Moscow International Relations

Moscow has always held a special role in Russia’s history. Formerly the capital of Great Duchy of Moscow and later on, of the Russian state, Moscow is now a modern, dynamic and fast developing metropolis, the center of Russia’s economic and cultural life and an active part of all global processes. The history of communication between Moscow and Muscovites and other cities and countries has shown a mutually rewarding process of cognition and understanding.

Moscow maintains regular contacts with more than 150 foreign cities and regions and has economic partners in 203 countries worldwide.

Among its international activities, the Moscow City Government still places special emphasis on enhancing ties with the city’s partners from the CIS and the Baltic states. The city has signed three-year cooperation programmes with the Riga City Council, Vilnius City Municipal Government and Tallinn City Government. It also keeps in close touch with the capitals and whole regions of Kazakhstan, Belarus and Ukraine, as well as with Azerbaijan, Armenia and Kyrgyzstan within the framework of intergovernmental commissions.

Of all the European states, Moscow has been cooperating the most intensely with Berlin, Vienna, Athens, Prague, Geneva, Düsseldorf, Sofia, and a number of German states including Bavaria, Baden-Württemberg, Hesse, North Rhine Westphalia, and Brandenburg. Cooperation programmes have been inked between Moscow and Athens, Vienna, Krakow, Düsseldorf, and Genoa, while the city’s partnership with Berlin is developing along the lines of the cooperation memorandum for culture, professional education, and social security. Moscow has also resumed links with Bucharest. Over the past year, the Days of Moscow were held in Prague, Krakow, Sofia, and Transnistria, while the Days of the Moscow Economy were staged in Vienna, Bavaria, Düsseldorf and Hesse. Moscow brought a successful roadshow to Geneva, and in turn hosted the Days of the Economy of Vienna, Bavaria, Hesse and Düsseldorf.

In Asia and the Middle East, Moscow’s relations with Beijing, Hanoi, Jakarta, Tel Aviv, and Rabat have been on the rise. The Moscow City Government has signed a cooperation programme with the Jakarta City Government, and an agreement to set up arts and business centres with Hanoi.

Moscow also tapped new partnership opportunities in Latin America — with Caracas, the capital of Venezuela — as well as extended contacts with other major cities in Central and South American countries: Quito, Havana, La Paz, Bogota.

The year 2008 was marked by increased high-level contacts, including meetings of the Mayor of Moscow with Presidents of Bulgaria, Vietnam, Cyprus, Korea, and the Czech Republic and the Sultan of Oman. Moscow leaders also held talks with the heads of Athens, Berlin, Vienna, Prague, Krakow, Caracas, Leipzig, Bucharest, Genoa, Tel Aviv, Jerusalem, Rabat, Jakarta, Brandenburg, Bavaria, Flanders, and the state of Western Australia.

Support for Russians living abroad has always been regarded by the Moscow City Government as a special area of focus. The Moscow Compatriot House and International Council of Russian Compatriots — the leader in consolidating the Russian world — are all-time participants in such events. The Moscow City Government passed another comprehensive target programme for 2009—2011 for carrying out the government policy with regard to compatriots in the mid-term.

Moscow is the only city worldwide to have a direct agreement with the United Nations Educational, Scientific and Cultural Organization (UNESCO). In 2008, the Russian capital ascended the Organization of World Heritage Cities and took part in the events staged by the United Cities and Local Governments. In 2009, Moscow expects to host a regular meeting of the Board of Directors of Metropolis — the World Association of Major Metropolises.

The Moscow Houses, up and running in Riga, Sevastopol and Yerevan, have become especially instrumental in expanding Russia’s cultural influence, solidifying Moscow’s image and supporting Russians living abroad. Before long, arts and business centres will be opened in Bishkek, Chisinau, and Donetsk.

Moscow’s foreign economic ties have increasingly been gaining weight for the social and economic activities of the city and Russia as a whole. Moscow has been spearheading more and more contacts with foreign authorities, cities and regions to establish economic, industrial, scientific, and technical cooperation. In 2008, the city enacted programmes for specific events and projects focusing on industry, energy, trade, transportation, healthcare, support for small and medium-sized businesses, and education with Poland, Serbia, Czech Republic, and Greece.

In 2008, the Moscow City Government completed a joint project with the UNDP aimed at providing assistance in developing and implementing an export support and investment promotion system, the Moscow Export Initiative, and launched the Internet portals Moscow Investment Gateway and Trade Information Portal, linked directly to the information resources of the UN structures concerned. The Moscow Chamber of Commerce and Industry helped create the Moscow Investment and Export Promotion Agency (MIEPA), qualified to provide advice and consultations to Moscow-based enterprises regarding foreign economic relations. Furthermore, trade and industrial centres are being arranged within the Moscow Houses abroad to link them to MIEPA.

Soaring foreign trade has been the city’s major form of foreign economic relations. In 2008, Moscow-based companies and enterprises carried out import and export operations with partners from 203 countries worldwide. Foreign trade reached $292.8bn, including $289.7bn in goods (an increase of 38.5% from 2007) and $3.1bn in services (an increase of 22%). Imports of goods reached $115.5bn (up 36.9%), while imports of services stood at $1.3bn (up 25%). Exports grew 39.6% to $174.2bn and 20% to $1.8bn, respectively. Net of foreign trade with Belarus, the capital’s share in Russia’s total exports was at 39.2%, and 45.1% in total imports.

In 2008, the outflow of capital from Moscow topped $68bn to exceed the value of foreign investment inflow to Moscow for the first time ever. Switzerland, the Netherlands, Great Britain, the USA, Belarus and Cyprus were the most frequent investment targets amid the outflow.

Foreign investment in the city’s non-financial economic sector totaled $40.8bn in 2008, 42.4% below the peak 2007 result. Direct investment covered roughly 21.1% of the total. The funds were raised from 128 different countries, with the total share of the five most active investors — Cyprus, Great Britain, Luxemburg, the Netherlands and Germany — accounting for over 71% of the total foreign investment raised. Moscow managed to maintain a sound share of Russia’s total foreign capital inflow, at 39.3%.

The industry breakdown of foreign investment sustained marked changes in 2008. Investments in wholesale and retail, Moscow’s most appealing sector for foreign investors, shrank nearly 48%, and the sector’s share dropped from 63.1% to 52%. Meanwhile, contributions to real estate operations rose 119%, and 26% for the processing industry, all in absolute terms. Moscow plans to hammer out new approaches to balance the interests of both the city and investors, and set the stage for investment inflow in its research and technology, and infrastructure projects.