Austrian business invested $ 3.4 billion in Moscow

The Moscow economy is attractive for businesses from different countries. One of the most active foreign investors for the Russian capital today is Austria. The accumulated foreign direct investment from Austria as of April 1, 2021, amounted to 3.4 billion US dollars. This information was announced by Vladimir Efimov, Deputy Mayor of the City of Moscow for Economic Policy and Property and Land Relations.
?Moscow maintains its position as an investment-attractive metropolis. Austrian business remains one of the major foreign investors in the Russian capital. According to the Central Bank, as of April 1, 2021, Austrian companies accounted for about 1.4% or $ 3.4 billion of the total accumulated foreign direct investment in Moscow. In a year, its volume increased by more than $ 200 million,? said the Deputy Mayor.
According to Vladimir Efimov, Austria is a promising market for metropolitan manufacturers. From January to September 2021, Moscow's exports to this country exceeded $ 1.8 billion, which is 88.8% more than in the same period last year, when goods worth $ 970.2 million were supplied. In the first nine months of this year, Imports from Austria to Moscow amounted to $ 935.5 million, exceeding last year's indicators by 19.4%, when the volume of purchases amounted to $ 783.5 million.
Austrian companies conduct commercial and investment activities in Moscow. For example, the headquarters of ?Raiffeisenbank?, a universal Russian bank, a subsidiary of the Austrian banking group Raiffeisen Bank International operates in Moscow.
One of the largest construction companies in Europe, STRABAG SE, and the pharmaceutical holding EVER Pharma, have their offices in the Russian capital. Trading companies BENE AG, BAVARIA Privatstiftung, Zumtobel Group AG, suppliers of intelligent transport systems Kapsch TrafficCom and medical products Askin & Co. GmbH also operate in Moscow.
?Moscow develops innovative infrastructure, provides spaces for businesses, uses various forms of public-private partnerships, for example, concession agreements, offset contracts that offer government purchases in exchange for investments, as well as life-cycle contracts that guarantees the sale of products and long-term capacity utilization to attract investments, including foreign ones,? said Alexander Prokhorov, Head of the Department of Investment and Industrial Policy Government of Moscow.
Foreign business, along with national, can always count on the city?s support. For example, companies can receive tax benefits by assigning special statuses and benefit from financial support measures.
Artem Barashev, CEO of the Moscow City Investment Agency, noted that the city provides benefits on income, property, land taxes, and rent for land plots for implementing new investment projects in the industry. This reduces the regional tax burden by 17-25%.
The existing support measures and various tools for interacting with business affect the growth of investment activity in Moscow. In the first six months this year, investments in the city's economy amounted to 1.4 trillion rubles, almost 21% more than in the same period in 2020. Today, Moscow accounts for about 18% of the total Russian investment in fixed assets and about half of the foreign investment in the country.

Company :-NW Advisors

User :- Diana Issa

Email :-diana.issa@nwadvisors.com