The volume of investments in fixed assets in Moscow in H1 2019 increased by 19.5% YoY and amounted to 946 billion rubles, according to a press release from the Complex of Economic Policy and Property & Land Relations of the Moscow Government.
“Moscow showed good growth in investment in fixed assets in H1 2019: according to Rosstat, the growth of capital was almost 20%, while in Russia as a whole it was 0.6%. From 2010 to 2018, investments in fixed assets in Moscow more than doubled incomparable prices. At present, the capital accounts for 14% of the total Russian investment in fixed assets and about half of Russia's foreign direct investment”, said the deputy mayor of the capital for economic policy and property and land relations, Vladimir Efimov, quoted in a press release.
According to the vice mayor, in the first two quarters of this year, the share of off-budget investments amounted to 78%, which is 4.8% more than in H1 2018. In the structure of financing investments in fixed assets, the share of own funds increased from 59% to 62%. One of the drivers of investment activity is a large-scale city development program. The volume of Moscow's targeted investment program for 2019-2021 is 1.6 trillion rubles. These funds will be used to implement priority projects in transport, social services, landscaping, the development of new territories, etc. Today, for each ruble invested by the city in the development of infrastructure, it is possible to attract 3-4 rubles of private investment.
As noted, the growth in investment in fixed assets in Moscow is also due to the support measures that the city authorities provide to businesses: actively investing companies can count on various preferences from the Moscow government. Enterprises that are assigned the status of an industrial park, industrial complex, the industrial park can reduce the regional tax burden by 17-25%. A similar mechanism applies to new investment projects. To date, 105 Moscow companies are entitled to various benefits: 49 industrial complexes, 36 industrial parks, 10 anchor residents, 9 investment priority projects, 1 manufacturer of motor vehicles.
“The investment attractiveness of the capital is confirmed by international and Russian ratings”, said Alexander Prokhorov, head of the Department of Investment and Industrial Policy of Moscow, quoted in a statement. “In the Doing Business-2019 World Bank rating, Russia climbed 4 positions in a year and ranked 31st. Russia's indicator here 70% dependent on Moscow According to the Financial Times rating of the attractiveness of European cities for foreign direct investment by Moscow, Moscow ranks among the top five in terms of investment attraction among the largest cities in Europe and is ranked 1st among the cities in Eastern Europe. In the National rating, the state of the investment climate in the Russian regions has raised the capital in the current year to 1st place”.