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.
For the third year in a row, Moscow has become the leader of the Investment Climate state National Rating in the constituent entities of the Russian Federation. Its results were announced during the St. Petersburg International Economic Forum. Even in the conditions of a pandemic, the capital continues to implement the main urban programs and develop the economy as a whole.
The national rating of the investment climate state evaluates the efforts of regional authorities to create favorable conditions for doing business and identifies best practices, and its results stimulate competition for investment at the regional level.
"According to Rosstat, investments of capital enterprises in the three months of 2021 increased by 16.8% compared to the same period last year and amounted to RUB 540.4 bln. Most of the funds – 44.3% of the total investment volume – were invested by companies in machinery and equipment, more than a quarter of companies were directed to the construction of real estate and land improvement, 12.5% were invested in housing construction. The creation of intellectual property objects accounted for 14.7% of private investment," Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov said.
Today, Moscow accounts for almost 18% of the total Russian investment in fixed assets and about half of Russia's foreign direct investment. In general, over 10 years, the volume of investments in fixed assets in Moscow has increased by 2.7 times in comparable prices.
As part of the program to stimulate job creation, the investor will build the first industrial technopark in Moscow in 2024. Investments in the implementation of the project will amount to RUB 550 m, about 300 jobs will be created. The new industrial technopark with an area of at least 14,500 sq. m will be built in 2024 by AO SZ Badaevsky (Capital Group structure). It has been awarded the status of an investment project to create places of employment. This is the third agreement signed in the capital.
"Within the framework of two agreements signed last year, Ostankino Business Park, a complex of office buildings, will appear in the Butyrsky district of the capital by the end of 2023. According to the second agreement, in 2023, a shopping and office center will be built in the Rostokino district, on Wilhelm Pik Street, as part of the TTH Botanical Garden. Both sites have been assigned the status of an investment project to create places of employment, which gives the right to partial exemption from rent for the first year of the lease term and payment for changing the type of permitted use. These projects will bring Muscovites more than a thousand new jobs," head of the Moscow Department of Investment and Industrial Policy Alexander Prokhorov said.
In 2020, residents of the SEZ Technopolis Moscow invested RUB 8.9 bn in the development of the capital's economy. This is 35% more than a year earlier, when the volume of investments amounted to RUB 6.6 bn. According to the results of 2020, the total volume of all investments of residents for the entire existence of the SEZ of Moscow has already exceeded RUB 37.5 bn.
In 2020, manufacturers of medicines, medical devices and equipment were the largest investors in Moscow. They have invested over RUB 5 bn.
Investors make a significant contribution to the development of the social infrastructure of the capital: about 40% of social facilities in the city are built at the expense of extra-budgetary sources.
In 2023, investors plan to build 7 medical facilities and 19 sports facilities. Developers are also actively investing in the construction of educational facilities – in two years they will finance the construction of about 60 schools and kindergartens. Some of these objects are subsequently transferred to the city's balance sheet.
Moscow took the fourth place in terms of exports in the ranking of world capitals after London, New York and Paris. The products of Moscow industrial producers are exported to 178 countries, including China, the United Kingdom, the United States of America, Belarus and Kazakhstan.
In 2020, the industrial export of the capital increased by 31% – almost a third of it is made up of industrial high-tech goods. Non-primary non-energy exports are also increasing at a faster pace. Over the past five years, its volume has doubled – from USD 19 bln to almost USD 40 bln.
Exports of the Moscow ice cream in the first quarter of 2021 increased by 47.2% compared to the same period last year and reached USD 9.49 m. The ice cream made in Moscow was delivered to 20 countries of the world. The leaders in the import of Moscow ice cream in the first quarter were the United States (USD 4.49 m), Kazakhstan (USD 2.38 m), China (USD 0.69 m), Canada (USD 0.60 m) and Bulgaria (USD 0.24 m). The capital's export of ice cream shows a positive trend over the past five years.
"Only in 2020, the capital's exports increased by 25.5% compared to 2019 — to USD 29.65 m. In physical terms, the indicator increased by 21.2% and amounted to 12,700 tons," head of the Moscow Department of Investment and Industrial Policy Alexander Prokhorov said.
The Expert Commission of the Moscow Department of Entrepreneurship and Innovative Development approved 127 applications for subsidies and grants for business. According to them, businessmen received RUB 117 m.
This year, Moscow entrepreneurs have already approved 275 applications for a total of RUB 315.5 m in the form of subsidies and grants. Consideration of applications continues.
In Moscow, 50 non-residential premises with an area of 13 to 439 sq. m will be leased on preferential terms. The annual rental price starts from RUB 1,000 per sq. m for the basement and from RUB 4,750 rubles for the basement, first floors and above. Only representatives of small and medium-sized businesses can become tenants. The premises can accommodate an office, open a small store, a pharmacy, a beauty salon and other commercial institutions.
Most of the premises for rent for representatives of small and medium-sized businesses are exhibited in the north of the capital — 15 objects. Seven premises are represented in the east and south, six objects are offered for rent in Zelenograd, four — in the north-east and north-west, three — in the west and south-west of the city and one object — in the south-east.
93 non-stationary shopping facilities and sites for their placement were put up for city auctions. Entrepreneurs will be able to open rental points, melon ruins, ice cream kiosks, consumer service points there. The objects put up for auction are located in city parks, underground metro crossings, as well as on the street and road network. Their area ranges from 1.5 to 147 sq. m.
"The non-stationary commercial objects and platforms for their placement put up for auction are located in all administrative districts of the city, except for ZelAD. Among them there is a small vending machine in the park, as well as fairly large pavilions in which you can place, for example, a bike rental point. In total, according to the results of five months of this year, the city held 132 auctions for non-stationary commercial objects. The average competition was about five participants per lot," Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov said.