Point of View

“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.”

"Is it possible that Russian troops could be sent to Afghanistan? That is impossible. The Russian public strongly objects even to putting the matter under consideration, and I agree with that position."

"It was with great regret that we learned that North Korea had unilaterally walked out of talks we consider quite acceptable. Their six-party format has proved its practical worth. They have helped us to arrive recently at decisions which all the parties involved consider adoptable."

"I think we should work towards universal and total nuclear disarmament. We should all share this goal. Yet no one should abuse it, using these terms and this field of international philosophical thought for selfish ends."

"the national interests of Japan and Russia coincide on many issues, but more importantly, there will be more and more shared interests in the short, medium and especially in the long term perspective. Proceeding from these considerations we should do everything to eliminate any irritants in our bilateral ties. As soon as Japan and Russia feel that there are no such irritants, from that moment we will adopt a different terminology. I would like it to happen as soon as possible."

"A considerable part of Russia's territory is located in Asia but we are aware - and so is Japan - that the population density is very low there but the resources are enormous. And considering the development rates of Asia and the Pacific, Russia should by all means use its Asian advantages, its Asian roots, so to speak, in order to integrate itself in this economic space."

"Incidentally, 60% of the energy resources from the Sakhalin project are supplied to the Japanese market. When the oil pipe approaches the Pacific Ocean, Japan will have more opportunities to avail itself of this resource. However, we expect Japanese companies to show interest in expanding their investment in all the fields."

"There is also timber processing, machine building, which I have mentioned, space - we are taking part in the International Space Station programme - and telecommunications. We have already carried out the project on laying two optical fibre cables between Russia and Japan. We also have timber processing, as I have already said, chemistry and metallurgy. In fact, our Japanese partners and friends can take part in projects in any Russian region."

"We hope that the local authorities will follow the same logic by creating the most favourable business environment, and removing barriers preventing new companies from getting access to the local markets. In doing so, they will resolve the employment problem and replenish local finances."

"Programmes of the fund on assisting the development of housing and utilities have rendered substantial support for municipalities. The bodies of local government have already received more than 80 billion roubles from this investment fund. All in all, owing to this fund, into which we invested a total of 240 billion roubles, more than 120,000 people have already received new flats or will receive them in the near future. A considerable part of the dwelling stock will be repaired."

"Payment of salaries in the public sector should be made a priority. Incidentally, the Astrakhan Region has introduced new forms of payment in the public sphere, and the average level of salaries paid to those employed in main directions has gone up by 30% to 35%."

"The tax policy is also subject to change. At the recent meeting of the Government Commission on Budget Projections, we agreed to step up the introduction of the local tax on property. It is designed to replace the existing taxes on land and property. I hope very much that this change will substantially increase tax revenues for the local budgets. However, this should be achieved not by increasing tariff rates, but by differentiating them, as I already said at the aforementioned meeting."

"Considering these factors, we have decided to tangibly increase our support for the territories. In the new version of the budget, federal support for the regions is 36% higher than it was last year. All in all, we have earmarked 1,200 billion roubles for this purpose."

"Now regarding the loans you asked about. <...> We have three possible areas of cooperation here. First, as you have already mentioned, there is the construction of two power units at Khmelnitsky NPP. The approximate cost would be $4 billion. <...> Regarding the gas flow into UGS, this is a very difficult issue, since the volumes are very large, 19-20 billion cubic metres of gas, which could flow there, at a value of $5 billion. This is the second issue. And it requires additional research, investigation, and consultation. <...> And the third question is budget support. Those are the three possible areas."

"A protocol has also been signed on commodity supplies along the production cooperation lines this year. It will spectacularly promote contacts between Russian and Ukrainian industrial companies."

"That is why it is so important that we signed today an intergovernmental agreement on the mutual establishment of offices of the Russian trade representation in Ukraine and relevant offices of the trade and economic mission within the Ukrainian Embassy in the Russian Federation. The agreement envisages spectacular expansion of economic cooperation so as to implement the potential of Russian and Ukrainian regions as fully as possible."

"This is all the more topical as President Dmitry Medvedev has recently announced the Russian proposal to conclude a new comprehensive energy treaty. We expect it to be an essential contribution to normalising European energy relations, and provide a sound legal basis for due consideration of the interests of all participants in the process - manufacturers, transit countries and companies, and main consumers."

"The energy industry remains among the top priorities of our partnership. We talked in great detail today about the Belene nuclear plant construction and, to my mind, we have arrived at a very interesting means of implementing this project, which is essential for our two countries and the entire region."

"Material aid will be given to 52,000 businessmen, who, apart from employing themselves, will create 150,000 new jobs under their contractual commitments. I'm talking about small businesses."

"I'd like to dwell in more detail on regional employment programmes. As of today, all of the 82 regional programmes have been agreed on and endorsed. These programmes will be funded from the federal budget by 93%. All in all, 43.7 billion roubles have been reserved for this purpose, and will be transferred to the regions as subsidies. A total of 9.2 billion roubles have already been wired to 75 regions. More than a million temporary jobs will be created as a result of this measure; about 220,000 people will be retrained, and 50,000 people will undergo practical training. About 16,000 people, who will relocate from their place of residence to acquire jobs in other regions, will receive targeted financial help."

"All in all, 76.9 billion roubles from the federal budget will be spent on combating unemployment; almost 43 billion roubles have already been transferred to regions."

"Our main task is to prevent massive growth of unemployment in industrially advanced regions and local economy mainstays. We must preserve qualified personnel, and give people an opportunity to train for a new profession or find a temporary source of income."

"An analysis of the dynamics of the unemployment growth shows that the situation is improving, albeit very slowly. In January and February, the weekly growth stood at nine percent. In March andApril, the growth went down considerably and stabilised at 1.6% per week. However, for the time being, this is still a growth. True, in some regions, unemployment has even declined in some regions - Belgorod, Kaluga, Voronezh, and Transbaikal."

"Conditions will be created next year for the introduction of the local property tax, which will replace the present-day land rent and estate tax. We mean not to increase tax rates but redistribute the tax burden on real estate, and provide protection and privileges for low-income people and holders of low-price property. At the same time, we will create prerequisites for higher, market-based tax rates for the owners of huge flats, posh houses and vast land plots."

"We need to streamline taxation, with special attention to the improvement of fiscal administration. Our fiscal system should increase its transparency and get all the easier for corporate and private taxpayers. We must put an end to redundant declarations, certificates and other cumbersome papers."

"There is another pivotal objective-to implement a rigid programme for budget deficit reduction from present-day 7.4% to 3% of the gross domestic product by 2011."

"However, it should remain a development budget-that is, tied in with long- and medium-term plans. Available priority projects should be entitled to priority funding. Practical social pledges underlie each of those priorities-the development of healthcare and education, laying in technological and infrastructural reserves, security and regional development. All this, in the final analysis, determines higher living standards and economic competitiveness for many years ahead."

"I signed an executive order on setting up a special Government commission to prevent an epidemic of swine flu in Russia. An outbreak of this infection caused by a highly pathogenic virus was registered in Mexico and a number of American states. Russian sanitary services have already taken measures towards this end. They have imposed a ban on the imports of pork and certain other meat products from Central America and a number of American states, established quarantine, and taken other urgent measures. I'd like you to closely follow the situation."

"I agree that the work of the Government and other executive authorities on draft laws should be more transparent and systemic. In particular, we should proceed to medium-term planning of legislative activities. Many of our decisions are not being implemented. This means that these laws are not drafted property or systemically. While we are at the initial stage of preparing key Government draft laws, I propose that we should involve State Duma deputies, members of the Federation Council, representatives of the expert community and public organisations in this work. We have had "zero" hearings before, and should apply this practice more extensively. I hope that this will help us to substantially enhance the effectiveness of lawmaking."

"The establishment of the Customs Union will enable us to stimulate mutual trade, joint investment projects and industrial cooperation, and in this way enhance our anti-crisis efforts, create jobs, and open new markets."

"I am referring to the establishment of the Customs Union of Russia, Belarus and Kazakhstan. We have recently made substantial progress in developing the legal basis of the Union. Altogether the package comprises 37 documents. We hope that other EurAsEC member states will eventually join the Union. We are open to cooperation and would welcome the growth of the three-party Union into a larger organisation. I am convinced that accelerated integration would effectively boost anti-crisis management and development. This is why we have agreed with our colleagues in Belarus and Kazakhstan to redouble our efforts."

"I would like to return to the first issue on our agenda. We are to consider the draft Climate Doctrine submitted by the Ministry of Natural Resources. Climate change and related risks have been addressed by many global forums. Russia is an active participant in such discussions, and is complying with its international obligations to the dot. Moreover, if not for Russia's active stance, some of the international projects would not have been implemented. For example, the Kyoto Protocol would not have come into force without Russia's contribution."

"We should pursue a balanced and responsible policy on climate and related issues at the national levels. This policy should be designed for a long term and take into account all factors, including environmental, economic, social and political factors. In addition, the provisions of the Climate Doctrine should be used to formulate a concrete action plan regarding the introduction of resource and energy saving technology, and enhancement of energy efficiency of the national economy. We must introduce modern environmental standards and systems of monitoring and researching climate processes. In the final run, we should formulate new, more exacting demands to the technological standards of the Russian economy as a whole and its individual sectors. Most importantly, we should formulate new demands to the living standards and the quality of life of our people."

“The new wording of the 2009 budget stipulates the allocation of over 2.2 billion roubles to the Ministry of Healthcare and Social Development for co-financing the construction and overhaul of healthcare facilities in the regions and municipal districts. I want to say that this issue concerns additional projects that are not covered in federal target programmes and are financed from local reserves. <…> It should be said that we intend to continue helping the regions and municipal authorities to develop the social infrastructure. But our priority should be the financing of key projects of regional and federal importance.”

"You know how difficult and dangerous the miners' work is. These people have a right to expect additional pension guarantees, including from their employers. We issued instructions that these issues should be addressed again. Working together with the Federation Council, we accelerated the drafting of the law On Additional Social Security for Some Categories of Workers in Coal Mining. It stipulates additional payments to the pensions of the sector's workers depending on the length and conditions of their work. Such payments can be made to the miners who did the most difficult and dangerous jobs. Their retirement pensions with additional payments will amount to as much as 40% of their wage."

"For small and medium-sized enterprises, the credit problem is to a great extent connected with the shortage of collateral. In order to find a solution to this problem we need to develop regional guarantee funds more actively. We have already set aside 3.5 billion roubles as part of the Federal Support Programme for entrepreneurship, to top up regional guarantee funds. I can tell you that we have decided to allocate 15 billion roubles in additional resources to these ends. In the final analysis, we need to build up a comprehensive system of financial support for businessmen, ranging from grants to bank loans."

"Another major package of issues concerns SMEs' access to state and municipal orders. It has a special significance in conditions of the crisis and decreasing loans. I think we should speed up the introduction of the procedure for the placement of state orders through electronic auctions. This will allow us to ensure the businesses' fully transparent and public access to trading."

"Yesterday I also signed a resolution on improving the process of connecting to the electricity networks. This sets out the simplified procedure and reduced tariffs for connection. Connections of less than 100 KW will only require the advance payment of 5% of the service cost, and also include the option of extending repayments for up to three years. I also suggest that the connection term should not exceed six months."

"The companies whose annual revenues do not exceed 30 million roubles may use a simplified system of taxation. Many proposals have been made to raise this ceiling. <...> We view this decision as an anti-crisis measure that will allow us to ease the tax burden on a considerable part of small businesses. As the saying goes, proper timing is everything. This is why we believe we can provide this effective assistance now, at this difficult time; at least, this is our standpoint and representatives of your associations agree with us. It is true that without indexation this measure will gradually lose its effectiveness. But we will consider this problem again some time later."

"The general logic of improving the taxation system should be aimed at preventing non-transparent schemes, preferences, and general mayhem, which are breeding corruption."

"We propose to lower the base for calculating the profit tax by excluding the funds provided to companies within the framework of regional and municipal SME support programmes. For example, if you receive a grant of 300,000 roubles, it will be deducted from the taxable base, provided the money comes from corresponding budgets."

"I am convinced that the contribution of SMEs to Russia's development, to the diversification and modernisation of its economy will grow in the long run. They will become more prominent not only in the traditional spheres of their operation, but also in high-tech spheres such as engineering, science and telecommunications. To preserve and develop this creative potential, we should create the utmost favourable and comfortable environment for enterprise. This approach has been laid down in the Government's anti-crisis plan and long-term strategy until 2012."

"As for the former Soviet republics, we are offering them loans. You have mentioned Belarus. Russia has special contacts with this country. We are trying to set up the union state. Russia has lent Belarus more than $3 billion on intergovernmental credits since 2004. We are thinking about another loan of $500 million to Belarus. The credit burden on Belarus has reached critical levels."

"The energy infrastructure development has a highly positive growth effect on related industries, through the creation of new jobs. It has been estimated that every employee working in a nuclear power plant construction project creates jobs for 10 employees working in related industries. Here, we have also discussed that large projects of this kind have a highly positive effect on the construction industry. As a result, through NPP construction financing, we are actually making investments in several industries at the same time and supporting them in the time of crisis."

"And finally, I want to state that the nuclear industry has always been one of Russia's greatest assets. I am convinced that if we organize our efforts efficiently and set our priorities correctly, the nuclear industry will remain an important source for the country's development, whether it is in energy production, defence, economy, or science. I would like to wish all of you every success."

"As you know, we have already approved the project list for realisation of the Main Government Policy Areas Until 2012. The list consists of about 60 projects. The nuclear energy and nuclear weapons development areas have been included into one of the four "pilot" projects that will be implemented on a priority basis. The project will result in increased energy output at the existing facilities, ensure and strengthen Russia's leadership in nuclear fuel production, and allow us to introduce the most advanced radioactive waste utilization technology and accomplish a series of other environment protection measures."

"As you know, we have highly ambitious, and yet quite realistic, goals in this sphere. By 2030, nuclear power plants should account for 25% to 30% of electricity produced in the country. The current figure is 16%. The relevant figure exceeds 25% and even 30% in many European countries, so we will have to catch up with industrialised states. <...> There are no minor details in this sphere, a sphere that needs a corresponding financial backing. At the same time, we also need to develop a modern grid infrastructure and ensure the solution of many other problems, which have always been important in this sector whatever their scale, even if it is minuscule."

"I know that Mr Schroeder, and the executive management of Nord Stream, are working very hard to move this project forward. The project is becoming ever more international and pan-European in scale. We are well aware of this, and have discussed this on several occasions. The European shortfall in energy supply will grow. That's why we must explain our position calmly and work on implementing this very important European project."

"In 2008, 421 billion roubles were allocated to transport from the federal budget, which is one and a half times as much as in the previous year. As a result of this increased investment, more than 2,200km of motorway were built, 296 towns were provided with year-round links to existing road networks, and several major transport facilities have been brought into use."

"We must resolve the task in hand in order to make sure that citizens, as well as the economy, are served by a modern transport system; avail of Russia's unique geographical location to ensure the maximal use of our transit potential; and offer new, alternative routes for the high-speed, secure movement of people and goods. All these strategic tasks are mentioned in the Transport Strategy in the period up to 2030."

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