will move to the special economic zone completely after completion of works and will get access to significant preferences: zero property and transport tax, reduced profit tax, free customs zone,” Head of the Moscow Department of Investment and Industrial Policy Alexander Prokhorov said.
A new stage of subsidy application acceptance has started in Moscow. These subsidies can help industrial enterprises to reimburse the cost for leasing, for loan interests when purchasing equipment as well as the cost for utility connection.
All Moscow industrial enterprises including organizations with the industrial complex, technopark and industrial park statuses may claim the partial reimbursement of the leasing costs - up to RUB 100 m a year, or interests paid on loans for purchasing equipment - up to RUB 200 m a year.
“It is also possible to receive a subsidy for technical connection to utilities - up to RUB 100 m a year. This amount can cover up to 50% of these costs. Last year, we significantly expanded the list of possible subsidy recipients - any Moscow industrial enterprise can now get it,” Head of the Moscow Department of Investment and Industrial Policy Alexander Prokhorov said.
Parking bays located in the underground parking of the residential building in the Akademika Koroleva Street 10 are listed for an open electronic auction.
The auction units are located in the Seventh Heaven residential estate in the Ostankinsky subistrict. Their space varies from 14.5 to 20.3 square meters, and the starting price varies from RUB 1.2 to 1.6 m. The underground parking has convenient exit to main city roads. The Television Center building complex, the Ostankino countrry-side estate museum and the Ostankino park are within walking distance.
Any legal entities and individuals may submit an application for the auction by April 29, the auction will be held on May 5, 2021.
The city announced an electronic rent auction for a0&11-hectare land plot in the Rostokino subdistrict. The site is purposed for construction and operation of a roadside car service. The initial annual rent rate is RUB 2.5 m. Only small and medium-sized businesses can take part in the auction.
A car wash or a car service facility as well as related retail shops can be built and placed on the land plot. The space of the future facility will be 1,240 square meters.
The city will sign an agreement with the auction winner for 2.5 years: during this period of time, the tenant will have to build the facility and to put it into operation. 100% of the premises space will be transferred to the investor’s ownership upon the project results. Applications are to be submitted by April 5, 2021, the auction will be held on April 7.