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April

Moscow Investment Digest. April 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

THE CITY SIGNED 10 OFFSET CONTRACTS WITH INVESTORS FOR THE SUPPLY OF MEDICINES, MEDICAL PRODUCTS AND FOOD FOR DAIRY CUISINES

“Moscow signed 5 offset contracts with investors between 2017 and 2021, and since the beginning of this year, it has signed 5 more offsets. Under contracts, the city will receive medicines, medical devices and food products for dairy kitchens. The total investment will amount to more than RUB 19 bln,” said Vladimir Yefimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.

7 contracts are aimed at the supply of medicines for more than 90 international non-proprietary names. The companies will invest RUB 15.5 bln in the implementation of projects. 2 contracts are directed to the production of medical devices for stoma patients and absorbent underwear. The total investment in them will be at least RUB 1.5 bln. Another offset will ensure the supply of food products for dairy kitchens. The investor invested RUB 2.1 bln in the project.

“The city is already receiving products under 4 offset contracts. Since 2021, drugs for the treatment of oncological and autoimmune diseases have been supplied. In 2022, manufacturers began to ship medical devices for stoma patients and products for dairy kitchens. This year, deliveries of antiglaucoma, antibacterial, analgesic drugs, antidepressants and neuroleptics began. In addition, by the end of 2023, another plant will be put into operation and will supply absorbent underwear,” said Vladislav Ovchinsky, head of the Moscow Department of Investment and Industrial Policy.

INVESTORS TO CREATE SEVERAL THOUSAND JOBS UNDER JOB CREATION (JOB) PROGRAM

Since the beginning of this year, the city has signed 4 agreements on the construction of 2 industrial complexes, shopping and administrative centers, as well as an educational institution. In total, they will create almost 2.000 jobs. So, in the settlement of Marushkinskoye, by 2025, a shopping center with business facilities will be built. Investments in the creation of the facility will amount to at least RUB 800 mln. In the settlement of Moskovsky, near the village of Rumyantsevo, an educational institution and an administrative and business center will appear. Investments in the project will exceed RUB 500 mln. By the end of 2026, the investor will build an administrative and business center near the village of Rumyantsevo. Investments in the project will amount to more than RUB 3 bln. 2 industrial complexes will be built in Zelenograd near Savelka. The investor will invest RUB 4.4 bln in the implementation of the project.

In addition, as part of the MPT program, the investor is building an almost 50,000 m2 commercial and entertainment complex in the Nekrasovka region. 1.600 jobs will be created there. The overall readiness of the facility is about 27%. The commissioning of the building is scheduled for March 2024. Investments in the implementation of the project will amount to RUB 3.17 bln.

Under the MPT program, 3 educational institutions were built, permission for commissioning has already been received. 232 jobs will be created.

INVESTORS GOT LAND FOR THE CONSTRUCTION OF 3 FACTORIES FOR THE IMPLEMENTATION OF CONCESSION AGREEMENTS

“In Moscow, companies will be set up to clean up sludge and remove nitrogenous and phosphorous compounds from wastewater. They will be built by the dealers themselves. To do this, the city leased to them plots with a total area of almost 90.000 m2. Investments in the project exceed RUB 35 bln,” said Deputy Moscow Mayor for Economic Policy and Property and Land Relations Vladimir Yefimov.

In February 2021, the city entered into a concession agreement with the Grintech company. The investor will place on the territory of the Lyubertsy and Kuryanovsk treatment facilities production facilities for the environmental treatment of sewage sludge. Investments in the implementation of the project will amount to almost RUB 27 bln.

“Another agreement, signed in 2021, involves the creation of an enterprise on the territory of the Lyubertsy treatment facilities. Here, advanced technologies will be used to remove nitrogen and phosphorus from wastewater with the possibility of obtaining valuable phosphate fertilizer. The project is being implemented by the Bios company, investments will amount to RUB 8.4 bln,” said Vladislav Ovchinsky, head of the Department of Investment and Industrial Policy of the city of Moscow.

NEW JOBS TO BE CREATED ON THE SITES OF THE SEZ "TECHNOPOLIS MOSCOW"

By the end of 2024, the area of production and administrative facilities of the Rudnevo industrial park, which became part of the Technopolis Moscow special economic zone in March this year, is planned to be increased by 2.5 times.

“Today, 18 production buildings with a total area of about 120.000 m2 have been built in the industrial park, including pilot production and design office. By the end of 2024, it is planned to increase the area of the facilities to 300.000 m2 and create over 6,000 jobs there,” said Vladimir Yefimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.

The sites will house enterprises for the production of microelectronics, medical devices, consumables and other products in demand, including those manufactured as part of import substitution.

“At the other site of the Technopolis Moscow Special Economic Zone, Alabushevo, it is planned to create more than a 1.000 jobs in 9 new industries. So, there will be enterprises for the manufacture of medicines, medical devices, SIM cards, electric motors and telecommunications equipment,” said Vladislav Ovchinsky, head of the Moscow Department of Investment and Industrial Policy.

INVESTORS GOT OVER 13 HA OF LAND FOR LARGE-SCALE INVESTMENT PROJECTS IN THE CAPITAL

“At the beginning of this year, the city allocated 13.6 ha of land to investors and developers without bidding for the implementation of 14 large-scale investment projects. In particular, 4.6 ha were allocated for the construction of educational facilities, 6.3 ha for sports complexes, 2 ha for public, business and transport facilities, and another 0.7 ha for a woodworking plant. The contracts are concluded for 5 years,” said Vladimir Yefimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.

Thanks to the implementation of large-scale investment projects, 3 educational facilities designed for 1.400 students and pupils, 4 sports complexes with an area of over 60.000 m2 will be built in the capital, as well as commercial facilities with a total area of more than 70.000 m2.

MACROECONOMICS

OUTPUT OF MEDICINES, CLOTHING, BEVERAGES AND FOOD PRODUCTS INCREASED IN JANUARY - FEBRUARY THIS YEAR

In the first two months of 2023, the volume of beverage production in Moscow increased by 8.2% compared to the same period in 2022.

The turnover of the capital's food producers in January-February 2023 increased by 22.6% compared to the same period in 2022 and reached RUB 94.6 bln. So, RUB 26.3 bln were earned by enterprises involved in the processing and canning of meat and meat food products, almost RUB 12.5 bln were earned by manufacturers of dairy products. The turnover of manufacturers of bakery and flour confectionery products over the same period exceeded RUB 12.4 bln.

Clothing production in the capital over the same period increased by 2.3 times. The output of knitted and knitted clothing amounted to more than 1.5 mln items, and workwear – 277.000.

In the first two months of this year in Moscow, the production of medicines and materials used for medical purposes increased by 51.6%. Thus, the enterprises produced 220,000 packages of antitumor drugs and immunomodulators and more than 3 mln packages of drugs for the treatment of diseases of the nervous system.

SUPPORT MEASURES

THE CITY APPROVED RUB 6.6 BLN INVESTMENT CREDITS TO 3 FOOD ENTERPRISES

“Moscow actively supports the industry by providing subsidies, tax preferences and soft loans. Investment concessional loans help enterprises to increase investments in the modernization of sites today. Thus, assistance under the program has already been approved for three large meat processing plants for a total of RUB 6.6 bln,” said Vladimir Yefimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.

The funds received by the company can be directed to the acquisition of rights to the results of intellectual activity, the purchase of new equipment, the creation and reconstruction of industrial infrastructure in the city.

“Thus, the rate on investment concessional loans is 3%, and the maximum amount is RUB 3 bln. The deadline for providing support under the program is until the end of 2025,” added Vladislav Ovchinsky, Head of the Department for Investment and Industrial Policy of the City of Moscow.

AUCTIONS

THE CITY WILL LEASE PART OF THE SHUBINS' ESTATE UNDER THE PROGRAM "RUB 1 PER M2 PER YEAR"

In the second quarter of this year, the city will put up for auction a lease on Malaya Dmitrovka Street in the Tverskoy District of a part of the Shubins' city estate of the early 19th century. The building has the status of an object of cultural heritage. The auction will be held as part of the "RUB 1 per m2 per year" program, and everyone will be able to take part in it.

The winner of the auction will have to restore the premises within the first 5 years, after which he will be able to switch to a preferential rental rate.

The area of the premises put up for auction in the building is 422.3 m2, including 8.4 m2 - in the basement, and 413.9 m2 - on the first floor.

 

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.