Moscow becomes the leader of the National Rating of the investment environment

June 9
Economy and entrepreneurship

For the third year in a row, Moscow becomes the leader of the National Rating of the investment environment in the constituent entities of the Russian Federation. Its results were announced during the St. Petersburg International Economic Forum.

Even amid the pandemic, the Russian capital continues to implement major urban programs and develop the economy as a whole.

"Despite the unprecedented challenges of the pandemic, which are not even comparable to anything in recent decades, we have not stopped the development of the city. After two or three months of the first shock, we have opened up the possibility of work for all sectors: construction, industry, trade, and services. Despite the difficult epidemiological situation, we have been maintaining this trend for a year now. This means an additional burden on the entire health care and social support system. But withstanding this pressure, we also ensure the economic development of the city," Sergei Sobyanin said at the results presentation of the investment environment National Rating in the constituent entities of the Russian Federation.

Photo by Vladimir Novikov, Press Service of the Mayor and Moscow Government

Moscow Mayor recalled that by the decision of the President, an unprecedented program of business support has been implemented in Russia. The capital's government, in its turn, has also adopted five packages of supporting measures related to the deferral of rent, property payments and soft loans, as well as conducts a constant direct dialogue with entrepreneurs.

All these measures, as well as the professionalism and perseverance of the entrepreneurs, allowed not only to restore the majority of business sectors in a year, but also to improve the indicators.

"Most industries have made a step forward. And this happened, of course, primarily due to the courage, skill, professionalism and, of course, the huge competitive environment that exists in Moscow, and a stable economic platform that employs about 800 thousand entrepreneurs. Thank you for your work!" Sergei Sobyanin said.

He added that the unprecedented challenges of the pandemic did not stop the development of Moscow and the implementation of major programs: "We did not stop our programs for the development of healthcare, education, transport infrastructure, and municipal infrastructure. And this gives an additional incentive, because without the development of these industries, it is impossible to talk about the city and business development, attraction of investments. Here, there also should be a joint work of the city authorities and entrepreneurs, business in general."

The investment environment National Rating evaluates the efforts of regional authorities to create favorable conditions for doing business and identifies best practices, and its results stimulate competition in the fight for investment at the regional level.

First Deputy Prime Minister of Russia Andrey Belousov noted that this year the rating was compiled in new extreme conditions.

"If earlier the rating characterized the achievements of the regions and their opportunities to improve the business climate in one area or another, then this year - we can clearly see it - it rather shows the degree of positive interaction between the heads and administrations of the regions and business, which, of course, objectively found itself in a difficult situation," Andrey Belousov said.

Photo by Vladimir Novikov, Press Service of the Mayor and Moscow Government

According to him, the rating reflects several positive trends: increase in state and regional support for small and medium-sized businesses, reduction in administrative pressure on business and improvement in the quality of the regulatory environment in construction.

According to preliminary data from Rosstat (Federal State Statistics Service), the volume of investments in the economy of the capital in 2020 amounted to 3.6 trillion rubles.  This is 1.7 percent more than in 2019. The capital accounts for almost 18 percent of Russia's total investment in fixed assets and about half of Russia's foreign direct investment. In general, over 10 years, the volume of investments in fixed assets in Moscow has increased in comparable prices by 2.7 times.

Since the pandemic beginning, five support packages worth almost 90 billion rubles have been adopted to support the business of the capital, which are currently used by about 57.6 thousand organizations. These measures allowed Moscow not only to support the city's economy, but also to maintain investment and business activity.

The total turnover of trade and services enterprises for the four months of 2021 amounted to 4.4 trillion rubles, which is almost 37 percent higher than the same period last year. The number of unemployed registered with the employment service has decreased by 45.8 percent since the beginning of the year.

The package of tax benefits is already used by 123 Moscow companies: 58 industrial complexes, 37 technoparks, 15 anchor residents, 13 enterprises implementing priority investment projects. In 2020, in addition to the previously existing business support measures, an investment tax deduction and a job creation incentive program was introduced in the capital. In 2021, another form of interaction between investors and the city comes into force - the conclusion of agreements on the protection and stimulation of capital investments.


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