MOSCOW INVESTMENT DIGEST. FEBRUARY 2024
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.
The capital actively uses public-private partnership mechanisms. Thus, since 2014, the city has signed seven concessions and one PPP agreement with investors, the total investment volume of which will reach RUB 124.5 bln. In addition, the Moscow Government uses other tools through which investors receive profits, the city receives new high-quality facilities, social, transport, and engineering infrastructure, and the state receives tax payments. For example, as part of the implementation of large-scale investment projects, the “green corridor” mechanism was introduced and now it is possible to create factories with an area of 100.000 m2 in seven to nine months from the moment the decision was made.
The partnership is already producing results. Two projects were implemented at once in 2023: they launched traffic along Bagration Avenue and opened a collection center for old electronic and electrical equipment. The design of Bagration Avenue within the framework of a public-private partnership mechanism began in May 2015, and in September 2023, Russian President Vladimir Putin and Moscow Mayor Sergei Sobyanin opened traffic along it. The new highway has already been driven 3.8 mln times.
In addition, the school under construction in the Skolkovo innovation center is at a high level of readiness. At the moment, concessions have been concluded in the capital in the fields of education, healthcare, road construction, housing and communal services and hotel services.
The investor has already begun construction of the first facility on the territory of the future industrial and construction complex. The plant for the production of facade structures will annually produce up to 450.000 m2 of material necessary for the construction of residential buildings. After the completion of construction of all facilities, more than 660 people will be able to find employment in the industrial construction complex in Zelenograd, 556 jobs will be created within the framework of the MPT program.
Over the four years of implementation, the program to stimulate the creation of employment opportunities has covered almost all districts of the city. The Moscow Government has concluded more than 70 agreements with investors who plan to build over 3.4 mln m2 of commercial real estate - industrial enterprises, logistics complexes, office and retail facilities, educational, cultural and sports institutions. The projects will attract over RUB 1 trln of investment, which will create more than 150.000 jobs in almost all sectors of the economy.
At the Shcherbinka station, the Central Suburban Passenger Company is constructing a covered pedestrian crossing with escalators and elevators for residents with limited mobility and parents with strollers. Moving between platforms will become more convenient and safer.
The city station will be equipped with information boards, navigation in the same style, turnstiles, and two cash registers. In addition, there will be a mother and child room with a bathroom. The facility's readiness already exceeds 60 percent. A separate task is to simplify the access to the station for public ground transport and private cars. This will require reconstruction of the adjacent road network and reorganization of traffic.
The governments of Moscow and the Republic of Karelia signed the country's first interregional offset contract, thanks to which stable supplies of material used in the repair and construction of capital roads will be established.
Under the terms of the offset contract, the investor will create an enterprise for the production of crushed stone in the territory of the Republic of Karelia within three years. At the same time, Moscow guarantees the purchase of about 13.7 mln tons of products for 10 years.
In 2023, ISBC produced more than 250.000 school smart cards, RFID key fobs, popsockets and bracelets for schools in Moscow and other regions of Russia. The cards of the capital company are used as a pass to school, to pay for meals, and you can also link a travel card to it. The device allows you to visit some museums and exhibition halls for free or at a discount.
The manufacturing industry has been a driver of the capital's economy for several years thanks to the active development of industries, including high-tech ones, and ongoing urban support programs. In January 2024, industry turnover reached RUB 510.2, 1.5 times higher than the figure for the first month of last year. Almost 27 percent of the volume, or RUB 136 blln, was provided by manufacturers of high-tech products - computers, electronic and optical products.
The food industry accounts for a significant share in the turnover of manufacturing companies. Its enterprises earned RUB 60.2 bln rubles, which is almost 12 percent of the total. The turnover of pharmaceutical industry enterprises amounted to 33.5 billion rubles, or 6.6 percent. Manufacturers of machinery and equipment earned RUB 22.1 bln, accounting for 4.3 percent of the total.
The capital produces high-tech equipment, medicines and medical products, components for cars and mechanical engineering, shoes, clothing and other products. Today, industrialists have access to over 20 systemic city support measures. These include subsidies and targeted loans, preferential land rent during the construction of an enterprise as part of large-scale investment projects, as well as the assignment of special statuses.
Residents of the special economic zone “Technopolis Moscow” saved over RUB 3.1 bln on taxes in just nine months of 2023. These funds allow them to expand and modernize production.
Capital enterprises that produce paper and paper products increased their production volumes by 20 percent in 2023.
At the end of 2023, capital manufacturers of paper products increased production volumes by 20 percent compared to 2022. The positive dynamics of the industry is due, among other things, to the increase in the number of industrial enterprises. Thus, over the past year the number of factories and plants producing books, packaging, paper and various paper products increased by 14 percent.
At the end of 2023, the capital's factories and industry plants produced almost 13 percent more logbooks, account books, binders and other office supplies compared to 2022 and produced over 251 mln units of these products. Enterprises also produced more than 17 mln albums and paper folders, up 48 percent from the previous year. For example, the Photoexpert company, a resident of the Technopolis Moscow special economic zone, released twice as many photo books last year as in 2022. The average annual output of the enterprise exceeds 30 mln pieces.
Last year, nine companies received support in the form of preferential loans from the city for a total amount of more than RUB 1.2 bln. The allocated money will allow enterprises to modernize equipment, expand export activities, introduce new high-tech solutions and improve product quality.
The Moscow Fund for the Support of Industry and Entrepreneurship provides enterprises with preferential loans in the amount of up to RUB 300 mln. The fund offers eight instruments: for connecting an infrastructure facility to engineering support networks, purchasing new equipment, raw materials, materials and components, developing exports and for other purposes.
The fund provided a loan of RUB 200 mln to a capital manufacturer of RFID products for the purchase of 19 pieces of equipment. Today, the company's products are used by more than 50 mln Russians to identify animals and objects. It is needed for the production of keychains, bracelets and cards, such as the Muscovite social card, Moskvenok and EMIAS. In addition, the company produces plastic cases with a corporate design for the Troika card.
Thanks to the program, which has been implemented since 2020, industrial, logistics, educational, cultural, sports and business facilities are appearing in Moscow. Thus, by 2029, investors will build office and business centers in nine administrative districts of the capital under agreements with the city. About 97 thousand people will be able to find work there. The total area of these facilities will exceed 1.2 mln m2.
Four buildings will be erected in the north of the capital. After this, over 11.000 jobs will appear in the district. Three more business facilities will be built in the northeast of Moscow. As a result, more than 10.000 jobs will be created in the city. Seven business facilities will be built in the north-west of the capital. The implementation of the projects will provide the city with about 30.000 additional jobs.
Five projects within the framework of the program to stimulate the creation of small business enterprises will be implemented in the JSC. Three business complexes will be built in Kuntsevo on Moldavskaya Street and in the Rublevo-Arkhangelskoye microdistrict. Almost 6.000 people will be able to find work there.
This year, a resident of the Rudnevo industrial park, together with a capital engineering company, will begin serial production of piston engines for civilian drones. The first to go into production will be light, powerful motors, which have no analogues in Russia - at the moment, a pilot batch of 100 copies is already ready. In the future, the companies plan to produce up to 5.000 engines per year, which will fully cover the demand of domestic enterprises for such devices.
The new engines have already been successfully tested on civil unmanned aircraft DIAM-20 and DIAM-20K and will be used in other UAS of the manufacturer in the future.
The popularity of urban land and property auctions is growing in the capital. In 2023, 54 percent more legal entities, individual entrepreneurs and residents of the capital participated in them than in 2022 – 104.000.
This growth was the result of support for investment activity by the city, including the development of digital services. Today you can participate in auctions without leaving your home - the procedure takes place online. City residents are offered parking spaces, commercial buildings and premises, and plots for the construction of private houses.
In addition, you can purchase non-stationary retail facilities, including kiosks and pavilions for shops, vending machines, catering outlets and rental shops for sports equipment. All information is available on the Moscow Investment Portal. Since 2014, sales of capital real estate have increased 13 times.
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