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.
“In 2022, the city entered into 17 agreements with investors under the job creation stimulating program. It’s more than in the previous two years. The program has been in effect since 2020 2020. Since then 33 agreements have been signed, according to which developers will build 78 facilities in Moscow and create more than 56.600 new jobs,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
Under the program investors will build 47 educational institutions, 13 office centers, 8 contemporary industrial complexes and technology parks, 4 shopping centers, 2 retail and office buildings, as well as a sports complex, a production and logistics complex, an innovation center and an art museum. The total investment in the implementation of the projects will amount to RUB 152 bn.
“From the end of November to the beginning of December 2022, 9 agreements were signed under the program. Investors will build facilities in the capital that will bring more than 19.700 jobs to Moscow,” added Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.
The Moscow government has announced a tender for the right to conclude a concession agreement providing for the reconstruction of three city buildings for the creation of a B&B (Bed and Breakfast) hotel chain.
“The city will conclude a concession agreement with the winner of the tender for 49 years. All facilities will remain the property of the capital. Potential bidders can submit their applications within 30 business days,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
To implement the project, the city will give the investor 3 empty buildings: on Kievskaya Street in the Dorogomilovo district, in Broshevsky Lane in the Tagansky District and in Bolshoy Sukharevsky Lane in the Meshchansky District.
“The winning bidder will equip the facilities with new equipment, inventory and furniture. The concessionaire will also maintain the facilities in proper condition, carry out current and major repairs at its own expense,” said Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.
In 2022, the city approved the implementation of 31 large-scale investment projects in the industrial sector. It’s the same number of projects as in the previous 6 years. As a result, companies will receive land from the city for rent without bidding for the construction of new production facilities and the expansion of existing enterprises.
“The city will allocate more than 181 ha of land to companies for the construction of new and expansion of existing industries. As a result, enterprises producing building materials, food, pet food, clothing, cosmetics, furniture and packaging, as well as a logistics center, technology parks, an industrial cluster and other facilities will appear in Moscow. These industries will create over 19,000 new jobs,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
In March last year, as part of the anti-crisis support for business, it was decided to transfer land for industrial large-scale investment projects for only RUB 1 per year. By the end of 2022, the city has concluded agreements on the allocation of land on preferential terms with 13 investors. The implementation of the projects will create over 3,000 new jobs in the city.
“Over the past years, residents of the special economic zone (SEZ) Technopolis Moscow have invested more than RUB 87 bn in the development of their enterprises. In just 9 months of 2022, they created over 1.400 new jobs and invested RUB 23.8 bn in production, which is RUB 2.1 bn more than the result for the same period in 2021,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
More than 200 companies are located in the Technopolis Moscow SEZ today, 90 of them are residents. For all the time, over 12.000 jobs have been created in the special economic zone.
“Among the industries localized at the SEZ sites, the leaders are enterprises from the microelectronics, robotics and industrial automation industries. It includes 33 enterprises with resident status. According to the results of 9 months of 2022, they outstripped companies from other areas in terms of investment and allocated RUB 14.7 bn for their development. This is almost twice as much as in the same period of 2021,” added Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.
“In January-November 2022, the growth of the capital's industry amounted to 9.1%, and manufacturing – to 10.9%. Today, Moscow factories are focusing on investment projects to expand production and increase capacity,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
The city provides assistance to enterprises through effective support measures, including anti-crisis ones. For example, it provides investors with land for rent without bidding for the construction of innovative and socially significant industries. In total, about 400 large and medium-sized industrial enterprises of the capital were covered by the support of the city last year.
“The capital's manufacturing enterprises received loans for investment purposes in the amount of RUB 18.1 bn in January-September 2022. This is twice as much as in 2021,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
Borrowed funds can be used to acquire rights to the results of intellectual activity, purchase new equipment and finance the costs of creating industrial infrastructure. The maximum loan under this program reaches RUB 3 bn, and the period of support is 3 years.
“In Moscow, there is a reduced rate of rent for land plots for enterprises with special statuses. For industrial complexes it is 0.3% of the cadastral value, for technology parks it is 0.01%. Since the beginning of 2022, 9 capital enterprises for 14 land plots have received such benefits. As a result, companies will be able to save more than RUB 30 m annually at current prices,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
This benefit has been granted for 10 years and applies to enterprises operating in socially significant and high-tech industries: food industry, pharmaceuticals and mechanical engineering.
About 7.300 representatives of small and medium-sized businesses took part in the concessional lending program. It allowed thousands of metropolitan companies to take out new loans at a rising rate, as well as refinance loans received before March last year. Thus, small and medium-sized businesses were able to attract more than RUB 70 bn.
Small and medium enterprises registered in Moscow could join the program. Among the purposes for which loans were issued with the support of the city are investments, replenishment of working capital and business development. The amount of the loan varied depending on how the loan was made.
Companies could take a loan in 2 ways: online or at the office of one of the 17 banks participating in the program. In the first case, the maximum loan amount was up to RUB 5 m, and in the second – RUB 50 m. The maximum preferential rate on loans was 8.75%. At this level, it will be kept for a whole year (from the date of conclusion of the loan agreement).
“The ‘RUB 1 per m2 per year’ program for educational institutions has been operating in Moscow since 2013. During this time, 24 educational facilities have switched to a preferential rental rate. Their total savings from participation in the program is RUB 474 m annually,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
In total, under the ‘RUB 1 per m2 per year’ program, 28 lease agreements for non-residential premises with an area of over 40.000 m2 were concluded with investors. Another 4 entrepreneurs are in the process of fulfilling the requirements necessary for the transition to a preferential rate.
“More than 1.400 organizations and individual entrepreneurs annually use reduced rates for renting non-residential premises. Their area is almost 539.000 m2. In 2022, the city provided entrepreneurs with benefits in the amount of almost RUB 6.2 bn,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
There are a number of benefits for renting city premises in the capital. So, entrepreneurs use the minimum or preferential rate – RUB 5.000 and RUB 3.800 per m2 per year, respectively.
Medical organizations are provided with a rate of RUB 3.500 per m2. Institutions that provide services of secondary vocational, higher or additional education can use a similar rate. For educational institutions with a license for preschool, primary, basic and secondary general education, the rate is RUB 1.800.
“The city provided a capital manufacturer of cosmetics with a loan in the amount of RUB 200 m for the development of exports. The funds are provided for 5 years at a rate of 3% per annum. The enterprise will be able to purchase equipment, raw materials, materials and components for the production of goods that will be supplied to other countries,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
The loan received will increase exports to the countries of the Customs Union and Asia up to RUB 260 m, as well as increase the total volume of deliveries abroad to RUB 500 m a year. In addition, thanks to financial support, the company will be able to replace the products of foreign cosmetic brands that have left the Russian market.
67.500 investors participated in city auctions for the sale and lease of 10.800 real estate objects last year. They purchased 10.300 buildings, premises, parking spaces and other property and rented 343 objects. For another 104 lots, the capital realized the rights to place non-capital facilities and conduct trading activities. On average, more than 6 bidders competed for each lot.
Most of the auctions in 2022 took place on parking spaces. 6.600 objects were sold.
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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