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May

Moscow Investment Digest. May 2021

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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.

NEWS

THE MOSCOW ENTERPRISE WILL CREATE AN INFRASTRUCTURE FOR THE COLLECTION OF ELECTRONIC WASTE IN THE CAPITAL

The company "Ecopolis Corporation" is implementing a project to collect out-of-order electronic and electrical equipment in the framework of a public-private partnership. The agreement between the company and the city is planned to be concluded in 2021 for 20 years.

"Currently, the details of the agreement are being worked out. According to the agreement, Moscow will transfer to the investor the existing but unused capital construction facilities for reconstruction and equipping with the necessary machinery. These areas will be used for the collection of electrical equipment, which will then be processed at the company's existing plants. According to preliminary calculations, up to 95% of the materials from the collected scrap will return to the economy as secondary raw materials," Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov said.

This will be the first public-private partnership agreement in the field of e-waste management. The objects will remain in the property of Moscow.

THE MANUFACTURER OF ROPE TRANSPORT SYSTEMS RECEIVED THE STATUS OF A RESIDENT OF THE SEZ TECHNOPOLIS MOSCOW

A subsidiary of the Swiss manufacturer Bartholet Maschinenbau AG and Rostec Group – RT-Bartolet has received the status of a resident of the SEZ Technopolis Moscow. The company plans to start production of equipment for cable cars in Moscow in September 2021. The received status of a resident of the capital's SEZ opens up a set of benefits and preferences for new production, which will help in the implementation of the project.

Now the company is working on the construction of production facilities at the SEZ site in Pechatniki. The complex for the production of rope transport systems will occupy more than 4,000 sq. m, the total investment will amount to RUB 1.5 bn.

"The newest technologies and equipment will be introduced at the plant. In the production of rope-transport systems, the company plans to use materials and components from Russian suppliers, which will have a positive effect on the development of related industries. The rope-transport systems created at the new enterprise are oriented towards the Russian market, and it will also be exported. Along with the production line, the company will organize work on training personnel in the management, repair and maintenance of rope-transport systems," Head of the Moscow Department of Investment and Industrial Policy Alexander Prokhorov said.

THE IMPLEMENTATION OF PHARMACEUTICAL PROJECTS OF RESIDENTS OF THE CAPITAL'S SEZ WILL CREATE ALMOST 2,000 JOBS

Pharmaceuticals is one of the anchor industries of the Moscow SEZ, along with microelectronics, medicine, information technology and modern materials. 10 SEZ residents work in this area. According to the residents' business plans, the number of high-tech jobs created in the cluster of pharmaceutical companies will be almost 2,000.

"Moscow accounts for about 20% of Russian pharmaceutical production. This industry is constantly evolving: investments of the capital's pharmaceutical enterprises reached RUB 10.5 bn in 2020, which is more than 133% higher than in 2019. The Moscow SEZ is one of the main centers for the development of the industry, and 10 pharmaceutical companies already have the status of its resident. Most of them are located at the site Pechatniki. Several large factories are located at the site Alabushevo in Zelenograd," the Deputy Mayor of Moscow for Economic Policy and property and Land Relations Vladimir Efimov said.

INVESTORS WILL REORGANIZE THE OKTYABRSKOE POLE AND CHERTANOVO INDUSTRIAL ZONES

Moscow industrial zones will be reorganized as part of the Industrial Quarters project. Within the framework of the "Industrial Quarters" project, on the site of the former industrial zone Oktyabrskoe Pole the investor will build two kindergartens with 200 seats, a school and a polyclinic, and real estate with a total area of more than 170,000 sq. m. The reorganization of the industrial zone should be completed by the end of 2026. The list of social facilities that will appear here was approved based on the needs of local residents. As part of the first stage of work, it is planned to open a school for 800 students in two years. Since the beginning of this year, the construction of a residential building with an attached polyclinic and dentistry is underway.

Also, part of the former Chertanovo industrial zone territory is being reorganized in Moscow. The area of the site in the former Chertanovo industrial zone is 8.56 ha. It is planned to build here high-tech and environmentally friendly production facilities, a technopark, public and business buildings along with corresponding infrastructure. The implementation of this project will allow the city to get more than 4,600 jobs. The expected volume of investments will be RUB 5.4 bn, and the budgetary effect will reach RUB 1.7 bn per year.

ON THE INVESTMENT PORTAL, THE NAVIGATOR OF SUPPORT MEASURES WAS LAUNCHED AND THE MOSCOW INVESTOR SERVICE WAS FINALIZED

The Navigator of Support Measures service has been launched on the Moscow investment portal. It allows entrepreneurs to quickly and conveniently learn about available subsidies, benefits and grants, as well as non-financial support measures.

"Today, users of the investment portal have access to more than 100 measures of state support, including tax incentives, subsidies and grants. The new Navigator of support measures service has been launched on the Investment Portal to make it easy for entrepreneurs to navigate through the proposed tools. It will not only make it easier for users to search among federal and regional types of support, but also select them as accurately as possible-taking into account the selected filters, company profile, field of activity and other parameters," Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov said.

There is a new Construction section in the Moscow Investor service. With its help, you can get advice on issues that arise during the implementation of development projects on the territory of the city at different stages – from pre-project preparation to installation work and commissioning of objects. Any registered user of the site can send an appeal, after which it is immediately transmitted to the relevant city departments – the Committee for Architecture and Urban Planning and the Committee for State Construction Supervision. The user receives a response to the message in the personal account on the investment portal, as well as to the email address specified during registration.

MACROECONOMICS

MOSCOW HAS INCREASED EXPORTS OF HEALTHY FOOD AND MEAT PRODUCTS

Last year, the Moscow enterprises sent more than 183,000 tons of useful products to foreign markets. According to the Mosprom Export Support and Development Center, Moscow accounts for 12% of all-Russian healthy food exports worth USD 154.21 m. Compared to 2019, Moscow increased exports by 13.5% in monetary terms and 40.9% in physical terms.

"The most popular products of Moscow companies in foreign markets were food additives, muesli, ready-made nut mixes and fruit juices, as well as wheat bran," head of the Moscow Department of Investment and Industrial Policy Alexander Prokhorov said.

According to the results of 2020, the capital's meat producers exported their goods for USD 81.8 m, increasing exports by 13.6%. Exports increased from USD 72 m in 2019 to USD 81.8 m last year. The main buyers of Moscow meat products were Kazakhstan, China and Hong Kong. These destinations accounted for more than half of Moscow's total meat exports – 64.4%.

THE MOST PROMISING COUNTRIES FOR THE CAPITAL'S EXPORTERS ARE NAMED

In 2020, despite the difficult economic situation, Moscow's non-primary non-energy exports grew by almost a third and reached almost USD 39.9 bln. The largest foreign trade partners of the capital are the United Kingdom, Kazakhstan, USA, Belarus and China.

In the first two months of 2021, the volume of deliveries increased by 28% and reached USD 5.5 bln. The share of the city's foreign trade supplies in the non-resource non-energy segment at the end of last year was almost a quarter (24.7%) of the total Russian volume.

This year, exporters should pay attention to the markets of Malaysia, Saudi Arabia, Serbia, Belgium and Italy. According to the results of the first two months of 2021, the export of finished products from Moscow to these countries showed the greatest dynamics compared to the same period last year.

SUPPORT MEASURES

MOSCOW BUSINESS WILL RECEIVE MORE THAN RUB 100 M BY SUBSIDIES AND GRANTS

The Expert Commission of the Moscow Department of Entrepreneurship and Innovative Development approved 86 applications for business subsidies and grants. Financial support will be provided to representatives of capital’s small and medium-sized businesses as part of the first bid campaign in 2021. Consideration of applications continues.

The capital’s exporters will receive the main part of the allocated funds: grants totaling RUB 74.4 m were approved for them. Companies can receive cashback for 10% of the revenue from export contracts, but no more than 50% of taxes paid to the Moscow budget. At the same time, the total amount of export cashback cannot exceed RUB 10 m.

AUCTIONS

THE INVESTOR WILL BE ABLE TO BUY A BUILDING IN THE TAGANSKY DISTRICT

The city will sell the 270 sq. m building on the Malykh Kamenshchikov Street. The object is located within walking distance from the Taganskaya metro station and the Garden Ring. The building is located in a residential area, near several schools and a law center. The location and free purpose of the building allows investor to place offices, a car repair service or a small store with a warehouse here.

The lot will go to the winner of the open city auction. The initial price is RUB 47.1 m. Applications are accepted until June 4, 2021, and the auction will be held on June 15.

27 NON-RESIDENTIAL PREMISES WERE PUT UP FOR ELECTRONIC AUCTION IN MOSCOW

The city has put up for sale 27 non-residential premises for free use in 10 districts. Their area ranges from 43.4 sq. m to 1723.8 sq. m. Investors can purchase objects for commercial purposes through the public offer procedure. Future owners will be able to open offices, shops and any other commercial establishments that can be placed in residential buildings according to the current legislation.

Individuals and legal entities, as well as individual entrepreneurs can purchase the premises. The exception is state and municipal enterprises and institutions, in which the share of the Russian Federation in the authorized capital exceeds 25% (except for the cases provided for in Article 25 of the law "On Privatization of State and Municipal Property").

An application campaign is being conducted for all lots, and the premises will be sold in electronic form. It is possible to be acquainted with the documentation and characteristics of the objects on the Moscow Investment Portal. You can view them in detail online using the "360 degrees" function.

PHOTOMATERIALS

MEETING OF THE SUB-COMMISSION "INVESTMENT POLICY AND ENSURING AVAILABILITY OF FINANCING" OF THE RUSSIAN FEDERATION STATE COUNCIL COMMISSION IN THE DIRECTION "INDUSTRY"

 

THANK YOU FOR YOUR ATTENTION!

Moscow Department of Investment and Industrial Policy
mos.ru/dipp

Moscow City Investment Agency
investmoscow.ru

Supplier Portal
www.zakupki.mos.ru

The digest archive is available on the Moscow Investment Portal.