MIL OSI Translation. Region: Russian Federation –
February 17, 2022, 09:02
Photo by E. Samarin. Press Service of the Mayor and the Government of Moscow
The city consolidated its obligations to create conditions for the implementation of investment projects, ensure a competitive distribution of resources, provide investors with various preferences and disseminate information about state support measures.
Moscow has become one of the pilot cities that developed and approved an investment declaration as part of the Fast track for investment in the regions initiative of the Ministry of Economic Development of the Russian Federation. The project provides for the creation of a unified system for launching and supporting investment projects, involves the introduction of an investment card in the regions and the development of a mechanism for interaction between investors and authorities.
“Moscow remains the most investment-attractive region of the country; the capital accounts for almost 19 percent of all-Russian investments in fixed assets. Thus, the volume of investments in only three quarters of 2021 amounted to 2.5 trillion rubles, which is 21.9 percent more than in the same period in 2020. Thanks to the implementation of the declaration and other measures of the federal initiative, we expect that by 2030 capital investments in the city’s economy will grow by 70 percent compared to 2020, when they amounted to 3.8 trillion rubles,” said Deputy Moscow Mayor for Economic Policy and Property – land relations
The Declaration consolidates Moscow’s investment commitments, which will ensure a further increase in the inflow of investments. In particular, the city undertakes to maintain the conditions for the implementation of investment projects, ensure a competitive distribution of resources, provide investors with various preferences and disseminate information about state support measures.
“Actively investing enterprises with special statuses can reduce the regional tax burden by 17-25 percent. Currently, 131 Moscow companies are entitled to various benefits. Also, preferences are available to investors who have localized production in the territory of the special economic zone “Technopolis “Moscow””. Its residents can count on tax and customs benefits,” said Alexander Prokhorov.
The list of support measures is constantly expanding, including at the request of entrepreneurs. From 2020, investors can apply the investment tax deduction, as well as participate in the program to stimulate the creation of jobs outside the Third Ring Road and the Moscow Ring Road, under which developers receive benefits. 17 such agreements have already been concluded with developers, investments in the implementation of projects will amount to 83.4 billion rubles.
The declaration also noted the importance of developing science-intensive and high-tech industries in the capital: microelectronics, aviation and space, pharmaceutical and medical industries, and others. To accommodate innovative enterprises, specialized sites are provided: dozens of technology parks, a special economic zone and land plots leased without bidding.
In addition, Moscow offers entrepreneurs various public-private partnership (PPP) mechanisms: concessions, offset contracts, life cycle contracts.
“A feature of the capital’s approach to PPP projects is the minimization of government interference in the investor’s operations. One of the main advantages of Moscow is that a PPP project can receive tax breaks on income, property, land, as well as on the rate of rent for a plot,” said Artem Barashev, director of the City Investment Management Agency.
More information about the economic policy and property and land relations of Moscow can be found on the website economy.mos.ru.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.