The Moscow Department of Investment and Industrial Policy and the Moscow Investment Agency present you the next digest of the main investment events in the Russian capital.
"The project involves the collection and processing of out-of-order electronic and electrical equipment for its subsequent disposal. In the future, this will allow the city to significantly reduce the cost of recycling electronic and electrical equipment, companies will be able to maximize their capacity to develop production," said Vladimir Efimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.
The initiative to implement the project was received by the Moscow Government in early 2021. OOO PO «Ekotekhprom» has proposed to carry out a full cycle of equipment collection and processing, including plastic. To do this, the investor will reconstruct city facilities for collection points and equip them with the necessary facilities. All the devices sorted here will be sent to the plants «Ekotekhprom» and «Ekoplast».
“The agreement on public-private partnership was concluded with the investor for 20 years. According to it, Moscow will transfer empty construction projects to «Ekotekhprom», which are located in Ostapovskiy Proyezd and Altuf'yevskoye Shosse. The implementation of the project will help reduce the adverse impact on the environment,” said Alexander Prokhorov, Head of the Moscow Investment and Industrial Policy Department.
The capital was one of the first among the regions to start using various PPP mechanisms. The format of cooperation is chosen depending on the goals and objectives that infrastructure project solves. More than 250 PPP contracts have been concluded in Moscow for the amount of more than RUB 1.1 tln since 2013. Due to them, the city attracts entrepreneurs to implement projects in the field of healthcare, education, road construction, transport, social services and housing and communal services, said Artem Barashev, Head of the Moscow City Investment Agency.
As part of the city incentive program for creating places of employment outside the Third Ring Road, new workplaces will appear. The Moscow Government started to implement this program in 2020. It ensures that developers who build so-called places of employment (real estates that provide workplace creation) outside the city center can receive a fee relief for changing the type of permitted use of the site for housing construction.
“The city signed 17 agreements with investors under the program for creating places of employment. According to them, developers will build schools and kindergartens, industrial technology parks, shopping and business centres, and an industrial cluster. The total area of all facilities will be over one million square meters. The amount of investments for implementing these projects will amount to RUB 83.4 bn. The city will provide developers with benefits worth RUB 38 bn, and in return it will receive 29,700 new workplaces,” said Vladimir Efimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.
Six schools, five kindergartens, two retail and office buildings, seven business centres, five technology parks, two shopping and entertainment centers and one industrial cluster will be built. Facilities built under the program will appear in all districts, except for the CAO of Moscow. More than half of the workplaces — 19,200 — will appear in office and business centres, as well as in trade and catering enterprises, 9,500 workplaces will appear at modern production facilities and technology parks, and another thousand — at social facilities built under the program.
"The territories for investor placement are located in the Vostochnaya Kommunalnaya Zona of Zelenograd. The complex will occupy 80,000 sq. m. Facilities for producing a variety of products — from landscaping elements to campers - mobile homes — will be located on these territories. As a result, 660 new jobs will be created in the city. The developer will invest RUB 2.25 bn in the implementation of the project," said Vladimir Efimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.
An eco-friendly enterprise for the production of premium-class materials imitating natural stone, ceramics, architectural concrete and bricks, off-road residential campers, translucent structures made of aluminum profile, landscaping elements, plumbing modules for residential buildings will be on the territory of the future complex.
As part of a large-scale investment project (MAIP), land for the creation of an industrial and construction complex will be leased to an investor for six years without bidding. The investor also cooperates with the city in other projects. For example, as part of the program for creating places of employment, two agreements on the construction of important infrastructure facilities outside the Third Transport Ring were signed in November 2021.
"Under the first agreement, the investor will build a business center with an area of 56,000 sq. m. the north-west of the city. Investments in construction will amount to RUB 7.4 bn. As a result, an administrative building will appear on Ulitsa Shenogina, where about 1,700 people will be able to work. Under the second agreement, an industrial technopark with 600 new work places will be built in the Molzhaninovsky District in the north of Moscow on the area of 20,700 sq. m. Investments to this project will exceed RUB 1 bn," said Alexander Prokhorov, Head of the Moscow Investment and Industrial Policy Department.
The former industrial zone "Kaloshino" will be transformed into a modern industrial quarter with high-tech types of production under the program "Industrial quarters". Investments in the redevelopment of the territory with an area of 16.6 hectares will amount to almost RUB 22 bn.
“Another industrial quarter will appear in the east of Moscow. It will annually bring RUB 1.5 bn to the city budget. Enterprises, public and business facilities with 4,200 new work places will be built here,” said Vladimir Yefimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.
The territory of the former industrial zone is located in Golyanovo between Ulitsa Biryusinka and 2-y Irtyshskiy Proyezd. It is planned to build more than 286,000 sq. m. of real estate on the territory. “The former industrial zone will again become a production site — according to the project, high-tech enterprises will be located in Kaloshino on an area of 166,000 sq. m., a technology park, a business incubator and a fire protection facility may also appear there. About 120,000 sq. m. is allocated for public and business buildings: sports facilities, shops, banks and cafes,” said Alexander Prokhorov, Head of the Moscow Investment and Industrial Policy Department.
A Russian company producing medicines for animals will open a new large enterprise on the SEZ Technopolis Moscow territory. The plant will produce several types of safe vaccines and related drugs for pets and farm animals. Currently, the company is carrying out commissioning work.
"This year the company will start producing vaccines, serums and test systems for animals. They will help to provide the market with the necessary goods and solve the problem of import substitution of medicines for veterinary use. In addition to this plant, at least 10 new production facilities will open on the SEZ territories in 2022: medicines, medical products, microelectronics, measuring equipment, rope transport systems. The volume of investments in these projects will amount to more than RUB 10 bn," said Vladimir Efimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.
"The company is equipped with modern facilities; the latest technologies are used at all stages of production. The total area of the workshops will be about 6,500 sq. m., of which four thousand are allocated for clean rooms. It is planned to produce over 40 different names of vaccine preparations," said Alexander Prokhorov, Head of the Moscow Investment and Industrial Policy Department.
Moscow was the first region in the Russian Federation which conclude offset contracts with investors. The total volume of private investments under five offset contracts will amount to RUB 12.9 bn. The volume of purchases is RUB 72.7 bn.
"The city has been using such a mechanism as offset contracts since 2017. This is beneficial for Moscow because of receiving a large volume of investments in fixed assets, a fixed price for goods and availability of a long-term reliable supplier. This is also beneficial for the investor due to receiving guaranteed sales for safely planning production activities. We have already signed five offset contracts: three of them in pharmaceuticals, one in the food industry, one for the manufacture of medical equipment. According to our calculations, the average reduction in prices for supplied products compared to market analogues is 20%, savings for the city budget under five contracts will amount to over RUB 18 bn," said Vladimir Efimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.
For example, an offset contract for the baby food production was signed in May 2020 and became the fourth for the city. The Tsaritsynskiy molochnyy kombinat has already launched lines for the producing of baby food production. Localization of production in the capital is carried out within the framework of providing dairy products to a certain category of children. Under the contract, the city will purchase baby food for dairy kitchens in the amount of more than RUB 30 bn for 10 years, and the company will invest RUB 2.1 bn in the modernization and creation of appropriate production lines.
The rating is based on data from the Federal State Statistics Service and the Federal Tax Service. It includes 33 regions of the country, which are ranked by the amount of value added tax (VAT) transferred to the federal budget, average monthly salary and financial result of regional companies’ work.
Moscow is the leader among Russian regions in terms of VAT payments and consolidated profit of organizations. Moscow enterprises and organizations transferred to the federal budget more than RUB1.25 tln as value-added tax for 10 months of 2021, which is 34% more than in the same period of 2020. One third of the VAT payments — RUB 419.4 bn — is the share provided by the trade sector. Moscow accounts for over 26% percent of the VAT received throughout Russia. Financial results of Moscow companies are also at a high level. In 2021, nearly all sectors of the capital's economy saw an increase in consolidated profit (profit minus losses) of companies after this value dropped in 2020.
The Yamalo-Nenets and Khanty-Mansi Autonomous Okrugs, St. Petersburg and the Moscow Region are also among the top 5 of the rating.
The turnover of small and medium-sized enterprises (SMEs) amounted to RUB 3.2 tln in 2021, what is 41% more than in 2020. Since July last year, the monthly turnover of SMEs has consistently exceeded pre-pandemic levels.
“Small business is one of the most mobile areas of entrepreneurship due to the ability to respond flexibly and quickly to challenges and adapt to new circumstances. Last year, the share of SMEs in the Moscow trade and service enterprises total turnover increased by 0.3 percentage points compared to 2020, to 21.7%. This is another confirmation of the sector’s post-crisis recovery,” said Vladimir Yefimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.
September was the record month for SMEs last year when the turnover of enterprises reached RUB 356 bn, exceeding the level of September 2019 by 64% and 2020 by 60%. Even in October and November last year with an additional 11 non-working days, the total revenue of the companies was significantly higher than the same months of 2020 and 2019. In October 2021, SMEs' revenue amounted to RUB 290 bn, which is 40% more than October 2020 and 17% more than October 2019. In November, turnover reached RUB 273 bn - more than November 2020 and 2019 by 35% and 21%, respectively, Vladimir Yefimov added.
From January to October last year, the volume of Moscow non-resource non-energy exports amounted to USD 26.59 bn. This is 29.5% more compared to the same period in 2020 and almost 34% more than in the same period in 2019.
“Moscow is the main Russian non-resource non-energy exporter. Its share in all-Russian exports reached 17.5 percent in January - October of 2021. During this period, Moscow delivered goods to 183 countries in the amount of 26.59 billion dollars, which is 29.5 percent more than in the same period of 2020. The number of countries purchasing Moscow goods is annually growing,” said Vladimir Efimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.
Kazakhstan ranks first among the main importers of the capital's products — goods worth USD 2.71 bn were delivered there. Belarus is the second importer having purchased Moscow products in the amount of USD 2.59 bn, the third is the USA (USD 2.33 bn), the fourth is Germany (USD 1.46 bn), the fifth is China (USD 1.36 bn).
“The structure of non-resource non-energy exports shows that 88% of Moscow's supplies abroad is the share of industrial products. The companies sold their goods worth USD 23.4 bn within 10 months of 2021. Thus, the volume of the capital’s exports increased compared to the same periods in both 2020 and 2019 — by 33.1% and 33.7%, respectively,” said Alexander Prokhorov, Head of the Moscow Investment and Industrial Policy Department.
The support measures will be available to investors building new hotels or adapting existing buildings owned by the city for these purposes. The program aims to develop the hotel infrastructure, increase the number of rooms, attract investments in the Moscow hotel industry, as well as the effective use of the city's non-residential fund.
As part of the program for creating places of employment, the Moscow Government will provide benefits for land payments to investors building new hotels. At the same time, projects must meet a number of conditions:
Moscow sausage manufacturer "Dymov" received a loan from the city in the amount of RUB 200 m for the development of export activities. The funds were provided for five years at 2% per annum by the Moscow Industry and Entrepreneurship Support Fund.
"The sausage manufacturer received money within the framework of the product "Export of agro-industrial complex", developed specifically for companies of the agro-industrial complex focused on launching or developing foreign trade activities. In addition to the loan, the company plans to invest at least RUB 86 m in export development over the next five years. Strengthening this direction will allow to create new work places, expand production and increase the company's revenue," said Alexander Prokhorov, Head of the Moscow Investment and Industrial Policy Department.
Earlier, a loan under the same support program was received by a Moscow food company – a manufacturer of sausage and meat products "Tsaritsyno". The company allocated funds in the amount of RUB 200 m to support export work under existing contracts. In 2020, the manufacturer also received two loans totaling RUB 100 m and spent them on the purchase of raw materials.
"Auctions with preferential initial rates were introduced to support small and medium-sized businesses in 2017. During this period, entrepreneurs rented 1956 such objects with a total area of 229,200 sq. m., 305 of them in 2021 – with total area of 27,100 sq. m.," said Vladimir Efimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.
Rent of urban real estate on preferential terms is popular with entrepreneurs, the initial rate is RUB 1,000 per sq. m. per year for basements, and RUB 5,000 for rooms on the first floors and above.
In 2021, most of the objects were sold in the Southern and South-Western administrative districts of Moscow (for 51 premises respectively). 39 objects were leased in the Eastern Administrative District. In total, almost 3,000 investors took part in specialized auctions for small and medium-sized businesses last year, the average competition at the auction was 10 participants per lot. The highest rental price is recorded in the Northern Administrative District – RUB 120,000 per sq. m. per year, and the lowest – RUB 700 per sq. m. in the Eastern Administrative District, where the lot was re-placed with a 30% discount.
Moscow uses different mechanisms for selling personal cars’ places: at bidding through open auctions for a price increase, through a public offer and a purchase without declaring a price; as well as by pre-emptive right of redemption – this option is valid for citizens who live in the same or neighboring house where a parking space is for sale.
Last year, the city sold more than 6,500 parking spaces on electronic platforms – 4,000 more than in 2020. Most of the objects were offered in the capital’s North-Western and Eastern Administrative Districts – over 2,000. Every year, an increase in interest in such auctions is recorded: if in 2020 there were 12,500 participants at the auction, last year there were almost 28,000. The average level of competition was 4 participants per lot.
V Forum of the Central Federal District on Public-Private Partnership
Department of Investment and Industrial Policy of the City of Moscow
mos.ru/dipp
Moscow Investment Agency
investmoscow.ru
Supplier portal
www.zakupki.mos.ru
The digest archive is presented on Investment portal of the city of Moscow.
Chrome
Firefox
Opera
