1. Moscow: a city for business
17 May 2018, Prague
“FOR INDUSTRY 2018” Exhibition
Seminar: "Support and opportunities for cooperation of Czech trade and industrial companies
with partners from CIS countries“

2. 1st place USD15.3bn Moscow today
International centre for business and commerce
Moscow has a stable investment growth:
. proximity to core consumer markets in Russia, Eastern Europe, CIS countries and the Baltic
USD34.3bn
. Top-10 global business hubs: more than 60% of the world’s biggest international companies have offices in Moscow
fixed capital investments in 2017
12%
of total investment in fixed
assets in Russia
growth of investments in
fixed assets is more than
1,7 times for 7 years
. 90% of HQs of foreign banks working in Russia and of international financial
institutions
>50%
of all foreign direct
investment in Russia
USD244bn
in total accumulated foreign direct
investment (as of 1 October 2017)
. approximately 1.0 m legal entities, 15% of the overall number of companies
registered in Russia
Leader in public-private partnership (PPP) development
USD15.3bn
1st place
signed agreements on public-private partnership
(PPP) projects (2013–2017)
in PPP development ranking in Russia
(in 2016 and 2017)

3. Dynamics in the key investment climate and potential rankings
Doing Business ranking (for Russia, the Moscow share of values is 70%)
National Investment Climate Index
85 regions
190 countries
190 countries
189 countries 35 3 40
85 regions
189 countries
183 countries 51 10 62
76 regions
123 13
2010
2014
2015
2016
2017
2015
2016
2017
Рейтинг Global Cities Outlook (AT Kearney)
Рейтинг European Cities and Regions of the Future (FT - fDi Intelligence)
301 cities 10 6
294 cities 35
468 cities
and regions 12 49
>25
2015
2016
2017
2014/2015
2016/2017
2018/2019
2016 Городское агентство управления инвестициями

4. Why Moscow? USD34,8bn >70% 54km >400km >300 +54km 2017-2032
Large-scale development programmes
Large-scale development programmes
USD34,8bn
Targeted Investment Programme (TIP)
in 2017–2020
>70%
of TIP expenditures go toward
developing the transport infrastructure
The relocation programme is Moscow’s large-scale infrastructure project for developing the city infrastructure and public spaces, reducing the number of unfit residential buildings, and improving living conditions for residents of five-storey buildings by gradually re-settling them in modern new housing built using state-of-the-art urban standards and approaches.
By 2020, Moscow will have completed construction on:
>400km
of new roads
54km
Metro stations
Investment:
USD60bn
Timeframe:
The relocation programme will be financed from the Moscow treasury. To that end, the Moscow Government has established a Moscow Housing Relocation Fund.
This is a comprehensive programme stimulating development and attracting private investment into various sectors of the city’s economy.
>300
social infrastructure facilities schools, outpatient clinics,
pools, etc.)
+54km
of surface Metro

5. 2,130,000 sq.m 596,7 ha Moscow’s appeal for new investments
Convenient conditions for doing business
Extended investment infrastructure
• over 20 prepared land plots for launching production
(over 60 ha in size)
• over 8,000 ha of industrial areas
One of the leaders in the rating of Russia’s investment climate
Leader of national ratings:
• development of PPP
• transparency of state procurement
30 technoparks and technopolises
2,130,000 sq.m
of premises
596,7 ha
of land plots
The number of technoparks in the city is rising, as are the opportunities for locating new projects on special sites with an extended infrastructure of business support.

6. Moscow Government support
Stable budgetary policy
Active investment policy:
. Creating favourable conditions for attracting investment from various sources
USD27bn
1.1% of GRP –
low level of state debt
Moscow budget in 2016
. “One-stop-shop” project-assistance service
USD122bn
. Attracting projects of sectoral leaders and international companies; developing public-private partnership
Moscow’s projected
2018–2020 budget
. Investment-orientated budget: 36% allocated as investment expenditures
Quality investment and business climate:
. Tax benefits and reduced ground rent rate offered to investment and priority projects
Since 2011, Russia* has gone up
85 places to 35th place in the World Bank’s Doing Business Ranking.
. Additional guarantees for investors; protection against non-commercial risks
* - 70% of Russia’s total indicator depends on Moscow’s figures

7. Purposes for supporting new investment projects
1. Stimulating launch of new investment projects in creating industrial production units.
IPP status can be granted to the following investment projects:
. for creation, modernization and (or) mastering of the manufacture of industrial products*;
2. Creating favorable conditions for manufacturing products with high value added and export potential in Moscow.
. for creation of an industrial complex;
. for creation of an industrial park;
3. Developing the city’s innovative and industrial infrastructure through increasing the number of technoparks and industrial parks.
. for creation of a technopark;
. projects carried out on concession agreements and PPP agreements;
Support from the Moscow Government is being carried out by granting the status of an investment priority project of the Moscow City (hereinafter, IPP).
IPP status allows investors to receive regional tax relief and benefits related to lease of land plots. The tax burden reduction can be up to 25%.

8. Investment priority projects
Where to invest?
Investor benefits:
Industrial complexes
Technoparks
Industrial parks
Investment priority projects
Profit tax by 26% (12.5% instead of 17%)
Property tax by 50%
Property tax by 100%
Land tax by 80% (20% of tax charged)
Land tax by 99% (0.7% of tax charged)
Ground rent rate by up to 80%
Ground rent rate by up to 99%
Priority areas for attracting private investment are:
. guarantee of protection against non-commercial risks
. possibility of obtaining land plots without a tender
. long-term government contracts
. low-interest loans (5% interest rate for up to 5 years, between USD 171 and 857 thousand)
. targeted subsidies (partial reimbursement of business expenditures)
. sureties not in excess of 70% of the total surety required

9. Special Economic Zone “Technopolis “Moscow”
47%
Profit tax rate – 0%
Transport tax rate – 0%*
decrease in regional tax burden
Property tax rate – 0%
Land tax rate – 0%*
Free customs area
5sites
207,5 ha
total area
Discounted buyout of land lots
Discounted lease of land lots
Free of charge connection to utilities
Current opportunities of SEZ for localization
Green-field projects
Brown-field projects
Existing manufacturing, laboratory and office sites of SEZ: 18 m2
area
Technopolis Moscow
vacant land plots
0,35 to 8,91 ha
Alabushevo (Zelenograd)
23.700 m2
area
Alabushevo (Zelenograd)

10. Development of public-private partnership mechanisms
>11 1
place
billion EUR
787.5 billion RUB 1
Place
PPP development ranking among Russian regions
3 place
13 place
Volume of PPP project contracts in – February 2018.
2013
2015
2017
Concession projects million EUR (65 billion RUB)
North alternate route for Kutuzovsky Prospekt;
Medical projects.
Life cycle contracts – 5.6 billion EUR (394.5 billion RUB)
for metro and land transport rolling stock supply and maintenance.
Long-term contracts with an investment component – 3 billion EUR (213 billion RUB)
management of MCC transport operation;
supply contracts with investment obligations imposed on the supplier;
removal and recycling of waste.
Real estate leasing with investment obligations - 64 million EUR (4.5 billion RUB)
preferential leasing programs: "Doctor Next Door", private education facilities, cultural heritage items.
Corporate form of PPP billion EUR (110.5 billion RUB)
construction of transfer hubs
NATIONAL
INFRASTRUCTURE
AWARD ROSINFRA
Top-3
Moscow City Investment Agency in "Qualified customer" nomination of ROSINFRA rating
2016 Городское агентство управления инвестициями

11. Long-term government orders in exchange for investment (offset contracts)
Investor benefits:
Strong demand for products
Moscow's public procurement – 7,9 billion € (550 billion RUB) per year
Long-term guarantee of demand from the Government of Moscow
Term of contract: up to ten years
Prompt resolution of land issues
Allocation of a land plot without an auction
Conditions for investors:
Amount of investment in manufacturing
> 14,3 million € (1 billion RUB )
Products manufactured and supplied
Products of Russian origin
Priority areas for offset contracts:
Medicines and medical devices
Public transport vehicles)
Utilities equipment/vehicles
Equipment/machines/facilities for Moscow Housing Relocation Programme
Computer&Telecom equipment

12. Thank you for your attention
Evgeny DRIDZE
Deputy Head of the Department
for External Economic and International Relations of Moscow
Contact Details:
Phone: +7 (495)
www. dvms.mos.ru