Investments in Moscow have grown by almost 11%
This is facilitated by tax incentives and subsidies the Moscow Government provides to enterprises. With this support, businesses can invest the money saved in their own development.
For 3 quarters of 2019, investments in fixed assets in Moscow has made up RUB 1.6 trillion, which is a 10.6% growth from the same period last year, according to Deputy Mayor for Economic Policy and Property and Land Relations Vladimir Yefimov.
Over the first nine months of this year, the share of extra-budgetary investments made up 75.1%, which is 2.3 p.p. higher than in the same period last year. The share of proprietary funds in the structure of financing investments in fixed assets has increased from 57.7% to 59.7%.
From 2010 to 2018, fixed capital investments in Moscow more than doubled in comparable prices. Today, Moscow accounts for 14% of Russia's total investment in fixed assets and about half of Russia's foreign direct investment.
"One of the investment activity drivers is the comprehensive program of city development. Moscow's Targeted Investment Program for 2020-2022 makes up more than RUB 2 trillion. These funds will be channelled to top priority city improvement projects, transport and social sector development, and other big initiatives. To date, each rouble invested by the city in infrastructure development attracts around three roubles of private investment,' Vladimir Yefimov explained.
The growth of investments in fixed assets is largely due to the support the Moscow Government provides to business. Actively investing companies with the technopark, industrial complex or technopark anchor resident status can reduce the regional tax burden by 17–25%. The same applies to new investment projects. Today, 105 Moscow enterprises are entitled to various benefits. Among them are 49 industrial complexes, 36 technoparks, 10 anchor residents, 9 investment priority projects, and 1 vehicle manufacturer.
'Following regular meetings with business representatives, we decide on the development of support mechanisms for enterprises of the real economy sector, and the expansion of the existing benefits and preferences. For example, the Moscow City Duma has recently adopted an investment tax deduction draft law. To date, Moscow administration has created conditions making it profitable for entrepreneurs to invest in the Moscow's economy and open new enterprises in the city,' said Head of the Moscow City Department of Investment and Industrial Policy Alexander Prokhorov.
The efforts of Moscow authorities to improve business climate have been acclaimed by international experts. Moscow ranks first in the national ranking of the investment climate in Russian entities. In the World Bank's Doing Business 2020 report, Russia is 3 ranks up, so it is 28th now (the figure hinges on Moscow by 70%).