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
“We see the business community and entrepreneurs as our partners. Changing the country is our common objective. We expect close and open cooperation with all those who want to do honest business in Russia, and we are ready to help you. We want you to be successful. We need your experience and your understanding of the real problems in this country. I strongly believe that we must engage more representatives of mid-sized businesses to work in executive and legislative bodies.”
“One of the key problems for medium-sized business is the availability of qualified personnel. I believe that entrepreneurs should become actively involved in working to develop professional and educational standards in our country, and they should do so in close contact with educational institutions and regional and municipal authorities.”
“We must create conditions in which success in business can be achieved not just by people who possess greater administrative resources or more personal connections, but by those who produce quality products that meet international standards and are truly the best in the market. We need a more effective anti-monopoly policy and we must remain committed to creating a truly competitive environment.”
“First of all, penalties for electricity underuse are now to be scrapped. This issue is a particularly sensitive one to small and medium-sized businesses, as well as to agrarian enterprises. It is from them that we most often hear legitimate complaints about the take-or-pay principle. It wouldn’t be an overstatement to say that this principle has been holding back entrepreneurial activity in electrical engineering and other industries while also bringing undeservedly high proceeds to distribution companies. This issue has now been resolved, and consumers will not have to pay for electricity that they don’t use. Small and medium-sized businesses will be given an opportunity to build their work, including in electricity consumption, on a long-term basis and without having to bear the burden of additional costs.”
“The VEB must continue to develop programmes of support for small and medium-sized businesses, which has been a strategic priority for the bank. There will now be a special emphasis placed on supporting companies that operate in non-trade sectors, on financing innovative projects related to the creation of new production lines, quality merchandise and technology.”
“The Export Insurance Agency will soon be launched in order to support the ambitions of small and medium-sized businesses that want to enter foreign markets. We expect to have more than $14 billion worth of export loans insured from 2012-2014. We will primarily provide support to domestic high-tech products that, I'm sure, are capable of competing in the world market.”
"We should focus <…> on interactions between the state and business. I am talking about state guarantees. This instrument is all about the commitment of the government and of the country, and it is an important factor for attracting funds to major infrastructure, high-tech and export-oriented projects".
“We should join our efforts and help people in rural areas expand their operations and stand firm on their feet, so that they don’t have to sell their products under the table but instead have direct access to farmers’ markets and can work in a civil manner. This goes beyond agriculture and also applies to non-farming businesses, such as services, motor transportation, manufacturing of building materials, and the recreation and tourism industry.”
“We will also help rural entrepreneurs. Next year, we plan to launch a special federal programme for new farmers. Anyone willing to start a business in rural areas will be issued a government grant, a soft investment loan and a one-time settling-in allowance. In addition to that, we will expand the programme for family-run dairy farms.”
“I want to stress this again – the development of small and medium-sized businesses has an undeniably tremendous significance for the country. This means new jobs and improving the efficiency and sustainability of the national economy and, ultimately, the well-being of millions of people, to build a strong middle class.”
“Russia currently has more than 200,000 farm holdings and small agricultural businesses, and individual farmers account for up to 50% of Russia’s agricultural production. And we will continue supporting them and working to improve living standards in rural areas, to provide central gas supply, build homes, roads and infrastructure, and create conditions to attract young people.”
“We also plan to launch a project to support young farmers next year. We will be providing special grants for setting up farms using loan and leasing mechanisms, and will be helping farmers build durable and comfortable homes. Moreover, we will lift the ban on building housing on agricultural lands for farmers so that people can build themselves homes where they live and work.”
“Despite the budget deficit and post-crisis challenges, we provided benefits to small businesses engaged in the real economy, high technology, and the agricultural sector; residents of technological development zones; small enterprises operating under scientific centres and universities; and private entrepreneurs providing social services.”
“The share of small businesses in Russia’s agroindustrial sector is steadily rising. We now have more than 200,000 farm holdings and over 100,000 individual farmers. The production rate in rural small businesses is growing between three and four times faster than the industry average – I noted this when preparing for this meeting. <…> We have every reason to say that farming has established itself in Russia as a powerful economic and social entity, as a bulwark of the country, and as an important source of development for Russia and for reviving its rural communities and their rich traditions.”
“There has been no decline in entrepreneurial activity even during the crisis. On the contrary, the number of small and medium enterprises has increased by nearly 600,000 in the last two years. Higher education institutions and research centres alone have created almost 700 small companies in the high-tech industry. I repeat: We are well aware of the huge economic and social significance of small and medium-sized business in Russia. In fact, this is true of any country. We will provide the necessary assistance.”
“In 2009, we allowed the regions to introduce tax breaks for small businesses and drastically increased the range of companies that can use the simplified taxation system. We have also allowed many self-employed businesspeople to forgo the use of cash registers. This year there are plans to expand the use of the tax patent system and to allow small businesses to purchase the state and municipal property they are leasing…. Small and medium businesses also receive additional direct budgetary support each year. Ten billion roubles have already been allocated for this purpose in 2010. We also plan to add another six billion roubles from the Anti-Crisis Fund. I am confident that these measures are already yielding tangible results.”
“The crisis has not reduced business activity. On the contrary, the number of small- and medium-sized companies grew by 143,000, or 2.8% last year. In other words, people have not lost their can-do spirit. As before, they are ready to assume responsibility for their destinies. We must support them as much as we can. At the same time, it is still premature to speak about the full entrepreneurial freedom in this country. How can we talk about freedom if until recently we had 500 types of business activities that required a license, and 78% of goods sold in the country had to undergo mandatory certification? Now we have reduced the number of licensed activities to 74.”
"Last year we quadrupled financial support for small and medium-sized businesses. I would like to stress that we must continue this policy because, as the available data suggest, it has created about 200,000 new jobs. At the same time we are gradually passing into a new stage, that of post-crisis development. Here we should pay more attention to the structure of small and medium-sized businesses and extend support to high-tech enterprises."
"Small businesses will receive about 100 billion roubles in loans through VEB partner banks in 2010. I repeat, we discussed this topic recently: the mechanism has yet to be finalized, but we have the money and the opportunities to implement these large-scale plans of supporting small business. The opportunities for this are there. We still have to work out effective mechanisms that bring quick results. Small business must get about 80 billion roubles through the mechanism of guarantee funds. In supporting small business, preference should be given to productive and innovative companies. Let me add that in 2009 support for small businesses amounted to nearly 50 billion roubles, compared with 3.5 billion in 2008.
“More incentives should be given to people to start their own business. This year new businessmen are being paid a lump sum grant of 58,800 roubles. Incidentally, many have taken advantage of this measure, even though it is a bureaucratic and time consuming process. But still there have been those who benefitted from this opportunity.”
"The year's total federal allocations to promote business along many channels approach 80 billion roubles, including 15 billion roubles for the plough-back of regional guarantee funds to enhance the crediting of small and medium-size companies. We aim not merely to increase the quantitative indices of business development but to achieve a qualitative improvement, to help small and medium-size companies to extend the geography of their presence, and acquire a firm footing in such spheres as housing, utilities and municipal services, science, innovation, information technologies and other knowledge-based services."
"For small and medium-sized enterprises, the credit problem is to a great extent connected with the shortage of collateral. In order to find a solution to this problem we need to develop regional guarantee funds more actively. We have already set aside 3.5 billion roubles as part of the Federal Support Programme for entrepreneurship, to top up regional guarantee funds. I can tell you that we have decided to allocate 15 billion roubles in additional resources to these ends. In the final analysis, we need to build up a comprehensive system of financial support for businessmen, ranging from grants to bank loans."
"Another major package of issues concerns SMEs' access to state and municipal orders. It has a special significance in conditions of the crisis and decreasing loans. I think we should speed up the introduction of the procedure for the placement of state orders through electronic auctions. This will allow us to ensure the businesses' fully transparent and public access to trading."
"Yesterday I also signed a resolution on improving the process of connecting to the electricity networks. This sets out the simplified procedure and reduced tariffs for connection. Connections of less than 100 KW will only require the advance payment of 5% of the service cost, and also include the option of extending repayments for up to three years. I also suggest that the connection term should not exceed six months."
"The companies whose annual revenues do not exceed 30 million roubles may use a simplified system of taxation. Many proposals have been made to raise this ceiling. <...> We view this decision as an anti-crisis measure that will allow us to ease the tax burden on a considerable part of small businesses. As the saying goes, proper timing is everything. This is why we believe we can provide this effective assistance now, at this difficult time; at least, this is our standpoint and representatives of your associations agree with us. It is true that without indexation this measure will gradually lose its effectiveness. But we will consider this problem again some time later."
"The general logic of improving the taxation system should be aimed at preventing non-transparent schemes, preferences, and general mayhem, which are breeding corruption."
"We propose to lower the base for calculating the profit tax by excluding the funds provided to companies within the framework of regional and municipal SME support programmes. For example, if you receive a grant of 300,000 roubles, it will be deducted from the taxable base, provided the money comes from corresponding budgets."
"I am convinced that the contribution of SMEs to Russia's development, to the diversification and modernisation of its economy will grow in the long run. They will become more prominent not only in the traditional spheres of their operation, but also in high-tech spheres such as engineering, science and telecommunications. To preserve and develop this creative potential, we should create the utmost favourable and comfortable environment for enterprise. This approach has been laid down in the Government's anti-crisis plan and long-term strategy until 2012."
"Assistance to the economic sectors. We have not come up with anything unusual in this sphere; we are doing the same other countries are doing. To begin with, we are reducing the tax burden on the economy. We have cut the profit and small business tax and have taken several other measures. Company directors know that they imply an increase of bonuses depreciation, etc., to 30%. This keeps the money in the economy, allowing enterprises to survive and develop. We are cutting the customs port duties, which our partners have shown criticism towards. We are raising customs import duties on the goods that are also produced here to ensure their sale on the domestic market."
“We have passed a bill to entitle regions to the right of reducing the taxation of small and medium-sized businesses from 15% to 5%. We have established funds for the support of such businesses. They function either through banks as they receive federal finances or through regional agencies. We will support small and medium-sized businesses in every economic branch on our priority list, farming being no exception.”
“Electrical access problems and high charges are among the worst predicaments of small and medium-sized enterprise. We intend to make 550 roubles the ceiling charge for plugging in small (up to 15 kilowatts) projects. As for 15-100 kilowatt projects, they will be entitled to three year-instalment payments.”
“We have taken a decision allowing the regions to adopt a simplified procedure and to reduce small-business taxes from 15% to 5%; regional funds for support of small businesses and micro-crediting funds that issue loans of between 200,000 roubles and one million roubles will continue to operate.”
“I will say that the Government is preparing a series of moves, which are as follows: first, we will substantially increase federal budget support, raising it to 10.5 billion roubles; then, additional funds will be allocated by Vneshekonombank - 30 billion roubles; we will also preserve all former types of support for small and mid-sized businesses.”
"The Government is now working on a package of legislative acts to simplify access for small businesses to electric power grids. The idea is to fix a lower connection tariff for small facilities and introduce an instalment payment plan. We also need to organise a control system over grid companies to make sure they observe all the established connection rules."
"Wherever advisable, businesses should be allowed to buy out the properties they hold on the most beneficial terms possible. For example, payments should be spread out over a period of at least three years. Secondly, small and medium-sized businesses should gain real access to municipal and regional orders. I am talking here about businesses that are run efficiently, not the ones that have the protection of local officials."
“Polls show that large numbers of people, especially among young people, seek to try their hand at creating their own businesses. In the ultimate analysis, it is such energetic and purposeful people that must form the core of a large middle class in this country. And the state's task is to help them realise their potential, build a reliable future for their families, and create new jobs.”
"In 2009, the federal budget will allocate considerable resources in support of small businesses - 10.5 billion roubles. A further 30 billion roubles will be channelled through the Development Bank. I want to stress: control over the purposeful and effective use of these funds will be extremely strict."
"It is necessary to develop the microfinancing. We should take advantage of this groundwork. We agreed to try our best to make municipal orders and local tenders, even those held at the federal level, accessible to SMEs."
“We should invite small and medium-sized businesses to bid on state and municipal contracts, assist with office space and utilities, remove administrative barriers, including access to the local markets.”
“We need an active policy on the labour market. We need to plan measures to preserve and create new jobs and also allocate significant sums for retraining programmes and temporary employment. One of the more efficient ways to solve this problem is to support the development of small business, which can adapt more quickly to the changing economy and create new jobs with little capital.”
“This year, we plan to increase financial help for small businesses. The Bank of Development will allocate 30 billion roubles, which is 21 billion more than was previously planned. The federal budget will offer another 10.5 billion, that is additionally 6.5 billion roubles. This money will subsidise credit, interest rates, government guarantees, the development of small business infrastructure (industrial parks, business incubators and so on), plus grants and education programmes for new entrepreneurs.”
"I see small and medium business as a considerable reserve of enhancing the effectiveness of oil industry. Small and medium companies exploit minor and depleted oilfields in many countries, and occupy essential niches vacated by integrated corporate giants."
"The Single Social Tax used to be 6%, now the insurance deductions stand at around 26%, and the overall tax burden increases to 34%. We are very well aware of it. In this connection the mechanisms that will balance the tax burden on the economy as a whole will be put in place. This above all concerns small and medium enterprises. But not all of them. It will apply to the enterprises in the high technology spheres. There are other spheres such as retailing, services and so on. But we single hi-tech spheres as a priority. The small and medium enterprises working in this sphere will enjoy tax benefits over a transitional period that will last several years, enough for them to get adapted to the new taxation system or, more precisely, to operating under the newly created insurance system. The same applies to agricultural enterprises."
"Now as regards direct government support for small and medium-sized businesses. As I said, we have earmarked 3.4 billion roubles for this year. The Government is discussing the possibility of increasing that figure several-fold. I am not going to mention the final figure, but we are talking about an increase by several times. Much of that money will most likely be channeled through the Sberbank system, because it has a large network of branches across the country and it will be easier to work through it."
"The ideology of government control must be changed fundamentally. Routine checks must not be held more frequently than once a year. And for the most part these should be documentary checks without on-site inspections. Unscheduled inspections should be made only if there are grounds to suspect a potential threat or real health hazards and environmental hazards".