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.”
“What happened in the Caucasus was connected with known events and Georgian troops attacking peacekeepers. It was rooted in a desire to suppress the small Ossetian nation by force. Russia remained true to international agreements and its duty to its own peacekeepers and Caucasian peoples. That came as another proof of Russia's determination to stand up for its national interests, sovereignty and right to uphold international laws-laws, I stress, that were not written by Russia alone but by the international community. We will do so in the future. We would like to see these rules complied with everywhere-in Europe, for example in Kosovo, and the South Caucasus, for example in the small republics of Abkhazia and South Ossetia. We would all act according to common rules instead of inventing beneficial options for ourselves time and again, which would open the road to chaos.”
“What we have heard in the preceding weeks and even months gives grounds for cautious optimism. We have heard signals concerning anti-missile defence, and we know that people close to Mr Obama say they should not hurry and the issue demands further analyses. We are glad to hear such statements. More that that, our proposal on developing those systems is still on the agenda. However, they demand team efforts.”
“Positive signals on NATO enlargement have also reached us. We have paid attention to people close to the new US President saying that there are many ways to guarantee Ukrainian and Georgian security, not necessarily through NATO. We are glad to hear it and are willing to join any discussion on the best possible options for international security.”
“Despite all the problems you have mentioned, we came to agreements with the United States on the Iranian and counter-terrorist themes, and our partnership was very fruitful and cooperative in some of those fields. We would not like to see them forgotten or ousted into the margins.”
“What cannot be settled through any negotiations are encroachments on our sovereignty. That is not up for discussion with other countries. What we want is an honest dialogue between countries based on international laws and principles with due account for American and Russian interests.”
“True, we have made economic diversification our goal only recently. On the whole, I think we have taken the right road and are reaching our targets at a fairly good pace. We'll make it, I am sure. The global financial and economic crisis is helping us, in a sense, because it forces us to be more rational, implement new technologies (energy saving, for example), upgrade production and retrain the personnel. All that gives us hope that we will get out of the crisis more mature and with better development prospects.”
“The balanced and reasonable policy of the recent years has made the Russian economy completely different from what it was in 1998. That is why we can afford a fairly mild treatment of the rouble exchange rate and why can keep all the social policy commitments we made during the period of economic growth.”
“The Russian economy is open. The rules we introduced on July 1, 2007, fully liberalise the financial market, and they stay valid despite financial hardships. We will treat foreign investors on a par with Russian. We protect their interests when they comply with the rules and laws of their host country.”
“We are discussing economic partnership now, and we have not given up the prospects of joining the World Trade Organisation. We will carry on talks with our American partners, and we hope they will support Russia's entrance to that international economic agency on standard and acceptable terms.”
“Just as any other developing market, Russia is playing an increasingly important role in the world economy, and that is clear to everyone. That is why the leaders of the biggest world economies say that such elite clubs as the G8 are getting too narrow for global decision-making, and decisions made by such elite clubs cannot aspire to be universally practicable.”
“We talk about the need to join efforts and to work out common rules-what Russia thinks should be said. First of all, we should discuss setting common standards in the global economy, including its national sectors.”
“There is a lot of talk today about the multi-polar character of the economy. What is meant is mainly prospects for establishing other reserve currencies in addition to the US dollar and the euro. In Russia we realise full well that declaration of a currency as reserve, even regional, is meaningless without economic development and diversification. It is quite possible, however, to speak of regional funds that could become a prototype for a unified economic policy in a particular region.”
“This is a special time we are going through. It is unusual due to the scope of the international financial crisis and its all-embracing character. I don't think international economic relations have seen anything like it throughout their history. So I think teamwork at such venues [World Economic Forum in Davos] is extremely important. Everyone says it is necessary to pool efforts and together overcome the problems in the global economy and finance. I think we need to take a practical approach.”
“An additional 83 billion roubles have been allocated for the purchase of 40,000 standard flats. They will be used to resolve the housing problems of army servicemen, as well as citizens living in dilapidated buildings. We will purchase the housing at its real price.”
“Starting this year, the tax break for citizens that are purchasing or building housing has been doubled to reach two million roubles. In other words, they will be able to save on the income tax up to 260,000 roubles, compared with 130,000 roubles, as was the case in the past. This norm will be retroactive and will apply to the families that bought housing last year. It has also become possible to use maternity capital for mortgage payments after the birth of the second child. We remember lengthy debates on whether this money will be paid to citizens at all. This year, people should start receiving this money, and not waiting until a child is three years old, but from the birth of the second child.”
“The borrowers that have become temporarily unable to pay mortgage interest rates due to the loss of a job or cuts in incomes will be offered special refinancing programmes, and a chance to pay in installments. The federal mortgage agency will also provide funds for this purpose.”
“In the building industry, the common logic of anti-crisis measures is to support the demand for housing and prevent the curtailment of construction projects. The majority of the adopted measures are oriented to directly help citizens and sustain the demand.”
“The charter capital of the Russian mortgage agency (AIZhK) was increased by 60 billion roubles, which has allowed the banks to continue implementing mortgage programmes.”
“Now, as you know, we are building Europe's largest medical centre for children with leukemia and blood cancers. We invested more than 40 million Euros in this project last year. This and next year will also see complete budget funding despite the financial crisis. Importantly, your help is welcome here, too. I know that special agencies have been established to train our personnel. I think the time will come when our partnership will really become fully bilateral cooperation because the project also envisages the largest European research centre.”
“The Finance Ministry and other colleagues have also backed the decision on the payment of dividends. They should be primarily channelled into investment.”
“As you know, in the last few months commercial banks have received substantial additional funds from the National Prosperity Fund and from the Central Bank. It is important to analyse whether this liquidity reaches companies, and whether the military-industrial complex is content with the terms of loans offered by banks.”
“Despite all the existing problems, it is essential that we continue implementing the programme for the technical re-equipment of defence companies and for the production of modern military hardware. We understand that under the circumstances, defence companies find it hard to allocate funds for development purposes, at least, on the scale that was planned before. Therefore, it is necessary to streamline federal defence-oriented programmes, and use the funds thus saved for the completion of the projects which are critical for improving the technological level of the national military-industrial complex.”
“These measures subsidise interest rates. Allow me to recall what we have agreed on. The companies in the military-industrial complex involved in carrying out state defence orders will receive subsidies from the federal budget to make up for part of the expenses on interest rates on loans received in Russian lending organisations. Second, they will get subsidies to compensate for the part of their expenses on profile industrial activities, which would prevent their economic collapse and bankruptcy. In 2009, the companies involved in fulfilling state defence orders will receive state guarantees on loans.”
“When we develop measures to support the military-industrial complex, we proceed from its special significance for Russian security and for the technological development of our economy and industry. In the last few years we have seen a marked increase in the supply of our armed forces with new weapons, special military equipment, spare parts and other essential hardware. We have far-reaching plans for re-equipping the army for the future. More than one trillion roubles have been allocated for this purpose just for 2009. The overall expenses for this purpose will total about four trillion roubles by 2011.”
“I believe that our main task today is to create the conditions for the military-industrial complex to use effectively the state defence order and other instruments of Government support.”
“We would like Russian energy to be an inseparable and organic part of the world energy, to function according to common rules, to make due profits, and secure the interests of its partners.”
“We shall regularly analyse work at key economic and social developmental projects included in the Guidelines for Government Activities up to 2012. To be sure, the present situation demands the utmost attention to anti-crisis measures and monitoring the effect of decisions made. We will pay the greatest attention to monitoring employment”
“Essential amendments to the Tax Code and some other laws entered into force on January 1. <…> First, the tax credit on estate purchase and construction has increased to two million roubles. This law is retroactive, so families who bought housing in 2008 may also benefit from it. Second, maternity capital spending on mortgage payments has been authorised since the second child's birth, while we had previously planned to appoint the start since the child is three years old. <…> Third, children's grants have risen by 8.5%. Last but not least, we have exempted from taxes the greatest possible amount of employers' expenditures on personnel training, health care and housing.”
“The Government points out other opportunities to the public. Persons entitled to grants and soft taxation are welcome to use their benefits, while employers should retain corporate social programmes whenever possible and so not merely help their employees in these lean years but also to invest in the future by creating a basis for post-crisis development.”
“Tax inspections, the Pension Fund and other state agencies, in their turn, should be as quick as possible with considering relevant applications and help the population in every way.”
