MOSCOW REGION DEVELOPMENT CORPORATION INVESTOR GUIDE We will help you to launch a project in Moscow Region 1 WHAT IS INVESTOR JOURNEY 1 INVESTOR 2 MRDC The “single window” Project approval by the Ministry of Investments for investors and Innovations striving to achieve Land plot selection their investment Advise on suitable government objectives support measures 3 CONTRACT 4 CONSTRUCTION 04 Investment potential 08 Promising industries 01 12 MRDC services ECONOMIC POTENTIAL 4 M10 5 INVESTMENT M POTENTIAL Moscow Region is the second largest and most fast-growing region in Russia, which has everything one may need for successful busi- ness development n io Leningrad direction ct ire l d lav os ar Y Savelovsky direction Riga direction M7 M HUMAN CAPITAL ection ov dir SHEREMETEVO Gork Infrastructure suited for creating and developing highly qualified personnel and a big share of economically active population CHKALOVSK 4.19 MLN PEOPLE are economically active Smolensk direction VNUKOVO 7.50 mln KUBINKA ZHUKOVSK Kazan direction M1 KEY TRANSPORTATION HUB DOMODEDOVO The region is located at the intersection of key ~ transport routes which connect Asia, Europe 40% and all the Russian regions of vacant area PLENTY OF VACANT LAND 11 11 6 railway lines highways airports FOR CONSTRUCTION Unlike Moscow, there is an abundance Paveletsk direction of vacant undeveloped land available Kursk direction for production facilities of various indus- LARGEST SALES MARKET trial purposes Moscow and Moscow Region constitute the most prominent consumer market in Russia Kiev direction Ryazan direction LARGE SANITARY PROTECTION ZONES 44.0 km² 45.2 km² 41.5 km² 41.2 km² More opportunities to place production facilities M3 Moscow Region Estonia Netherlands Switzerland according to certain regulations M2 M M5 6 7 INVESTMENT POTENTIAL DEVELOPED Gross regional product in Moscow Region INVESTMENT ECONOMY estimates for 2019 ACTIVITIES 2nd largest economy among Russian 3d by volume of capital investments regions. The region’s economy grows in the Russian Federation in 2019 2 times faster than the whole Rus- sian economy. Retail turnover TRLN RUB 1044 2019, trln RUB 2,856 2,121 bln RU 4 Moscow Tyumen Moscow Region Region Wholesale Manufacturing Transport Healthcare and retail trade facilities 2.35МR Investment dynamics 7.15 IN TOTAL +28.3% GROWTH IN 2019 4% 1044 4.80 mln RU MOSCOW Energy and gas production Industry 8% The main driver of the region’s Construction economic development. Industrial 3% production growth rates are sig- 21% 2008 2010 2012 2014 2016 2019 Education nificantly higher than the average across Russia Real estate > BLN EUR MR industrial production rate 16 3% TOTAL VOLUME OF CROSS-BORDER >10% INVESTMENT ANNUAL GROWTH 6% Utilities 12.1% 10.2% Public administration Key investors 12.1% 2% 14.7% Germany USA Agriculture Switzerland Netherlands 2% France Sweden Hotels 2015 2016 2017 2018 2019 26% 18% 5% 1% Austria Italy Source: Rosstat Source: Investment Web Portal Source: Investment Web Portal 8 9 PROMISING INDUSTRIES AUTOMOTIVE PHARMACEUTICAL RSC INDUSTRY INDUSTRY Esipovo Energia Сотекс KRKA p. 18–19 The largest transport hub 30% of Russian studies of molecular biology, Pharmstandard and the automotive market with genetic engineering and biophysics carried Tactical Missiles favourable development conditions out there KASZ Corporation NPO Valenta Pharm Energomash Shchelkovo Korolev Biocombinat p. 21 NAMI automotive test track 14 research institutes GSK The one and only research Biotechnologies in medical industry, Moscow Aircraft-Repair Biocad Plant Dosaaf and development centre for testing biotechnologies in agriculture, industrial Ecolab and tuning motor vehicles in Russia biotechnology, environmental protection, BLMZ Military-Industrial Rubin Aviation NPP pharmacology Corporation NPO Corporation Akrikhin Respirator Mashinostroyenia 121 Aircraft Repair Plant Mil Moscow Helicopter Plant World-class test track RAS Observatory Opportunities to hold motor HIGH-TECH classes, extreme driving courses, PRODUCTION and exhibits Kulon-2 Istrinsky, Mytishchinsky, Shchelkovsky and Noginsky districts Korolevsky District Gedeon Richter Lyuberetsky and Orekhovo- Largest pharmaceutical production facilities Major production companies of the aero- Zuyevsky districts space industry Historically industrial area. Krasnogorsky and Khimkinsky districts Pushchino The industry’s largest production Scientific organisations and research institutes p. 20 Balashikhinsky District facilities are located there Manufacture of aircraft and special equip- Serpukhovsky District and Pushchino Geropharm ment parts; aircraft repair and modernisation Serpukhovsky District Production facilities and research institutes Manufacture of automotive Zhukovsky District components Test sites, engineering offices, universities, Obolenskoe Stupino and production plants Machine-Building Plant Esipovo Pushchino Korolev p. 18 p. 20 p. 21 10 11 PROMISING INDUSTRIES The participants will be provided with financial support: tax incentives, grants, and preferential loans AUTOMOTIVE PHARMACEUTICAL HIGH-TECH CHEMICAL FOOD ELECTRONICS INDUSTRY INDUSTRY PRODUCTION PRODUCTION INDUSTRY PRODUCTION = 2,000 people Production growth Production growth Production growth % % % 23 % 24 % 0 0 0 of total new vehicle sales of total Russian pharmaceuti- MR 13.7 MR 11. MR 4.3 in the Russian Federation cal products manufactured RF 2.7 RF 4.9 RF −1.5 in the region EU −8.3 EU −2.6 EU −8.4 15.3 % 70 100,000 market growth enterprises people working in the technology Volume of products Volume of products Volume of products in the region in the cluster and innovation field shipped bln RUB shipped bln RUB shipped bln RUB 171 529 135 1 place 3 place in terms of new vehicle sales in terms of the number of pharmacies 40,000 people working in the aerospace industry Number of plants Number of plants Number of plants 1,302 3,070 737 12 13 MRDC SERVICES Moscow Region Development Corporation (MRDC) is an institute established to enhance the region’s investment activities to its maximum potential. MRC offers its investors a wide range of services aimed at quick project launch 1 2 3 4 5 6 7 8 Interaction Site Data Industry Financial Searching Implementation Cadastral with government selection collection analysis support for business support and geodetic entities partner surveys Helping to quickly estab- Helping localise enterprises Providing detailed informa- Conducting market analy- Ready to help with Helping to find partners Helping to conduct negotia- Carring out land plot sur- lish relationships with state in Moscow Region. Finding tion about the region: sis and presenting reports, the cooperation of inves- for project implementation. tions with entities responsi- veys and preparing layout authorities, such as: federal the best locations. Assist- so that investors can make tors and organisations Bonus for foreign investors: ble for connecting facilities schemes. We perform ministries, regional and ing in negotiations with informed project decisions. to finance projects: to utilities: technical stock-taking municipal authorities, state industrial parks on location Industrial and topographic surveys, institutions and entities terms and conditions. MR sites prepare maps of security Coinvestor availability Gas supply involved in project imple- zones, boundary and tech- mentation. Benefits nical plans, as well as obtain for new investors Current sales channels Power lines easements. Price policy RussianAgriculturalBank Supplier of raw Road for the sale materials infrastructure of MR land plots Well-organised Help with logistics production launch PARTNER Consulting Insurance Project logistics SERVICES • Strategy development and documentation of transactions • Construction and installation risks • Freight forwarding service • Feasibility study of projects • Facilities for construction or installation work • Getting decisions of the Federal Customs Service • Business plans, involvement of strategic investors • Construction site equipment and machinery of Russia on the classification • Corporate governance issues and external financing • Civil liability to third parties • Certificates • Optimisation of company processes • Unexpected expenses due to delayed facility • Consulting in the field of foreign trade commissioning • Assistance in obtaining the required certificates • Cargo transportation • Advising on customs procedures and legislation 16 Industrial sites 18 Esipovo industrial park 20 Pushchino 02 industrial park INDUSTRIAL 21 Korolev technopark SITES 22 Support measures 16 17 INDUSTRIAL SITES OF MOSCOW REGION In order to attract investments and develop the economy, territories for new production facilities are being created in Moscow Region Types of industrial sites ADVANTAGES • Special economic zone • Industrial park > 80 • Technopark sites Advantageous location Special rental and Highly skilled Tax benefits close to the largest purchase prices workforce and preferences sales market for land HOW INDUSTRIAL SITE IS ARRANGED Moscow agglomeration The largest sales market Engineering Management Land infrastructure company for construction Administrative sup- Compliance with Predictable conditions Electricity, water, Responsible for Rental and port at all levels the required legal for location and opera- gas park operation purchase conditions tion of facilities GREAT CHOICE OF PARKS 4 6 Park Municipal Area Distance SPZ Energy Gas Water district ha km m MW m³/h m³/day 1 2 3 5 Korolev Korolev 17 2 100 8 418 Yuzhnye Vrata Domodedovo 23 30