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 sixth agreement on the program of stimulating the creation of places of employment has been signed in Moscow. As part of the project, the investor will build a kindergarten and a school in the south of the capital, where 149 jobs will be created.
"As part of the agreement, the investor will build a kindergarten and a school with a total area of 19,100 sq. m in the Moskvorechye-Saburovo district in the south of Moscow. This is the first project for the construction of educational facilities within the framework of the city program to stimulate the creation of places of employment. The investor will finance about RUB 1.8 bn in the construction and will receive a fee for changing the type of permitted use of the plot for the construction of an apartment building in the amount of RUB 500 m," Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov said.
"The kindergarten will provide 160 places for preschool children, 900 students will be able to attend the school at the same time. Under the terms of the agreement, the investor will complete the construction within three years. At this time, he will be granted a delay in making part of the payment on the rent for the first year of the lease of the land plot provided for housing construction," head of the Department of Investment and Industrial Policy Alexander Prokhorov said.
The volume of industrial production of the capital in the first seven months of 2021 increased by 25.3% compared to the same period last year, while the growth in the manufacturing sectors of the city industry since the beginning of the year amounted to 26.3%. This was due to an increase in the production of textile products, paper products, electrical equipment, chemicals and medicines.
According to updated data from Rosstat, the volume of production of the capital's manufacturing enterprises increased by 16.4% by the end of 2020 compared to 2019, in general, Moscow's industrial production increased by 12.2%. According to preliminary data of the ministry, published at the beginning of the year, these figures were 5.9% and 5.1%, respectively. The revision of indicators is a standard practice related to the peculiarities of data collection and calculation. The increase in the index of industrial production is due to the refinement of indicators in an upward direction in several branches of Moscow industry at once.
"For example, the volume of production of medicines and materials used for medical purposes has been revised. If preliminary data indicated an increase of 38.8% compared to 2019, then according to updated data from Rosstat, production volumes in this area increased by 71.7%. Also, a twofold growth was recorded in the production of rubber and plastic products," head of the Moscow Department of Investment and Industrial Policy Alexander Prokhorov said.
In Moscow, according to the decision of the Headquarters for the Implementation of Integrated Territorial Development Projects (ITD), the Moscow Department of Investment and Industrial Policy will work out seven new ITD projects with a total area of more than 91 ha. The plots are located in the Yuzhnoportov, Presnensky, Beskudnikovsky and Yaroslavsky districts, as well as in the Sviblovo, Yuzhnoye Chertanovo and Novogireevo districts. The total volume of investments in the implementation of these projects will exceed RUB 500 bn, and the expected budget effect for the city from the reorganization of the sites will be about RUB 63 bn a year. More than 35,000 jobs will be created here.
Two projects will be implemented in the NEAD, the rest - in the CAD, NAD, EAD, SAD and SEAD. In each future industrial quarter, residential, social and business development and the creation of production facilities are provided.
"Investors will build about 2.3 m sq. m of real estate. Almost 2 m sq. m will be occupied by public and business buildings, and 124,000 sq. m will be occupied by high-tech production facilities. 225,000 sq. m of housing will be built, including more than half (121,000 sq. m) as part of the renovation program," explained Alexander Prokhorov, head of the Department of Investment and Industrial Policy of the City of Moscow.
The Moscow investment portal remains one of the most popular specialized websites for business: since 2014, it has been visited more than 14 m times. In just seven months of this year, the number of visits to the portal amounted to 1.8 m times, 8,600 unique users visit it daily.
Since the beginning of 2021, entrepreneurs have used the site's online services 71,200 times, that is, about 340 times a day. For example, on the portal, entrepreneurs can find a room or a land plot for hosting a business, submit a concession initiative for preliminary study, or send an application for city support measures.
Last November, the mobile application of the investment portal was launched: since then, it has been downloaded more than 4,500 times (over 2,700 times from the App Store and 1,800 times from Google Play). By installing the application and passing authorization or registration, the user gets permanent access to the portal's personal account and online services from his smartphone.
In the first half of 2021, Moscow's non-primary non-energy exports increased by 31.5%. Compared to the same period last year, it amounted to USВ 15.38 bln. This is almost one and a half times more than in the six months of 2019. Industrial products account for almost 90% of Moscow’s deliveries abroad.
"Moscow exporters are improving their performance every year. Over the past two years, they have managed to increase non-resource non-energy exports by one and a half times – from USD 10.82 bln in the first half of 2019 to USD 15.38 bln in the first half of 2021," Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov said.
The capital's products are supplied to 175 foreign markets, and the main importer is the United States – the volume of deliveries amounted to USD 1.78 bln. The list of leaders also includes Kazakhstan- USD 1.47 bln, Belarus- USD 1.45 bln, Germany- USD 924.87 m, and China – USD 904.76 m. These countries account for more than 40% of all Moscow's non-primary non-energy exports.
In the first five months of this year, Moscow showed record results in the export of medical equipment. The volume of deliveries of such goods abroad amounted to USD 22.34 m, which is 2.1 times higher than in the same period last year. Therapeutic respiratory equipment is the leader in export. Moscow manufacturers delivered USD 4.77 m worth of his type equipment in January–May 2021. In addition, Moscow has supplied abroad computer tomographs for USD 3.95 m, devices for mechanotherapy for USD 1.87 m and medical X-ray equipment for USD 1.81 m.
Also according to the results of the first five months of 2021, deliveries of the capital's special vehicles abroad more than doubled – exports amounted to USD 13.2 m. The leaders among the importing countries this year were Myanmar, Kazakhstan and Uzbekistan. Moscow's exports of office furniture and appliances also doubled – the volume of deliveries amounted to USD 64.56 m. Belarus became the main buyer of office equipment, followed by Kazakhstan and the Netherlands.
The volume of deliveries of confectionery products from Moscow abroad increased by 45% compared to the same period last year. The export volume amounted to USD 86.15 m. Moscow confectionery manufacturers mainly supply their products to the markets of neighboring countries, but the export of sweets is also growing to foreign countries – the EU countries and North America.
According to the results of the first five months of 2021, the trade turnover between the capital and the countries of the Middle East and North Africa increased by 40.2% compared to the same period last year and reached USD 1.89 bln.
"In January–May of this year, Moscow's trade turnover with the countries of the Middle East and North Africa reached USD 1.89 bln, which is 40.2% more than in the same period last year. Such indicators were achieved primarily due to an increase in exports of the capital's products. Thus, Moscow's non-primary non-energy exports for the first five months of 2021 amounted to USD 812.81 m, which is 69.8% higher than in the same period last year— USD 478.68 m, " Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov said.
The Moscow government offers entrepreneurs to use a new support tool. From September 1 to September 30, representatives of the capital's business can apply for compensation costs for preventing the spread of coronavirus infection and providing employees with personal protective equipment.
In total, RUB 1 bln have been allocated for these purposes. Entrepreneurs who have submitted before August 15 information about vaccination of 60% of its employees on the portal mos.ru can receive payments. It is about a one-time payment of RUB 15,000, as well as additional compensation in the amount of RUB 6,500 for each employee. Individual entrepreneurs without employees are entitled to a subsidy of RUB 21,500.
This type of support is approved for entrepreneurs who work in the field of catering, education, culture, sports and entertainment, as well as for those who are engaged in the repair of personal consumption items. In addition, support is provided for beauty salons, sanatorium-resort organizations and cinemas.
Since the beginning of 2021, Moscow entrepreneurs have received loans in the amount of RUB 16.5 bln under the guarantee support program. This is a third more than in the same period of 2020. About RUB 6 bln were received by entrepreneurs at a preferential rate due to subsidies from Moscow, and another RUB 3.8 bln - at a preferential rate due to federal subsidies.
Most often, entrepreneurs take out a loan when there is a shortage of working capital, the fund has provided two-thirds of guarantees for this purpose. 65% of the recipients of guarantee support are trading companies, 16% are manufacturing and innovative companies. Another 8% of enterprises work in the service sector, 5% are involved in construction, 3% – in transport and communications, 2% – in healthcare, the remaining 1% is in other areas. Micro and small companies received 89% of the funds issued with guarantee support.
According to the results of six months of 2021, more than 4,500 real estate objects were sold at the sale and lease auctions of city property. This is more than 85% of the total number of objects sold last year, when it amounted to almost 5,300 objects. Through auctions, premises and buildings for business, land plots, non-stationary retail facilities and apartments were sold.
The most popular among investors this year was the purchase of non-residential premises without a price announcement, in this category, competition in the first half of the year reached 27.4 participants per lot. In the first half of last year, the most popular category was the rental of non-stationary shopping facilities from the underground, the competition was 12.1 people per lot.
The city has put up for auction more than 100 non-stationary retail facilities and sites for their placement. The winners of the auctions will be able to open retail outlets, rental offices and cultural and leisure centers.
The objects put up for auction are located in city parks and on the streets of the capital. Their area ranges from six to more than 550 sq. m. The smallest objects for trade (about six sq. m) are kiosks for selling ice cream. The largest object, a pavilion with an area of 554 sq. m, can be rented in the Muzeon Park: the winner of the auction will have to organize classes of clubs, trainings, master classes, conferences or various exhibitions in it.
Two lots with an initial rental rate of RUB 1.5 m per year are put up for auction in the South-Western Administrative District. The premises for free use are located close to each other along Krzhizhanovsky Street in an area with dense buildings. The lots have excellent transport accessibility-there are several metro stations, public transport stops and a convenient exit to Nakhimovsky Prospekt. Taking into account the commercial purpose, tenants will be able to open a grocery store and a pharmacy.
The first lot with an area of 214.9 "square" and an initial rental rate of RUB 1.5 m per year is located at the address: Krzhizhanovsky Street, house 24/35, building 3. The second lot is also located on Krzhizhanovsky Street, house 20/30, building 2. Its area is 708.5 sq. m, the initial rental rate is RUB 4.7 m. The end date of the acceptance campaign for two lots is September 17, the auction will take place on September 28.