Covid is no obstacle
to offset

In conditions where the buyer's reliability and solvency plays a particularly important role, Moscow provides the opportunity to conclude contracts with counter investment obligations (offset contracts), offering a long-term sale guarantee for the investor.
The first state procurement project in Russia with the supplier's counter investment obligations is being implemented by the city jointly with ZAO Biocad. The subject of procurement is 22 medicines of the "oncology and immunomodulators" group.
3 years to start up the production
An offset contract is concluded for a period of up to 10 years and involves the delivery of goods to the Moscow government customers, provided that local production is established in Moscow (at least 1 bn RUB of investments).
Aleksandr Prokhorov
Head of the Moscow Department of Investment
and Industrial Policy:
"We are, in fact, the only region that concludes offset contracts. This is a contract with counter investment obligations, under which you build or localize a production plant, and in exchange we guarantee 10 years of budget procurement. We already have four successful cases with RUR 11.9 bn of private investment and about 80 bn RUB of total offset procurement. During the pandemic, and when it is not clear what is happening on the market, and what demand will be there tomorrow, the four companies are easily investing in Moscow, knowing that they have a guaranteed sales channel for 7 to 8 years to come. And this allows you to invest in the plant construction and buy equipment, being sure that the city will get its part, and you will be able to safely work on the market. After all, production capacities will be loaded, and people will get paid for their work. Therefore, we focus on offset contracts."
Offset investors can:
  • obtain a land plot without bidding and at preferential rates (as part of the large-scale investment projects implementation);
  • become the Technopolis Moscow Special Economic Zone resident.
On 29.05.2020, the fourth offset contract was signed.
Wimm-Bill-Dann will supply the city with food products for children and lactating women. The amount invested in the production launch will make at least RUR 2.1 bn.
The volume of private investment under four offset contracts is 11.9 bn RUB, including:
  • RUR 3 bn of private investmens - ZAO Biocad;
  • RUR 5.8 bn of private investment - OOO R-Farm;
  • RUR 1 bn of private investment - OOO Gemamed.
If the supplier properly fulfills contractual obligations,
it may be included in the regional register of sole suppliers.
"We personally made sure that the first offset contract phase (secondary packaging) had been already 80-90% finished, that meant, there were very small improvements to be completed within a month and a half. "
Audience: 16+