Sergei Sobyanin: Sanctions did not hinder Moscow from actualizing its economic potential in 2022

In 2022, despite the unprecedented sanctions pressure, Moscow has managed to retain its economic potential, said Sergei Sobyanin in his annual report to the Moscow Duma.

According to the Mayor, the restrictions have failed to paralyze the financial system thanks to the measures taken at the federal and regional levels. Entire industries have cut their dependence on the imports and re-oriented to new markets. Thanks to new logistics, regulation adjustments and support provided to strategic companies, businesses and individuals, the economy has stabilized.

“Businesses themselves played the main part in overcoming the unprecedented challenges. They are success oriented. They’re experienced and highly professional. And the millions of Muscovites working there are hard-working, talented and responsible people,” said Mr. Sobyanin.

Domestic companies are quick to occupy the niches left by foreign businesses. The Moskvich plant, for example, has restarted operations.

“We’re not just starting DKD assembly. In the coming year, the plant is going to become the core of a new and powerful electric vehicle cluster producing cars and trucks, electric buses, microelectronics, composites and charge station,” the Moscow Mayor said.

The pharma industry in Moscow also grows quickly, setting up new production infrastructure, including at Rudnevo, Alabushevo and Pechatniki sites, the National Space Center, the MSU Innovative Technology Research Center. In 10 months, the processing industry grew almost 10 per cent in comparable prices.

According to the Moscow Mayor, examples of successful import substitution can be found in multiple other industries. Store shelves and restaurant menus are now populated with high-quality products made in Russia or purchased from friendly countries. Over 500 new fast food outlets have opened thanks to the municipal support program.

“That’s how, despite the sanctions, we’ve managed to not only preserve Moscow’s economic potential, but make good strides toward achieving strategic objectives of import substitution and ensuring Russia’s technological sovereignty,” emphasized Mr. Sobyanin.

The municipal budget has retained all social guarantees and development plans. The registered unemployment level is now below what it was early in 2022. It’s just 0.4 per cent now.