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
“Support from Russian citizens has always helped us, and I’m confident that the government’s future line-up will rely on the people. We must never forget about the needs of ordinary people. We must always remember how government-level decisions influence the lives of all ordinary Russian citizens.”
“We intend to build transport infrastructure in all directions. The first stage of the pipeline system Eastern Siberia - Pacific Ocean is in the final stage. Its terminal point will be a new oil port in Kozmina Bay and an oil refinery in the Vladivostok area. In the future a gas pipeline will be laid parallel to the oil pipeline, toward the Pacific and China. We are beginning another project with Turkmenistan and Kazakhstan, the Caspian Pipeline. I would like to emphasize that we should certainly make the environment one of our priorities while implementing such projects. We always conduct environmental studies at early stages of each project to take care of environmental issues. We also make substantial investments in restoring the environment.”
“I propose we start laying down a new international legal framework for energy security. Implementation of our initiative could play a political role comparable to the treaty establishing the European Coal and Steel Community. I have no doubts on this matter. That is to say, consumers and producers would finally be bound by a real single energy partnership based on clear-cut legal foundations.”
“Guaranteeing the transit of energy resources remains a challenge. There are several ways of tackling it, and all must be used. The first is to adopt generally recognised market principles of fixing tariffs on transit services. They can be recorded in international legal documents. This practice should affect oil and gas, nuclear fuel, and power generation to some extent. The second is to develop and diversify the routes of energy transportation. We have been working long and hard along these lines.”
“I am convinced that projects such as South Stream (a gas pipeline that will run to Bulgaria under the Black Sea) and Nord Stream (to reach Germany directly across the Baltic Sea) are equally needed for Europe's energy security. Their total estimated capacity is something like 85 billion cubic meters of gas a year. Some of our partners and Europe have recently proposed expanding this capacity. We are considering their proposals now; in fact, I think it is the proper time to consider expansion.”
“We must strengthen the system of global regulators based on international law and a system of multilateral agreements in order to prevent chaos and unpredictability in such a multi-polar world. Consequently, it is very important that we reassess the role of leading international organisations and institutions.”
“The only way to ensure truly global energy security is to form interdependence, including a swap of assets, without any discrimination or dual standards. It is such interdependence that generates real mutual responsibility.”
“Excessive dependence on a single reserve currency is dangerous for the global economy. I think it is clear to everyone now. Consequently, it would be sensible to encourage the objective process of creating several strong reserve currencies in the future. It is high time we launched a detailed discussion of methods to facilitate a smooth and irreversible switchover to the new model.”
“Most nations of the world convert their international reserves into foreign currencies and must therefore be convinced that they are reliable. Those issuing reserve and accounting currencies are objectively interested in their use by other states. This highlights mutual interests and interdependence.”
“Nor should we turn a blind eye to the fact that the spirit of free enterprise, including the principle of personal responsibility of businesspeople, investors and shareholders for their decisions, has been eroded in the last few months. There is no reason to believe that we can achieve better results by shifting responsibility onto the state.”
“In our opinion, we must first atone for the past and lay our cards on the table, so to speak. This means we must assess the real situation and write off all hopeless debts and "bad" assets. True, this will be an extremely painful and unpleasant process. Many will be unwilling to accept such measures, fearing for their capitalisation, bonuses, or reputation. However, we will "conserve" and prolong the crisis if we do not clean up our balance sheets. I believe financial authorities must work out the required mechanism for writing off debts, one that corresponds to today's economic needs.”
“In effect, our proposal implies that the audit, accounting, and ratings system reform must be based on a return to the fundamental asset value concept. In other words, assessments of each individual business must be based on its ability to generate added value, rather than on subjective concepts. In our opinion, the economy of the future must become an economy of real values. How to achieve this is not so clear-cut. I have no explicit answer. Let us think about it together. After all, this is what such forums as this are convened for.”
“Excessive intervention in economic activity and blind faith in the state's omnipotence is a possible mistake. True, the state's increased role in times of crisis is a natural reaction to market regulation setbacks. Instead of streamlining market mechanisms, some are tempted to expand state economic intervention to the greatest possible extent. The concentration of surplus assets in the hands of the state is a negative aspect of anti-crisis measures in virtually every nation.”
“In our opinion, the crisis was brought about by a combination of several factors. The existing financial system has failed. Insufficient regulation has contributed to the crisis, with failures to duly heed tremendous risks. Add to this the colossal disproportions that have accumulated over the last few years - primarily, disproportions between the scale of financial operations and the fundamental value of assets, as well as those between the increased burden on international loans and the sources of their collateral. The entire economic growth system, where one regional centre prints money without respite and limits and consumes material wealth, while another regional centre manufactures inexpensive goods and saves money printed by other governments, has suffered a major setback.”
“This crisis was brought about by excessive expectations. Corporate appetites with regard to constantly growing demand swelled unjustifiably. The race between stock market indices and capitalisation began to overshadow rising labour productivity and real-life corporate effectiveness.”
“We must not revert to isolationism and unrestrained economic egotism. The leaders of the world's largest economies agreed during the November 2008 G20 summit not to create barriers hindering global trade and capital flows. Russia shares these principles. Although additional protectionism will prove inevitable during the crisis-and we see it today, much to our regret-all of us must display a sense of proportion.”
“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.”
“A bill on streamlining the taxation of householders' societies, housing construction cooperatives and other housing management companies. The bill envisages exemption from value added taxation of housing and public utilities provided by managerial companies in multi-family dwellings. The bill will fill in a major gap in the fiscal legislation, which is presently an obstacle to the emergence of latter-day housing managerial agencies.”
“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.”
“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.”
