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Investment climate warming up

Over a decade, investments in the city of Moscow amounted to 24 trillion roubles and continue to grow. Moscow remains the most attractive city for investment in Russia: from 2011 to 2020, the total volume of investment in fixed assets in the capital city reached 24 trillion roubles. For 10 years it has increased in real terms by 2.9 times. Even in a difficult economic situation, investors continue to invest in the city.

STEADY GROWTH

According to Rosstat, investments in the capital's enterprises in 2020 amounted to 3.8 trillion roubles, exceeding the previous year's figures. In 2021 investment activity increased even more: investments in fixed assets for three quarters of the year amounted to 2.51 trillion roubles, which in comparable prices is 21.9% higher than in the same period last year. Today, Moscow accounts for about 18.6% of Russia's total investment in fixed assets and about half of foreign direct investment in Russia.

Moscow companies have financed 54.3% of capital investment at their own expense, the remaining 45.7% comes from the attracted funds, including 25% – the share of budget funds; 4.8% – the funds of organizations and individuals, raised for shared construction; 9.8% – bank loans. Thus, the share of extra-budgetary sources of financing accounts for 75% of the total volume.

1,99 TRILLION ROUBLES
INVESTMENTS OF LARGE AND MEDIUM ORGANIZATIONS IN MOSCOW
IN JANUARY – SEPTEMBER 2021

SUPPORT AS AN INCENTIVE

The Targeted Investment Program for Moscow Development plays an important role in the stimulation of investment activity, the volume of which in 2022-2024 will amount to 2.2 trillion roubles. These budgetary funds will be directed by the city to the implementation of priority projects in transport, social sphere, and public amenities. Today, for every rouble invested by the capital, there are three roubles raised by private funds.

The system of measures to support business also contributes to the investment growth. The capital offers tax and financial preferences toinvestment-active companies: they receiveindustrial complex,technopark, key technopark resident, and priority investment project status. The regional tax burden for such enterprises is reduced by 17-25%. Today, 130 Moscow enterprises are eligible for various benefits.

In the coming five years, further growth of investment activity is expected: the volume of investment in fixed assets in real terms is expected to grow in comparable prices by more than a quarter. The priority sectors which should become the locomotive of growth are the pharmaceutical, medical, and chemical industries, instrument engineering and microelectronics.

Artem Barashev,
Director of Moscow Investment Agency:

"The Moscow authorities' actions to improve the investment climate are reflected in reputable ratings. So, for the third year in a row Moscow takes the first place in the National Investment Climate Index among the subjects of the Russian Federation. In the international rating of the best cities to live, work, invest and visit The World's 100 Best Cities, the Russian capital rose from the fifth to the fourth place, finishing above Tokyo, Madrid, Rome, Dubai, Singapore, and other megalopolises. And in the prestigious international ranking Financial Times Global Cities of the Future 2021/22, published in February of this year, Moscow appeared among the top 25 cities in the world for attractiveness to foreign investors".

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