VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Transcript of the beginning of the meeting:
Vladimir Putin: Mr Markelov, agriculture in your republic was badly hit last year. You harvested less than 40% (of the planned amount).
Leonid Markelov: 36%.
Vladimir Putin: Yes, slightly more than 36%. What is the current situation in agriculture?
Leonid Markelov: We are getting back on our feet, Mr Putin. Several years ago, the (republican) government launched a serious programme of assistance to the agro-industrial sector. It provides for boosting poultry breeding, which is a highly profitable business. We have a unique (poultry) business and a unique programme. Annual production growth is expected at more than 30%. We have also invested heavily in pig breeding. We know that these businesses should be highly technological, and that agriculture must be profitable.
As for remedying the damage it sustained, we have received considerable support from the federal government and have also taken out a loan from the regional budget. Acting in line with the methods approved by the government, we have transferred subsidies to each of the affected farms. This amounted to major assistance.
We expect to gather in a good harvest this year, at least as large as in 2009, and will be therefore able to resolve all of our problems. The main task now is to provide fodder, because meat production depends on fodder. This is why we have allocated funds to ensure that this year’s harvest is at least as large as in 2009 and to carry on our programme of assistance to agriculture and construction of new farms.
Vladimir Putin: I see. So you say you have invested heavily in pig breeding, have you?
Leonid Markelov: We have attracted good investment and are using a Dutch technology, which includes, first, genetics, and second, provides for a comprehensive approach with fodder plants, raw materials and reproduction. We are buying the first batch, a breeder flock, abroad. But now we have developed the business enough to breed such a flock in the republic. First, this promises good profits from selling sows, and second, we will become independent and will be able to complete the production cycle.
What I mean is this: meat production is a profitable, but not a highly profitable business, and that deep processing and finished goods are more profitable. This is why we joined forces and created such a complex at the republic’s largest producer, the Mari Meat Plant. As a result, investment in the plant has grown substantially, at least by 30%.
Vladimir Putin: I know that you are also developing glass production, aren’t you?
Leonid Markelov: There is glass sand in Mari El, and we are trying to use it as far as possible. Unfortunately, we have no hydrocarbon resources, but we are building an oil refinery. In short, we are trying to develop wherever we can.
Vladimir Putin: Including in wood pellets production. I don’t remember the amount…
Leonid Markelov: Unfortunately, we have no industrial forests. Our timber is not suitable for making furniture, which is why we are using it as best we can, for the production of wood pellets. We plan to build a plant to make pellets from compacted sawdust and sell the finished product outside the republic and possibly even outside Russia, to attract funds to the region and also to encourage production from our raw material. Why a glassware plant? We have 19 glass sand deposits, which is enough to launch glass production. This is why we are attracting investment into building facilities that will use local raw materials to roll out products for export.
Vladimir Putin: Your construction industry has accelerated growth.
Leonid Markelov: It reported a record-high result last year, 130%. I think it was largely due to the government’s initiative, because we needed to preserve the construction industry and hence took measures towards this goal. The (economic and financial) crisis has had a major impact… And (therefore the industry received) government investment from the federal and republican budgets, as well as private investment… We are doing our best to preserve the construction industry, because it is easy to lose something but much harder to restore it.
It goes without saying that we produce construction materials. Last year we commissioned a large plant producing construction blocks. It supplies its products both to the republic and other Russian regions. Large investment in the woodworking sector is also connected with construction. We produce millwork that is used both in the republic and beyond it. Our goal is to preserve jobs and to maintain the potential we have accumulated. The government is considering several options and investment programmes. Our construction projects are designed for the people’s benefit and include sports facilities, stadiums, galleries, theatres, schools and hospitals.
Vladimir Putin: Now that you mention schools and hospitals, has your healthcare modernisation programme been approved?
Leonid Markelov: Yes, it has.
Vladimir Putin: How much will you receive?
Leonid Markelov: About 700 million roubles in 2011 and approximately as much in 2012. We are co-financing the programme. We understand that getting money and spending it will not do, that we should provide considerable co-financing from the regional budget. For example, I would like to ask you about the construction of socially important projects because we have found the money for it. We now have at least 50% of the necessary funds. I think that we will invest in healthcare modernisation under a co-financing programme at least as much as the federal government will provide.
Vladimir Putin: You will need to do approximately the same regarding schools.
Leonid Markelov: We are ready to do it. Mr Putin, this year we will commission a unique project for which the federal budget allocated about 300 million roubles: a presidential school for gifted children. It will be a beautiful building with a floor space of 17,000 square metres. Half of the funds will come from the federal budget and the rest from the republican budget.
As for the construction of schools, we have a 10-year programme. We are aware of our weaknesses, our prospects and the challenges we must address. We build a new school every year, and some years even two or three schools. Unfortunately, the crisis has dealt us a heavy blow, and our main task was to survive and preserve what we had.
Incidentally, our industries decreased by only 1.7% during the crisis year. This means that we have preserved our industrial potential. The growth was 16% last year and about 8% since the beginning of this year. Our key objective now is the real economy sector, which is posting profits. We must develop it, or else we will not increase our profits and will be only marking time, whereas our goal is to ensure an annual inflow of investment. We recovered from the crisis last year and reported a 25% growth compared to the previous year. This year investment has grown by about 12%. All of these funds are channelled into the real economy sector, including machine tools, new technology, and the construction of new plants and, of course, social projects.
Vladimir Putin: And, of course, you should monitor wages in this sector.
Leonid Markelov: Mr Putin, wages in that sector have grown by 12%. Yes, there were years when wages grew by 40%, but today we must find a balance between encouraging the growth of wages and keeping the goose that lays the golden eggs alive.
Vladimir Putin: I agree that wages should grow at least as fast as labour effectiveness, which you should also monitor.
Leonid Markelov: We are doing this. Our labour effectiveness is now about 202 roubles per capita. But some enterprises have as much as one million roubles, and not thanks to hydrocarbons but because they use new technology, brain power and science-intensive methods. Everything depends on people. When you can do something to push things forward, start a business or a programme… We say that Russia is a rich country…
Vladimir Putin: You don’t need to push things, you must do everything properly.
Leonid Markelov: I was referring to positive activities, like start a business and take out a loan. You have mentioned a pig farm; I have recently considered that project. Interestingly, nearly all property is acquired on loans, which entails risk. Of course, everything has been calculated according to a business plan, but this is huge responsibility, as you need to create jobs and pay wages. When you build a new farm you have to pay a property tax and when you buy equipment you need it not simply to work but also to produce goods, which you must sell. But people are what matters most. If we only had many enterprising people …
Vladimir Putin: We have many such people. What they need from us is assistance.
