MOSCOW INVESTMENT DIGEST. OCTOBER 2023
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.
Since the beginning of the year, the capital's medical institutions have received almost 365.000 packages of medicines under the first offset contract, which was concluded with the Biocad company.
In 2017, an offset contract was concluded for the supply of 29 drugs. To achieve this, the company localized production in Zelenograd. Since the beginning of this year alone, the capital has received almost 365.000 packages of medicines. In general, under the offset terms, the city will purchase products from the company for seven years.
Pharmaceutical plants built under offset contracts will produce over 100 international non-proprietary drugs intended for the treatment of oncological, cardiological, endocrine and other diseases.
The forum is held for qualified investors, representatives of funds, owners and top managers of medium and large businesses aimed at active development.
The Moscow BRICS Business Forum will bring together qualified investors trading on the brokerage platforms Alfa-Bank, Otkritie Investments, and BCS on one platform.
Representatives of leading foundations and business clubs in Moscow.
The number of participants is 1500+ in offline and online format.During the event, Russian and international projects worth more than RUB 50 bln will be presented.
The forum will feature projects from Argentina, Brazil and China.Date of the forum: October 11, 23.
This year, the number of courses at the Moscow Technical School (MTS) has more than doubled. Moscow Mayor Sergei Sobyanin announced this in his Telegram channel.
There are 123 advanced training programs for employees of industrial enterprises. Seven directions have been opened, including “Artificial Intelligence”, “Industrial Design”, “Communication Technologies”, “Unmanned Transport”, as well as two special ones - “Occupational Safety” and “Lean Manufacturing”.
MTS has 100 partners, including Moscow State University named after M.V. Lomonosov, Moscow Polytechnic University, Moscow State Technical University named after N.E. Bauman, National Research Nuclear University "MEPhI".
During the project, about 1,400 engineers were trained. All specialists from industrial enterprises in Moscow can take the training; the city reimburses up to 95% of the cost of the courses.
To become a participant in the program, an enterprise must fill out an application on the ITS website or on the Moscow Investment Portal.
Moscow is the leader in the number of offset contracts concluded in the country: 78% of all agreements are in the capital. Over 6 years, the city signed 14 such agreements with investors.
The city has been entering into such contracts since 2017. During this time, 14 offsets were signed, of which seven contracts were in the pharmaceutical sector, two were with manufacturers of medical devices, two more were for the supply of archive storage systems, one was with a baby food manufacturer, and one each was for the supply of landscaping elements and batteries. The total investment in the creation and modernization of production facilities under these contracts will amount to about RUB 82 bln.
Since the beginning of 2023, the city has signed nine offset contracts. At the same time, deliveries are already underway for all offsets concluded until 2023.
Over the past five years, the number of manufacturing enterprises in the capital has increased by one and a half times. The largest number of companies – 184 – were opened in the fields of radio electronics and instrument making. In addition, the chemical and medical industries, general mechanical engineering, and the production of building materials are actively developing.
Many factories are increasing production. Thus, enterprises in the manufacturing industries have doubled it in five years. Moscow companies are also successfully coping with import substitution. Our own breakthrough developments have already replaced foreign analogues in mechanical engineering, radio electronics and the production of building materials.
From January to August 2023, the production of electrical equipment in the capital increased by 104.4% compared to the same period in 2022. This is largely due to the increased production of electric motors, generators, transformers and switchgear. Capital enterprises produce control and measuring equipment, cables, distribution and lighting devices, batteries and other devices.
Over the eight months of 2023, drug production in Moscow increased by 47.6%. There are more than 200 enterprises in the capital that produce medicines and medical products. They produce antitumor drugs and immunomodulators, treatments for the nervous system, vaccines and much more. From January to August, manufacturers supplied customers with products worth more than RUB 157 bln.
A Moscow enterprise that produces LED screens and media facades has increased its production volumes. Over the nine months of 2023, they grew by 24% compared to the same period last year.
The HD Led Tech company has been operating on the market for more than 10 years and during this time has implemented over 20.000 projects throughout Russia and the CIS. Today, the company's production capacity allows it to produce up to three thousand square meters of video screens annually. The company continues to develop and increase production volumes. Thus, in the three quarters of 2023, 24% more products were produced here than in the same period in 2022. The growth is due, among other things, to the departure of foreign companies from the domestic market.
The new status gives the industrial complex the right to benefits from the city, in particular a reduction in the profit and land tax rate. Thanks to this, Pulsar will be able to save up to RUB 23.6 mln per year. They will be used for technical re-equipment of production, development and organization of production of new products, digital transformation. The rate of income tax credited to the city budget for an enterprise will be reduced to 13.5% instead of the standard 17. The tax on real estate will be 50%, on land - 20 % of the calculated, and the land rental rate - 0.3 % of the calculated cadastral value of the plot.
Among the company's main activities is the development of a new generation of electronic component base, including power, photo- and microelectronic devices, semiconductor microwave devices, as well as the production of radio-electronic equipment for civil information systems.
In 2023, a decision was made to provide a capital optics manufacturer with a subsidy to reimburse part of the leasing costs for the purchase of equipment. There are over 200 enterprises engaged in the production of medical devices and medicines in Moscow. Today they offer a number of innovative solutions for the development of the industry.
The capital provides comprehensive support to Moscow manufacturers. For example, in 2023, the city will provide a subsidy of RUB 1.7 mln to the company producing contact lenses and glasses, Aycraft, to reimburse part of the leasing costs for the purchase of equipment. Thanks to this, equipment for a new production line will be installed at the enterprise. Automation allows you to speed up the production process and reduce energy consumption.
In the capital, the third stage of accepting applications for grants for participants of the Moscow Innovation Cluster (MIC), representing the fields of science, industry and information technology. They will be able to receive up to RUB 30 mln a year to create new production facilities and modernize or retrofit existing ones. The support measure involves reimbursement of up to 50% of the costs of purchasing or leasing equipment, as well as interest payments on loans. Applications can be submitted on the platform until November 1.
This support measure, which helps increase the volume of domestic products, is the most popular: almost 60% of the city’s grants and subsidies for small and medium-sized businesses come from it. Since the beginning of the year, 320 enterprises have already taken advantage of grants for production development. The total amount of financing exceeded RUB 1.2 bln.
Capital exporters can apply for financial support from the city. Representatives of small and medium-sized businesses who supply their products to friendly countries have the opportunity to receive 10% of the amount of the foreign trade agreement. The application can be submitted until November 7 on the website of the Moscow Export Center. The grant is available to both legal entities and individual entrepreneurs. In 2022, exporters were approved for applications totaling about RUB 300 mln. The recipients were software developers, manufacturers of equipment, medicines, food products, animation studios and other enterprises.
The maximum payment amount is RUB 10 mln (but not more than 50% of taxes paid). The contract amount should not be less than RUB 6 mln. Companies applying for this assistance must have been operating for at least 6 months and not be at the stage of reorganization, liquidation or bankruptcy. In addition, they should not have a debt of more than RUB 100.000.
Since 2015, the percentage of real estate sold in the city has more than tripled. From 2022, all commercial premises that are put up for auction will be sold. In less than 8 years, the sale of commercial properties through leasing has been steadily growing. If in 2015 the indicator at the end of trading was 29%, then in 2019 it rose to 80%, and then reached 100 percent in 2022. During the eight months of this year, all commercial city premises put up for auction were also rented. In total, since 2015, more than 3.700 non-residential properties have been sold, their total area is 571.700 m2.
Investors are renting 19 cultural heritage sites in the capital at a preferential rate. Since 2012, the capital has had a program for the preservation of cultural heritage sites “1 ruble per m2 per year”. The city auctions off historic buildings that are in need of restoration or restoration. After these works are completed, investors can rent them at a preferential rate. Tenants of 19 cultural heritage sites are already taking advantage of this opportunity. This year alone they will save RUB 363.3 mln.
To take advantage of the program, investors must participate in special auctions. A lease agreement is signed with the winner for 49 years. He undertakes to restore the cultural heritage site within the first 5 years.
Participants in the “1 ruble per m2 per year” program, who rent educational facilities, saved more than RUB 3 bln thanks to the preferential rate. At the moment, all the requirements for switching to a preferential rental rate of one ruble per m2 per year have been fulfilled by entrepreneurs occupying 23 buildings and premises with a total area of 33.100 m2. Thanks to this, since 2013 they have already saved RUB 3.4 bln.
The program “1 ruble per m2 per year” has been valid for educational institutions since 2013. The investor must take part in special city auctions, with the winners of which a lease agreement for 49 years is concluded. Then you need to restore the facility, equip it with the necessary equipment and fulfill the requirements for conducting educational activities.
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