Presentation was made during the Russia Forum New York 2013 series - “Invest in Moscow: Doing Business in Russia’s Capital” which was held at the Princeton Club of New York on October 28th.

1. Moscow: City for Business
Sergey Cheremin
Minister of Moscow City Government,
Head of Department for External Economic
and International Relations of Moscow
Moscow Investment Presentation in New York City,
October 28, 2013

2. Moscow Overview
Geographic location:
Center of European Russia
Area:
2,511 sq. km
Administrative
division:
12 districts
Population:
12 million
GDP:
$ 357 billion
City budget:
$ 57 billion
FDI:
$ 4.2 billion
Average annual
salary:
$ 19.6k
Department for External Economic and International Relations of Moscow
2

3. Moscow Means Gateway to Europe and CIS
§ Diversified economy
§ Healthcare and educational facilities
§ Excellent entertainment opportunities
§ Safety: better crime rate then in BRICS
capitals
§ Green city: 200 parks
§ 3 international airports with annual flow of
56.5 million passengers
§ Modern office buildings: 11.9 million m2
§ 280 shopping centers and malls
§ Technology penetration: Wi-fi connection 60%, 3G Internet - 90% city coverage
Department for External Economic and International Relations of Moscow
3

4. Moscow Means Regional Finance Center
■ 90% of international bank
headquarters of and financial
institutions in Russia
■ 80% Russian financial
flows
■ 50% Russian banking
capital
■ 90% of stock exchange
trade volume in Russia
Department for External Economic and International Relations of Moscow
4

5. Moscow Means the Leading Economic Center in Russia
60%
1 396
Monthly net income per
capita, $
738
Moscow
Saint Petersburg
562
Russia
79%
538
FDI per capita, $
262
112
Moscow
Saint Petersburg
Russia
57%
8 052
Retail trade volume per
capita, $
4 466
Moscow
Saint Petersburg
Department for External Economic and International Relations of Moscow
3 433
Russia
5

6. Moscow Means the Center for International Events
In the next few years, Moscow is going to host and organize some of the largest sport
events in the world.
2014 Olympic Winter
Games
2016 Ice Hockey
World Cup
Winter Olympics 2014 in Sochi. The
Moscow Government and Sochi 2014
Organizing Committee have signed a
cooperation agreement. It is not only an
agreement to work together, but also a
symbol of continuity between the 1980
Moscow Olympics and the 2014 Sochi
Olympics. Moscow will host the start of the
Olympic torch relay in Russia, and is also
taking an active part in developing
infrastructure for the Olympics.
2016 World Hockey Championship.
For the third time, Russia will host
World Hockey Championship. In
Moscow, matches will take place in
Megasport Arena.
2017 FIFA
Confederations Cup
2017 FIFA Confederations Cup.
Moscow is among four cities that will
host Cup tournaments.
2018 FIFA World Cup
2018 World Cup Championship. For
the first time, Russia will host the finals
of the FIFA Championship. The finals
will take place in Luzhniki Stadium in
Moscow.
Department for External Economic and International Relations of Moscow
6

7. Moscow Equals Smart City
The Moscow Government supports innovation by establishing an innovative infrastructure as well as
offering tax breaks and financial support to innovative businesses.
Slava (2.8 ha)
Strogino (2.1 ha)
MosGorMash
(4.5 ha)
Technopark
Moscow
(31 ha)
Technopolis
Zelenograd
(60 ha)
Rudnevo
(25 ha)
Industrial Park
Tax breaks for management companies:
Zelenograd
(146 ha)
Special Economic Zone
6-7 thousand
new jobs
created annually
Tax breaks for technopark, technopolis and industrial park
residents:
0.01 – 0.03%
property
0%
13.5%
land
0 – 1.1%
property
income
Financial support to cover loans for innovative activities:
Up to
$3 M
to create and
develop
technoparks
Recipients:
management companies
Up to
$ 0.2 M
for securities
offerings
(2/3 cost)
Recipients: small innovative
businesses
Up to
$ 0.3 M
to equip and operate
innovation centers
(60% cost)
Recipients: Creative Innovation Centers
for Youth
Up to
$ 10 M
to create and develop a
technopolis / industrial
park
Recipients: management
companies
Department for External Economic and International Relations of Moscow
7

8. Moscow Means the City for Investment
By the end of 2012, the unit value of foreign investments attracted to Moscow amounted
to 52.7 percent of all foreign investment attracted into Russia in 2012.
FOREIGN INVESTMENTS ATTRACTED TO MOSCOW IN 2012
million USD
81 555
total volume of
investment
4 233
accumulated
FDI
other accumulated
investment
76 848
475
accumulated
indirect investment
111 448
Department for External Economic and International Relations of Moscow
8

9. Most Attractive Cities in Europe for FDI
London
49%
Paris
34%
Berlin
20%
Frankfurt
11%
Munich
8%
Barcelona
7%
Amsterdam
6%
Moscow
6%
Brussels
6%
Prague
4%
Milan
4%
Warsaw
4%
Stockholm
4%
Zurich
4%
Hamburg
3%
Source: Ernst & Young’s European attractiveness survey 2013.
Department for External Economic and International Relations of Moscow
9

10. Geographic Distribution of Foreign Investments Attracted to Moscow
in 2012, millions of USD
Other countries: 3291,3
India: 101,8
UAE: 160,9
Japan: 162,1
Sweden: 181,8
Vietnam: 186,0
S. Korea: 237,2
Finland: 252,5
Austria: 386,4
Gibraltar: 410,1
Virgin Islands: 444.4
USA: 591,5
China: 903,0
Ireland: 1615,9
Germany: 2717,5
France: 2896,3
Luxembourg: 3360,7
Cyprus: 6058,0
Great Britain: 6834,6
Netherlands: 7384,2
Switzerland: 84727,0
Department for External Economic and International Relations of Moscow
10

11. Russian Accession to the WTO
August 22, 2012 – Russia becomes a member of WTO.
We are opening our markets to create a modern and competitive economy.
Import-weighted
average customs
tariff (current
rate)
WTO bindings,
import-weighted average
rate
Before
After
All goods
10.29%
11.85%
7.15%
Agricultural goods
15.63%
15.18%
11.28%
Non-agricultural goods
9.39%
11.26%
6.41%
Moscow Expectations:
Ø Improving existing conditions for access foreign markets for Moscow products.
Ø Providing non-discriminatory treatment for Moscow exporters.
Ø Access to international dispute settlement mechanism.
Ø Creating a more favorable climate for foreign investments as a result of changes to the legal system in
accordance with WTO standards.
Ø Expanding opportunities for investors from Moscow in WTO member-countries.
Ø Creating conditions for increasing the quality and competitiveness of domestic production as a result of
increased flows of foreign goods, services, and investments to the Moscow market.
Ø Improving Moscow’s image as a competent international trade participant.
Department for External Economic and International Relations of Moscow
11

12. Cities Budget Parameters, $ billion
2012:
57
Moscow
51
18,9
17
London
65,9
65,9
New York
Madrid
6,1
6
Paris
4,6
4,4
67,4
Shanghai
Berlin
60,3
30,2
30,2
Income
Expenditures
Department for External Economic and International Relations of Moscow
12

13. Growth is Bound to Continue in Moscow
$ 490 billion (GDP)
+40%
$ 350 billion (GDP)
Drivers
■ Maturing consumer
■ Human capital
■ Innovation / SME
■ Infrastructure
2012
2025F
FS and business services
Manufactoring
Transport
ENR
Construction
Retail
Other
VISION 2025 – INVESTMENT SUPPORT
Department for External Economic and International Relations of Moscow
13

14. Drivers of Substantial Growth (1/4)
Maturing consumer
Population, $ million, 2012
Shanghai
Innovation
Human capital
24
GDP per capita, $ thousand,
2012
Shanghai
Mumbai
Mumbai
Mexico
Mexico
Sao Paolo
Sao Paolo
London
Tokyo
Moscow
Moscow
Frankfurt
Frankfurt
Real disposable income per
capita, $, 2012
China
London
Tokyo
20,1
Infrastructure
5,9
India
19,9
2 400
1 110
Mexico
Brazil
23,7
52,0
41,4
6 350
7 470
26 000
UK
Japan
44,7
51,6
Russia
Germany
28 390
7 210
26 460
Source: Brookings institution, EIU
Department for External Economic and International Relations of Moscow
14

15. Drivers of Substantial Growth (2/4)
Maturing consumer
Age structure, 2012
Human capital
Innovation
% population with higher education,
2012
Infrastructure
City R&D potential
■ 42% of Russian researchers
work in Moscow
■ 40% growth in R&D
investments over the 5 last
years
■ > 1.2 million of students
MOSCOW HAS AN EXCELLENT HUMAN CAPITAL BASE
Develop human capital base
Retain & attract human capital
Source: Rosstat, Oxford Economics, KPMG analysis
Department for External Economic and International Relations of Moscow
15

16. Drivers of Substantial Growth (3/4)
Maturing consumer
Human capital
■ High tech sector focus
Infrastructure
Innovation
$ 387 million
in state
guarantees for
SME in 2012
SME Loans, $ million
− Zelenograd Technopolis
− Moscow Technopolis
− MosGorMash Technopark
+27%
− Slava Technopark
− Strogino Technopark
■ Academy of Science
− 470 institutes
− 55,000 researchers
■ Special innovation infrastructure
− Business incubators
− Coworking centers
2010
2011
2012
Source: Moscow Government, Rosstat
Department for External Economic and International Relations of Moscow
16

17. Drivers of Substantial Growth (4/4)
Maturing consumer
Human capital
Infrastructure investment, 2012, $ billion
Innovation
Infrastructure
Investment needed 2012-2030,
$billion
$9 billion
7%
>$100 billion
investments
needed by 2030
2012
Other
Utilities
Social infrastructure
Road infrastructure
Department for External Economic and International Relations of Moscow
17

18. Emphasis Will Be Placed on Creating Comfortable Business Environment
Department for External Economic and International Relations of Moscow
18

19. Department for External Economic and International Relations
Address: 13, Tverskaya str., Moscow, 125032
Tel.: +7 (495) 633-68-66
Fax: +7 (495) 633-68-65
www.dvms.mos.ru
www.investinmoscow.ru
E-mail: dms@dms.mos.ru
INVEST IN MOSCOW