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 insured amount of money deposited in bank accounts was increased to 700,000 roubles, that funds were allocated for the rehabilitation of ailing financial institutions and replenishment of bank capital through subordinated loans."
"At the same time, I think it is possible to offer the necessary government guarantees - a little over 4 billion roubles - to fully reschedule GAZ debts to its creditors. The state must act as a guarantor. I hope this measure will help the enterprise get out of the current situation and gain the necessary momentum for the future."
"State guarantees will also be extended to KAMAZ and Sollers, 4.6 and 5 billion roubles, respectively, in guarantees of investment programmes and projects."
"First a few words about VAZ. Based on the preliminary analysis of the situation and the discussion today, I think we can afford to allocate 25 billion roubles to redeem earlier credits to restore the current solvency of this enterprise through Rostekhologii Corporation. The money will be disbursed as the material contribution and then transferred to AvtoVAZ as an interest-free loan."
"I also believe it is possible to restructure AvtoVAZ debts to the federal budget - that is, allowing it to its tax arrears not in 2009-2015, but in 2011-2017. As I said today, it would save the enterprise about 1.5 billion roubles. The same measure may be taken with regard to ZIL, in which case said company would save 800 million roubles."
"In fact, a decision has been made in principle to step up work on leasing schemes in the procurement of automobiles by government institutions. We have just heard that the work to create a specialized leasing company for the Ministry of Transport has been completed. I hope that it will start working and placing orders and will hold the relevant tenders in the near future."
"The legal framework is already in place for launching the programme of subsidizing interest on loans for purchasing domestically-made cars priced up to 350,000 roubles. I am referring not only to the traditional Russian brands, but also to foreign cars assembled in Russia."
"The construction of a car assembly plant in the Far East. <...> In order to build that enterprise, access to "long money" is needed - for example, by issuing bonds in the market. This topic was also discussed today. We will in every way support the relevant proposals of the Central Bank. All these measures will hopefully combine to play a positive role."
"In February of this year the Government allocated an additional 12.5 billion roubles for centralized procurement of automobiles for government needs. We have just been talking about it and I would like to stress - and I am appealing to the heads of government bodies present here - that all the plans must be fulfilled in short order. Everything must be done by the middle of April."
"The other day the Government approved the procedure for the distribution of state subsidies for the purchase of transportation and utilities technology for the needs of the regions and municipalities. As one executive of the Ministry of Regions said, in April the subsidies are to be disbursed and tenders to procure automobiles through the regions must begin to be held."
"The conference today will be attended by the heads of a number of ministries and departments, who will report on the dates for the tenders to buy different classes of vehicles for government needs, including from your company. In all, we have approved the allocation of an additional 12.5 billion roubles for these purposes, and now we will discuss reasons for procrastination. The tenders will be held now, which means that part of your output will be sold."
We have also allocated 20 billion roubles from the federal budget and expect to attract 10 billion roubles from the regional budgets for the acquisition of automobiles for the regional and municipal authorities, including the Interior Ministry, healthcare, municipal authorities, etc.
"The auto industry is very sensitive to demand trends, so our main decisions were aimed at putting together the necessary package of orders for the enterprises and ensure their financial stability. Today we noted that for some segments of the automobile industry, the government order is critical."
"I will begin with the general measures, not only regarding the country as a whole but mainly regarding the Samara Region. We have decided to allocate 700 million roubles to maintain employment. The Government of the Samara Region will also allocate some funds. A total of 300 million roubles will be allocated for the development of small and medium-sized businesses. 103,000 people work a the head plant of AvtoVAZ, and over 200,000 people work for small and medium-sized companies that are connected with your firm. Therefore, these allocations to small and medium-sized businesses should have a positive effect also on AvtoVAZ."
“In these difficult conditions, the Government has adopted a number of additional measures to support the industry. First, it has passed a resolution to allot eight billion roubles to the Khrunichev Centre. I have signed it today. This entire sum will be used to increase the centre's charter capital. Support for the centre means support for the whole industry, considering it and associated enterprises employ about 120,000 people. Second, the Energomash Stock Company will receive state guarantees for up to three billion roubles. Third, 16 of the industry's companies will receive subsidies in the established procedure and will reimburse themselves for part of their expenses on interest payments.”
"We should focus on priority projects and guarantee their successful completion. I'm referring to the construction of the Angara missile complex and development of the new space equipment for navigation, communication, and the Earth's remote probing."
“Therefore, in line with the already determined strategy, we should continue to carry out structural reforms of the missile space industry and streamline its technological and experimental base. As a result, we should be able to greatly enhance its effectiveness and bring its management to a much higher level.”
“I'd like to emphasize that the adjusted version of the budget does not envisage any reduction in the allocations on the missile space industry. All in all, almost 82 billion roubles are earmarked for it under three federal programmes.”
"Today, I'll sign the Government decree on the transfer of 19 companies (from all basins - the Baltics, the Volga Region, the Far East, and the North) to the United Shipbuilding Corporation (USC). I'm hoping that its establishment will be completed by April 1, as we planned."
“We are also planning to launch a new federal targeted programme. I'd like to remind you once again that we have preserved almost all high-tech programmes despite the streamlining of our budget. Moreover, we have left their funding virtually unchanged. The budget provides 136.4 billion roubles for a federal targeted programme to develop civilian shipbuilding, including 4.2 billion roubles for this year. This sum will not be reduced. All in all, 17 million roubles will be allocated for civilian shipbuilding and will be used in full.”
“So, what will we spend on the high tech spheres of the economy? There are about 300 billion roubles left. If we add Vnesheconombank's credit portfolio, and its 300 billion roubles are federal money, we'll have almost 600 billion. Banks receiving federal support will give us roughly 200 billion roubles. All in all, we'll have 800 billion roubles for high-tech spheres.”
“About 110 billion roubles will be spent on shipbuilding this year. It goes without saying that this spending must be effective. Shipbuilding should constitute restructuring in this context.”
“One final point. In 2009, we are launching a new, 8-year federal targeted programme called "The Development of Civilian Marine Technology". We often say that by the time it emerges from the current difficult economic and financial situation, our economy should be more modern and competitive. Some might ask, how can this be achieved? Well, programmes such as this are part of the answer.”
“We have many shipbuilding facilities, but unfortunately, they can hardly be called modern or efficient. They are in need of sweeping modernisation and wherever practicable, they should be converted to serve other needs. At the same time, practice shows that the most effective projects are "green field projects". In the shipbuilding industry, a breakthrough investment project of this sort that would raise the industry to a qualitatively new technological level must be the creation of new shipyards geared toward meeting civilian needs.”
"At present, the USC has a blueprint of the programme of civilian shipbuilding. The main targets are as follows: building fishing vessels, about 265 units; development of the Russian transport system under that programme, 791 vessels; planned commissions by Gazprom and Rosneft, 307 vessels before 2030."
“All organisational measures to reform the shipbuilding industry must be completed by April 1 of this year, and by that time we should complete the formation of the United Shipbuilding Corporation (USC). Secondly, the production programme of the United Shipbuilding Corporation should be developed and approved by that time, too. The main emphasis should be on producing a range of competitive civilian ships that will be in demand in the market. We should realistically assess our potential and occupy the niches where we can offer competitive and even exclusive goods.”
“I believe that despite all difficulties, oil companies should find the money for upgrading refineries and switching to the production of fuel of new standards.”
“The Government has made a tough decision - to make sure that by 2012 the share of the effective use of petroleum gas reaches 95% of the scale of production.”
“It is necessary to elaborate a special model of taxation that will be used for new oil and gas deposits. It should be based on the taxation of the real results of economic performance. It should encourage rational use of subsoil and the application of the most modern technology. At the same time, it should be based on transparent and simple administration.”
“Considering that new deposits in East Siberia are being commissioned right now, it would be sensible to discuss temporary reduction of export duties on the local oil. As we know, transportation is expensive, and the infrastructure is not developed. We have just spoken about this, we know about this. In the morning we discussed this problem with the Government members. We consider it possible to support you.”
“It is necessary to continue implementing investment projects on advancing oil refining, modernising and building new oil refineries, and improving the quality of oil products.”
“The situation on the world energy market has considerably changed in the last few months. Oil prices have dropped more than three times. It would be no exaggeration to call this a dramatic change on the market. Needless to say, we had to focus on urgent measures to support our oil companies.”
“It is obvious that reduced taxes on oil production and other preferences should be thoroughly sized up and well balanced. They should also determine the industry's priorities with due account of the budget potentialities and the domestic economy in general.”
“The operating tax system is based on deriving profits from the exploitation of old oil deposits, and does not encourage subsoil users to develop new ones. We have already made decisions on the introduction of tax extraction tax holidays for the development of deposits in East Siberia, the Caspian Sea, the Arctic shelf, Yamal, and the Nenetsk Autonomous Area.”
“I think that despite all current problems, the state is obliged to guarantee steady funding of fundamental research, and there will be no reductions in this sphere.”
“We must think about funding the development of critical technologies in defence, healthcare, space, aircraft-building, education, and environmental protection. We will not curtail or shelve promising scientific and technological programmes.”
“At the November meeting we adopted together with you a number of priority measures aimed at the company's financial recovery. I'd like to brief you once again on the planned measures - the MiG open joint-stock company will receive 15 billion roubles to increase its charter capital by issuing additional shares. The Government has already signed a relevant decree.”
“The company (MiG)has been awarded a state contract worth 17.3 billion roubles. As was just discussed, the Defence Ministry will pay 11 billion roubles in the first quarter. At the same time, we hope that the company will itself make a serious effort to improve its financial condition by streamlining spending, reducing costs, refinancing debts (I rely very much on the understanding of financial institutions), finding more effective forms of production cooperation, and begin reorganising the system of management and post-sales support.”
“Since 2001, federal budget appropriations on civilian science have grown from 23 billion to 149 billion roubles - that is, more than six-fold. We have adopted a plan for the scientific and technical development and modernisation of the domestic economy for 2008-2010.”
"The Governor asked for more than 600 million roubles from the federal budget. During all this time, different departments held consultations, and the final decision will be as follows: We will help him get these 620 million roubles, out of which 310 million will be subsidised, and another 310 million will be loaned to the Samara Region."
“If we subsidize two-thirds of the Central Bank's refinancing rate (we have agreed to do so, which is why we must do this) for citizens who take out car loans in 2009, the state will have to pay 8% of the rate they pay to commercial banks for them. It is necessary to allocate funds in the budget for this purpose - about two billion roubles.”
“The capital of state-owned banks will also be increased. Needless to say, here the state can take part in first level capital, that is, increase its presence in these banks. We are planning to invest 200 billion roubles in the VTB and 100 billion roubles in Vneshekonombank, plus, possibly, a 100 billion subordinated loan. Sberbank will not be neglected, either, if it needs more money. This task will be carried out by the Central Bank”
"Under the law and memo on fiscal policy, one of the priority tasks of the Bank of Development is to support small and medium-size business. This primarily applies to companies that are operating in production, introducing new technologies, and creating jobs. As we understand, this is particularly urgent today."
“In the next few months, the state will considerably increase the share of its participation in the banking capital of the second level. This primarily applies to private commercial banks. I'd like to stress once again that I'm talking about the second level, that is, so-called subordinated loans. They are given for a long term and cannot be recalled ahead of time. For this reason, banks register them as their capital. However, creditors do not have the right to take part in administering banks; the ownership of banks does not change, either.”
“We consider it inexpedient for the state to invest directly into private banks of the first level. In other words, we do not want to buy shares of private banks. First, responsibility for these banks should rest with their current owners; they should not seek shelter behind the state. This is not the case. Second, the state's participation in banks' capital of first level may violate the rights of minority shareholders, which is also inadmissible”.
“We will use the following mechanism for granting subordinated loans. An additional 100 billion roubles will be earmarked, apart from the already allotted 225 billion roubles, for this purpose. To receive subordinated loans, the shareholders of commercial banks should increase their capital themselves. For each rouble of additional capitalisation, commercial banks will receive one rouble of a subordinated loan.”
“True, the state has increased its stake in energy giant Gazprom, a strategic company, from 38% to 51%, which makes it a controlling stake. What's so surprising and unusual about this, compared to the European energy sector? How many years did it take France to denationalise its power-generating industry? We are now witnessing relations between major European companies, with the state directly participating in such disputes.”
“We have reduced the tax burden on the energy industry and will make further cuts. We have reduced the profit tax rate from 24% to 20%, which mainly concerns champions. We will help them if need be. We are helping them even now with loan refinancing, which mainly concerns foreign loans. We have earmarked $50 billion for this purpose and established a special agency to assist such companies.”
“True, we are increasing import duties of certain ready-made equipment to promote Russian manufacturers-but I don't think we are extremists in this respect. We are also reducing and even abolishing import duties for technical equipment, especially of the kind Russia is not manufacturing, thus promoting Russian industrial advancement. This support concerns not only the big businesses you call "champions", but also small and medium-sized businesses. We have raised bonus depreciation by 10-30%, which also concerns the entire national economy.”
“Rosagroleasing capital is also increasing by 25 billion roubles, as agreed before. A greater part of the sum will go towards purchasing farm machines and vehicles, as we have intended, thus increasing sales of Russian-manufactured machinery. The money will also go towards purchasing pedigree stock and industrial equipment.”
