Investment protection will strengthen the investment climate in Moscow – experts (November 11, 2022)

Investors will receive more support and guarantees from the Moscow government: the capital has approved the procedure for concluding agreements on the protection and promotion of capital investments. Experts believe that this step will help businesses investing in the development of the capital to be confident in maintaining their assets.

“This is a signal for investors and companies that invest or plan to invest resources in the development of the city’s infrastructure projects, about the readiness of the city authorities to negotiate on the preservation and protection of all investments.

This is a clear sign that all the agreements reached will be respected in the future, regardless of external conditions. This is a step that allows any investor who makes serious investments to be confident in the preservation of their assets and previously calculated dividend policy.

This is a good decision that determines the possibility of further attracting private investment, both foreign and Russian, to the Moscow market,” commented Suren Vardanyan, Vice President of the Moscow Chamber of Commerce and Industry (MCCI).

Protection agreements can be concluded when implementing projects in the areas of economy, healthcare, education, culture, sports, in which, in addition to the investor, the Moscow City Hall participates. The relevant resolutions were signed by Sergei Sobyanin. The volume of business investments should be at least 200 million rubles in regional projects and 750 million rubles in federal ones. The mechanism of agreements provides for two main support measures: a stabilization clause – a guarantee that the legislation will not deteriorate and the possibility of compensating part of the investor’s costs.

“The set of normative documents regulating the protection and encouragement of investments is of great importance for maintaining and strengthening the investment climate in Moscow. Entrepreneurs and investors receive firm guarantees to protect their legitimate interests, and most importantly, that the regulatory environment will not deteriorate (“stabilization clause”). The latter is of fundamental importance for business planning and scaling up. A fairly wide industrial list, which is subject to the regime of protection and encouragement of investments, plays a significant role. In this perspective, investors have a wide alternative for choosing an investment object with different technical and economic characteristics,” stressed independent economist Andrei Barkhota.

The Moscow authorities are stimulating the attraction of investments in areas that are important for citizens through various support measures, said Vladimir Yefimov, Vice Mayor of Moscow for Economic Policy and Property and Land Relations.

“We offer a variety of support measures, as well as guarantee a stable business environment through agreements to protect and encourage investment. In addition, we are actively developing public-private partnership mechanisms – concessions and offset contracts. For example, within the framework of one of the concession agreements, a modern school will appear on the territory of the Skolkovo innovation center, and two more concessions will allow investors to raise funds for improving the environment: enterprises will be created to process sewage sludge from the Lyubertsy and Kuryanovsk treatment facilities,” Yefimov said.

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