Saturday, 04 December 2021 07:47 GMT

German business invested $7.8 billion in Moscow


(MENAFN- Market Press Release) November 25, 2021 8:17 am - According to the Central Bank, as of April 1, 2021, the accumulated direct investments of the Federal Republic in Moscow reached $7.8 billion

“Today Germany remains one of the largest foreign investors in Moscow: according to the Central Bank, as of April 1, 2021, the accumulated direct investments of the Federal Republic in Moscow reached $7.8 billion. Over the year, the investment increased by about $ 0.4 billion. The trade turnover between Moscow and Germany is also growing: in January-August 2021 it amounted to $ 19.9 billion, which is almost 60% more than in the same period last year,' said Vladimir Efimov, Deputy Mayor of the City of Moscow for Economic Policy and Property and Land Relations.

According to Efimov, exports from the capital of Russia to Germany increased by 93.5% over the year and in January-August amounted to $11.5 billion. Imports from Germany to Moscow for eight months of this year reached $8.4 billion, exceeded the same indicator in 2020 by 29%.

There are many examples of localized German enterprises and offices in Moscow. Thus, productions of the industrial companies Symrise Rogovo, VEKA Rus, NSH Group are located in Moscow. German conglomerate Siemens, operating in the fields of electronics, electrical engineering, energy equipment and transport, maintains the Lastochka trains for the Moscow Central Circle at the Podmoskovnaya depot. In addition, German retail chains Hyperglobus and Metro Cash and Carry operate in Moscow. The companies Bayer, Bautex, Henkel Rus, Profine RUS and others have their representative offices in the Russian capital.

Several enterprises operate in the «Indigo» industrial park on the territory of New Moscow.
The factory of the manufacturer of professional measurement equipment WIKA MERA occupies 5 thousand square meters there. The complex is equipped with a machining workshop with the latest numerical control machines. In addition, 107 jobs have been created at the factory. In its work, the main investments were directed to the development of high-performance technological production lines of pressure gauges made of chrome-nickel steel, diaphragm separators, level gauges, new types of resistance thermometers and thermocouples.

In addition, there is a plant for the production of industrial pumps and pumping equipment of the German concern KSB. This manufacturer is well known in the capital: it is a supplier of equipment for Mosenergo and Mosvodokanal, it also played an important role in the construction of the Moscow Oil Refinery, «Moskvarium», and «Moscow City» Towers. The production complex of the company with a total area of 4.2 thousand square meters includes an assembly and production area with a test bench, logistics, service and training centers, storage facilities and administrative building. The plant is mainly equipped with Russian-made machines. The company has created 110 jobs.

The world's oldest health Science and Technology company Merck is located in the Technopolis Moscow Special Economic Zone (SEZ). The Merck Life Science innovation laboratory has been operating here since 2017. A wide range of Russian research centers and companies specializing in the field of pharmaceuticals and biotechnology, molecular biology is interested in Merck Life Science laboratory. It is intended for conducting scientific, educational and research programs.

“Foreign investors who have localized production on the territory of Moscow Special Economic Zone can obtain the status of a SEZ resident, which gives a number of tax benefits. Thus, residents are exempt from property, transport, and land taxes for 10 years, and the profit tax for them is only 2% instead of 20%. They also have a custom-free zone regime: all goods and equipment imported into the special territory are exempt from paying customs taxes and fees. Companies have the opportunity to implement so-called greenfield projects to create production from scratch on empty industrial land. In addition, entrepreneurs can rent prepared office, laboratory, and production areas,” explained Alexander Prokhorov, Head of the Department of Investment and Industrial Policy Government of Moscow.

The capital also provides investors with tax benefits through the assignment of special statuses, offers financial support, widely uses public-private partnership mechanisms that are beneficial to both the public side and business, guarantees the sale of products in return for investments in the creation of production through offset contracts.

“Moscow welcomes investment initiatives of all sizes and is always open for cooperation with foreign investors. For them, locating production in the Russian capital means entering a huge sales market, reducing the cost of transport logistics, decreasing the production cost due to the possibility of using local components. The authorities regularly hold meetings with foreign entrepreneurs: they present the investment potential of the city, discuss the possibilities of localizing production. Thanks to this, investors did not lose interest in Moscow even in the difficult situation due to the coronavirus. The accumulated foreign direct investment in the capital as of April 1, 2021, amounted to $250.6 billion,' said Artem Barashev, CEO of the Moscow City Investment Agency.

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