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May

MOSCOW INVESTMENT DIGEST. MAY 2024

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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

SERGEY SOBYANIN: THIS YEAR MORE THAN 35 KLM OF ROADS WILL BE BUILT IN TINAO

More than 35 klm of roads will be built in TaNAD in 2024. Moscow Mayor Sergei Sobyanin spoke about this in his Telegram channel. The largest project will be the first stage of the Mamyri-Penino-Sharapovo highway, a backup of the Kaluga and Kyiv highways. In the Mosrentgen settlement they plan to introduce about eight kilometers of new and reconstructed roads. There will be a main street, a direct exit from the MKAD alternate, additional exits to Kaluzhskoe Highway, a transport interchange and convenient exits from residential areas. Some roads in Kommunarka will also be updated. In particular, they will introduce the reconstructed part of the highway, which runs from the Kaluga highway through the village of Bachurino to the Solntsevo-Butovo-Varshavskoye highway.

ALMOST 200.000 JOBS WILL BE CREATED IN THE CAPITAL THANKS TO THE INTEGRATED TERRITORY DEVELOPMENT PROGRAM

In the capital, 77 projects for integrated development of territories are at an active stage of implementation. Within their framework, it is planned to build about 8.5 mln m2 of non-residential real estate. Under the program for integrated development of territories, investors and operators appointed by the city will reorganize sites with a total area of more than a thousand hectares. They will build about 8.5 mln m2 of public, business and industrial real estate. This will provide the areas with social, sports and industrial infrastructure. Thanks to the implementation of 77 projects, more than 196.000 jobs will be created.

MACROECONOMICS

THE CITY CONCLUDED AN OFFSET CONTRACT FOR THE SUPPLY OF COMPONENTS FOR MUNICIPAL CLEANING EQUIPMENT

Moscow has signed an offset contract, under which the investor will create in the capital the production of consumables for machines used to clean roads, and the city will purchase its products for 10 years. According to the new offset contract, the investor will, within three years, build an enterprise in the capital to produce consumables for the needs of public utilities. In turn, the city will buy more than six million units of manufactured products in 34 positions over the course of seven years for a total of RUB 2.5 bln.

FOR SHIPBUILDING, PETROCHEMICAL AND AVIATION INDUSTRY: A CAPITAL MANUFACTURER HAS SETUP THE PRODUCTION OF AN ELEMENT FOR CABLE PROTECTION

The Moscow cable plant "Spetskabel" has launched serial production of metal braided wire for shielding electrical cables. The element is used to protect the product from mechanical damage and electromagnetic interference. Systemic support from Moscow allows the plant to develop dynamically, master the production of innovative products and strengthen the technological sovereignty of the country. Thus, the new element serves as reliable protection of cables from mechanical damage, radiation and electromagnetic interference. Shielding braids are resistant to aggressive environments and can operate in a temperature range from minus 70 to plus 155 degrees Celsius. The service life of the products is at least 35 years. Today the company has supplied over 300 km of such braids.

SUPPORT MEASURES

THE CAPITAL COMPANY INCREASED PRODUCTION OF POLYPROPYLENE PRODUCTS THANKS TO THE NATIONAL PROJECT

A Moscow manufacturer specializing in the production of plastic products increased production of polypropylene products by 63 percent thanks to participation in the Labor Productivity national project. As a pilot flow, the company chose the process of producing products from polypropylene and polyethylene sheets - plastic packaging and stationery. Its share in the company's revenue is 40 percent. Thanks to lean manufacturing tools, production volume increased by 63 percent in six months: the company now produces more than 3.200 units of polypropylene products per shift. The production time for one batch was reduced by 53 percent, from 76.5 to 36 hours. Unused inventories decreased by 34 percent. The economic effect of the company’s participation in the project amounted to more than RUB 10 mln.

A PLANT FOR THE PRODUCTION OF THERMAL INSULATION MATERIALS WILL BE BUILT IN THE VNUKOVO DISTRICT

In the Vnukovo region, as part of a large-scale investment project, an environmentally friendly plant will be built to produce thermal insulation materials for construction, heating systems, water supply, medicine, fuel, oil and gas and other industries. The city provides a variety of support measures to Moscow industrialists. According to the decision of Sergei Sobyanin, from March 2022, investors can rent a land plot at a preferential rate of one ruble per year and place production on it. Recently, the city approved the implementation of a large-scale investment project in the closed joint-stock company. An enterprise for the production of thermal insulation materials will be opened there, where 70 people will be able to find jobs. The plant will be opened by one of the country's leading manufacturers of thermal insulation, the RTK company. The enterprise implements a full production cycle. For example, technical developments, which are then introduced into the production process, are carried out in our own research laboratory.

AUCTION

“RUB 1 PER M2 PER YEAR”: INVESTORS WILL RENOVATE THREE HISTORICAL HOTEL BUILDINGS

The capital has a program “1 ruble per m2 per year” for hotel placement. It allows for the restoration of urban real estate and the development of tourism business. Currently, investors determined by the results of the auction are restoring three historical buildings with a total area of over 1.500 m2. All of them are in satisfactory condition, but require work to preserve them. Investors are given five years to do this. Investors will renovate three buildings to accommodate hotels in the center and east of the capital under the “1 ruble per m2 per year” program. Tenants have already started work or will begin it in the near future.