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
“An additional 83 billion roubles have been allocated for the purchase of 40,000 standard flats. They will be used to resolve the housing problems of army servicemen, as well as citizens living in dilapidated buildings. We will purchase the housing at its real price.”
“Starting this year, the tax break for citizens that are purchasing or building housing has been doubled to reach two million roubles. In other words, they will be able to save on the income tax up to 260,000 roubles, compared with 130,000 roubles, as was the case in the past. This norm will be retroactive and will apply to the families that bought housing last year. It has also become possible to use maternity capital for mortgage payments after the birth of the second child. We remember lengthy debates on whether this money will be paid to citizens at all. This year, people should start receiving this money, and not waiting until a child is three years old, but from the birth of the second child.”
“The borrowers that have become temporarily unable to pay mortgage interest rates due to the loss of a job or cuts in incomes will be offered special refinancing programmes, and a chance to pay in installments. The federal mortgage agency will also provide funds for this purpose.”
“In the building industry, the common logic of anti-crisis measures is to support the demand for housing and prevent the curtailment of construction projects. The majority of the adopted measures are oriented to directly help citizens and sustain the demand.”
“The charter capital of the Russian mortgage agency (AIZhK) was increased by 60 billion roubles, which has allowed the banks to continue implementing mortgage programmes.”
“The Finance Ministry and other colleagues have also backed the decision on the payment of dividends. They should be primarily channelled into investment.”
“As you know, in the last few months commercial banks have received substantial additional funds from the National Prosperity Fund and from the Central Bank. It is important to analyse whether this liquidity reaches companies, and whether the military-industrial complex is content with the terms of loans offered by banks.”
“Despite all the existing problems, it is essential that we continue implementing the programme for the technical re-equipment of defence companies and for the production of modern military hardware. We understand that under the circumstances, defence companies find it hard to allocate funds for development purposes, at least, on the scale that was planned before. Therefore, it is necessary to streamline federal defence-oriented programmes, and use the funds thus saved for the completion of the projects which are critical for improving the technological level of the national military-industrial complex.”
“These measures subsidise interest rates. Allow me to recall what we have agreed on. The companies in the military-industrial complex involved in carrying out state defence orders will receive subsidies from the federal budget to make up for part of the expenses on interest rates on loans received in Russian lending organisations. Second, they will get subsidies to compensate for the part of their expenses on profile industrial activities, which would prevent their economic collapse and bankruptcy. In 2009, the companies involved in fulfilling state defence orders will receive state guarantees on loans.”
“When we develop measures to support the military-industrial complex, we proceed from its special significance for Russian security and for the technological development of our economy and industry. In the last few years we have seen a marked increase in the supply of our armed forces with new weapons, special military equipment, spare parts and other essential hardware. We have far-reaching plans for re-equipping the army for the future. More than one trillion roubles have been allocated for this purpose just for 2009. The overall expenses for this purpose will total about four trillion roubles by 2011.”
“I believe that our main task today is to create the conditions for the military-industrial complex to use effectively the state defence order and other instruments of Government support.”
“We will consider other measures to maintain railways investment potential. Analysts estimate it would take more than 100 billion roubles to implement the current investment programmes, and another 100 billion roubles to refinance Russian Railways debt. How should we do that? I think it is possible to place Russian Railways bonds to the tune of 150 billion roubles, and then see what the budget can afford in the beginning of the year, and before February 1 make a decision on possible direct government investment in the company's capital stock. I feel obliged to stress that the matter demands the utmost accuracy and circumspection.”
“We need to implement large investment projects - those that guarantee demands for high technology. Now that traffic volume is shrinking, Russian Railways and independent traffic companies have the opportunity to inventory equipment and to discard obsolete and worn-out cars and other equipment. At the same time, they should consider purchasing new, state-of-the-art cars, which are far more efficient. This is a chance to become more competitive. These acquisitions can also give a new lease of life to Russian transport manufacturers.”
“The decision to phase in the tariff increase over the next year was made to promote the entire economy - in particular, to facilitate the business activity of the railways' primary clients.”
“The Government does not intend to force the railways to bear the brunt of the burden. Federal allocations, up to 50 billion roubles, will compensate for Russian Railways' lost revenues. We will also compensate student travel discounts. We have directed the relevant instructions, as you know.”
“Freight traffic volume is on the decline. That is the railways' main concern. This is due primarily to shrinking demand for steel and fertiliser and for mined coal. The market is on the decline and taking Russian Railways' revenue with it. As you know, we have decided on a more gradual increase in raising tariffs of natural monopolies. This was done in the interests of the entire economy. For example, railway freight transport rates should increase 12% at most in 2009, as opposed to the expected 18.7%. January 1 will see only a 5% rise - less than planned previously.”
“The next proposal will have a direct effect; I am referring to our plan to renew municipal vehicle fleets. We will allocate 20 billion roubles from the federal budget for this purpose, and expect regional and municipal governments to provide an additional 10 billion, as has been agreed. I hope people will see how municipal fleets of passenger transport vehicles and special machinery will be replenished with new cutting edge equipment.”
“In 2009 we plan to support Russians who buy cars worth up to 350,000 roubles by co-financing their loans. We'll help them repay two-thirds of the Central Bank's refinance rate. The current rate is 13%, which means that the government will provide slightly over 8% of the interest rate of a car loan, provided the car costs below 350,000 roubles.”
“We have vastly supported agricultural engineering by changing our tariffs and customs policies to protect domestic manufacturers. We have allocated an additional 25 billion roubles to Rosagroleasing, the state agricultural leasing company, and implemented a set of measures to support domestic agriculture. The most important decision was without a doubt subsidising between 60% and 80% of agribusinesses' loan interest, and even up to 100% for specific times of investment loans.”
“We have made tariffs and customs regulatory changes to protect domestic producers, supported Rosagrobank's capitalisation with 35 billion roubles in mid-2008, and approved the additional allocation of 45 billion roubles for purchasing grain, making interventions, and other operations.”
“We have recently provided extensive support to the national automotive industry. The support included a 60 billion rouble bond issue and loans to leasing companies worth 43 billion roubles at the Central Bank refinancing rate. We plan to set up, or assign to the Transportation Ministry, an existing leasing construction machinery company, where the ministry will have to concentrate at least 40 billion roubles. We also plan to increase vehicle purchases for state needs by 12.5 billion roubles.”
“I propose abolishing railway transportation charges for Russian cars manufactured in any part of Russia to the Far East. The Russian Railways' foregone income will be compensated by the state budget.”
“The federal authorities will earmark an additional 12.5 billion roubles for the purchase of vehicles. Allow me to recall that in a tentative estimate, the federal bodies already have about 10 billion roubles at their disposal. Hence, the final figure will be around 22 billion-23 billion roubles.”
“The government has already submitted budget amendments to the State Duma to provide state guarantees for loans attracted by key companies in nationally vital industries. Auto industry enterprises are undoubtedly among these. We intend to compile a list of several hundred strategic enterprises. At first, I spoke about 300 companies. Government analysts are drawing up this list now, and it may include up to 400 or 500 companies. On the whole, this system must cover as many as 1,500 enterprises. I repeat, this includes auto industry as well. It is expected that these enterprises will be able to attract up to 70 billion roubles using state guarantees.”
“In 2009, the Government will also help the producers to float bonds worth up to 60 billion roubles to make these bonds more attractive. They will be issued under state guarantees, and the Central Bank will open refinancing for the banks that will buy out these bonds.”
“A major task is to restore consumer demand. We must support the people. We proposed the following measures: subsidise interest payments on three-year loans to citizens for new car purchases. I want to underline that those who want to buy a car, should do it in 2009 because this regulation will apply only in 2009. If one buys a Russian car - meaning cars produced in Russia, especially those in high demand which cost no more than 350,000 roubles - the subsidy will equal two-thirds of the Central Bank's refinancing rate. This means that if a person buys a car in 2009 with a three-year loan contract, we will help him to repay this loan by refinancing interest payments at two-thirds of the Central Bank's rate.”
“Credit lines in the amount of 43 billion roubles will be opened to leasing companies. We know that they are in a difficult situation now. I repeat: we will provide 43 billion roubles for this purpose. It is important that the loans will be contracted for a term of three years and at interest rates not higher that the Central Bank's refinancing rates. This will allow a resumption of operations.”
“It is now necessary to stimulate investment demand for commercial vehicles. Let me remind you that several days ago the decision was taken to increase Rosagroleasing's authorised capital by 25 billion roubles. We have agreed with the sector's representatives that 5 billion roubles out of this amount will be spent to buy vehicles for agricultural producers.”
“We need to put state auto acquisitions up for tender as soon as possible, so that state contracts can provide timely assistance to the ailing domestic industry. If possible, upfront payments under those contracts will be made to producers as early as the first quarter of 2009. Moreover, upfront payments under state contracts will be raised to 50% of the contract amount from the current 30%. We'll also cancel all requirements to ensure the fulfilment of the contract - bank guarantees, insurance or other guarantees, in cases where vehicles are purchased directly from the manufacturer. We'll have to eliminate distributors and other intermediaries, too.”
“We must provide subsidies to help local self-government bodies to acquire new vehicles for the needs of public transportation, housing and utilities services, hospitals, schools and all other areas managed by the municipal government. As you know, several years ago I initiated the idea of priority national projects. They are making good progress today. I want to put forward another initiative now: a programme to replace the municipal public transport fleet. The federal budget has earmarked an additional 20 billion roubles to finance this progrramme, with regional and municipal authorities to provide another 10 billion roubles as co-financers.”
“We agreed with representatives of municipal governments and some regions to jointly implement this project [acquire new vehicles for the needs of all areas managed by the municipal government.]. Seventy percent of the funding will come from the federal budget and 30% from the local and regional budgets. In all, we must channel about 30 billion roubles into this programme.”
“Significant amounts of vehicles are bought for state purposes annually. I believe the Government should boost state acquisitions in 2009. I know that the auto pools of our social services are in bad need of renovation, along with those of the Interior, Defence and Emergencies Ministries. The federal ministries planned to allocate 15 billion roubles for this purpose next year. We'll channel an additional 12.5 billion roubles to the ministries, departments and other federal bodies for fleet purchases. The additional funds should be distributed in a way to both meet the agency's goals and to support domestic manufacturers. The purchases should be evenly distributed across the industry.”
“The Transport Ministry will be instructed to establish a special leasing company under the federal target programme to modernise the country's transport system. A total of 40 billion roubles will be transferred to that company from several different sources for acquisitions of Russian-made vehicles.”
“At a time when domestic producers are forced to slash production, I think it especially unacceptable to spend federal funds purchasing foreign cars and trucks. Let me emphasise that I am referring to so-called "direct imports" here.”
“As for the new assembly plants recently established in Russia by major foreign automakers, we also regard them as part of the domestic auto industry. In this sense, I am making no distinction between Volkswagen, Renault, Ford and Toyota plants, and Russian VAZ and GAZ. Foreign assembly plants operating in Russia are entitled to government support as much as local manufacturers - naturally, assuming they comply with the required domestic content agreement.”
“Many manufacturers chose to suspend vehicle assembly in December 2008-January 2009. The industry's problems stem from plummeting consumer and commercial demand. Therefore, government action in this case should try to mitigate this alarming trend. To begin with, I think the Government, natural monopolies and preferably the largest private companies should purchase predominantly domestic products.”
“The last Government meeting decided to offer an extra 300 billion roubles in guarantees to core enterprises. Just yesterday I chaired a meeting in Rostov-on-Don in support of agricultural equipment production. We made some important decisions including the expansion of leasing offers to essentially boost demand - this is the biggest problem for this sector. To solve the problem we have decided to allocate an additional 25 billion roubles for leasing programmes. We have decided to subsidize interest rates on loans to businesses and farms at two thirds of the bank rate. A package of tax amendments has been passed to support industry, agriculture and small and medium-sized enterprises. We are shortly to consider an additional package of measures for agriculture. We will also take special measures to support the construction industry. Some are being developed and we are considering other options.”
“We need to get rid of monopolies on the market, which prevent airlines from buying jet fuel at market, not inflated prices. We will continue to address this problem persistently.”
“We have allocated an additional 10 billion roubles to cover the price gap in the fuel sector. If necessary - we have coordinated the issue with the Agriculture Minister, who maintains contacts with agricultural producers - we will analyse the result and possibly increase allocations in the first quarter of next year. We have also allocated additional funds for fertilisers.”
"To support the industry we allocated 175 billion roubles. These are long-term loans which must be directed to production or service-based businesses. At the same time, we will demand from the banks that they report to us on three sectors to which they are going to lend money. What are these sectors? These are farming, the defence industry and small and medium-sized businesses, as well as a long list of enterprises which we recommend."
“We will allow airlines, first, to buy such aircraft as our industry will not produce and, second, to lease the aircraft our industry plans to manufacture. We will lease foreign-made aircraft and will return them as soon as we start producing the aircraft of the same quality, noise and fuel standards.”
“The overall cost of the project discussed here, the YaMZ-530, is 13.4 billion roubles. In effect, this amounts to the construction of a new modern plant that will produce next-generation engines. The project's implementation will create 1,200 jobs in the Yaroslavl Region.”
“A package of measures has been drafted to support Saturn. First, its debts will be refinanced. Our Foreign Trade Bank will spend about 10 billion roubles to this end. Second, the Rosnanotekh Corporation (a state-run nanotechnology corporation) is prepared to implement together with Saturn a project to produce modern nanomaterials and products that incorporate them. The total investment will be one billion roubles, half of which will be contributed by Rosnanotekh. Finally, we should secure the sales of Saturn's produce to its key customers - the Defence Ministry, airline companies, the United Aircraft Building Corporation, the power industry, and Gazprom.”
"Obviously, it will be very difficult, if not impossible, to resolve these problems without the state's participation. It is also important for public companies with experience in high-tech machine building to increase their contribution to Saturn's development. In this context, the owners have agreed to sell almost all shares of the enterprise to the Oboronprom State Corporation. Packages of shares of the private owners will be purchased on a commercial basis, and at market prices."
“In the past, oil revenues were a great help for our budget. Now the industry itself needs additional funds to develop advanced processing and other projects. We will give our fuel-and-industry sector the required support. Thus, export duties will be reduced and their calculation will become more flexible, which will make it possible to react to global price fluctuations in a timely manner. Starting January 1 of the next year, the rate of severance tax will be cut, and tax breaks introduced for the development of new deposits - on the Yamal peninsula, in the Nenets Autonomous Region, in the Caspian Sea, and in the Arctic shelf. Oil companies have been allowed a more liberal use of the mechanism of accelerated depreciation.”
“The world economic crisis should not interfere with the implementation of our defence programmes. We should not forget that defence industries have a long development cycle, and limited sources of funding. Therefore, I suggest increasing refinancing and investment into the capital for the defence industry. I also propose allocating funds in 2008-1009 to prevent defence plants from going bankrupt. The total sum of additional funds earmarked for these purposes is over 50 billion roubles.”
“Russian companies have the right to issue infrastructure bonds, but this right is practically unused. For this reason, we have decided to allow companies to issue infrastructure bonds under the guarantees of the Russian Federation or the VEB to fund the construction of important, major projects.”
