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
“As I have already said today, the general performance of the Russian agricultural sector has been high and even shows a better ability to withstand the global economic crisis than some of the other sectors. Support of agriculture is undoubtedly one of our priorities. The funding of that sector has increased significantly in recent years. We have substantially increased the capital of Rosselkhozbank and Rosagroleasing. The decision to raise to 80% the level of subsidies for part of the cost of interest on loans, including loans taken out to buy fuel and fertiliser, went a long way to help agriculture.”
“Of July 1 fuel and lubricants will be sold to farmers at a 10% discount on the wholesale price. I ask the Ministry of Energy to report on how that agreement is being fulfilled and how the declared quotas of fuel and lubricants are being used.”
“The Government is doing a lot of work to regulate the grain market in order to stimulate production. The mechanism of grain intervention is being used actively. In all, 8 million tons of the 2008 harvest have been procured at the cost of 38.6 billion roubles. That has kept prices at an economically valid level and prevented a fall in farmers' incomes.”
“The gross yield of grain is expected to be around 85 million tons, which will more than cover our domestic needs and will enable us to continue grain exports. The export potential of around 20 million tons will remain through the current and the next years. The Agriculture Ministry says its will be even bigger, 22 to 23 million tons.”
"We must develop our own agriculture. This is why we are now investing most money, even in these crisis conditions, in farming, of all sectors of the economy. To begin with, we subsidise up to 80% of the interest rate for farms to implement their investment plans, which are very large-scale. We now see large firms and big livestock breeding centres springing up. There is nothing in Europe to compare with them: they are larger, more modern, well-equipped and computerised throughout. And we seek to help the farms realise all these plans."
“It is necessary to regulate the grain market. For that, the Agriculture Ministry should greatly increase the effect of purchasing interventions. With that end in view, we have agreed to increase the authorised capital of Rosselkhozbank once again-by 45 billion roubles this time, after this year's recent 35 billion roubles. The money will expand grain purchasing interventions and so help farmers with sales and improve their financial standing.”
“We need to retain the volume and terms of agricultural crediting. As I have said, this will promote cattle breeding, dairy production and other essential projects, and guarantee spring sowing. Agriculture needs roughly 400 billion roubles worth of loans-half of them short-term, and the other half long-term, up to 850 billion grand total. It will take 72.3 billion roubles to finish livestock unit construction. That, too, demands Government support.”
“We have determined to subsidise agricultural loans, or farm production will drop. The matter came under detailed discussion yesterday, too. As you know, subsidies presently cover two thirds of interest. The Central Bank has increased its refinancing rate, so commercial bankers are also sending rates up. The entire national economy is under that burden, and it should be distributed between all branches more or less evenly. Still, we should make agriculture an exception, as in previous years, to ease pressure on it. We have agreed to subsidise 80% of agricultural credit refinancing.”
“The decision on new poultry, meat and pork quotas mentioned today has been signed. Our talks with foreign suppliers took six months and were very difficult. We have come to an agreement at last. Extra-quota meat import tariffs will rise substantially, while poultry meat quotas will be reduced by 300,000 tonnes, etc. The figure corresponds with annual Russian production increase. That is what we will focus on. We must guarantee that increase-it is crucial.”
“New farm leasing terms are entering into force. They have been extended from 10 to 15 years, and advance payments of up to 7% of leased equipment cost have been abolished. Now, the first instalment should be made 12 months after equipment is received.”
“I think in this difficult situation we should support Russian farm equipment producers (with an emphasis on equipment actually manufactured in Russia) by increasing new and second-hand farm machine import duties.<…> I think we should agree with manufacturers and establish combine harvester import duties at 15% but no less than 120 Euros per cubic centimetre of the engine displacement.”
“Steps should be made at the regional level to promote Russian agricultural equipment sales. First of all, manufacturers should meet clients halfway - don't forget this! You should reduce the sale price of commodities standing idle in stores. What matters most now is to keep the sales market afloat and to revive working assets to continue production.”
“We would continue subsidising interest on industrial modernisation loans. We have said this. A billion roubles will be allocated to the Industry Ministry next year. I think it is possible to earmark 300-500 million roubles for farm equipment production.”
“We will go on subsidising loan interest for agriculture. Subsidies will reach two thirds of the whole, as you know. The 2009 budget earmarks more than 30 billion roubles for this purpose.”
“I think we should spend budget allocations in agriculture on purchasing Russian-manufactured machinery. This has been discussed today, and I stress once again that we will do so. Importantly, 70% of machinery purchases, including imports, have been made on soft credit with two thirds of the interest subsidised. Soft credit should be available only for domestically produced equipment. I insist on this.”
“There is an opportunity to extend farm machine modernisation programmes, in particular, by promoting the leasing market. I think we can afford to add 25 billion roubles to Rosagroleasing authorised capital. A relevant decision has been made. I expect it to stimulate sales of the produced machinery, and I insist on urgent equipment deliveries to clients.”
“As for Rosselkhozbank, we have added 30 billion roubles to its capitalisation, and you have received 25 billion roubles in junior loans. We can also discuss opportunities for collateral capitalisation. We should see how you are doing and what assistance industry is getting from you. I know Rosselkhozbank copes with its responsibilities. However, it remains in obscurity as you mentioned. Sberbank is issuing loans at 14% interest - high but passable for today - while Rosselkhozbank has not done anything yet. Work harder! If you improve, we will think about extra allocations for you.“
“Support of essential industries is one of the Government's main duties today. Agricultural machinery production is one example.”
“It must be said that this year we have nearly doubled allocations under different agricultural assistance programmes.”
“As for agriculture, it posted record-high growth over the past few years, 8.8%. We have gathered in a record-large harvest, including over 100 million metric tons of grain, which is the highest in many years.”
“First, we are trying to limit red meat, namely, pork, beef, and even poultry, imports. We cannot stop such imports or bring them down to critical levels because, frankly speaking, our agricultural sector is still unable to fully meet the demand of large cities. We must heed the interests of agricultural producers and consumers, especially those in large cities, so that our actions in the customs-tariffs sphere do not cause sharp and unjustified food price hikes.”
“I can tell you that we have allocated over 30 billion roubles, I think it is 34 billion roubles, to the Agriculture Ministry from the budget for this purpose. We have purchased 2.5 million tonnes of grain at a price that is above the market price, at 5,000 roubles, and at 6,000 roubles in the Urals and Siberia. I repeat, we have purchased 2.5 million and the Ministry is now buying 5,000 tonnes per week. We will keep up the pace until we use up all of the allocations.”
“The implementation of the programme for the support of the agro-industrial sector, which we developed several years ago, has allowed livestock breeding to make substantial progress. Big producers, and major complexes have appeared, the like of which we did not have in the Soviet Union. Some of them match their world's best counterparts in characteristics and scale, and in some cases, they are the best in Europe and the rest of the world. As for dairy processing, the enterprise where we are right now is certainly an example of such a leader.”
“You know that new regulations on milk will become effective this December. They will define in no uncertain terms what product can be considered "milk", and the consumers will know about this. This product will be made of natural milk. The product made from milk powder will be called a "milk beverage.”
“We are going to make credit more accessible to the agro-industrial sector. Needless to say, the loan servicing should not become an excessive burden. Therefore, on some credit, the interest rates will be fully refinanced by the state. A sum of 3.5 billion roubles has been earmarked for this purpose. In addition, major projects in the agro-industrial sector may be credited by the Bank of Development. We have made this decision. The charter capital of Rosagroleasing (State Agro-Industrial Leasing Company) has been replenished with four billion roubles.”
“I am convinced that the agriculture can grow stronger and become more competitive during the global crisis, and occupy more niches in both domestic and international markets. By the way, we should help our agricultural producers sell their record grain harvest, thereby creating a solid financial base for their future development.”
"In mid-2008, we decided to allocate another 50 billion roubles for the sector, including 30 billion roubles for the Agricultural Bank's statutory capital and 20 billion roubles to support farmers and implement various programmes involved with beef and dairy cattle-breeding, poultry-farming and fertiliser production".
"It is important to attentively look at the programmes for the development of agriculture and milk programmes, and to find ways of preserving grain growth rates. We have every opportunity for doing so. We have big and ambitious goals. They are stated on paper, and their funding is guaranteed. It is necessary to provide this funding in time."
"We should also learn to be flexible in adjusting the plans and programmes that we have already adopted. Unfortunately, such a need arises when external conditions change. The Agriculture Programme is an example in point. When it was developed the prices of oil, fertiliser and other resources were at a certain level. Today the situation is entirely different. The programme needs to be adapted to the new realities".
"You know that a sharp rise in prices on the world food markets has had a serious effect on the situation in this country. It hit senior citizens, large families, and other vulnerable strata of the population, i.e. those for whom food takes up the biggest part of their family budgets. Our key objectives are: to ensure the sustainable development of rural areas, to improve the quality of life in the countryside, and secure a substantive increase in the efficiency of the agro-industrial sector and competiveness of Russian-made products. In other words, we must protect ourselves against sharp fluctuations in world markets. In doing so, our policy must guarantee our people affordable and stable food prices. At the same time we have to create incentives for the promotion of effective farming".
"Soaring food prices in the world market since the middle of last year have had a real impact on our domestic market and have affected the well being of Russian citizens. We must say that honestly; we must admit it. So, a key economic, social and political task is to ensure a stable domestic food market by protecting it against dramatic price fluctuations in the world. These are the priorities the Government will address".
