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An interview with Denis Butsaev, a Moscow region minister

An Interview with a Moscow region minister Denis Butsaev

Denis Butsaev ― a deputy Chairman of the Moscow Region Government, the minister for investments and innovations of Moscow region ― headed the Moscow region delegation that presented the investment potential of the region to Italian businessmen on May 16th, 2017. The event took place in Milan at the Industrial Association of Milan, Lodi, Monza and Brianza (Assolombarda). Once the meeting was over, D. Butsaev gave our edition an exclusive interview. 


- A couple of words on the development of special economic zones in Moscow region.

- There are three special economic zones (SEZ) in Moscow region: Dubna, Istok (in Fryazino area), Stupino Qvadrat. All of them are developing successfully and we plan for a considerable volume of investments. In Dubna ― 752 million euros by 2024, in Istok ― 633 million euros by 2018, in Stupino Quadrat ― more than a billion euros by 2025. In general, special economic zones are intended for industrial production. It’s both innovative production and classical economy.

Dubna – a unique SEZ of Moscow region

Dubna – a unique SEZ of Moscow region, photo WEB

I want to make a pointed reference about Dubna ― it is a unique center and a globally recognized brand, the only institute with 56 participant countries. Currently they work in the field of fundamental science. Apart from that, Dubna is a special center of competence ― it attracts many companies with related interests.

One of our SEZs is in Dubna ― the most successful special economic zone in Moscow region and one of the best-developed SEZs of the Russian Federation. Over the last year only we engaged 25 new companies. Our present task is to increase the number of investors and we are working on expanding the SEZ territory by 20 hectares.

- How is digital economy developing in Moscow region?

- Speaking of the innovative big data economy, Moscow region has several clusters aimed at this field. I’d like to mention one of our science cities, which works with internet technologies ― Dolgoprudny, a Phystech cluster, where numerous companies are involved in similar research. What is more, Chernogolovka ― also located in Moscow region ― boasts an excellent infrastructure both in terms of physical objects and personnel. It is a technical and implementation zone, and companies aspiring for innovative big data technologies are welcome to join. Moscow region houses a plethora of data processing centers.

Moscow region houses a plethora of data processing centers

Moscow region houses a plethora of data processing centers, photo WEB

- Tell me about the online store of investment projects which you plan to establish in Krasnogorsk.

- It is not a single, but an entire range of informational platforms which allow the remote investor (from Milan, for instance) to find an industrial site, to identify infrastructure, to obtain standard specifications for roads, natural gas, electric supply, etc. It is also possible to get remote consultations and to find industry-specific partners. For example, you manufacture certain electronic devices and you need a pool of electronic components in the Russian Federation. Presently, Moscow region is the only area where you can enter a product code or name and find the manufacturers in our region; then you can contact them to establish partnership. We were designing this system for the whole 2016, now it is fully functional and available at the Moscow region website.

- In the Moscow region town of Stupino, the world’s first 3D-house has been created recently. It is a successful international project. What other large international projects are you considering now?

- Over several decades Stupino has been a unique place to engage industrial enterprises. The majority of companies there are planning for expansion. They develop new innovations and technologies allowing to create interesting and (for now) image projects like the mentioned 3D. However, in our region we pay great attention to developing such technologies. We have techno-parks for children where they learn 3D-printing. We purchase equipment, which allows to provide knowledge about new technologies during the formation of children’s cognition. It gives confidence that the specialists trained in our region will not only know how to use technologies but will also become active developers. Speaking of 3D printing we currently use, an agreement has been signed with one of the leading aerospace engineering companies that ― together with our resident in Zhukovsky ― they will create a company to 3D-model and 3D-print components for the aerospace industry. We hope to create this center as soon as 2017.

Unique projects aimed at 3D technologies development are in progress in Stupino

Unique projects aimed at 3D technologies development are in progress in Stupino, photo WEB

- The area of Moscow region houses largest logistic terminals, which allocate freights to send throughout the entire Russia. What investment projects in this field can attract Italian investors?

- Logistics is one of the strongest elements of the Moscow region economy, but currently this industry is facing difficulties: a considerable number of logistic centers don’t work at full capacity. The quality of investments is an issue. There are several companies which successfully develop logistic centers even now. I would focus on professional abilities of the teams involved in this business. The teams who meet the two requirements for success ― clear understanding for whom the logistic center is intended and strict control over the construction costs ― are successful even now.

Logistics is one of the strongest components of the Moscow region economy

Logistics is one of the strongest components of the Moscow region economy, photo WEB

- 2017 is the Year of Ecology in Russia. What ecological projects are you working on? Construction of electric vehicles charging stations, for instance?

- We will launch 10 electric vehicle charging stations as soon as 2017. If fact, we can do more, but we’ve planned for 10 now; the particular sites are determined. Currently, we actively develop smart energy management programs ― they will allow to diminish impact on ecology. Throughout Moscow region we ensure strict control over the ecological safety. It makes our industrial giants update their basic ecological protection means. Within the last three years of my work there were no significant violations of ecological standards.

Moscow region pays close attention to ecological problems

Moscow region pays close attention to ecological problems, photo WEB

- How do you attract foreign capital? What benefits does your region offer?

- If you build an enterprise in Moscow region, we will compensate for the cost of all the infrastructure you connect to the enterprise: natural gas, electricity, roads, water and waste treatment facilities. If you decide to build a plant associated with under-glass areas, cheese or milk production, we will additionally reimburse 20% of all financial expenses. We will provide free training for the staff that is going to work on your enterprise. For new industrial projects we are ready to provide special programs of the Industry Support Fund with loans from the Russian budget: 5 % per year in rubles for a 5-year term ― lower than the inflation rate.

Moscow region provides benefits for investors

Moscow region provides benefits for investors, photo © Еvgeny Utkin

- Do Italian businessmen invest into the Moscow region economy actively?

- The leaders are Germany, Italy holds the second position. We can see that Italians are improving their positions in terms of investment tempo and aggression (in the good sense). That is why we wanted to present the investment potential of our region in Italy. It turns out we were right ― our projects attract considerable attention.

Evgeny Utkin, Milan, Italy