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.
“A law entered into force on the 1st of July 2022. According to it the threshold of investments in the creation or production modernization for the conclusion of an offset contract was reduced from RUB 1 bn to RUB 100 m. Now such agreements can be signed jointly with two or more constituent entities of the Russian Federation. In the case of an interregional contract, the minimum investment will be RUB 400 m, and for purchases made in 2022–2023, the threshold has also been reduced to RUB 100 m,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
Now you can create an enterprise not only in the subject of the Russian Federation, which is the initiator of the conclusion of the offset, but also in the territory of another region. From the 1st of July, it is also possible to purchase both a product and a service within the same competition.
“Since 2017, the capital has signed 5 offsets with a total investment of RUB 12.9 bn. The city, in turn, will purchase products from manufacturers for RUB 72.7 bn. As part of the contracts, several investors have already completed the construction of factories and have begun supplying medicines, food products for city dairy kitchens, and medical products for stoma patients for the needs of Moscow,” said Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.
“The total investment under Creation of Work Places Programme agreements have exceeded RUB 92 bn. The implementation of these projects will allow constructing objects outside of the Third Road Ring and the Moscow Road Ring. The total area will be 1.12 million m2. Therefore, from 2023 to 2027, developers will be building schools, kindergartens, business centers, commerce and office buildings, technoparks, shopping and entertainment centers,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
More than 33,000 work places will appear in the new facilities created under the program of creation of work places. Thus, 24.500 jobs will appear in the field of trade and public catering and in office and business spaces, and 8.000 jobs will be created in modern industries and technology parks. The rest vacancies will be established in social institutions.
“Since the beginning of the year, the city has signed 5 more agreements within this program. According to them, developers will build in Moscow two shopping centers, a school and a kindergarten, an office building, and a multifunctional center. The total area of the facilities will be more than 73.000 m2. Investments in the construction will amount to about RUB 9 bn,” said Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.
In 2022, Moscow allocated land plots for the implementation of more than 30 large-scale investment projects. Thus, 10 of them relate to the construction of social facilities. Thus, in addition to new industries and public spaces, investors are building kindergartens and schools.
“The total area of the facilities will exceed 116.000 m2. About 425.000 m2 of city land will be occupied by 6 new factories. Besides, it’s planned to construct different objects with an area of more than 70.000 m2 within the creation of four transport hubs. The other projects for which the city has provided land include transport infrastructure, cultural, entertainment and sports facilities,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
In particular, 5 large-scale investment projects are implemented in Troitsky and Novomoskovsky administrative districts. There will be a distribution center for electronic commerce, a company for the production of aluminum and PVC windows, a complex for the manufacture of building materials from wood and other industrial facilities.
“Investments in the construction and development of enterprises will amount to more than RUB 26.9 bn. The area of the facilities will be more than 300.000 m2. As a result, almost 8.000 specialists will be able to work at modern production facilities,” said Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.
This ranking is compiled by the Ministry of Industry and Trade of the Russian Federation. This year it is based on the assessment of the regions according to five criteria: economic development, interaction with the Russian Ministry of Industry and Trade and the Industrial Development Fund, support measures and development institutions, business activity, youth policy, industrial tourism and digitalization.
“About 3.000 industrial enterprises operate in the capital today. Thus, the volume of industrial production in Moscow increased by 36.6% in 2021. Manufacturing made a major contribution, they increased their output by more than 40% over the year,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
“More than RUB 30 bn has been invested in the capital economy in the first quarter of 2022 by manufacturing industry. This is a third more than in the same period in 2021. Last year, the volume of investments in the industrial sector amounted to about RUB 152 bn. It was more than 29% more than 2020’s values,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
Such pace of development became possible thanks to the tax and non-tax incentives and financial support measures for investors, for example, providing land plots to entrepreneurs for rent for 5 years as part of large-scale investment projects. Since March, they have been transferred at a reduced rate – a ruble per year. The mechanism for concluding offset contracts is also being developed.
““As of the 1st January of 2022, accumulated business investments from the United Arab Emirates to Moscow’s economy amounted to USD 362 bn. In 5 years, the investments of Arab investors increased by 4,4 times and by more than 1,5 times from January to December of 2021. In the last reporting period – from October of 2021 to the beginning of 2022 – the investments increased by to 14.4%. Today, Moscow accounts for almost half of Russia’s accumulated foreign investments, the volume of which amounts to USD 251.4 bn,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
Partners from the UAE mainly invest in technology-related projects. This country also purchases industrial equipment, soft drinks, chocolate products and finished products from the capital’s producers.
“The volume of Moscow’s exports to UAE amounted to USD 993 bn in 2021. The volume of imports exceeded USD 111 bn. Last year, the turnover of foreign trade between Moscow and the UAE amounted to USD 1,1 bn,” said Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.
The deadline for providing documentation have been extended for 12 participants of the Program of Creation of Work Places to six months, and five developers have been extended the term of providing a bank guarantee. Capital developers, implementing projects under the program of creation of work places, extended the terms of bank guarantees provision and execution of some conditions of agreements. RUB 60.6 bn will be invested in the construction. They plan to build 739.600 m2 of real estate in the city. Thanks to this, 23.300 jobs will be created in Moscow.
The city has transferred land for rub 1 per year to another three investors. They will construct musical instruments’ manufactures, architectural concrete and pasta products factories. For their creation, the city has transferred to investors land plots with an area of 1,65 hectares. 235 work places will appear in the capital, the volume of investments in the city’s economy will amount to RUB 1,85 bn.
The rate on preferential investment loans for industry will be reduced from 9 to 3%. This rate will apply to both new and approved borrowers. In addition, the maximum amount of credit increased from RUB 1 bn to RUB 3 bn. The company, which is the loan recipient, must be registered in Moscow, exist for at least 2 years, not in the process of bankruptcy and have no tax arrears. There are also requirements for the number of employees: at least 50 employees must work there at the high-tech productions and at least 100 at other factories.
582 entrepreneurs used rental payments delay for the second quarter of 2022. The support measure helped business representatives to spare more than RUB 390 bn. Rental payments delay are valid until the end of the year, that is, payments for the second quarter are required to be made by the 31th of December.
178 tenants and land plots owners took the opportunity to defer payments for the second quarter. The deferred payments amounted to RUB 10.3 bn.
Small and medium-sized businesses rented 102 premises from the city at a preferential rate for the first six months of 2022 by auction results. The total area of capital real estate amounted to 7.500 m2. Contracts with entrepreneurs are concluded for 10 years.
The North-West Administrative District had the highest number of leases – 20 agreements. It is followed by the Western and Southern Administrative Regions – 17 agreements each.
In total, small and medium business rents from the city at preferential and minimum rates of over 3.000 premises with an area of more than 550.000 m2. It is about half of all the real estate that is rented by the capital
The city auction offers the right of complex development of the former industrial zone Southern Butovo. Applications for participation are accepted until August 18. The investor who will reorganize the 24.8 hectare plot will be identified on August 29.
The winner of the auction will invest in the development of the territory at least RUB 24.6 bn, and the annual budget revenues will exceed RUB 2 bn at current prices. As a result, 6.300 jobs will be created in the city. The winner will have to implement the development project of the territory within 10 years.
On the site of the former industrial zone it is planned to build more than 297.000 m2of real estate. So, on the territory of almost 169.000 m2 high-tech enterprises will be created, and more than 128.000 m2 will be taken by public-business development: shops, cafes, sports facilities, hotels, as well as objects of consumer services and recreational activities.
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 Moscow Investment portal.
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