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AEB representatives discussed Moscow's investment attractiveness with Alexander Prokhorov, Director of Department of Investment and Industrial Policy, Government of Moscow

16.06.2020

On 16 June 2020, Alexander Prokhorov, Head of the Department for Investment and Industrial Policy of Moscow, and his colleagues Leonid Kostroma, Director of the City Investment Management Agency, and Irina Degtyareva, Head of the Agency for Industrial Development, participated in an online meeting with representatives of the Association of European Businesses (AEB).


When opening the meeting, which was the first in the planned series of events "European Business meets Moscow", AEB’s CEO Tadzio Schilling said that "the AEB has been maintaining close working relations with the Moscow City Government and its structures for many years, actively participating in many events and forums dedicated to the investment climate and its impact on the economy of the city. Many AEB member companies, such as European banks, car manufacturers, hotels, retail chains, manufacturers of construction materials, IT companies and pharmaceutical companies, are successfully operating in Moscow".

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Speaking about opportunities that Moscow offers to European investors, Alexander Prokhorov noted that "Moscow has shown itself to be a reliable business partner, which is expected to affect the level of confidence of Russian and foreign investors in the city. This is confirmed by stable growth in fixed capital investments. For example, in 2019 the volume of investments grew by 8.9% (in comparable prices) compared to 2018 and amounted to 2.86 trillion roubles, and the volume of accumulated foreign direct investments as of 1 January 2020 amounted to $260 billion". 

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According to Mr Prokhorov, Moscow accounts for about half of foreign direct investments in the country, including through existing support mechanisms, such as investment tax deduction, incentives for job creation, offset contracts, etc. 

In addition, Moscow is actively developing public-private partnerships (PPP). As Director of the City Investment Management Agency, Leonid Kostroma noted that the most common forms of PPP in Moscow are life cycle contracts, concessions and corporate agreements.

Irina Degtyareva, Head of the Industrial Development Agency, spoke in detail about concrete steps to support the localization of production in Moscow. 

The participants of the meeting also touched upon assessment of the impact of the pandemic on the attraction of investments: the representatives of the Moscow City Government noted that no major investment projects have been frozen, and long-term support measures have not been cut. However, it is likely that the assessment of projects by investors will become "more rigorous".

Furthermore, representatives of European businesses and the Moscow government discussed a wide range of issues related to the advantages of economic zones, commercial real estate construction, etc.

Presentations are avaialble HERE

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