Moscow supports entrepreneurs and exporters
The Moscow government has introduced a number of measures to support the economy, address the negative implications after the introduction of restrictions, preservation of jobs, and the creation of an environment for import substitution.
The Mayor Sergey Sobianin has decided to create a commission aimed at boosting the steady development of the urban economy under sanctions. Preferential lending and production localization on a preferential terms program was enabled. Besides this, financial and industrial support of business has been extended and increased.
In March 2022 the program of preferential lending for enterprises was introduced as an anti-crisis measure to remedy the acute rise of commercial credit interest rates. The Moscow foundation for support of industry and entrepreneurship was appointed as an operator.
Preferential credit at an annual interest rate of 9% was extended to system-forming organizations in IT, fuels, power, transport, pharmaceuticals, and medicine.
The preferential loans for the replenishment of current capital up to 500 million rubles may be extended to Moscow enterprises and organizations operating in processing industries, education, healthcare, hotels, social services, and catering. A borrower must be registered in the capital city, be in operation for no less than two years, not be in the process of bankruptcy proceedings, and not have tax arrears.
Developers receive preferential credits for construction projects and retrofitting of non-residential real estates. An investor must also be registered in Moscow and operate within the city limits, be in possession of, or hold a long term lease of a plot of land, and have a building permit.
For lease holders of the land plots and non-residential real estate owned by the City of Moscow, special amendments to legal acts were passed; these are: reduction of rent payments, providing for postponements, and payments in installments. Additional measures of support will assist in stabilizing the financial status of developers, retail, service, and SME.
Grants for the opening of new Fast-Food outlets are provided for members of SME. The maximum amount of financial support for one enterprise is 5 million rubles.
Owners of catering businesses can avoid the dismantling of summer verandas from November 15, 2022 until March 15, 2023 if they are in their respective territories – subject to the relevant Rule.
Travel organizers attracting senior citizens to visit Moscow for tourism can count on grants. The support measure is available to organizations arranging inbound and outbound travel, and who provide services for a trip for individuals who have reached the age of 55 and older, and who are visiting Moscow as tourists. The condition for receiving support is:– the tourist has to spend at least two nights in a hotel of the capital city.
Entrepreneurs are given financial support in the form of grants for functions intended for the development of business travel in the City of Moscow, i.e. conferences, forums, and corporate-business meetings. The maximum amount of grants for one event would not exceed 10 million rubles and the allocated sum may be used for rental of real estate, partial cost recovery within Moscow City limits as well as the hire of technical equipment used for the event.
The construction of 3 out of 9 future clusters of Innovative Scientific and Technological Centers (INTC) is underway. Inside the INTCs will be companies’ offices, co-working spaces, conference rooms, and exhibition spaces. These are venues with special legal status, tax regime, and an infrastructure of global quality.
Since April 2022, developers of innovative solutions can receive compensation for costs incurred after the testing of their technologies at urban infrastructure facilities. The grant may be used to pay logistics costs, insurance, certification, components, labor, maintenance and the hiring of auxiliary equipment. Filing for an application for compensation can be made on the i.moscow portal.
The main facility of the infrastructure of the INTC – is the cluster Lomonosov, where 8 innovative projects were selected. The acceptance of applications for pilot testing of innovative solutions for the cluster is open. To take part in the selection one has to file an application, choose one of the five categories: Service infrastructure, Property management, Organization of events, Urban property development, and Open track.
For 10 years, the projects of the participants will be exempted from profit tax, property tax, and VAT. In addition, the participants will pay preferencial insurance premiums, hire foreign citizens in preferential order, and will pay offset customs duties (compensation for costs incurred).
A number of these support measures apply to businesses with foreign participation. To find out about the possibility of receiving support and benefits, you need to contact the Moscow Economic Support Center.