The Moscow economy is attractive for businesses from different countries. One of the largest
investors in the Russian capital today is the United States of America: Foreign Direct Investment
(FDI) stock from this country amounted to 3.3 billion USB, the trade turnover between Moscow
and the United States this year has grown by almost 50% compared to the past year. This was
announced by the Deputy Mayor of Moscow for Economic Policy and Property and Land
Relations Vladimir Efimov.
“Moscow today is one of the largest urban economies in the world. The city has a developed
transport and social infrastructure, high-quality labor and other resources, that attracts
businesses, including foreign ones. One of the major investors in the Russian capital, along with
Germany, France, Finland and Italy, is the United States of America: according to the Central Bank
of Russia FDI stock amounted to 3.3 billion USD as of April 1 of this year,” said Vladimir Efimov.
The trade turnover between Moscow and the USA is also growing: in January-August 2021 it
amounted to 12.2 billion USD, which is 47% more than in the same period of the last year. In
particular, the volume of exports increased by 68% and amounted to 5.3 billion USD. Imports
from Moscow to the United States within the 8-month window of this year reached 6.9 billion
USD, exceeding by 34% the same period of 2020.
There are many examples of the localization of US enterprises and offices in Moscow: for
example, factories of soft drink producers Coca-Cola and PepsiCo located here, pharmaceutical
companies Abbot Laboratories, Johnson & Johnson, Lilly Pharma, Pfizer, and such IT giants as
Apple, Google, Intel, Microsoft have offices in the city.
To attract investments, including foreign ones, the Moscow authorities are developing an
innovative infrastructure, offering tax and financial preferences, using various mechanisms of
public-private partnerships – for example, concluding life cycle contracts (LCC).
“GE Healthcare, one of the leading American manufacturers of medical equipment, won the
tenders for concluding life cycle contracts with Moscow. Within the contract Moscow Government
will purchase modern computed tomographs, ultrasound diagnostic devices and mammography
systems for over 216 million USD. The terms of the signed LCC also cover aftersales service: the
manufacturer will not only supply equipment, but also will be responsible for its maintenance and
repair works for 7-10 years,” said Alexander Prokhorov, Head of the Moscow Investment and
Industrial Policy Department.
To support industrial enterprises and new investment projects, the Moscow Government
provides investors with benefits on income tax, property, land, as well as on lease payments for
land plots. This ensures a reduction in the regional tax burden by up to 25%. Foreign business can
run their investment projects at the sites of the special economic zone Technopolis Moscow. Its
residents can benefit from income, property and land taxes for a period of 10 years.
Producers actively investing in their own development can use the right to an investment tax
deduction, that is, to reduce the regional part of the income tax through investments.
“The right to an investment deduction is granted to companies that are located in Moscow,
operate in the manufacturing sector and have received the status of a Moscow investor of the
first or second category. To date, the status has been assigned to two Moscow companies. One
of them is the producer of soft drinks and dairy products "Wimm-Bill-Dann", which is part of the
PepsiCo corporation. The preferential income tax rate for the company is 8%,” said Artyom
Barashev, Director of the City Investment Management Agency.
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