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 new draft of Russia's energy strategy was approved in November of last year. Later on we revised the plan for the construction of electricity generating facilities and approved the draft plan for the general development of the gas industry, as well as the national energy conservation programme. The common goal of all of these documents is to create the necessary conditions for the most effective possible use of the country's energy resources.”
“Also, macroeconomic stability, low inflation, affordable credit, a reasonable budget deficit at certain stages and a good balance between debts and reserves all play a tremendous role in creating a friendly investment climate. I believe it may even possible to increase these reserves to some extent, considering the current rise in petroleum prices. To sum up, we should take a comprehensive view of the situation. Such an approach helps us to avoid diffusing funds too much or making promises we cannot fulfil. We have another objective: we should structure our efforts so as to fund priority projects and at the same time preserve a sustainable macroeconomic environment, thus guaranteeing the macroeconomic stability of the budget and the entire national economy.”
“Turn to federal targeted programmes proper. They account for a sizeable portion of the national budget. In particular, 740 billion roubles have been earmarked this year to develop advanced technology, build up social and transport infrastructure, solve housing problems and enhance security. The federal targeted programmes for 2011 will certainly address these obvious priorities.”
“I would like to remind you that a related law was passed late last year, followed by a comprehensive government action plan. We are facing an ambitious challenge to reduce the energy intensity of the Russian GDP by at least 40% by 2020. The need for a transition to a proactive energy conservation policy is obvious to everybody. First of all, it allows for economising. The public, the state budget and Russian companies can pay less for heat and electricity without compromising service quality.Most importantly, the energy conservation policy results in a substantial quality upgrade, improves the structure of the economy, urges companies to upgrade production facilities, creates a big market for high-tech commodities and services as well as thousands of high-skilled and high-paid jobs.”
“We should pay increasing attention to the projects outlined in the Main Guidelines for Government Performance in the mid-term and long-term perspective. First and foremost, we should focus on the projects designed to overcome technological backwardness and increase labour productivity, as well as on efforts to resolve urgent healthcare and educational issues.”
"The government should encourage all useful and socially responsible activities, including through tax breaks. I would like to recall in relation to this, that a number of draft laws on additional charity incentives have already been submitted to the State Duma. We hope that the Duma deputies will review them promptly, and lend them their support."
"I hope that the new programme for drafting technical regulations prepared by the Ministry of Industry and Trade will contain an exhaustive list of the documents, which we must adopt in 2010 and 2011 if we are to, finally, draw a line under this. The real economy should be given an opportunity to produce goods under modern standards and rules, which should encourage its development, not be a burden to it."
"Our primary goal is to diversify our economy, and to break from mono-economy. In the first place, we will encourage companies, both Russian and foreign, dealing in our priority sectors."
"Of course, efforts to replace imports are not an end in itself, as I have said more than once. We will succeed only if we replace imports with goods that are completely safe, of a high quality and, importantly, sold at affordable prices. Both producers of agricultural goods and consumers - the Russian people - should benefit from this".
"A schedule for introducing electronic options of key state services has also been approved. According to this schedule, this year, Russians will be given an opportunity of filing applications for dozens of important state services online. It means they will no longer have to go to offices and wait in queues".
"In 2010 the challenge will be even tougher; we set the inflation target at 7.5% or lower. We must pursue a balanced monetary policy and above all reduce the budget deficit. This is a difficult task, but we must try hard to bring the budget deficit down to 3% by 2012."
"Our efforts to boost internal demand, especially in such industries as automobile manufacturing and construction, will be critical. Thus, the pilot project aimed at disposing of used cars should be launched early in the year. The total cost of the programme is close to 10 billion roubles. Those who turn in their old car for scrap will get a 50,000-rouble subsidy."
"It is important to expand the base for economic growth, above all by supporting free enterprise and creating conditions for new companies to enter the market. The notification-based procedure of starting up businesses will be spread to all types of activities, with few exceptions. And these exceptions must be specified and listed."
"There are still risks. First, the growth has not yet become sustainable. Second, it is largely based on replicating the old, raw-materials-based model of development. This means that we should change our priorities and concentrate on the goals mapped out in our plan for long-term development, namely building new industrial capabilities and establishing an innovation-based economy."
“A draft law has been prepared to oblige thermal power stations to create fuel stocks in advance to ensure proper operation in autumn and winter. We touched on this issue early this year and even at the end of last year, if I'm not mistaken. We are introducing the mandatory inspection of facilities such as power stations, transmission lines and heating lines to verify their readiness for the cold season. Such work is being carried out now, but a targeted law will make it systemic, defining the obligations and responsibilities of the state and businesses in ensuring a reliable supply of heat and electricity to consumers.”
“I suggest we look at this issue from a broader perspective, considering conceptual approaches to tariff regulations. We must seek understandable and transparent tariff prescription policies to make tariff rates economically justified and not burdensome for the people and the economy. In addition, all bills must be based entirely on meter readings so that people will not have to pay for something they don't consume. Naturally, tariff policy must ensure investment attractiveness of the industry's infrastructure, promoting increased service reliability and quality, energy conservation and the application of the most efficient technological solutions.”
“In addition, the report on the performance of regional and municipal agencies will include the figures on fire safety, especially in sensitive or crowded areas.”
“The energy efficiency of the budget sector, natural/infrastructure monopolies, and large companies with state capital is another important objective. I have said more than once that the government must start with itself in terms of energy savings. The consumption of fuel and energy in the budget sector must be cut by at least 15% within five years. The policy of energy savings implies not only bans and restrictions, but also measures encouraging the rational and responsible use of resources.”
“We must seriously consider energy efficiency for the design and maintenance of residential blocks, social facilities, and office and industrial premises. Of course, it is impossible to ensure radical improvements overnight, and the programme will be very expensive, as everyone knows. Still, all new construction projects, reconstruction and capital repairs of buildings must proceed with due attention to energy efficiency.”
“Next year we will introduce the notion of an "energy efficiency category" for goods. Consumers can and must know whether they are buying energy efficient or energy inefficient equipment.”
“We must also require the obligatory participation of manufacturers in the capital repair and technical maintenance of the equipment they produce, as well as requirements for the skills of professionals working at power generating facilities who should be regularly certified and be personally responsible for compliance with technical regulations.”
“This is why we must make prompt decisions to ensure fundamentally new standards of safety and reliability for power generating facilities. Obviously you have an exceptionally large role to play in this undertaking. First of all, we must review and adopt modern safety standards and norms for each technological stage, from equipment design engineering to operation and maintenance.”
"Would like to emphasise once again that we will continue fighting corruption. The President has spoken more than once about this, and the Government will do all we can on this issue, although this is a very complicated process. Corruption is a huge problem in this country, but we are not the only ones. Corruption is worst in countries with transitional economies, because they have numerous grey zones which are not regulated by law. However, we will achieve success if all of us, if our entire society works on this issue."
"State-owned corporations were not established to expand the state's involvement in the economy. They were established in order to gather the fragments of those industries and enterprises that were scattered in previous decades, primarily during the privatisation of the 1990s, and that are also vital to the interests of the state. This includes the aircraft industry and some areas of the defence industry. Our task is to consolidate these assets and bring them up to the required conditions and levels. In some cases, these corporations will actually be dissolved, as is the case with the housing and public utilities corporation, which was established to operate for a preset period. Some of them must be converted into public shareholding companies, which was initial goal."
"Construction norms and standards need to be updated very soon. We cannot afford to carry out multibillion rouble infrastructure projects based on 1970s standards which are unreasonably costly. That amounts to squandering resources."
"To save money and do away with corruption it is necessary to introduce electronic tenders in concluding state contracts for infrastructure development. Objectively, we are prepared for it; there is nothing that stands in the way. All we need to do is to do it. Some regions are already doing it: in Tatarstan Sberbank is doing it and Moscow is doing it. We should move forward more vigorously."
"It is time for business to start working in a different way. Unfortunately, many are used to following a simple rule of thumb: squeeze everything out of outdated equipment and incur debt in the hope that the government will come to the rescue and eventually pull them out of this pit. This mentality - the mentality of time-servers - is not one that can build a modern economy. At the legislative level it is necessary to formulate requirements that would induce business to seek to improve its effectiveness day in and day out."
"We should come to terms with the premise that the key factors of development in the coming years will be internal resources: the optimisation and retrofitting of industry, increasing labour productivity and an effective employment structure. Infrastructure monopolies and major companies with government participation must adopt internal programmes aimed at achieving an international level of efficiency and standards of transparency that shed the risk of corruption."
"We will continue implementing targeted measures aimed at further reconstruction and post-crisis development of the economy. We propose to concentrate on the following key areas: First, we must ensure the stable operation of systemically important enterprises, driving forward the programmes of their technical renewal and modernisation. Second, stimulate hi-tech exports. Third, develop housing construction. Fourth, support internal demand, including the most important and embattled industry, the automobile industry. And of course, there is the challenge of unemployment and the problems of single-industry cities."
"In order to move forward we must clean up the economy of hopelessly outdated and wasteful production facilities, identify and support a genuinely competitive nucleus in the real sector of the economy. We have such a nucleus."
"Russia is certain to remain the absolute leader in gas production and sale for the next few decades. And, of course, we can resolve our domestic energy problems and honour all of our export commitments."
"We should also formalise mandatory technical maintenance of technically complicated and potentially hazardous equipment by the companies that produced it. In such complicated cases and regarding such complicated hydroelectric facilities as power plants, we should probably introduce data recording equipment similar to aircraft's black boxes."
"There is one more problem in the Russian power industry - we need to synchronise regulation at the systems operator - power plant level with due account of safety requirements."
"I believe it is necessary to say again that the investigation must be conducted as carefully and objectively as possible. One of its results should be a change in the rules of operating hydropower plants and all other large and technically complicated facilities. The undivided priority should be given to technological safety and the protection of people's lives. The point at issue is to amend industrial safety legislation, and in particular stipulate strict requirements to the workers' qualifications and their personal responsibility."
"I would like to draw your attention today to one of the key problems, stimulating investment in development. Russia's economy still has a deficiency of investment. Whole sectors require an overhaul of their infrastructure and technology. To remain competitive, Russia's industries need to dramatically increase energy efficiency and labour productivity, cut costs and introduce more innovation."
"I would like to draw tour attention to a number of key sectors where, we believe, investment is crucial. First, I am thinking in terms of sectors involving the development of the transport and energy infrastructures, telecommunications, and digital television."
"Along with further implementation of tried and true anti-crisis policies along with a few new methods we have planned, at least new for Russia, although maybe successfully tested by other countries, the Government will begin working on a major exit strategy - a set of policies to modernise the economy and ensure post-crisis development."
"We need to continue searching for and selecting new promising projects, primarily in the regions - specifically those that require comparatively small resources, projects that rapidly pay for themselves and are capable of rapidly improving the socio-economic situation in specific cities. We must also replenish budgets and create additional jobs. Particular attention should be paid to single-industry cities."
"We talked about the need to employ new growth factors long before the crisis. In this sense, we invested our hopes in public-private partnership. Much has been done since then. In particular, we developed legislation for this joint operation, passed the law on concessions, special economic zones, and the Development Bank. We also adopted amendments to the Budget Code and formed the key institutions, including the Investment Fund, which we set up in 2005."
"Today, 21 projects of federal importance have been approved within the Investment Fund. Total allocations for these projects will amount to 54.5 billion roubles in 2009. Another 10 billion roubles will be invested in regional projects, which will be financed by the regions themselves. On average, the Novomoskovsk cluster has shown that each rouble invested from the federal budget brings in about 3.50 or even 4 roubles of private investment. In other words, the efforts of the Investment Fund have catalysed the investment activity of business, just as we hoped it would."
"The crisis has made its changes to our plans. First of all, we were forced to make some difficult decisions about concentrating investment resources on the projects that are almost finished and to postpone the beginning of many new projects. Secondly, we have taken the step of using Investment Fund resources to prevent the threat of mass never-ending construction projects, particularly in the regions of the Russian Federation. We have compensated the regions the lack of their own resources by using the funds of the Investment Fund."
"I would like to say that the use of public-private partnership allows us to use the resources and possibilities of the state, the regions and business, to lower the risks for project participants, to distribute zones of responsibility among them, and to balance their interests."
"Our main objective in the development strategy of the country is to diversify the economy and to enhance labour productivity and investment in the so-called human capital, that is, in education, healthcare, and so on. These key priorities have not changed, despite the crisis. Moreover, while trying to overcome the consequences of the crisis, we are paying more attention to these issues as our key priorities."
“In 2010, we intend to improve, albeit modestly, the main macroeconomic indicators, achieve a positive growth of the GDP, industrial production, and agriculture, as well as stabilise real incomes of the population. In a word, we are planning to switch to post-crisis development.”
It is the Russian Government's duty to organise production implying large added value. Our Government does not differ from any other Government in the world in this respect-which does not mean that we can act spontaneously, be unpredictable, make headlong moves, and damage our long-established partners.
"Yesterday I announced that I had signed a Government Resolution on allocating 25 billion roubles, or some $700 million, to VAZ. We did it in coordination with Renault and in a way that would not undermine the foreign partner's position and share in the joint venture. I believe this is very important during the current crisis. We also see that our partners, in this case Renault, also understand the situation."
"This is a good project, with over $200 million of investment, 50,000 cars and 750 new jobs. Moreover, it has the capability to increase production several-fold, to 500,000 cars, without increasing its production area. The company is so far using only one-third of the land plots allocated to it in the city. However, the decision to increase production will depend on the market situation."
"This is by no means a reason to give up the strategic guidelines for the country's development laid out, as we all know, in the Programme for Russia's Development until 2020."
"We are committed to privatising excess state property. At the same time, in present-day conditions it is vital to ensure that the privatised assets are properly valued. Even allowing for the crisis we should not sell government property below market price."
"Public property should be used exclusively for the benefit of the entire society and help to tackle national challenges rather than enrich certain individuals or, as we used to say, "a group of comrades". In this connection we have decided to reduce substantially the number of the so-called Federal Unitary Enterprises, or FGUPs. Last year their number was cut by 40%."
