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.”
“On April 1 we indexed pensions by 6.3%, as we promised, and we must provide funds for this decision. Preliminary estimates indicate this will cost about 129 billion roubles. Another 13 billion roubles will be channelled to finance federal and regional increments to pensions. In addition, we are planning to allocate 92 billion roubles to provide housing for the veterans of the Great Patriotic War who registered after March 1, 2005, as well as for citizens previously dismissed from military service and sent to register on the municipal housing waiting list, which is famously slow.”
“We value your opinion of the effectiveness of the policies to support employment, including regional programmes to reduce the strain on the labour market. And I must say that last year we managed to defuse the situation in the labour market thanks to the implementation of these programmes and the insistent but reasonable policies of the trade unions. Once again, I would like to express my hope that we will continue to work together well into the future.”
“It’ll take time to overcome the negative effects of the global recession fully, rebuild the economy and reverse the budget deficit. This is why we cannot expect a sharp increase in budget revenues in coming years, which we could have spent on items other than servicing our debt. The budget will continue to run a deficit for the next few years, which is why we must adopt a highly responsible approach for each expenditure item, concentrating resources on high-priority budget items and trying to stay on schedule to reduce the budget deficit to 3% in 2012. The same strict discipline is also absolutely necessary for regional budgets in order to avoid discrepancies and ensure the stability of the entire budget system.”
“We are now experiencing the lowest inflation in 20 years: 3.8% for the first four months of the year. It's clear that this is very important and beneficial for encouraging investment and increasing lending, especially long-term lending. More importantly, low inflation allows us not only to maintain people's real incomes, but steadily increase them. Today we see an upward trend in key economic indices. Russia's GDP is expected to grow by 3.5%-4% in 2010, according to the forecast of the Ministry of Economic Development. There are even more optimistic scenarios, but we will proceed from that conservative estimate. Russian industry performed extremely well in April, posting double-digit growth, 10.4%, for the first time.”
“As you know, a large medical centre is being constructed in Moscow for children with oncologic diseases, primarily hematologic diseases. This centre will be the largest in Europe, without exaggeration. It'll accommodate between 250 and 300 patients, servicing another 300 patients at its ambulatory clinic. Also, there'll be a research lab and a hotel for the families of young patients. They will be able to come and stay there for the duration of the treatment. This option is very important for such patients. They need their family there. The government is doing this on its own. It'll cost the budget 11 billion roubles. Construction will be finished by next June. The centre will have the latest high-tech equipment. I hope it'll be able to receive its first patients at the end of next year.”
“We, both Russia and Kazakhstan, are at a rather advanced stage of preparations for WTO membership. There are still some matters to settle, but it will certainly be easier to do this bilaterally on the Customs Union's behalf than in the tripartite arrangement, because the more participants there are, the more problems there are, as every country defends its own economic interests and the number of contentious issues grows. This is evident. Certainly, it will be easier to join the WTO in the bilateral format. However, I want to point out that this is not a reason or pretext for not developing tripartite cooperation with Belarus included. We will do this.”
“Innovation products account for a mere 5% of Russia's economy, and less than 10% of Russian companies introduce technological innovations. There are many reasons for that. In the past we had practically no economic incentives to introduce innovations. There was no healthy competitive environment in place, which would prod companies to renewal. The national innovation infrastructure is meagre. The shortage of long-term financing available was also a discouraging factor. The number of innovation companies should certainly grow. Even a small result which would help strengthen Russia's foothold in markets for innovation products and services would justify the effort.”
“We now have enough effective mechanisms facilitating compliance with the law and coordinated work at all levels of state administration. We have prosecutors' offices and financial control mechanisms. A system for assessing the effectiveness of state power bodies and of local governments is in operation. As a last resort, the president of Russia has the right to voice his distrust in a regional leader. At the same time, I would like to stress that federal control is not and cannot be comprehensive. Regional administrations should assume responsibility before citizens. The people assess the performance of government bodies through elections of legislatures and through partisan preferences. I believe that this feedback mechanism is no less effective than any control from above.”
“In 2009, we allowed the regions to introduce tax breaks for small businesses and drastically increased the range of companies that can use the simplified taxation system. We have also allowed many self-employed businesspeople to forgo the use of cash registers. This year there are plans to expand the use of the tax patent system and to allow small businesses to purchase the state and municipal property they are leasing…. Small and medium businesses also receive additional direct budgetary support each year. Ten billion roubles have already been allocated for this purpose in 2010. We also plan to add another six billion roubles from the Anti-Crisis Fund. I am confident that these measures are already yielding tangible results.”
“In the last few years, Russia and the EU proved that they can cooperate fruitfully in various spheres. We have greatly strengthened mutual trade and are implementing major infrastructure and energy projects together. Mr Vanhanen has just mentioned one of such infrastructure projects in railway transport. We are also working on humanitarian and environmental initiatives. Our interdependence is becoming increasingly evident. We need to work hand in glove, and people in Russia and the EU are coming to see that we all benefit from greater cooperation. We understand that it is making us stronger”.
“Two Finnish politicians are known for building good-neighbourly relations between the Soviet Union and Finland: Presidents Juho Kusti Paasikivi and Urho Kaleva Kekkonen. Of course they lived in a different era. It was a totally different world. And different people can look at the past differently. But the policy of strengthening neighbourly relations between our countries proved fruitful at that time and continues to bear fruit today. It is thanks to this policy that the lease agreement was signed, first for almost 40 years, and now for another 50 today. This is an obvious benefit. These negotiations lasted several years, and today they concluded in the signing of the agreement. These were tough negotiations. Each side brought up a lot of issues that needed to be addressed. But even the most difficult issues can be resolved if there is goodwill, and Russia and Finland do have goodwill”.
“An analysis of the current trends shows that, along with high-precision weapons, aviation, anti-aircraft defence and reconnaissance systems, the world's leading countries are focusing on increasing the capabilities of each individual soldier. Forward-looking combat systems are being developed for infantry. Personal armour is being made more reliable, while small arms ammunition, sights, and detection and reconnaissance systems are becoming more sophisticated. All of this is crucial, especially in special operations, including counterterrorism. I would like to emphasise that our defence industry is currently capable of developing and manufacturing a full range of small arms and close combat weapons”.
“We will continue working on the budget today and we will review the scenario plans for economic development for 2011-2013. I'd like to emphasise the particular basis of this document. It is designed for a post-crisis period when we must not only fully overcome the consequences of the past year's recession, but also achieve steady development. Needless to say, as we agreed, the budget should be based on conservative predictions, which will be carried out in any event. However, I believe that the scenario plans should reflect the government's efforts to modernise the economy and formulate a clear understanding of the prospects and factors of future growth”.
“We know how much criticism the CIS receives, but I assure you, we would not have settled many economic and social problems if not for the Commonwealth. We don't even see that these problems have been settled. We take if for granted. The situation would be much worse without the CIS. Even Georgia retained 75 agreements after it announced that it was withdrawing from the CIS, because they were vitally important to the country. We see Georgia's point. More than that, we welcome it. So, I believe that the CIS is a necessary venue for coordinating economic, political and cultural issues, and will continue to be relevant”.
“Like in other countries, capital investment in Russia decreased in 2009. Investment shrank by more than 16%. This year we intend to reverse this situation, to buck this trend, and we have decided to act in several areas in order to accomplish this. We plan to improve the investment climate and abolish excessive bureaucratic restrictions, in particular by reviewing the regulatory framework governing foreign investment in strategic sectors of the Russian economy. We have continued to undertake major public investment programmes, including in housing and transport construction”.
“In December 2011 we will mark the 20th anniversary of the CIS. We have come a long way since then, and managed to build a unique system for cooperation in many respects. It works in the interests of our nations' citizens, specific companies and businesses engaged in cooperative relations. And, of course, our dialogue allows us to resolve any problems that might arise in the spirit of openness and mutual trust, and to ensure stability in this vast region. Based on our experience, we should move forward and implement the plans formulated in the CIS Development Concept and the Economic Cooperation Strategy for the Period until 2020. Our success depends on us coordinating the efforts of all partners, their business attitude, and, of course, on their goodwill. I am convinced that we all share this approach”.
“...We are satisfied with the efficient, cooperative work that has been done to establish the Customs Union. The Customs Union is obviously outgrowing the purely economic format and is becoming a new geopolitical reality. One might say that the emerging common economic space is a key aspect of the integration processes in the Commonwealth of Independent States (CIS) and the Eurasian Economic Community. These developments are extremely beneficial for all participants because they create favourable conditions for rapid economic growth. As we see it, the Customs Union has gotten off to a good start. All of its central mechanisms are functioning normally. But, due to purely objective reasons, it is difficult to implement such an ambitious and complicated project on a tight schedule. Notably, we manage to find solutions and reach mutually acceptable agreements even in the most complicated situations”.
“Approving the first single-industry city support projects is another major item on our agenda. This is our priority not only for 2010, but also going forward, because both current problems and matters pertaining to the overhaul of the national economy are closely intertwined on this issue. We are planning to allocate 27 billion roubles from the federal budget for the development of single-industry cities in 2010. These funds are aimed at implementing infrastructure projects that will attract business and help create new, modern production lines, at supporting small and medium-sized businesses and at improving conditions in problematic cities. In addition, the regional authorities, municipalities, management teams of major enterprises and interested investors must all implement their own measures in singe-industry cities. As we have agreed, support will primarily be rendered to those single-industry cities that have submitted adequate and realistic programmes”.
“Tax policy is one of the most important instruments we have for reaching long-term goals. Today we must finalise our plans in this area for the next year, that is, endorse a tax package designed to encourage innovation in the real economy. It compensates for the rise in tariffs on mandatory social insurance for high-tech companies. As we agreed, during the transitional period we will retain the 14% rate for residents in technology development special economic zones, software manufacturers, and innovation and research companies at higher educational institutions. Reduced rates will also be in place for the media until 2015. It also envisages changes in the rules regarding depreciation, specifies procedures for the calculation of R&D expenditures, a reduction in the number of documents required to prove eligibility for the zero VAT rate on exports and the three year-long exemption of new energy efficient equipment from corporate property tax, and so on”.
