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
“The financial distress followed by a broader economic crisis is a serious trial for the global oil and gas industry. Oil prices plummeted to a quarter of the summer level August through November. This naturally affected the gas market, as gas prices are linked with oil. However, since the gas market is more inert, it is bound to be more severely hit by the crisis than even the oil sector, and may require more time to regain pre-crisis operation levels.”
“Russia will see a 6% GDP growth by the end of this year, even despite the problems. People's real incomes will have grown by around 7%; the growth in January-October was 7.6%. Eleven-month inflation was 12.5% and is expected to hit 13.5% in 2008. We have also seen an economic slowdown in the past few months.”
“The declining global prices of oil, metals and other commodities Russia traditionally exports, may still lead us to a negative foreign trade balance. This is a factor of pressure on the national currency. Nevertheless, we are determined to do our best to prevent sharp fluctuations of the rouble. Russia has sufficient reserves for that.”
“On the upside, industrial production will show some overall growth by the end of this year: it went up 4.9% in January through October (0.6% in October alone). Yet, as I have said, a number of sectors are currently forced to slash production to reduce costs. Our metals and chemical industries, building materials production and engineering were hit the hardest because they depend heavily either on exports or on investor demand.”
“When oil prices were high, we took most of oil companies' windfall profits away from them and into the budget - through export and customs duties and taxes, as much as 80% and sometimes even 90%. It was thanks to these revenues that we formed most of the country's gold and hard currency reserves, which today, as I said earlier, are the third largest in the world - $450 billion. They are our "safety cushion" and allow us to make things easier during the crisis for millions of people.”
“What is particularly important for us is the results of our efforts in the social sphere. The increase in take-home wages will be approximately 12.6% and pensions slightly more than 12% - 25% in nominal figures. Industrial production growth will be nearly 5% (4.8%).”
“We have problems with inflation. The target figure was slightly above 12%, but annual inflation is likely to be 13%, because of the global crisis and because the Central Bank and the Finance Ministry had to inject a huge amount of liquidity into the economy.”
“On the whole, our economic results in 2008 are positive even despite the negative effects of the global financial crisis. Let me just remind you of the figures. The economic growth target was above 7%, or more precisely 7.5%. The annual growth rate will be around 7%, possibly 6.8% or 6.9%. This is good.”
"We will not allow leaps in the economy and sudden changes in the exchange rate of the national currency. To secure the interests of both the citizens and the economy we will, if necessary - and we have done so before - we will carefully use the gold and currency reserves and the other funds at the Government's disposal."
"At the same time, we should proceed with the conviction that Russian money-both corporate and government money-should work within the Russian economy. Everyone involved-whether in mining, steel or machine production-should consider the current situation when formulating cost parameters, and should not forget imports as an alternative."
"I would like to remind you that the new law sets out a new order for placing foreign investment in the strategic branches of the national economy. However, they are not closed to foreign investors. Quite the contrary, we are developing transparent and clear procedures for them. Legal approval has been given to a list of spheres in which to gain control over enterprises foreign investors will have to receive permission from the Government Commission."
"Let me focus on the sources of financing real economy. They must be multi-faceted. We should not use budget funds only. Otherwise, it will result in aggravating corruption and non-efficient spending. We need to use budget funds to finance infrastructure, science, education, healthcare and the pension system, and we speak about that openly. These are our so-called federal mandates, our commitments to the nation. These real economy spheres are our priorities."
"The main guarantee is a competitive and stable national economy, market institutions, effective government control mechanisms - wherever justified and necessary - and an up-to-date system of credit and finance, one which rests chiefly on internal resources and so is immune to global financial viruses."
"You know, over the past few years the Government has been trying to keep the prices down, by administrative methods, and in most cases we were successful. Unfortunately there is some increase in prices, which is rather substantial. I will not give you figures. But largely it is connected with the growing world market prices. We cannot shut our market from the rest of the world."
"As for land ownership rights. How can we solve the problem of unit funds, and what can we do with them? Can we serve the interests of people, our citizens? Can we live up to their hopes and at the same time create conditions for effective development of agriculture, both small and medium-sized farms and large producers? This calls for collective discussions and decisions based on current practice, modern realities and development prospects."
"Despite our modest record in addressing social problems we still see rising incomes. Real incomes grew by over 7% in the first six months and real wages by almost 13% (12.7%-12.8%)".
"Russia is developing at a rapid pace. In 2003 I said that doubling our gross domestic product was our medium-term goal. And we are moving towards that goal: the goal will be achieved in late 2009 or, according to some other estimates, in the first quarter of 2010".
"We observed some outflow of foreign capital from our economy even before the events in the Caucasus. This is not connected with the problems of the Russian economy but with the problems of the Western economy and insufficient liquidity on the Western financial markets. The money that came into our economy from the West has been taken off. This is true not only of the Russian market, but of many other developing markets where the same processes have been taking place".
"We are facing a unique situation when building and engineering work in Russia costs several times more than the same work in neighbouring European countries. And yet on many counts this work is cheaper in Russia. I am not just talking about the cost of labour, but energy, land, even water and other resources are also much cheaper here. But on balance it turns out to be more expensive. Why is that? Legally, everything is in order. The reason is outdated regulations going back to the 1950s and 1960s applied to what appear to be natural and simple instruments. But at the end of the day it is a mess. We have to put an end to it".
"The adoption of technical regulations is an important instrument in enhancing the competitiveness of the domestic industry. Early steps in that direction are being taken. Let us face it, they are still very timid, but we must go down that road".
