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 for the construction of two modern factories for environmentally friendly sludge processing. According to the results of the competition, the Grintekh Company became the concessionaire.
“The concession agreement was signed for 20.5 years. Under the terms of the agreement, the investor must build factories within 3.5 years, and operate them for the next 17 years. Investments in the construction of factories will amount to about RUB 27 bn. The project does not imply expenses from the city budget, while the objects will belong to Moscow on the basis of ownership right from the moment they are put into operation,” Deputy Mayor of Moscow on Economic Policy and Property and Land Relations Vladimir Efimov said.
For the location of the plants, sites will be allocated on the territory of the Lyuberetskiy and Kuryanovskiy treatment facilities. Under the terms of the agreement, the concessionaire will undertake thermal treatment (drying) and subsequent disposal of the sludge after putting the facilities into operation: the resulting product will be supplied to cement plants for use as solid biofuel. It is assumed that each year both enterprises will produce up to 250,000 tons of such fuel in the form of dried sludge.
Russia's largest food and manufacturer, Wimm-Bill-Dann, has been assigned the status of a Moscow investor of the second category, which gives the right to an investment tax deduction for income tax. The corresponding order was signed by the Mayor of Moscow Sergey Sobyanin.
Now the company will be able to apply a preferential rate on the regional part of the profit tax in the amount of 8% instead of 17%. The privilege will allow the company to accelerate the implementation of investment plans to modernize Moscow production sites and create new jobs.
At the regional level, Moscow can independently sign agreements on the protection and encouragement of investments (APEI) from April 2, 2021. Previously, it was concluded only with the participation of the federal authorities. The agreements will guarantee business a stable legal environment and support measures in exchange for investment projects with investments of at least RUB 200 m.
“Agreements on the protection and encouragement of investments give business advantages in the implementation of investment projects: it guarantees state support and the invariability of legal acts. As of today, three APEI have already been concluded in Moscow with the participation of the Russian Federation. The total investment in the implementation of these projects will amount to about RUB 24 m. Thanks to the federal legislation that entered into force on April 2, the capital can conclude such agreements on its own. This simplifies the mechanism for signing the APEI, which will increase the volume of investments in the city's economy,” Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov said.
Industrial technopark with an area of about 20,000 square meters will appear in the Kosino-Ukhtomsky area. The City Planning and Land Commission of Moscow provided the investor with a one-hectare land plot without bidding.
“Investments in the project will amount to RUB 500 m, 185 new jobs will be created. Since the beginning of the year, this is the seventh decision to provide land without tenders within the framework of large-scale investment projects with an expected investment volume of more than RUB 5 bn,” Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov said.
It is planned to place technological, industrial, agro-industrial parks and business incubators on the site of the Kuryanovo industrial zone № 57, which in the future will create new jobs. The territory on which construction work will take place is 8 hectares. It is located near the Pererva MCD-2 station. Now there are old premises, garages and non-core businesses that are unusable.
A public production cluster will also be developed on the territory of the Yuzhnoye Ochakovo industrial zone in the Ochakovo-Matveevskoye region. In addition, the project provides the creation of a scientific sector. The total area of the territories is more than 558 square meters. Within the boundaries of the South Ochakovo production zone there will be two areas of integrated development.
About 15 of the 180 high-tech enterprises operating in the capital's special economic zone supply its developments for the space industry. These companies have registered over 100 patents and utility models. The most extensive range of inventions belongs to the enterprises of Zelenograd sites, which are the founders of the space direction of microelectronics and which continue to supply the industry with their developments.
“The Mikron has the biggest number of patents among the companies of the special economic zone. The microchips of the SEZ resident are supplied to one of the leading rocket and space enterprises in Russia. The company has about 50 patents. Also, over 30 patents are held by the Elvis Research and Production Center, which received the status of a SEZ resident in December 2020. Its microcircuits ensure the operation of onboard aerospace equipment,” Head of the Moscow Department of Investment and Industrial Policy Alexander Prokhorov explained.
The site investmoscow.ru is one of the most popular resources for business: it has recorded more than 13 million visits over seven years. Investment portal users have access to 30 online services that make business more comfortable in the capital. Online services have been used 330,000 times since the creation of the site and 34,000 times since the beginning of this year. More than 45,000 personal accounts of investors are registered on the Investportal, and up to 8,500 users visit the site per day on average.
On the Investportal, entrepreneurs can take advantage of a wide range of online support measures. The city provides assistance to both existing and start-up companies. These are various benefits, subsidies, loans at reduced rates and much more. Most of these support measures became available electronically in 2020: over 1,700 applications were used over the year.
According to the Moscow Expert Center the volume of the Moscow exports increased by 22%. During the month, Moscow sold goods worth USD 2.5bn, of which finished products accounted for 27% (or USD 664 m). Exports of vehicles and their components increased by 108%, non–metallic materials and products — by 53%, medical products — by 42%. Foreign partners purchased cars and trucks, parts of railway equipment, brake mechanisms and turbojet engines. From non-metallic products wooden doors, wallpaper and cardboard were in demand abroad. Moscow also exported vitamins, computed tomographs and diagnostic reagents.
The main importers of the Moscow non-primary non-energy goods were the United Kingdom, the United States, Kazakhstan, and Belarus. In the finished goods segment, the main trading partners of Moscow manufacturers were Kazakhstan, Belarus, China, the Netherlands and Azerbaijan.
In 2020, Moscow enterprises` export of telecommunications equipment amounted to USD 270 m, which is 73% of all Russian exports of these products. 91 countries of the world have purchased the Moscow enterprises equipment for communication. From them 11 countries in Europe, Southeast Asia and Africa became buyers of telecommunications equipment for the first time. The total amount of exports to these countries reached more than a million dollars.
"The structure of the Moscow export of telecommunications equipment includes equipment for receiving, converting and transmitting information (USD 65.1 m), telephone parts and communication equipment (USD 20 m), base stations (USD 3.2 m), phones with a wireless handset and wired phones (USD 2.7 m and USD 1.17 m, respectively)," Head of the Department of Investment and Industrial Policy Alexander Prokhorov said.
A new support measure is available now for entrepreneurs who rent real estate from the city. They can postpone the pre-payment period for the last five months of the lease until the end of 2022 when renewing the contracts. Deferral is granted to individuals and legal entities, as well as individual entrepreneurs.
The new support measure is designed for entrepreneurs who plan to extend lease agreements, as well as for businessmen who have already done so in the period from March 5, 2020 to March 22, 2021, but have not yet made a mandatory payment for the last five months of the lease. There are 1,800 entrepreneurs who will be able to get a deferral as their lease agreements have already expired or will end in 2021. You can apply for a postponement until the end of 2022.
More than 400 representatives of small businesses who rent premises with an area of up to 300 square meters or engaged in socially significant activities, received preferential and minimum rental rates for urban real estate. This year they will save RUB 810 m.
"In total, the measure can be used by 965 individual entrepreneurs and organizations who rented premises from the city last year at a minimum or preferential rate – RUB 4,750 and RUB 3,500 per square meter per year, respectively. In the first quarter of 2021, 413 individual entrepreneurs and organizations have already implemented this support measure. The minimum rental rate was received by 89 tenants, the preferential rate was approved for 324 entrepreneurs. The total area of the premises occupied by them is 75,000 square meters. In 2021, these entrepreneurs will be able to save RUB 810 m on renting urban real estate", Deputy Mayor of Moscow on Economic Policy and Property and Land Relations Vladimir Efimov said.
A room in a non-residential premise built in 1890 on Bolshaya Pionerskaya Street is presented at the city auction. The object with an area of 118.1 square meters is sold through an electronic auction with an initial price of RUB 18.2 m. The room is free from encumbrances, equipped with the necessary communications and has a free functional purpose. The future owner will be able to open an office here or organize any other business in accordance with the law.
The buyer can be any individual and legal entity, including an individual entrepreneur, with the exception of state-owned enterprises and institutions in which the share of the Russian Federation in the authorized capital exceeds 25%. Applications for the auction in electronic form are accepted until May 7, 2021, the auction will take place on May 18.
The city has put up for sale two land plots for individual housing construction in the Kosino-Ukhtomsky district of Moscow on Lytkarinskaya Street. Objects with an area of 0.12 and 0.15 hectares are offered with an initial price of RUB 7.1 m and RUB 8.9 m, respectively. The plots are located within walking distance from the Dmitrievsky Street metro station. Future owners will be able to build residential buildings up to 15 m high, as well as engage in gardening and growing crops. These land plots are free from development and are presented at auction for the first time. Future owners will be able to build houses with an area of 601.5 and 750.5 square meters, as well as place utility rooms for household needs and individual garages.
Applications for each of the objects are accepted until April 26 and May 4, 2021, the auction will be held in form of full-time participation on April 29 and May 6.