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Photo by M. Denisov.

The city will continue to fulfill its social obligations, invest in infrastructure development and provide the necessary measures to support entrepreneurs.

The metropolitan economy is expected to return to robust growth in 2021. This was stated by Sergei Sobyanin, speaking with an annual report to the deputies of the Moscow City Duma.

He called inappropriate pessimism about the city’s development prospects, because even in the context of a pandemic, investments in the capital’s economy grew by about two percent and exceeded three trillion rubles. The main criteria for the investment attractiveness of Moscow were the willingness to apply innovative technologies and a developed financial market.

However, sectors of the economy such as trade, services, tourism, sports, recreation and entertainment have been severely affected. For 2020, budget losses will exceed 600 billion rubles: about 300 billion – lost income and more than 300 billion – costs to fight the pandemic.

“Thanks to the large margin of safety built up over the past years, the city’s economy has withstood this blow. We not only paid the necessary expenses, but also fulfilled all social obligations to Muscovites. Moreover, the pandemic has not stopped the implementation of key development projects. The city continues to build housing, schools, hospitals, metro, roads and other infrastructure to improve the daily life of Muscovites, said Sergei Sobyanin. “I am confident that the decisions we have made will work and in 2021 the Moscow economy will begin to return to sustainable growth.”

At the same time, the Moscow Mayor stressed that serious work will be needed to restore the economy, as well as the attraction of borrowed funds. Borrowing for development in the context of the COVID-19 pandemic is the optimal path that many regions are following. Refusal to reduce public investment in infrastructure will avoid a decrease in overall investment activity and, consequently, budget revenues.

“Thanks to a balanced and effective budget policy, Moscow is a reliable and first-class borrower. We will be able to borrow the necessary resources at a low interest rate, and the debt burden on the budget will not be critical, ”Sergei Sobyanin said.

Stimulating the economy should not be limited to infrastructure projects and should directly support businessmen. To help entrepreneurs keep their businesses and work collectives, the Moscow Government has drawn up four packages of anti-crisis measures.

“About 50 thousand enterprises, which employ almost 800 thousand people, received assistance. Based on the proposals of the business community, we began the implementation of the program

“14 subsidies”, within which small and medium-sized businesses can receive funds to purchase new equipment and promote their products domestically and abroad. We also launched a city credit program, within the framework of which enterprises can restructure old loans and receive new stabilization loans at an interest rate one and a half to two times lower than market rates, ”said Sergei Sobyanin.

More than 13 thousand entrepreneurs have already taken advantage of these assistance measures. Due to the high demand, the subsidy and concessional lending programs will continue in 2021.

Fifth package of business support measures approved in Moscow

But the main measure of business support is not budgetary injections and benefits, but the ability to work without quarantine restrictions and large-scale lockdowns.

“It was possible to close all activities in the city, and the epidemic would sharply decline, but what would be the price: millions of unemployed, impoverishment of people, ruin of enterprises. Therefore, we refrain from such radical measures, as they say, to the last, while maximizing the mobilization of the entire healthcare system, ”added Sergei Sobyanin.

You can get information about the provision of financial assistance for small and medium-sized businesses in Moscow by calling the single support line for subsidies: +7 (499) 961-01-20. The call center is open Monday through Friday from 09:00 to 18:00. Entrepreneurs can also get advice at the Moscow Economy Support Center by phone: +7 (495) 539-59-99.

Up-to-date information on measures to support business and changes in legislation is also published in the telegram channel (@subsidii_msk), created by the Moscow Department of Entrepreneurship and Innovative Development, “Subsidies to Moscow Entrepreneurs”.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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