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March

Moscow Investment Digest. March 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 WILL BUILD 80 FACILITIES UNDER THE PROGRAM TO STIMULATE THE CREATION OF WORKPLACES

“Investors will build in Moscow 80 production, social and public-business objects with a total area of almost 1,7 m sq. m within the framework of 35 agreements with the city. As a result 57 thousand new workplaces will appear in the capital. Developers will invest RUB 156,4 bn in projects realization,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

According to the agreements, investors will build 47 educational institutions, 13 office centers, 10 modern industrial complexes and technology parks, 4 shopping centers, 2 commercial and office buildings, as well as a sports complex, a manufacturing and logistics complex, innovation center and museum of art.

"Last year the capital concluded 17 agreements with investors, which is more than in the previous 2 years. The total investment in construction of 50 objects will be more than RUB 63 bn, and after commissioning 25 thousand jobs will appear in the city. Thus, an agreement on construction of a shopping center in the south of Moscow has been signed. 430 jobs will be created there,” added Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.

THE CITY HAS SIGNED OFFSET CONTRACTS WITH INVESTORS FOR THE SUPPLY OF DRUGS

Moscow has signed an offset contract with an investor, under which the Velfarm-M company will invest at least RUB 300 m in the localization of drugs production by 20 international nonproprietary names (INN). Among them are cardioprotective, anti-inflammatory, hypoglycemic and antihistamine drugs. The plant will work on the Alabushevo site of the Technopolis Moscow special economic zone. The first deliveries of drugs to medical institutions will start in 2025. The city will buy products from the enterprise for almost RUB 2.9 bn over 5 years.

The capital has signed an offset contract with Farmasintez, which will invest RUB 400 m to localize the production of anticancer drugs for 7 INN. In return, the city will provide a guaranteed purchase of products for 4 years worth RUB 2.4 bn. The first deliveries are expected in 2026.

The Moscow Government concluded an offset contract with R-Pharm for 7 years for the supply of drugs by 4 INN, including immunosuppressants and antitumor drugs. The total investment in localization or modernization of production will be at least RUB 800 m. Deliveries are planned to start in 2026. The city will buy from the pharmaceutical company more than 357 thousand products for more than RUB 1 bn.

MOSCOW PLANS TO SIGN THREE MORE OFFSET CONTRACTS WITH INVESTORS

Moscow will sign an offset contract with an investor for 10 years for the delivery of more than 80 types of medical furniture to hospitals in the capital. These are medical couches, surgical, laboratory, dressing, examination and changing tables, multifunctional beds and more. Under the agreement, the winner of the auction shall localize production within 3 years. The total investment in the creation of the enterprise will be at least RUB 250 m.

The capital will conclude an offset contract for the production of consumables for the blood service and their supply for the needs of the city. The winner of the auction will invest at least RUB 500 m in the localization of production in Moscow. An investor will sign the offset contract for 10 years, and first deliveries are expected to start from 2025. The enterprise will produce 14 types of medical products: bells for plasma production, containers, sterile solutions, donor blood kits and other goods.

The capital will hold an electronic tender for the right to conclude an offset contract for the provision of services for the maintenance of urban municipal vehicles. The future investor will organize within 3 years 4 service centers in the capital for maintenance of cars for washing road barriers, dump trucks, tractors, truck cranes, fire trucks, garbage trucks and other equipment. Total amount of investments will be not less than RUB 1 bn. The city guarantees to purchase about 30 thousand services for road maintenance and other municipal vehicles for 10 years.

TECHNOPOLIS MOSCOW SPECIAL ECONOMIC ZONE RESIDENT LAUNCHED A NEW LINE FOR THE PRODUCTION OF MEDICAL PRODUCTS FOR PATIENTS WITH STOMA AS PART OF THE OFFSET CONTRACT

“Hematech company (is part of Gemamed Group of Companies), a resident of the Technopolis Moscow special economic zone, has launched a new production line for the production of medical products for patients with stoma within the implementation of the second phase of offset contract. The capacity of the new line is more than 1 m items per year. It is planned that in March 2023 the products will be supplied to medical institutions in Moscow,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

Thanks to the launch of the new line now the company produces 16 types of medical products.

"This year the production will reach its design capacity and the company will be able to produce 5.5 m units per year. This will make it possible to fully provide the capital's healthcare system with domestic medical products for stoma patients,” added Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.

TRAFFIC ON THE CONCESSION HIGHWAY WILL BE LAUNCHED THIS YEAR

"The Northern double of Kutuzovsky Prospekt (NDKP) – object which is under construction for the first time in Russia completely at the expense of the private investor. The new 6-lane arterial highway will go from the Moscow-City business center and the Third Ring Road to the junction at the intersection of the Moscow Ring Road with Molodogvardeyskaya Street and then exit to the northern bypass of Odintsovo city in the Moscow region. NDKP will improve the traffic situation in the districts of Kuntsevo, Mozhaysky, Fili-Davydkovo, Filevsky Park, Dorogomilovo, Presnensky," said Mayor of Moscow Sergey Sobyanin.

The construction of the NDKP is carried out on the basis of the concession agreement concluded in 2014 between the Government of Moscow and New Concession Company JSC. The volume of investments in the project amounts to RUB 65 bn. Due to the creation of the road, transport overruns will be reduced by 3 km and travel time will be reduced by an average of 17 minutes. The load is expected to decrease on the Kutuzovsky prospectus (to 17%), the Mozhaisk highway (to 16%) and the Moscow Ring Road (to 9%).

The construction readiness of NDKP is estimated at 75%: on artificial constructions – 80%, on road sections – 50%. Complete the construction of the northern double of Kutuzovsky Prospekt and open the traffic on it planned for 2023.

MACROECONOMICS

THE GROWTH OF INDUSTRIAL PRODUCTION IN JANUARY EXCEEDED 3%

“According to the results of January 2023 industrial production in Moscow has increased by 3,1% compared to January of the last year, at that manufacturing enterprises have increased production by 3,3%,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

In Moscow there are more than 3.5 thousand industrial sites, more than 700 of them – large and medium-sized factories. More than 200 enterprises produce medical products and medicines, and more than 200 enterprises produce food products.

"According to last year's results, the capital's manufacturing plants increased their output by more than 10%. The production of clothing and electrical equipment increased. The positive dynamics in these and a number of other industries has remained since the beginning of this year. More than 20 tools of systemic assistance, as well as a number of anti-crisis mechanisms continue to work to support the capital's industry,” said Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.

SUPPORT MEASURES

PREFERENTIAL CREDITS FOR RUB 18,6 BN WERE APPROVED FOR THE CAPITAL'S ENTERPRISES

"Preferential investment loans contribute to an increase in production, the growth of investment of the capital's industry in the development of sites and infrastructure, as well as the creation of new jobs. Since March last year, Moscow has approved such loans to 11 enterprises in the capital for RUB 18.6 bn. About 6 thousand people work at these enterprises,” reported Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

Companies can use the obtained funds for purchasing intellectual property rights, purchasing new equipment, creating and reconstructing industrial infrastructure.

"Assistance is approved for companies making cosmetics, medicines, foodstuffs, construction structures, car components and for companies in the sphere of waste processing and other industries", said Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.

THE CITY HAS GRANTED LOANS FOR RUB 1,3 BN TO ENTERPRISES FOR EXPORT DEVELOPMENT

"Metropolitan enterprises approved loans for RUB 1,3 bn for the development of foreign economic activity. This tool allows getting up to RUB 300 m for up to 5 years at a rate of 3%. The city approved 8 applications from 7 Moscow enterprises for 5 years," said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

Companies can use the funds to purchase raw materials and components for the production of goods which are fully or partially exported.

"Since the beginning of this year, the city has provided loans to 3 companies in the amount of RUB 500 m. A loan of RUB 100 m for export development was obtained by a manufacturer of robotic systems, and RUB 200 m - by the manufacturers of cosmetics and medical equipment," added Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.

MORE THAN 300 ENTREPRENEURS RECEIVE BENEFITS FOR LEASING CITY REAL ESTATE

"The program of preferential rent of city premises for small business has been operating in Moscow since 2013. Thanks to this measure of support 327 organizations renting 65 thousand square meters of city real estate, will be able to save more than RUB 600 m in 2023," said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

Entrepreneurs, renting premises with area up to 300 square meters, can count on a minimum rental rate of RUB 5,500 per square meter per year. This rate has already been given to 33 tenants. The preferential rate of 4.2 thousand per square meter per year is provided to companies that operate in socially significant areas, such as veterinary services, catering, consumer services, physical culture and sports, culture and others. This rate was approved for 294 entrepreneurs who occupy 60.6 thousand square meters of premises.

AUCTIONS

BUSINESSES BOUGHT MORE THAN 40 COMMERCIAL BUILDINGS FROM MOSCOW IN THREE YEARS

"From the beginning of the year 2020 on results of tenders business has bought from capital 42 buildings with a total area almost 70 thousand sq. m. Most objects – 33 buildings – were purchased together with land plots with a total area of 6,1 hectares, on which they are located," said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

Last year entrepreneurs bought from the city 9 buildings with a total area of 1,9 thousand square meters. Since the beginning of 2023 – 5 more objects with a total area of 46,5 thousand square meters. The largest building (15,6 thousand square meters) is located in Chechersky proezd, the smallest (27,9 square meters) is on Western Street. Buildings in the center of the capital are in the highest demand among entrepreneurs, the east of the city is in the second place, and the South-Eastern Administrative District is in the third place.

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.