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.”
“As you know, we intended initially to keep next year's budget deficit under 5-5.5%. However, there are low-income population groups who need support-pensioners, disabled persons, and others. There are also commitments to some economic sectors-in particular, the state-financed ones, which we must keep. There are also pivotal national priorities-defence, security, the innovation economy, which also need support. So we have deemed it necessary to raise the budget deficit to 7.5%.”
“7.5% is the highest permissible deficit. If the Government, the Finance Ministry or any other agency, or State Duma or Federation Council members think priorities should be shifted in the budget draft submitted by the Government, it should be done not by increasing the deficit but through redistribution of expenditures. Setting priorities is an essential part of our joint efforts.”
“We have to retain the preset rate of funding at this year's level, and even increase it slightly, despite the crisis. In the process, regrettably, we are going to come across problems caused by the deficit. And here our actions must be as responsible as possible. We must not upset national macroeconomic stability.”
“We will continue to pursue our social policy. Let's put it blankly, we will continue to pay retirement pensions, as we have done starting from 2003, based on my decision. More than 1 billion roubles have been allocated for these purposes this year. And next year payments will remain the same. No changes are expected.”
"We all know quite well that since 2003 Russia has been providing assistance to Russian citizens who live in Abkhazia, paying pensions and several other allowances. I understand perfectly well that this assistance is only a response to the heritage of the past. Our main goal is creating a self-sustained economic system in Abkhazia."
“Why could Abkhazia be interesting for Russia in terms of economy? The first point, which is obvious, is tourism. I have just visited Turkey and met with Prime Minister Erdogan, a good friend of mine, and with President Gul as well. We discussed different fields of co-operation. Two-and-a-half million Russian tourists visit Turkey every year. Turkey is a big country and there are a lot of modern hotels there. And one million Russian tourists visit Abkhazia. The figure is comparable with that of Turkey. One million! That's what we have under current circumstances, when far from everything has been restored, neither in Gagra, nor in other resorts. Imagine what will happen if we restore everything.”
“As for Abkhazia and South Ossetia, well, speaking of the Abkhazian budget, this year we allocated funds to the tune of 2.5 billion roubles to support the Abkhazian budget. And these are only the funds allocated to support the budget; there are funds allocated for other purposes as well. Next year the figure will be approximately the same, just a little bit smaller. But, next year we are going to allocate considerable funds for security purposes, specifically, for our military base in Abkhazia - about 15 billion roubles. This money will be used to reinforce the border and to create an up-to-date border - not the Maginot Line, but a border - to enable normal communication with both Georgia and Russia, to create modern infrastructure, to equip the border and to equip border troops, to upgrade the military base. All in all, it will take 15-16 billion roubles.”
“There are infrastructure projects regarding transport, border crossings with Russia, as there are weak points there. To be frank, we have not found any specific financing sources so far, but still motorway and bridge construction, railroad restoration between Sochi and Sukhumi, marine transportation between Sochi and Sukhumi - all this will require another 4 billion roubles. This is a rough estimate. I would like to repeat that we have not yet found sources to finance infrastructure projects, but the expenses have not been calculated yet. The calculations are being done now by the experts. And we will continue to do it.”
“We are going to work within existing treaties and agreements. The legal basis for our cooperation is strengthening; we have drafted about 40 agreements with Abkhazia on various spheres of our cooperation, and we are confident they are going to work efficiently towards the well-being of the people of Abkhazia and Russia.”
"But in our view, now people are coming to understand that everyone is interested in universal rules and standards stipulated by international law. Because not a single country in the world today is capable of - as resources are insufficient even if they would like to - acting as a world policeman, as a world empire, which imposes rules of behaviour on everyone. I think everyone has this understanding now. And therefore, I would like to see that this will, this opinion prevails on a political level, and not just on a level of private conversations. And in fact, now we see that this becomes the case more and more often."
"Abkhazia knows well Russia's position regarding this conflict and how relations developed in preceding decades. There is no point in pretending otherwise. You know how many times South Ossetia and Abkhazia, in some or other form, approached Russia with pleas either to let them join the Russian Federation or to recognise their independence... But Russia behaved in a very even-handed and very correct manner. Because we always proceeded from one of the fundamental principles of international law, that of the territorial integrity of states. But I think, in order to preserve this territorial integrity after the disintegration of the USSR, it was necessary to treat the peoples of Abkhazia and South Ossetia with respect."
“The practice of allocating subsidies to balance regional budgets will be preserved. The subsidies will be diminished somewhat, but the practice will be preserved. Incidentally, we in Government have already decided to allocate additional subsidies of 70 billion roubles to 29 regions of the Russian Federation and on Saturday I signed a Government decree to the effect.”
“One of the Government's unquestioned priorities in the sphere of relations between budgets of different levels is financial support of delegated federal powers. The largest of them are spending on housing and utilities discounts for veterans and disabled persons and the exercise of powers in the sphere of employment. Subvention for housing and utilities rates in 2010 will amount to 102 billion roubles. Federal budget spending on employment will increase from 77.5 billion roubles in 2009 to 88.7 billion roubles in 2010.”
“We will continue the practice of granting the regions three-year budget loans at very low interest rates. Of course, this will be done above all for regions with low budget revenues.”
“It needs to be borne in mind that the crisis has affected different regions to different degrees. The hardest hit are the regions whose industries were oriented towards external markets. It is therefore necessary to take another hard look at the method of distributing subsidies and equalizing the budget sufficiency levels with due account of the changes that have taken place in the regional tax potential. I would like to stress that the overall size of the fund for financial support of the regions will not be cut.”
“Next year more than 1 trillion roubles will be allocated to support the regions. That is a hefty sum which, in our opinion, will cover the priority needs of the Russian regions.”
“Our decisions regarding the transport tax, indexation of alcohol, beer, and oil excises, and state duties will strengthen the regional revenue base. According to a Finance Ministry estimate, these measures will bring an extra 96 billion roubles to the consolidated budgets in 2010.”
“The established legislative framework allows us to develop our relations with Abkhazia and with South Ossetia as independent states, without paying any attention to anyone who doesn't like it. And those are the foundations on which relations can be built in economic development and the social sphere, developing interstate relations, and ensuring stability and security. We will act to those ends within the framework of existing agreements and treaties. And in the very near future, and already now, the legal foundations of our cooperation are being strengthened: We have prepared about 40 agreements with Abkhazia on various areas of co-operation. I am confident that this will work well in the benefit of the peoples of Abkhazia and Russia.”
“As usual, we have outlined key priorities to focus on. As for the armed forces, these priorities include maintaining and boosting Russia's strategic nuclear potential, upgrading ballistic missile defence systems, equipping the army with modern attack, control, intelligence and communication systems, as well as streamlining military infrastructure in key strategic areas.”
“We will certainly continue addressing military personnel's social problems. First of all, I would like to emphasise that we decided to resolve the problem of permanent housing for military personnel in 2010, which we agreed on when drafting the budget. It is certainly a challenging task given the limited budget funds, budget deficit and financial and economic problems, but we will fulfil it. Despite the financial crisis, a total of 124 billion roubles will be allotted for this which is 50 billion roubles more than last year.”
“Despite the present challenges of the global economic crisis, we managed to maintain the same volume of state defence orders and moreover boosted it by 1.2%.”
“The volume of financing for defence-related R&D projects as well as armament and military equipment supplies will remain at almost the same level, which will allow us to continue state military development programmes.”
“Agreements have been reached on the construction in Turkey of major underground gas storage facilities. We know that each winter Turkey's economy and Turkey's consumers experience gas supply problems. Establishing these reserves and these underground storage facilities will of course boost energy stability for the growing Turkish economy.”
“We will maintain further contacts with both parts of Cyprus, with both sides. We will develop economic relations with Cyprus, including its Turkish part. We have said it so many times before. We consider it the right stance and a step towards settlement.”
“Turkey supplies a considerable volume of agricultural products to our market, while Russia supplied an equally large volume of grain and cereals to the Turkish market last year for the first time. The outlook for next year's export is also bright; we are planning to gain a stronger position in the Turkish market, also helping our Turkish partners fill the niches both Turkey and Russia are interested in.”
“The fundamental document, the framework within which we are currently working, is a treaty on the supply of gas to the Turkish Republic from Russia dating to, I think, 1986. It is subject to renewal. And the Turkish side is interested in increasing the volume of Russian gas supplied. We agreed that we would do that.”
“We agreed that we will move to the feasibility studies and subsequently the construction of additional branches to the Blue Stream pipeline, Blue Stream-2, with subsequent export of these hydrocarbons to third countries via Turkey. The countries have already been mentioned, they are: Cyprus, Israel, Lebanon, and Syria. Thus Turkey becomes a major transit state for this part of the world. If you take into account the fact that South Stream will pass through Turkey's special economic zone, then Turkey will become an important logistical centre in the energy sector for Europe as well.”
“As for the peaceful uses of nuclear energy, the victory of the Russian-Turkish consortium at the tender for the construction of Turkey's first nuclear power plant would open up broad vistas before our two countries. Obviously, both countries are interested in the project and intend to coordinate details and proceed with construction in the near future.”
“Mutual trade grew to almost $40 billion. In the volume of trade Russia ranks first among Turkey's trade and economic partners, and Turkey ranks fifth on the list of Russia's partners, above the United States, Great Britain and Japan.”
“Farmers are anxious to know what will happen to their relationships with credit institutions, with banks. We have already made a decision on this matter that would extend short-term one-year loans by 6 months. We have discussed it. I think it can be extended from 6 to 9 months. It will enable the enterprises to complete the following year, to sell their crop and earn the money that they can use to pay back the loans.”
“Droughts and other emergencies occur practically every year. The current situation is not an exception. We have been developing mechanisms of protecting farmers against such risks. I am referring above all to insuring crops. Federal and regional budgets allocate sizeable amounts to develop it every year. In 2009 the federal budget will allocate 2 billion roubles. Already 970.9 million roubles, almost one billion, are in the accounts of regions. Moreover, new rules for compensating the cost of crop insurance came into force in 2009. The federal budget reimburses to farmers 50% of their insurance premium.”
“As I have already said today, the general performance of the Russian agricultural sector has been high and even shows a better ability to withstand the global economic crisis than some of the other sectors. Support of agriculture is undoubtedly one of our priorities. The funding of that sector has increased significantly in recent years. We have substantially increased the capital of Rosselkhozbank and Rosagroleasing. The decision to raise to 80% the level of subsidies for part of the cost of interest on loans, including loans taken out to buy fuel and fertiliser, went a long way to help agriculture.”
“Of July 1 fuel and lubricants will be sold to farmers at a 10% discount on the wholesale price. I ask the Ministry of Energy to report on how that agreement is being fulfilled and how the declared quotas of fuel and lubricants are being used.”
“The Government is doing a lot of work to regulate the grain market in order to stimulate production. The mechanism of grain intervention is being used actively. In all, 8 million tons of the 2008 harvest have been procured at the cost of 38.6 billion roubles. That has kept prices at an economically valid level and prevented a fall in farmers' incomes.”
“The gross yield of grain is expected to be around 85 million tons, which will more than cover our domestic needs and will enable us to continue grain exports. The export potential of around 20 million tons will remain through the current and the next years. The Agriculture Ministry says its will be even bigger, 22 to 23 million tons.”
“Upgrading environmental standards, if the industrial facility already exists, should be a smooth process. We should consider the current economic and social environment, setting feasible periods for giving up outdated technology and for dealing with social issues which emerge while industries are upgraded. And we should create new jobs where the old ones are cut."
“Expanding cooperation with public environmental organisations is one of the most important points of the environmental protection measures package prepared by the Government. I guess you already have the draft of this document. After our meeting today, the necessary changes will be made, and I will put my signature on it.”
“We therefore pay attention to environmental programmes in our key strategy documents, including the Long-Term Development Concept until 2020 and the Guidelines for Government Action until 2012. It's about improving the law, measures to reduce industrial waste, waste recycling development and the revitalisation of polluted areas.”
“The environmental-economic mechanisms, many of which were formed back in the Soviet era, still exist today but they are certainly far out of date. The current system of environmental control often falls below world standards. There is no motivation for manufacturers to introduce environmentally-friendly technology or to reduce emissions. In the near future, we need to develop and introduce such mechanisms. Additionally, we need to thoroughly study ways to tighten sanctions for environment pollution.”
“Strict environmental standards force business to adopt modern technology, to cut costs and to save resources. We also shouldn't forget that compliance with environmental standards is a mandatory requirement for accessing the markets of leading economies, those that are most profitable and receptive.”
“We have already introduced special privileged air ticket prices for the local people. They are effective from May 15 to September 15. I believe that we should take the next step and extend the privileged regime until the end of October this year. I have recently signed a resolution to this effect. We have calculated that another 90,000 residents of the Far East will be able to use this privilege.”
“We will also establish new production in the Far East. On July 27, the meeting of VEB's Supervisory Board decided to issue an investment loan worth 5 billion roubles to Sollers. A part of these funds - 1.8 billion roubles - will be used to set up a new car assembly plant in Vladivostok. This will create over 1,000 jobs in the city.”
“We will highlight the development of high-tech sectors such as shipbuilding and aircraft manufacturing. Detailed audits are being conducted at the local enterprises to determine development reserves and solve financing and marketing problems, including export.”
“In April we adopted a new federal programme aimed at creating safe living conditions in the country's quake-prone regions. Within that programme, we have transferred 1.6 billion roubles to the Sakhalin Region alone, and 3.5 billion roubles will be allocated to the Kamchatka Territory.”
“According to experts, some 150 billion cubic metres of gas will be produced in the Far East and Eastern Siberia by 2020. These resources must become the foundation for creating large power generation and gas processing facilities, for developing modern high-tech companies in the Krasnoyarsk Territory, the Irkutsk Region, Kamchatka, Sakhalin, Khabarovsk and the Primorye Territory.”
“The 2009 budget stipulates the allocation of 84.7 billion roubles for this programme, 23.7 billion roubles for energy projects, and 40.4 billion roubles for preparation for the APEC summit. These are huge funds.”
“I have signed a Government resolution that stipulates accelerating the construction of several vital energy projects, such as the Neryungri GRS-Tommot-Maya transmission line for ensuring the operation of the Eastern Siberia - Pacific Ocean oil pipeline (1.5 billion roubles), the construction of the Suntar-Olekminsk transmission line (2 billion roubles in 2009), the use of hydropower and geothermal resources of the Kamchatka Peninsula, and several other projects.”
“This year we must finish clearing up the consequences of the earthquake in Nevelsk. All of its victims must be given new housing and financial assistance, and the city must have a modern engineering infrastructure. I would like to remind you that 9.6 billion roubles has been allocated from the federal budget for the earthquake relief, including 8.8 billion roubles for construction. As much as 7.7 billion roubles was transferred by April 1. As of July 1, the region needed 1,587 flats, and 1,537 flats have been turned over to people. The remaining flats are to be commissioned within the next few days, by August 1, 2009.”
“But I would like to stress that it is first of all the domestic market that will be priority for gas from Eastern Siberia and the Far East. Gas will provide a resource base for the creation of large energy and gas processing facilities, and the development of state of the art and high-tech production operations. This will in turn replenish regional budgets, attract domestic and foreign investments, and boost the development of social services. And, of course, it will create jobs. 100 billion roubles invested in the gas sector will guarantee the creation of 70,000 to 80,000 jobs.”
