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November

Moscow Investment Digest. November 2023

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MOSCOW INVESTMENT DIGEST. NOVEMBER 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.

NEWS

BAUMAN TRAM DEPOT IS 90 YEARS OLD

Bauman tram depot celebrates its 90th birthday this year. Today, there are seven routes that depot serves the entire northeast, as well as part of the east and center of the capital. More than 600 employees make travel comfortable and safe. The entire depot fleet was replaced in record time and repair areas were updated.

"MOSCOW TECHNICAL SCHOOL" OPENED TWO NEW ADVANCED PROFESSIONAL COURSES

Within the framework of the Moscow Technical School project, two educational courses were opened - “Industrial Design” and “Artificial Intelligence in Industry”. The course in Industrial Design is designed for 40 academic hours and is designed to develop professional skills in this field. It consists of six modules, including “Design Research Tools”, “Fundamentals of Design Thinking”, “Idea Generation”. The program will allow you to become a sought-after specialist in the design of innovative technological products. As part of the training, students will develop a project on the industrial design of a technological product based on a real case.

The “Artificial Intelligence in Industry” program is designed for 72 academic hours and is aimed at developing professional skills in the field of industrial data analytics using artificial intelligence (AI). The course includes three modules: “Fundamentals of Machine Learning”, “Advanced Machine Learning in Industry” and “Neural Networks in Industry”.

THE ANNUAL ROAD CONSTRUCTION PLAN IN MOSCOW WAS FULFILLED AHEAD OF SCHEDULE

The annual road construction plan in Moscow was completed ahead of schedule. Since the beginning of 2023, 110 km of roads and 65 artificial structures have been built: tunnels, overpasses, overpasses and bridges. In the next three years, it is planned to build another 265 km of roads.

PRE-NEW YEAR'S QUIZ STARTED WITHIN THE FRAMEWORK OF THE OPEN#MOSPROM PROJECT

As part of the “Open #Mosprom” project, a pre-New Year virtual quiz was held for citizens. Players had to remember the main chemical element contained in the toothpaste of the capital's cosmetics manufacturer, and the metro station, the name of which is consonant with the goods of the Moscow enterprise. In addition, it was necessary to answer how many times the Moon could be wrapped with the products of one of the city’s companies and which perfume of the capital’s factory is mentioned in poems and Soviet films.

The winners were determined randomly among those who answered seven or more questions correctly. The results were published on November 20 on the Open#Mosprom website.

FROM TOURISM TO INDUSTRY: THE ONLINE PLATFORM “MAP OF INNOVATIVE SOLUTIONS” PRESENTS MORE THAN SIX THOUSAND DEVELOPMENTS

Over 6.000 finished technological products have already been presented on the capital’s online platform “Map of Innovative Solutions”. With its help, large businesses and city structures can select projects and services for specific tasks and contact the authors. The catalog brings together ideas in 18 areas. Among them are “Industry”, “Creative Industries”, “Tourism and Recreation” and other areas.

In addition, the online platform has a “City Requests” service, where various metropolitan departments and subordinate organizations leave requests, and entrepreneurs from all over Russia respond to them and offer their options. In 2023 alone, thanks to this section, about 60 innovations were introduced in Moscow.

MACROECONOMICS

THE CAPITAL COMPANY DOUBLED THE PRODUCTION OF CARE COSMETICS

In Moscow, over 30 enterprises produce cosmetics, care and hygiene products, satisfying the needs of Russians for quality products in this segment. Companies are developing rapidly - expanding their range and increasing production volumes. For example, the Moscow enterprise Geltek-Medica produced over one million units of cosmetic products from January to October 2023, which is more than twice the volume of the same period in 2022. In particular, the production of contact media for ultrasound, ECG, encephalogram and other studies increased by 30%. The company's products are in demand in all regions of the country.

CAPITAL PHARMACEUTICAL COMPANY WILL START PRODUCTION OF BIOTECHNOLOGICAL DRUGS

The pharmaceutical company Artsellens (Promomed group of companies) received resident status of the special economic zone (SEZ) Technopolis Moscow. It will create a modern research laboratory for the development of new medicines and will begin the production of domestic biological products. At the first stage of the project, the company will produce generics for the treatment of oncological and autoimmune diseases, their localization will be from 60 to 85 percent. The company plans to produce 150 kg of the substance per year, or about 750.000 bottles of the drug.

SEZ "TECHNOPOLIS MOSCOW" COMPANY SUPPLIED PRODUCTS FOR THE WATER SUPPLY SYSTEMS OF FEODOSIA AND KERCH

The issue of water supply to the cities of the Crimean Peninsula has always been of great importance for the region. The Technopolis Moscow SEZ has developed a main pump and a pumping station control system for the water supply station under construction in Kerch and Feodosia. The water supply infrastructure installed by the capital company will provide water to more than 218.000 people living in these cities. The company gave a five-year guarantee for its equipment, and the daily volume it will pump will be at least 300.000 cubic meters of water.

VETERINARY DRUGS PLANT BEGAN OPERATION IN MOSCOW

In the capital, a plant producing medicines for animals began operating at full capacity. At the end of 2022, the Vetbiohim company completed its construction on the territory of the special economic zone (SEZ) Technopolis Moscow. The new plant was designed and built in accordance with international pharmaceutical manufacturing standards. They include strict requirements for the organization of release and quality control of medicines. The technological processes at the plant are adjusted in such a way that they produce sterile, completely safe and highly effective products. The entire product line of the company is its own development.

RESIDENT OF RUDNEVO INDUSTRIAL PARK STARTED DELIVERY OF ATM MACHINES OF OWN DEVELOPMENT

The Moscow manufacturer began supplying ATMs of its own design. The devices are equipped with a touch screen, a multimedia system, and protection against fraudsters and vandals. Three partner banks have already received the first devices. Several other organizations are conducting testing. Serial production of Russian ATMs began in the Rudnevo industrial park in May of this year.

The devices are 80% made from domestic components. They are equipped with their own software. In 2026, the company plans to completely switch to Russian components.

SUPPORT MEASURES

SOCIAL ENTERPRISES RECEIVED BENEFITS FOR RENTING PREMISES FROM THE CITY

Three companies with the status of a social enterprise received property support from the city to rent premises with an area of over one thousand square meters. They were provided with a preferential rental rate of RUB 4.200 per m2 per year. By the end of 2023 alone, such companies will save RUB 21.3 mln.

To receive a preferential rate, an entrepreneur must submit an application to the Interdepartmental Commission for the provision of property support to small businesses. Documents are accepted in paper form by mail, as well as online through the “Electronic Reception” service on the mos.ru portal.

SINCE THE BEGINNING OF THE YEAR, FOUR CAPITAL COMPANIES WITH SPECIAL STATUS RECEIVED LAND RENTAL BENEFITS

From January to September 2023, the city provided four capital companies with a special status with benefits for renting land plots. These are two industrial complexes and two technology parks. The amount of annual savings will exceed RUB 26.7 mln.

The city provided the Kalibr technology park with a benefit in the form of a rate of 0.01% of the cadastral value when renting three land plots with an area of 0.76 ha. The company already leases eight city plots with an area of more than 12 ha at a preferential rate. The annual savings exceed RUB 40 mln.

The preferential land rental rate applies to enterprises operating in socially significant and knowledge-intensive industries, for example in the food industry, pharmaceuticals, and mechanical engineering. At the same time, companies must annually confirm their status.

THE MAYOR OF MOSCOW DECIDED TO PROVIDE BENEFITS TO THE PUBLISHING HOUSE OF EDUCATIONAL LITERATURE

The Moscow government has assigned the status of anchor resident of the Krasny Proletary technology park to the publishing house Prosveshchenie-Soyuz. In accordance with city legislation, the income tax rate credited to the Moscow budget for this company has been reduced to 13.5% instead of the standard 17.

An important area of development for the Prosveshchenie-Soyuz publishing house is the development and production of educational games. One of the projects, “Game Library,” helps children learn interactively and thereby increases interest and motivation in studying history, geography, as well as nature, architecture and other areas. In addition, it promotes the development of social and communication skills, develops memory, thinking, creativity and increases overall erudition.

THE MAYOR OF MOSCOW APPROVED ADDITIONAL MEASURES TO SUPPORT MOSCOW INDUSTRY

The Moscow government has approved the criteria for assigning the status of an industrial technology park to companies operating in the field of manufacturing (except for the production of tobacco products).

As is the case with other specialized territories (industrial complexes and technology parks), industrial technology parks must meet certain requirements, such as:

– rational use of urban land: at least 70% of capital construction projects must be involved in economic activities related to manufacturing, while the building density must be at least eight thousand square meters per hectare;

– investing in the creation or modernization of production: the volume of investment over the last five years must be at least RUB 57.4 mln per ha of area;

– employees’ wages are not less than the average for the industry in which the enterprise operates.

The package of tax incentives for industrial technology parks includes:

– reduction of income tax paid to the city budget from 17 to 13.5%;

– land tax rate of 0.7% of the calculated amount;

– land rental rate in the amount of 0.01% of the cadastral value;

– zero property tax rate.

AUCTION

INVESTORS WILL BE ABLE TO PURCHASE COMMERCIAL PREMISES ON MOSFILMOVSKAYA STREET

A premises in a multi-storey building in Ramenki was put up for sale at the city auction. The auction took place on November 27. The building is located on Mosfilmovskaya Street, next to the Ramenki metro station. The lot up for auction is located on the second floor. It includes three unfinished rooms measuring 46, 51 and 640 m2, as well as two staircases. Taking into account the location, planning and design solutions, you can place an office or store here, as well as open a business in the service sector.

THE CITY PUT UP FOR AUDITION THE RIGHTS TO PLACE TREE MARKETS IN THE NORTHEAST OF THE CAPITAL AND IN ZELENOGRAD

The rights to place two non-stationary retail facilities (NTO) for the sale of spruce, pine and spruce branches were put up for city auction. Contracts with the winners will be signed for five years. Entrepreneurs will be able to install non-stationary retail facilities annually at the end of December in areas specially designated for the sale of spruce and pine trees. Application campaigns will close on November 24 and December 8, and auctions will be held on November 29 and December 13. To participate in them, you will need to register on the Roseltorg electronic trading platform and an enhanced qualified electronic signature.

THE CITY SOLD AND RENTED ALMOST 260.000 M2 OF COMMERCIAL REAL ESTATE FROM JANUARY TO OCTOBER

Over the 10 months of 2023, based on the results of auctions, citizens and business representatives bought and leased almost 260.000 m2 of commercial real estate from the city. The total number of transactions has more than doubled compared to the same period last year. Selling city real estate at auction allows us to develop the capital's infrastructure and create jobs. Entrepreneurs open restaurants, shops, hairdressers, workshops, offices and other facilities in purchased or rented premises.