MOSCOW GOVERNMENT CALLS ON BRITISH BUSINESSES

Today, the Moscow Government hosted the London launch of Destination Moscow 2013 – a series of events in the UK, Germany, Singapore, Japan and the US engaging the international business community and promoting constructive dialogue with investors around future opportunities in the city that is at the heart of Russia’s growing economy.

At the event attended by over 100 people, a delegation from the Moscow Government met with UK authorities and representatives from British businesses interested developing a presence in Moscow, which already attracts more than 25% of the foreign direct investment into Russia and has become a key location for 70% of Fortune 500 companies.

Keynote speakers included Sergey Cheremin, Minister of the Moscow Government and the Head of Department for External Economic and International Relations of the Moscow Government, as well as representatives from the Department of Finance of the Moscow Government, the Ministry of Finance of the Russian Federation, the Russian Direct Investment Fund, the Russian Trading System, the Moscow Interbank Currency Exchange and the Commission on Transnational Corporation.

The discussion was moderated by Marc van der Plas, Member of Executive, KPMG Russia & CIS and Stefan Dierks, Partner, Global Strategy Group, Moscow. It focussed on the City Government’s commitment to working towards the introduction of international standards and targets to further improve the business climate, enhance productivity and move towards the production of high-value added goods.

The address by Mr. Cheremin highlighted key strengths of Moscow as an International Financial Centre:
• The expansion of Moscow’s territory by 140,000 hectares in 2012;
• The strong investment into infrastructure, including the development of 3 new airports and a unified transportation system;
• City plans to make an additional $100 billion investment by 2030 to support the projected growth;
• The population of almost 20 million people in the greater Moscow area of which 60% is of working active age, with strong GDP per capita and rapidly growing levels of disposable income;
• The emphasis on energy efficiency, and the creation of a green and safe city, of which a third is already parkland;
• The presence of co-working centres, such as in Nagatino, projected to be the largest co-worker centre in Europe by 2014;
• The range of technology and industrial parks offering tax subsidies and administration support, including large planned infrastructure projects in Greater Moscow including Technopolis and Aeropolis;
• The fact 40% of all R&D activities in Russia currently take place within Moscow;
• A low crime rate, better than London, Brussels or Milan;
• The status of Moscow as a major historical and cultural tourist centre with the largest number of theatres in the world.

Sergey Cheremin, Minister of the Moscow Government and the Head of Department for External Economic and International Relations of the Moscow Government said: “We are working closely with the federal government to develop Moscow as a leading International Financial Centre. The city is well positioned for growth, and while there may still be some barriers to overcome, the presence of a large, educated working population, low income tax and being the largest and most developed financial capital in the region means there are strong opportunities for international businesses.”

“We are already ranked in the top two global destinations for relocation amongst international business executives across Europe, the Middle East, North America and Asia. We are aiming to firmly establish Moscow as a hub for global commerce and these events give us a chance to show people how we are turning our vision into reality with significant commitments. We have had some very positive discussions in London, but I would encourage businesses to visit Moscow and discover the exciting reality of opportunity in our city.”