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February

Moscow Investment Digest. February 2023

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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.

NEWS

INVESTORS LOCALIZE PRODUCTION IN MOSCOW UNDER 6 OFFSET CONTRACTS

“Since 2017, the capital has signed with investors 6 offset contracts. According to them, Moscow will create factories for the production of medicines, medical devices for patients with stoma, food products for dairy kitchens and absorbent underwear for adults. The total volume of investments in the implementation of these projects will amount to RUB 13.2 bn. At the same time, the city will provide companies with a guaranteed purchase of manufactured products for a total of RUB 84 bn for several years,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

In particular, this year the capital has signed signed an offset contract for the purchase of absorbent underwear for adults. The investor will localize production in the city and will supply at least 33 m diapers and 11 m draw sheets per year for RUB 11.7 bn. The minimum investment in production under the terms of the contract is RUB 300 m. The contract with the investor is concluded for 10 years. The first deliveries are planned for the end of this year.

MOSCOW WILL ENTER INTO OFFSET CONTRACTS WITH INVESTORS FOR THE SUPPLY OF VARIOUS DRUGS

“Electronic tenders have been announced for the right to conclude offset contracts for the production and supply of various drugs to Moscow. According to one of them, the investor localizes the production of antitumor drugs in 7 international non-proprietary names (INN) in the city. Investments in the project will amount to at least RUB 400 m. The city will purchase drugs for 4 years. Offset deliveries are scheduled to begin in 2026,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

The winner of another electronic tender will have to establish in the capital the production of medicines for 4 INNs, including immunodepressants and anticancer drugs. Investments in the localization or modernization of production will amount to at least RUB 800 m. The contract for the supply of medicines will be signed for a period of up to 6 years.

According to the results of another electronic tender, the winner will invest at least RUB 300 m in the localization in the capital of the production of cardioprotective, anti-inflammatory, hypoglycemic and antihistamine drugs for 20 INNs. In return, the city will purchase medicines from the enterprise for 5 years.

“Moscow also announced an electronic tender for the right to conclude an offset contract for the production and supply to the capital of antiglaucomic, antitumor and analgesic drugs, antidepressants and antipsychotics at 43 INNs. The winner will invest at least RUB 1 bn in the project. The city will purchase these products for 4 years. The start of deliveries is scheduled for 2026,” added Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.

INVESTORS WILL BUILD INDUSTRIAL COMPLEXES, TECHNOPARKS AND OTHER FACILITIES IN MOSCOW UNDER THE PROGRAM TO STIMULATE THE CREATION OF WORKPLACES

“9 modern industrial and production complexes and technoparks will appear in Moscow. Investor will build constructions as part of a program to stimulate the creation of workplaces. Under the program investors have already concluded agreements to the amount of about RUB 25 bn rubles,” said Mayor of Moscow Sergey Sobyanin.

Thus, by 2024, an industrial technopark with a total area of 20.700 m2 will be built in the Northern administrative district. There will be 600 jobs. In the Southwestern administrative district, the investor will build an industrial park with an area of more than 57.000 m2. 1.800 people will be able to work there. The commissioning of the building is scheduled for 2025. 4 industrial complexes with an area of 134.000 m2 will be built in Zelenograd administrative district. As a result, by 2026, 2.700 jobs will appear there. Three industrial and production complexes will be built in Troitsky and Novomoskovsky administrative district, where 4.600 jobs will appear. The facilities will be put into operation approximately in 2024-2026, their total area will be almost 199.000 m2.

Investors also building other facilities under the program, for example, a business center in the Khoroshevo-Mnevniki area. The volume of investments under the project will amount to RUB 7.4 bn. Thanks to its implementation, almost 1.700 jobs will be created. The area of the center will be over 70.000 m2. In the Voskresensky settlement, the investor will build an innovation and import substitution center, which will create 227 jobs. Investments in the implementation of the project will amount to more than RUB 1 bn. In the northeast of Moscow, the investor will build a shopping and office center. Investments in the project are almost RUB 9.5 bn. 4.500 jobs will appear here, of which more than 1.000 will be provided under the program.

FAST TRACK FOR PLANT CONSTRUCTION AND RECONSTRUCTION PROJECTS WILL CUT ADMINISTRATIVE PROCEDURES IN HALF

“ The Moscow government has decided to create a fast track for the implementation of projects for the construction and reconstruction of industrial facilities with an area of at least 1.500 m2. So, the total time for the implementation of key administrative procedures will be halved.

The fast track will contribute to the implementation of key projects for the new industrialization of Moscow, namely the emergence of industries that ensure technological sovereignty and import substitution of critical products.

MACROECONOMICS

PRODUCTION VOLUME IN ENGINEERING, LIGHT AND MEAT PROCESSING INDUSTRY INCREASED IN 2022

About 200 metropolitan enterprises are engaged in mechanical engineering. They manufacture elevators, conveyors, machine tools, ventilation systems and other industrial installations. Manufacturers engaged in this industry increased their output by almost 1.5 times last year.

Another industry that showed growth in production volumes is the light industry. In 2022, Moscow enterprises produced 6.6 times more clothes than a year earlier. Now more than 200 enterprises are engaged in this industry in the capital.

The enterprises of the meat processing industry also increased their production capacity: in 2022, about 300.000 tons of sausages were produced. This is 9.1% more than in 2021. Today, this industry is represented by more than 20 enterprises employing about 14.000 people.

SUPPORT MEASURES

THE CITY PROVIDED SUPPORT TO ENTERPRISES ON PREFERENTIAL LOANS FOR RUB 73 BN

“The Moscow Foundation for the Support of Industry and Entrepreneurship has provided capital enterprises with assistance on preferential loans in the amount of more than RUB 73 bn. 10 enterprises received such support. Among them are manufacturers of medicines, food products, cosmetics, electronics, packaging and other products,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

Of the 10 enterprises, the applications of two relate to investment projects for non-residential construction, the rest of them relate to support production activities.

“RUB 20 bn have been allocated from the city budget for the implementation of the preferential lending mechanism for industrial enterprises and investors who build non-residential facilities in the capital,” said Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.

THE CITY COMPENSATES ENTERPRISES FOR LEASING COSTS

“Last year, the city signed 23 agreements with 21 companies to provide subsidies for reimbursement of part of the leasing costs in the amount of more than RUB 336 m. More than 10.000 people work at enterprises that have received such support,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

Among the companies that have been approved for subsidies to reimburse part of the leasing costs are manufacturers of food, medical furniture, electronics and other products.

In 2022, Moscow entered into 25 agreements with capital factories on the provision of subsidies for the purchase of equipment: 23 of them for reimbursement of leasing costs, 2 for the payment of interest on loans. Another signed agreement related to the reimbursement of costs for the technological connection of capital construction facilities to utility networks,” said Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.

IT WILL BE EASIER FOR MOSCOW INDUSTRIAL ENTERPRISES TO RECEIVE PREFERENTIAL INVESTMENT LOANS

The Moscow government will simplify the procedure for obtaining preferential investment loans for industrial enterprises operating in the city. Now, in order to receive loans, organizations will not have to meet the requirements for the amount of revenue from industrial and production activities and the number of employees of previous years. The main condition for the loan will be compliance with the deadlines for commissioning industrial infrastructure facilities.

The projects for which loans are issued under the program can include not only the creation and reconstruction of production facilities, but also the improvement of the territories of enterprises. Enterprises of the military-industrial complex will also be able to receive a preferential loan.

AUCTIONS

IN 2023, THE CITY WILL PUT UP FOR AUCTION ABOUT 3.000 REAL ESTATE

“About 3.000 real estate in the capital will be put up for auction by the end of this year. These are buildings, non-residential premises and parking spaces located in all metropolitan districts. Real estate will be sold, including at auctions without announcing a price, through a public offer and under various programs, such as “1 ruble per m2 per year” and preferential lease of premises for small and medium-sized businesses,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

Last year, the city sold and leased 1.400 real estate objects with a total area of 119.000 m2, including non-residential premises, buildings and parking spaces.

THANK YOU FOR YOUR ATTENTION!

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.