How Moscow will help business struck by sanctions

Along with the federal support measures in the face of sanctions pressure, regional assistance is being provided, including in Moscow.  The authorities of the capital announced a number of areas in which support will be provided to both businesses and the population.  What specific measures can entrepreneurs count on, you can find here in our selection.

Provision of business loans on a concessional basis

Moscow has launched a program of concessional lending to businesses. It involves the provision of loans to SMEs at a rate of ½ of the key rate of the Bank of Russia + 5% points for the purpose of replenishing their working capital. Such loans can be issued by entrepreneurs registered in Moscow and doing business in any industry.

The maximum amount of borrowed funds is set at 50 million rubles.

There are separate lending programs for IT, industrial sector and science, as well as a city program of preferential factoring for both manufacturers and distributors who sell goods on a deferred basis.

Preferential online lending to SMEs

As part of this support measure, it is proposed to provide the small and medium-sized businesses with loans at a rate of 13.5% for any purpose. The interest rate will be subsidized by the city for nine months, and the maximum amount that an entrepreneur can count on is 5 million rubles. It is assumed that the receipt of borrowed funds in this way will be carried out quickly and without collateral and guarantee, an important condition for this is the presence of a current account opened in a bank. It is possible to draw up an agreement on obtaining credit funds through the Internet bank, and the period of it is 1-3 days. The program and the list of participating banks can be found here.

Legalization of redevelopment of non-residential premises

Until the end of this year, the deadline for implementing the requirement to legalize redevelopment in residential buildings in Moscow for business purposes has been extended. The corresponding resolution was signed by the mayor of the city in mid-March. It is assumed that the measure should contribute to the legalization of about 2,000 buildings, which, to one degree or another, have been converted to meet the needs of business in terms of trade and services. In addition, the procedure for carrying out reconstructions and redevelopments is also simplified.

Exemptions for tenants of land and non-residential buildings owned by the city

Moscow has set a moratorium on increasing the rent of real estate objects owned by the city this year. The measure concerns non-residential stock, as well as land. There is a deferral of payment for the use of real estate for the same categories of objects for tenants (for the second quarter of the current year until the end of 2022). In addition, the requirement to provide security payments for bona fide tenants of the city's non-residential fund and a number of measures for owners of land plots located in the capital has been canceled.

Round tables for business support

Meetings are planned to be held in the capital twice a week to discuss the current situation and existing difficulties. Both the assessment of the measures already taken and how they can be further improved, as well as new steps aimed at stabilizing the current situation, will be implemented. It is planned to discuss business areas in the retail, IT, tourism, aviation, agro-industrial sectors, as well as medicine and pharmaceuticals, telecommunications and the entertainment industry.