Foreigners invest over $246 billion in Moscow’s economy

Foreigners invest over $246 billion in Moscow’s economy
Moscow offers benefits to investors, including foreign ones.

Moscow continues to receive direct foreign investment, which already exceeds $246 billion. In this area, Moscow can compete with other leading megalopolises around the world.

“Today Moscow has one of the largest city economies in the world that competes with leading global megalopolises for investment. Thanks to the continuous work the Moscow Government does to create attractive conditions for living and doing business, Moscow now accounts for 12 percent of the national volume of investment in fixed assets and half of the direct investment in Russia,” Head of the Department of Investment and Industrial Policy Alexander Prokhorov noted.

Most direct investments are made in the construction, communications, trade, catering, financial, production and high-tech industries.

Conditions for investors

The city supports investors, including foreign ones, by creating preferential terms for them. Those who want to invest in the Moscow economy have lower income, land and property taxes and pay less to lease land. As a result, the regional tax burden decreases about 25 percent. Entrepreneurs who start their business in the Technopolis Moscow special economic zone can decrease this tax burden about 47 percent. They also enjoy a free customs zone, without paying customs duties and taxes for the goods and equipment they import.

The city’s efforts to create conditions for investors are recognised at the global level. In the World Bank’s Doing Business 2019 ranking Russia rose four points in a year and now holds the 31st position, while it was only 123rd out of 183 in 2010. Experts note that 70 percent of this growth was possible thanks to Moscow.

Alexander Prokhorov noted that the city implements large programmes that will make it even more attractive for foreign businesses.