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RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
RFNY2013: Invest In Moscow - City For Business
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RFNY2013: Invest In Moscow - City For Business

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Presentation was made during the Russia Forum New York 2013 series - “Invest in Moscow: Doing Business in Russia’s Capital” which was held at the Princeton Club of New York on October 28th.

Presentation was made during the Russia Forum New York 2013 series - “Invest in Moscow: Doing Business in Russia’s Capital” which was held at the Princeton Club of New York on October 28th.

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  • 1. Moscow: City for Business Sergey Cheremin Minister of Moscow City Government, Head of Department for External Economic and International Relations of Moscow Moscow Investment Presentation in New York City, October 28, 2013
  • 2. Moscow Overview Geographic location: Center of European Russia Area: 2,511 sq. km Administrative division: 12 districts Population: 12 million GDP: $ 357 billion City budget: $ 57 billion FDI: $ 4.2 billion Average annual salary: $ 19.6k Department for External Economic and International Relations of Moscow 2
  • 3. Moscow Means Gateway to Europe and CIS §  Diversified economy §  Healthcare and educational facilities §  Excellent entertainment opportunities §  Safety: better crime rate then in BRICS capitals §  Green city: 200 parks §  3 international airports with annual flow of 56.5 million passengers §  Modern office buildings: 11.9 million m2 §  280 shopping centers and malls §  Technology penetration: Wi-fi connection 60%, 3G Internet - 90% city coverage Department for External Economic and International Relations of Moscow 3
  • 4. Moscow Means Regional Finance Center ■  90% of international bank headquarters of and financial institutions in Russia ■  80% Russian financial flows ■  50% Russian banking capital ■  90% of stock exchange trade volume in Russia Department for External Economic and International Relations of Moscow 4
  • 5. Moscow Means the Leading Economic Center in Russia 60% 1 396 Monthly net income per capita, $ 738 Moscow Saint Petersburg 562 Russia 79% 538 FDI per capita, $ 262 112 Moscow Saint Petersburg Russia 57% 8 052 Retail trade volume per capita, $ 4 466 Moscow Saint Petersburg Department for External Economic and International Relations of Moscow 3 433 Russia 5
  • 6. Moscow Means the Center for International Events In the next few years, Moscow is going to host and organize some of the largest sport events in the world. 2014 Olympic Winter Games 2016 Ice Hockey World Cup Winter Olympics 2014 in Sochi. The Moscow Government and Sochi 2014 Organizing Committee have signed a cooperation agreement. It is not only an agreement to work together, but also a symbol of continuity between the 1980 Moscow Olympics and the 2014 Sochi Olympics. Moscow will host the start of the Olympic torch relay in Russia, and is also taking an active part in developing infrastructure for the Olympics. 2016 World Hockey Championship. For the third time, Russia will host World Hockey Championship. In Moscow, matches will take place in Megasport Arena. 2017 FIFA Confederations Cup 2017 FIFA Confederations Cup. Moscow is among four cities that will host Cup tournaments. 2018 FIFA World Cup 2018 World Cup Championship. For the first time, Russia will host the finals of the FIFA Championship. The finals will take place in Luzhniki Stadium in Moscow. Department for External Economic and International Relations of Moscow 6
  • 7. Moscow Equals Smart City The Moscow Government supports innovation by establishing an innovative infrastructure as well as offering tax breaks and financial support to innovative businesses. Slava (2.8 ha) Strogino (2.1 ha) MosGorMash (4.5 ha) Technopark Moscow (31 ha) Technopolis Zelenograd (60 ha) Rudnevo (25 ha) Industrial Park Tax breaks for management companies: Zelenograd (146 ha) Special Economic Zone 6-7 thousand new jobs created annually Tax breaks for technopark, technopolis and industrial park residents: 0.01 – 0.03% property 0% 13.5% land 0 – 1.1% property income Financial support to cover loans for innovative activities: Up to $3 M to create and develop technoparks Recipients: management companies Up to $ 0.2 M for securities offerings (2/3 cost) Recipients: small innovative businesses Up to $ 0.3 M to equip and operate innovation centers (60% cost) Recipients: Creative Innovation Centers for Youth Up to $ 10 M to create and develop a technopolis / industrial park Recipients: management companies Department for External Economic and International Relations of Moscow 7
  • 8. Moscow Means the City for Investment By the end of 2012, the unit value of foreign investments attracted to Moscow amounted to 52.7 percent of all foreign investment attracted into Russia in 2012. FOREIGN INVESTMENTS ATTRACTED TO MOSCOW IN 2012 million USD 81 555 total volume of investment 4 233 accumulated FDI other accumulated investment 76 848 475 accumulated indirect investment 111 448 Department for External Economic and International Relations of Moscow 8
  • 9. Most Attractive Cities in Europe for FDI London 49% Paris 34% Berlin 20% Frankfurt 11% Munich 8% Barcelona 7% Amsterdam 6% Moscow 6% Brussels 6% Prague 4% Milan 4% Warsaw 4% Stockholm 4% Zurich 4% Hamburg 3% Source: Ernst & Young’s European attractiveness survey 2013. Department for External Economic and International Relations of Moscow 9
  • 10. Geographic Distribution of Foreign Investments Attracted to Moscow in 2012, millions of USD Other countries: 3291,3 India: 101,8 UAE: 160,9 Japan: 162,1 Sweden: 181,8 Vietnam: 186,0 S. Korea: 237,2 Finland: 252,5 Austria: 386,4 Gibraltar: 410,1 Virgin Islands: 444.4 USA: 591,5 China: 903,0 Ireland: 1615,9 Germany: 2717,5 France: 2896,3 Luxembourg: 3360,7 Cyprus: 6058,0 Great Britain: 6834,6 Netherlands: 7384,2 Switzerland: 84727,0 Department for External Economic and International Relations of Moscow 10
  • 11. Russian Accession to the WTO August 22, 2012 – Russia becomes a member of WTO. We are opening our markets to create a modern and competitive economy. Import-weighted average customs tariff (current rate) WTO bindings, import-weighted average rate Before After All goods 10.29% 11.85% 7.15% Agricultural goods 15.63% 15.18% 11.28% Non-agricultural goods 9.39% 11.26% 6.41% Moscow Expectations: Ø  Improving existing conditions for access foreign markets for Moscow products. Ø  Providing non-discriminatory treatment for Moscow exporters. Ø  Access to international dispute settlement mechanism. Ø  Creating a more favorable climate for foreign investments as a result of changes to the legal system in accordance with WTO standards. Ø  Expanding opportunities for investors from Moscow in WTO member-countries. Ø  Creating conditions for increasing the quality and competitiveness of domestic production as a result of increased flows of foreign goods, services, and investments to the Moscow market. Ø  Improving Moscow’s image as a competent international trade participant. Department for External Economic and International Relations of Moscow 11
  • 12. Cities Budget Parameters, $ billion 2012: 57 Moscow 51 18,9 17 London 65,9 65,9 New York Madrid 6,1 6 Paris 4,6 4,4 67,4 Shanghai Berlin 60,3 30,2 30,2 Income Expenditures Department for External Economic and International Relations of Moscow 12
  • 13. Growth is Bound to Continue in Moscow $ 490 billion (GDP) +40% $ 350 billion (GDP) Drivers ■  Maturing consumer ■  Human capital ■  Innovation / SME ■  Infrastructure 2012 2025F FS and business services Manufactoring Transport ENR Construction Retail Other VISION 2025 – INVESTMENT SUPPORT Department for External Economic and International Relations of Moscow 13
  • 14. Drivers of Substantial Growth (1/4) Maturing consumer Population, $ million, 2012 Shanghai Innovation Human capital 24 GDP per capita, $ thousand, 2012 Shanghai Mumbai Mumbai Mexico Mexico Sao Paolo Sao Paolo London Tokyo Moscow Moscow Frankfurt Frankfurt Real disposable income per capita, $, 2012 China London Tokyo 20,1 Infrastructure 5,9 India 19,9 2 400 1 110 Mexico Brazil 23,7 52,0 41,4 6 350 7 470 26 000 UK Japan 44,7 51,6 Russia Germany 28 390 7 210 26 460 Source: Brookings institution, EIU Department for External Economic and International Relations of Moscow 14
  • 15. Drivers of Substantial Growth (2/4) Maturing consumer Age structure, 2012 Human capital Innovation % population with higher education, 2012 Infrastructure City R&D potential ■  42% of Russian researchers work in Moscow ■  40% growth in R&D investments over the 5 last years ■  > 1.2 million of students MOSCOW HAS AN EXCELLENT HUMAN CAPITAL BASE Develop human capital base Retain & attract human capital Source: Rosstat, Oxford Economics, KPMG analysis Department for External Economic and International Relations of Moscow 15
  • 16. Drivers of Substantial Growth (3/4) Maturing consumer Human capital ■  High tech sector focus Infrastructure Innovation $ 387 million in state guarantees for SME in 2012 SME Loans, $ million −  Zelenograd Technopolis −  Moscow Technopolis −  MosGorMash Technopark +27% −  Slava Technopark −  Strogino Technopark ■  Academy of Science −  470 institutes −  55,000 researchers ■  Special innovation infrastructure −  Business incubators −  Coworking centers 2010 2011 2012 Source: Moscow Government, Rosstat Department for External Economic and International Relations of Moscow 16
  • 17. Drivers of Substantial Growth (4/4) Maturing consumer Human capital Infrastructure investment, 2012, $ billion Innovation Infrastructure Investment needed 2012-2030, $billion $9 billion 7% >$100 billion investments needed by 2030 2012 Other Utilities Social infrastructure Road infrastructure Department for External Economic and International Relations of Moscow 17
  • 18. Emphasis Will Be Placed on Creating Comfortable Business Environment Department for External Economic and International Relations of Moscow 18
  • 19. Department for External Economic and International Relations Address: 13, Tverskaya str., Moscow, 125032 Tel.: +7 (495) 633-68-66 Fax: +7 (495) 633-68-65 www.dvms.mos.ru www.investinmoscow.ru E-mail: dms@dms.mos.ru INVEST IN MOSCOW

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