Transcript of the beginning of the meeting:
Vladimir Putin: Good afternoon, colleagues,
Today is International Children's Day. The Ministry of Healthcare and Social Development has been implementing a complex of measures to render assistance to children in need, including providing hi-tech medical aid. What initiatives have you been working on?
Tatyana Golikova: Thank you for starting today's meeting with International Children's Day. Today is a truly remarkable day, which creates an opportunity for adults to focus on children's problems, the need to care for children's health and education.
I would like to say that the key objectives of the national Healthcare project and the national Education project are aimed at supporting children. I would like to say a few words about the national Healthcare project.
We have been promoting the maternity certificate programme. We discussed it at the previous meeting, and I would like to say that in 2008 1,420,000 children were examined for hereditary diseases, with 290,000 children examined in the 1st quarter of 2009.
Like in 2008, in the 1st quarter of 2009, children were examined for hearing disorders in the framework of the national Healthcare project. It is the first time that 500 cochlear implantation operations will be carried out in 2009 for children with hearing disorders. Carried out within the first two years of life, these operations allow maintaining health and guarantee against disability for a long time ahead.
Vladimir Putin: What kind of implantation is it?
Tatyana Golikova: A device which restores a child's hearing is implanted. The child does not become deaf. These operations are crucial; we even discussed this issue with Alexei Kudrin. If we have to choose certain areas to support, those that lead to a child's complete recovery must have priority.
Another important issue is regular health checkups for children living in difficult conditions. As a rule, these children are in state education, healthcare, and social protection services. We initiated regular health checkups for children last year, and have already examined 333,000 children. Those who were found to have health problems were registered with health services.
From 2005, when the national project was launched, until 2008, the number of operations for children carried out with hi-tech equipment increased from 23,000 to 38,000. 41,000 such operations are planned for 2009.
On Friday I visited the Republican Children's Clinical Hospital, where children receive high-level medical aid. The most needed hi-tech operation at present is maxillofacial surgery. I have to say that Russian doctors do the impossible to return practically disabled children to normal life, and allowing people whose children received traumas during birth to feel the happiness of being parents.
Birth indices within the first four months of 2009 have already been calculated. 564,662 babies were born alive within this period, which is 17,547 or 103.2% more than in the same period last year.
Speaking about child mortality within this period, I should note the same positive trend - this index amounted to 8.1 per thousand live births, totaling 87.1% of last year's index, which stood at 9.3.
As per your directive, in the near future we will submit for signing a draft resolution that is now undergoing the final coordination with federal bodies. This resolution suggests allocating 12,000 roubles from the maternity capital to support families. Also, I would like to remind you that starting from 2010 we will change the order of issuing pregnancy and childbirth benefits. The pregnancy and childbirth benefit ceiling will be limited by the size of insurance contributions which a person will make to the mandatory social insurance system. In nominal terms it means that the size of pregnancy and childbirth benefits will practically double in comparison with the current volume.
Vladimir Putin: Good. Is the children's oncohematology centre being built in Moscow?
Tatyana Golikova: Yes, it is in close proximity to the Republican Children's Clinical Hospital. The construction is going very quickly.
There are a few issues to address with regard to this matter. Initially, when we planned this project, we were going to launch it in 2011. But after you visited the centre, met with the German builders and designers that participate in this project, and said that the centre must be opened on June 1, 2011, it became necessary to shift a part of allocations on 2010. We will prepare a corresponding letter to justify this.
The centre's staff is almost ready with calculations featuring the personnel to be trained abroad and the number of employees to be hired to ensure the continuity of work of the old centre and of the new one. We are going to report to you on all these issues in the near future.
Vladimir Putin: Fine. Please complete this in due course.
Last week, we endorsed the rules and regulations for granting federal budget loans to the regions. Could you please comment on this, Mr Kudrin?
Alexei Kudrin: Mr Putin, you signed an executive order endorsing the rules and regulations for granting these loans to the regions. This is one of our key anti-crisis measures to support the regions which will have smaller budgets this year.
This year, loans will total 150 billion roubles. For the first time, they will be allotted not for covering cash deficiency during the fiscal year but for three years. The rate will be the lowest ever - one quarter of the Central Bank's refinancing rate. This is about 3%.
In this way, the regions will manage to balance out their budgets, and avoid reducing their expenses, primarily, on the construction, repairs and maintenance of roads, and the building of schools and hospitals. Furthermore, they can use this money to refinance bank loans, which are granted at a very high interest rate.
Tomorrow, we will conduct a meeting of the trilateral commission with the Federation Council and State Duma deputies. The commission reviews the principles for granting loans, and settlements, thereby helping us to reach a consensus on the directions and amount of financial aid to the regions. The issue of loans will start immediately after this is done.
Vladimir Putin: Good. Mr Ivanov, the reconstruction of a runway in Yekaterinburg has been completed, yes?
Sergei Ivanov: Yes, Mr Putin. A new three km-long runway, and importantly, an air traffic control tower are being commissioned after a cardinal reconstruction at Yekaterinburg's Koltsovo Airport.
This work is carried out strictly under the Federal Targeted Programme for the Modernization of Russia's Transportation Strategy. The financing of this project has not been reduced. It has been funded in full. This year, we spent 970 million roubles to complete the first stage of this project alone.
Thus, we now have a considerably long runway in Yekaterinburg. Private investors have built a good terminal. A new air traffic control tower has started working today. Fitted out with the latest equipment, this is one-of-a-kind in Russia. This tower provides comprehensive air navigation, lighting and weather forecast services, while controlling the operation of the entire airport. We are planning to complete a similar project at Novosibirsk's Tolmachyovo Airport, and start fundamental modernization work at Vladivostok Airport.
Much has been done at St. Petersburg's Pulkovo Airport; Moscow's Sheremetyevo and Vnukovo airports are currently being upgraded. Thus, moving gradually from the West to the East, we are substantially improving our hubs, that is our major terminals.
A total of 2,400,000 passengers fly to and from Yekaterinburg per year. This is indeed heavy traffic. We are creating comfortable and safe conditions for the passengers.
Vladimir Putin: Very good, Mr Ivanov. I have talked with the heads of some companies of the defence industrial complex, and with a number of governors. It takes the Defence Ministry a considerable amount of time to conclude the relevant contracts. Mr Makarov (Chief of the General Staff), could you explain the reason for this? Why is everything so slow?
Nikolai Makarov: For two reasons. First, our budget was finalized late, in April. We were able to announce a tender only from May 7 to 12. We are not at fault here. We are trying to examine why this happened with the departments concerned. I believe that from June 10 to 15, and the 20th at the latest, we will redress this situation.
Vladimir Putin: Mr Makarov, I would like to ask you, and please inform the Minister - he is elsewhere today on another engagement, that this work must be expedited. The companies involved have started experiencing problems, without a reason. There are enough funds. Please ensure that this is completed promptly.
Sergei Ivanov: The Defence Ministry has funded state defence contracts by 43% of the annual amount. I have verified these figures. I receive reports every day.
Vladimir Putin: I don't know what they have paid for in terms of per cent. Directors are telling me that the money is not coming. Work on the contracts is slow. This is a fact.
Mr Khristenko, it took us two months to execute the Government's executive order on starting the funding of AVTOVAZ projects. It was signed last week. First of all, why does this take so much time? And, second, what should be done for these projects to be launched? We have agreed that the funds will be granted for the programmes to develop and modernize production. We discussed this separately with the Ministry of Economic Development, and I remember that the Ministry promised to establish control over this process. The company has adopted a relevant plan. Now how is all of this going to work?
Viktor Khristenko: Thank you, Mr Putin. Why so long? To a certain extent, the very decision to support one of the companies, on which the Russian Federation has a direct bearing - both through Russian Technologies and as a co-owner - is unprecedented.
On the other hand, amendments had to be made into the federal budget, and in some cases it takes two months to complete them for financial and legal reasons.
I hope now that the executive order, which put us in charge of these funds, has been issued, we, the Ministry of Industry and Trade, will be able to transfer them to Russian Technologies after we receive them from the Finance Ministry.
In accordance with the decisions made in Togliatti, this will be Russia's asset contribution to the Russian Technologies State Corporation, which will grant an interest-free loan to AVTOVAZ. This line of action was chosen based on the analysis of the situation in the company. This will help eliminate the current financial bottlenecks, and primarily streamline relations with creditors and suppliers.
Second, this will create opportunities for new agreements on loans with banks, which you have mentioned, for the programme of AVTOVAZ's development, without which this company is not likely to overcome its general crisis in the next two to three years.
This programme is scheduled for three years. About 85 billion roubles will be spent on its implementation. It facilitates the development of new models, both independently and in cooperation with strategic partners, and spare parts.
AVTOVAZ experts are now putting the finishing touches to this programme in contact with specialists of our Ministry and the Ministry of Economic Development. As I have already said, I hope that Russian Technologies, and hence AVTOVAZ, will soon receive 25 billion roubles.
Vladimir Putin: Mr Kudrin, are there any problems? When will the money be transferred?
Alexei Kudrin: The money can be made available any minute.
Vladimir Putin: When? The resolution has been signed.
Alexei Kudrin: Mr Putin, I will make sure the Treasury's plan is carried out. That means that as soon as the Resolution is signed, and the Ministry presents the relevant documents, then that same day, immediately...
Vladimir Putin: So let us agree that it will definitely go ahead this week. Agreed.
Let us turn to the agenda. One of the issues on our agenda is the development strategy for the consumer industry, which has been prepared by the Ministry of Trade and Industry.
Today the situation in this sector is not simple. Although during the reform years the sector had to undergo a painful process of restructuring and the winding-up of outdated and inefficient capacities. They did this nearly singlehandedly, while facing tough and often unscrupulous competition from imports, also frequently while fighting smuggling.
Nonetheless, today the consumer industry comprises a healthy core of several dozen major enterprises and hundreds of small and medium sized companies, which have found their market niche, developing their production of goods for which there is a demand, including for children and young people.
The state support measures introduced in 2006 have also played their part. The most important of these was the cancellation of import duty on the import of technological components, as well as interest rate subsidies on loans for the purchase of raw materials, technical upgrades, and the manufacture goods for export.
I would like to remind you that 561 million roubles were allocated in state subsidies during 2006-2008, including 450 million roubles subsidising interest rates on loans, 55 million roubles on the stimulation of export, and 52 million roubles for research and development. Technical equipment worth a total of $500 million was imported in that time.
And despite the difficult situation with budget revenues, state support programmes will continue to be implemented in 2009. 200 million roubles have been set aside for interest rate subsidy on loans for the purchase of raw materials, and 90 million roubles for loans for technological upgrades.
So, when considering the future development of the consumer industry, we must give ourselves real, achievable aims, carefully weighing up our options, and not knowingly making promises that we cannot fulfil.
I will now identify what I consider to be two key problems.
The first is the struggle against illegal imports, a problem I mentioned earlier, and black market production. To this day counterfeit production occupies 40% of the market. Here I am also including smuggled goods.
Here I will add that "underground workshops" themselves are serious obstacles to the development of civilised entrepreneurship. They breach the labour rights of the people who work there, and they involve illegal migration, as well as crimes against intellectual property. Finally, they mean large-scale tax avoidance and the serious grounds for corruption that come with that.
Of course you may recall that just several years ago smuggled goods occupied 70% of the market. So in a way there has been positive change, but it is happening intolerably slowly. That is why I think it is vital that we strengthen the struggle against smuggling and illegal production, and that we soon see a fundamental improvement of the situation.
Smuggling is a separate subject, and the struggle is ongoing, but there have so far been few results. And results in this instance mean a prison sentence. But where do we see that? All we have seen is a lot of talk.
I remember that several years ago I practically busted all the customs heads. And so what? These systems are working now just as they were then. And there are still goods worth more than $2 billion at one of those markets there. They have still not been eradicated, even though they have no bosses.
Mr Nuragliev, the FSB and your agency need to be more active, and so does the Prosecutor's Office.
Secondly it's vital to implement several major investment projects in the sector, modernise consumer industry enterprises with the latest technology, which will allow a significant increase in production quality and will also gradually enable domestically produced goods to regain their prestige in the eyes of consumers in this country and abroad.
If company owners can put forward well thought out, well grounded business plans, they could access funding from banks, and from the state, through the Development Bank or the Rosselkhozbank.
The next important point on our agenda today is the draft law on priority access to gas transportation systems for those who produce associated petroleum gas.
Oil and gas producing companies have indicated several times that without guaranteed access to pipelines they will not be able to foster the rational use of transit gas. I think that such a guarantee will appear. But that means that in the near future, let us say by 2012, we must realise our plans for the amount of gas burnt in flares not to exceed 5%.
Today we are also considering international agreements. In particular, Russia joining the Convention Concerning International Carriage of Goods by Rail (COTIF). This step will create the conditions for expanding the railway ferry service link between the Russian ports of Baltiysk and Ust-Luga and the German port Sassnitz-Mukran, and in future ports in other European countries. Russian transporters will be able to independently configure their railway routes to the Baltic.
As a result we hope to see the competitive position of our railways strengthen, as their transit potential is raised.
It is enough to say that the volume of goods carried on the Ust-Luga-Baltiysk-Mukran line should soon more than double as a result of this convention being implemented.
In particular, I also single out the ratification of the agreement on combating terrorism under the framework of the Shanghai Cooperation Organisation. These documents set out the mechanism of carrying out joint anti-terror training and the protection of secret information
I stress that today we are already seeing the real returns from the cooperation of countries in the SCO in this area and we are ready to consistently increase the efficiency of our joint efforts fighting terrorism in any of its manifestations.
Let us get down to work. Mr Kudrin, you have the floor.