Moscow will allocate 2 billion rubles to support exporting companies
2021-01-11 05:07

Moscow will allocate 2 billion rubles to support exporting companies

In the coming year, the Moscow government should allocate about 2 billion rubles to support Moscow industrialists. This announcement was made back in November 2020 by Alexander Prokhorov, the head of the city's Department of Investment and Industrial Policy.

According to the official, this amount will be distributed in the following key areas:

- For subsidies and loans, which entrepreneurs can draw up in the Moscow Fund to support industry and business;

- On stimulation of export activity of capital manufacturers of industrial goods.

Prokhorov noted that all benefits which the Moscow authorities give to business, pay off approximately in 3 times. That is 3 rubles of private investment for 1 ruble of state support. The official also added that the municipality has a very positive attitude to local enterprises, specializing in the export of industrial products. First of all, such loyalty is dictated by economic benefits that the city gets from this type of activity. For example, from January to August 2020, the capital's manufacturers made $21.5 billion from the sale of their industrial products abroad. They carried out exports to 168 countries of the world. The revenue figures of industrialists for 8 months of 2020 increased by 27.9% compared to the same period of 2019.

According to Prokhorov, in the overall structure of GRP there is a tendency to increase the share of manufacturing industry. Thus, in the first 9 months of 2020, the volume of payments to the budget was 6.7% higher compared to January-September 2019. As for the structure of Moscow revenues, the contribution of this industry increased from 6.5% to 7.2%. Profit tax, which is transferred to the budget by industrial companies, also has a positive trend. In the first three quarters of 2020, this figure increased by 8.5 billion rubles, or 17.1% relative to the same time period in 2019. Thus, the manufacturing industry by the end of 2020 took first place in terms of profit tax transfers among all sectors of the capital's economy.

Alexander Prokhorov also said that the total amount of cash investments in fixed capital of medium and large enterprises in the manufacturing sector of Moscow in the first half of 2020 was about 42 billion rubles. Quite an impressive figure.

In total over the past 8 years the industrial enterprises of the capital have received from the city budget about 2.6 billion rubles for the development of their activities. This was reported to RIA Novosti by Alexander Prokhorov. According to the official, Moscow industrialists enjoy preferences and benefits from the city since 2012.

The total number of companies that received support from Moscow authorities is more than 100 units. At the beginning of 2020 the Moscow government approved the applications for subsidies to 15 manufacturers totaling 168 million rubles. This list includes enterprises specializing in the manufacture of:

- high-tech products;

- electric goods;

- lifting-transport equipment;

- book-printing goods;

- packaging containers made of plastic.

Alexander Prokhorov also told that last year Moscow authorities expanded the opportunities for industrial enterprises to receive subsidies: up to 300 million rubles can now get from the city the companies, which have the status of industrial complexes, as well as enterprises realizing priority investment projects of creating such complexes. Money can be spent on the partial cover of interest on bank loans and loans, which the firm took for the modernization of their property complex.

According to the official, to date more than 200 Moscow industrial enterprises already use the benefits. This list includes:

- 58 industrial complexes;

- 36 technoparks;

- 15 anchor residents;

- 13 investment priority projects;

- 1 automotive manufacturer;

- 78 participants of the special economic zone (SEZ) "Technopolis "Moscow".

During 2019, Moscow industrial complexes received more than 2 billion rubles in benefits from the capital government. SEZ members received benefits two times less - 1 billion rubles. Additionally, they were allocated 624 million rubles in the form of subsidies.

As for all other Russian manufacturers, the government also plans to allocate them a fairly large sum - 300 billion rubles (we are talking about 2021). Denis Manturov, the head of the Ministry of Industry and Trade of the Russian Federation, told about it.

According to the Minister, in 2020, the industrial sector of Russia managed to reach, even if small, but positive results. The main growth was demonstrated by the pharmaceutical industry and related industries (30%). The light industry also performed well. The high level of demand for personal protective equipment due to the coronavirus pandemic contributed to the growth of the industry.

Recall that, according to Rosstat, total industrial production in the Russian Federation in November 2020 decreased by 2.6% year-on-year after a decrease by 5.5% in October (revised from minus 5.9% estimate). The level of production in November 2020 fell by 0.1% year-on-year relative to the previous month. However, if we exclude the seasonal calendar factor, the indicator grew slightly (by 1%). Overall, in the first 11 months of 2020, the industrial production rate in the country fell by 3% in terms of annual estimates.

At the end of last year, Denis Manturov noted that in 2021 there is a chance to restore the volume of industrial production in the country to the indicators of 2019, but much depends on the level of consumer demand, as well as the further "behavior" of COVID-19 and related restrictions.

The active spread of coronavirus infection in 2020 had a strong impact on both the global and Russian economies. There was a collapse of oil prices in the global market, due to which our ruble also depreciated. Reacting to the situation, the government and the Bank of Russia introduced several packages of measures to support business and ordinary citizens. In November, Vladimir Putin said that the amount of anti-crisis support from the budget during the epidemic was 4.5% of GDP, which somewhat mitigated the acute economic situation in the country.