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President of Russia Vladimir Putin: Good afternoon.

Mr Sobyanin, Moscow has traditionally shown strong performance across nearly all sectors, including investment. What is your assessment?

Moscow Mayor Sergei Sobyanin: Mr President, despite all the objective challenges – and we always face them – even in the current difficult circumstances, perhaps it is precisely such challenges that we sometimes need in order to achieve and showcase such strong results.

Over the past year, the economy has grown by 5.5 percent, and over the last six years, despite the pandemic, sanctions, and other pressures, Moscow’s economy has expanded by a quarter. That is a good growth trajectory.

Vladimir Putin: That is strong growth – up 25 percent.

Sergei Sobyanin: And we have seen growth every year.

There is also strong momentum in investment: over the past six years, investment has doubled in comparable prices across nearly all sectors.

Vladimir Putin: Moscow’s contribution to the national economy is also substantial, over 21 percent.

Sergei Sobyanin: That is right, 21 percent, and that is without even factoring in the financial sector. As the country’s financial centre, we have about 600,000 people working in finance. Yet, this sector is not included when calculating gross regional product. Even so, Moscow’s share remains quite significant.

Which, of course, is encouraging. We have discussed this before, and you have seen it firsthand during your visits to our enterprises. Manufacturing and industrial production are on the rise. In recent years, we have witnessed a new and modern wave of industrialisation in Moscow. You may recall a time when factories were relocating to other regions. Today, we are seeing the reverse: high-tech industries are returning, driven by the need for qualified personnel that the capital can provide.

As a result, we are now seeing a reverse trend. High-tech production, which accounts for roughly a third of the country’s overall industrial output, has seen its turnover triple. This includes sectors such as electronics, computer manufacturing, and sophisticated technology.

Last year, we posted explosive growth, thanks to the cumulative effect of earlier investments. We have launched a number of high-tech production facilities that are now replacing imported equipment. You can see the leap we made last year – it is certainly impressive.

Vladimir Putin: 221.5 percent.

Sergei Sobyanin: Yes.

This is the result of the combined efforts of the Russian Government, the goals you have set, and the current situation we are in. The first major surge came during the COVID period – in the IT sector – and today, growth is happening in leaps and bounds, almost like arithmetic progression. We have seen a fourfold increase in recent years. Just look at the rate of growth.

That initial leap happened when COVID began, as demand for information systems skyrocketed. But now, growth is even stronger, and it is building on a solid foundation. It is being driven by large-scale replacement of imported software with domestic alternatives.

Vladimir Putin: It was 222 percent in 2023 and 316.5 percent in 2024.

Sergei Sobyanin: That is a fourfold increase.

Mr President, the point I would also like to make is that not all cities are moving forward at this pace. You once set the goal for Moscow to be among the top five cities globally in terms of the economy, in terms of purchasing power parity. We were in fifth place in 2020, and by 2023, we had risen to second place worldwide. And we are alongside some very serious cities. Of course, I think it will be hard to hold that position, especially given how rapidly China and its cities are developing.

Vladimir Putin: There is a lot of momentum.

Sergei Sobyanin: We are not standing still either. With the groundwork we have laid in investment, human capital, the revival of industry and high-tech manufacturing, I believe we will manage to maintain our position. At the very least, we hope to stay in the top three.

Vladimir Putin: The potential is good.

Sergei Sobyanin: Beyond the economy, Mr President, what is also critically important for residents is social support and infrastructure. As part of the national education development project, we made the decision to invest in building and modernising schools. We have developed a comprehensive programme and set the goal of renovating every school in Moscow that needs it.

Previously, we built 40 to 50 schools a year. Now, in addition to building 60 new school buildings annually, we will also be renovating about 100 schools each year. It is a major, ambitious task, but I am confident we will succeed. Our aim is that within a few years, every school in Moscow will meet modern standards.

You visited one of our colleges and centres; we are continuing to advance this work. Last year, college admissions surpassed 100,000 across municipal, federal, and private institutions. This is a significant figure, especially considering that we started with just 60,000. Our goal is to reach 150,000 in the coming years. Students are engaged and enthusiastic, as colleges are becoming modern and relevant. Impressively, 95 percent of graduates find employment in their chosen fields, and the salaries are quite competitive.

We are implementing an even more ambitious programme in the healthcare sector. The outpatient clinic modernisation initiative is nearing completion. Of the 350 clinics that were previously in poor condition, only a few remain as of 2024, and we expect to complete the programme this year. Every outpatient clinic in the city will either be newly built or fully renovated, which is a major step forward in healthcare infrastructure.

A similar effort is underway with hospitals, although the scale and complexity are greater. We need to construct approximately one million square metres of new hospital space and renovate an equal amount. That programme is already in progress. The situation has improved significantly: only about 30 buildings remain. I believe we will complete this work within the next three to four years.

The newly renovated clinics now match private clinics in terms of design, interior quality, and overall branding. The new, modern medical facilities are truly world-class.

Vladimir Putin: We have visited some of them together.

Sergei Sobyanin: Yes, we visited the Morozov Hospital, and since then, a whole series of similar facilities have been opened.

You may recall your visit to our centre for processing X-ray and MRI images, where you tasked us with expanding the use of the AI-powered imaging technologies developed in Moscow to other regions. We have successfully carried out that assignment: 70 regions are now connected, and we are currently processing three times more medical images from across the country each month than from Moscow itself.

Vladimir Putin: It is a very convenient service for the regions.

Sergei Sobyanin: Absolutely. And there is no need to replicate it in every region, because AI systems improve with larger datasets, so centralising this service makes the most sense. We have signed a corresponding agreement with the Healthcare Ministry and have already begun implementation. It is a very promising initiative.

As a result, we are seeing progress in the economy, healthcare, and the promotion of a healthy lifestyle. Last year, life expectancy in Moscow approached 80 years – specifically, 79.5.

Vladimir Putin: Yes, that is the 2024 figure, I believe.

Sergey Sobyanin: Yes, that is the 2024 result, just shy of 80. That is a strong European-level indicator, a globally competitive result, especially considering our quite different climate.

Vladimir Putin: Indeed.

Sergey Sobyanin: As per your instructions, allow me to report that we are continuing our infrastructure support and development programme for our twin cities Donetsk and Lugansk. We have already reconstructed more than 2,000 facilities, restored over 1,000 kilometres of utility networks and resurfaced millions of square metres of roads.

This year, we are continuing the programme actively. While in previous years we focused mainly on engineering infrastructure, we are now moving towards improving public spaces: parks, roads, streets and so on. So, it is no longer just infrastructure in the technical sense, but also infrastructure for daily life and public spaces.

Vladimir Putin: This is very important – people need to feel that their everyday lives are improving.

Sergey Sobyanin: When you are immersed in it, the changes can be hard to notice. But when you go outside into the courtyards, parks and public squares, the difference is clear – it has a real positive impact.

Vladimir Putin: All of this becomes possible as a result of economic growth. The fact that Moscow now ranks second among the world’s major cities in terms of purchasing power parity – just behind New York, and not by much – is what underpins our ability to address social issues: building schools, clinics, hospitals, and other facilities. It is a great achievement. Well done.

Sergey Sobyanin: Thank you for your support, Mr President.

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