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Czech Republic invested $224 million in Moscow economy

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The support measures that the city offers to business, as well as the possibilities of implementing investment and public-private partnership projects in the capital, are quite attractive for foreign investors. The accumulated foreign direct investment from the Czech Republic as of July 1, 2021, amounted to about $224 million. This information was announced by Vladimir Efimov, Deputy Mayor of the City of Moscow for Economic Policy and Property and Land Relations.

“The Moscow economy is attractive for businesses from different countries. According to the Central Bank of the Russian Federation, as of July 1, 2021, Czech companies account for about $224 million of the accumulated foreign direct investment in Moscow. Since the beginning of 2021 the increase of investments has amounted to 7.8%,” said the Deputy Mayor.

Vladimir Efimov noted the strong growth of foreign trade turnover between Moscow and the Czech Republic. In the nine months of 2021, it amounted to $3.1 billion, which is 45% more than in the same period last year, when this indicator accounted for about $2.2 billion.

From January to September 2021, exports from the Russian capital to the Czech Republic increased by 69% compared to the same period in 2020 and amounted to $2.2 billion. The volume of imports from the Czech Republic to Moscow also increased by 8%, for three quarters it amounted to $0.9 billion.

Czech investors mainly invest in companies that are engaged in financial and insurance activities, in trade, in the industrial and high technology sector, and in real estate.

Czech companies from various industries conduct business on the territory of Moscow. For example, a commercial office and an official dealer of Jawa motorcycles, as well as a representative office of the Å koda a.s., the largest Czech car manufacturer, are in the capital. In addition, the TATRA TRUCKS A.S. company, which has been producing trucks since 1897, has opened its official representative office.

An official representative of the company Crystal BOHEMIA a.s., which produces products from the famous Czech crystal, has been working in Moscow since 2013. STIMZET, A.S., one of the largest European manufacturers of cutting tools for making holes, has its own office and dealerships in Moscow.

This week, the city authorities presented investment opportunities to Czech business as part of an online conference.
During the event, the general director of the official dealer of Jawa in Moscow, Georgy Priymuk, noted that in terms of a set of indicators, such as convenient infrastructure, access to highly qualified personnel, a wide range of support measures from the city authorities, Moscow is one of the most attractive cities for business.

“The capital is always open to foreign business and welcomes any investment initiatives. At the same time, foreign entrepreneurs can count on some privileges from the city. For example, investors who have localized production on the territory of Special Economic Zone «Technopolis Moscow» can significantly reduce the regional tax burden. SEZ residents have a custom-free zone regime: all goods and equipment imported into the special territory are exempt from paying customs taxes and fees. SEZ also offers residents free-of-charge technological connection to engineering networks,” explained Alexander Prokhorov, Head of the Department of Investment and Industrial Policy Government of Moscow.

Moscow provides income, property, land and rent taxes incentives to support new investment projects in industry.
Statistics indicate that the interest of foreign business in the Russian capital remains high, despite the difficult economic situation in the world due to the coronavirus. In addition to the Czech Republic, companies from other European countries such as Germany, France, Finland, Austria, etc. actively invest in the capital’s economy. Major investors are the United States of America and several Asian countries, including Kazakhstan, Japan, Singapore, the Republic of Korea, and China. Accumulated foreign investment in Moscow as of April 1, 2021, exceeded $ 268,5 billion.

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