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 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.”
“The Government has drafted the state defence order. The funds should be transferred to manufacturing companies as soon as possible, while the Military-Industrial Commission should strictly monitor compliance with deadlines and quality of work.”
“In the past few years, we have significantly improved supplies to our armed forces, including components, fuels and lubricants, and other important combat materials and equipment. We have made major plans to equip the army with advanced weapons and hardware, and have set a goal of ordering bulk deliveries rather than unique samples. As a result, the troops have gained an opportunity to engage in fully-fledged combat training, become more mobile, and better prepared to repel potential threats. These gains should be preserved in the future.”
“In the last few years, defence companies often had to co-finance the state defence order either with export revenues or from sales of civilian produce. However, the world economic and financial crisis is fundamentally changing this situation. Today, the state defence order is a major source of funding for these companies, allowing them to maintain production at a proper level, keep manpower, and continue technical re-equipment.”
“Let me remind you that we have increased monthly unemployment benefits to 4,900 roubles, channelled additional 50 billion roubles into the employment service to provide volunteer public works for the unemployed if necessary. The list of such works could be extended, too, but it is extremely important that the schemes really reach the target companies and people - in short, that they work.”
“Employment services must thoroughly analyse employers' layoff plans, so that they don't lay off more workers than is necessary. I am aware of this problem, and I want you to focus on it.”
“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.”
