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.”
“At a time when domestic producers are forced to slash production, I think it especially unacceptable to spend federal funds purchasing foreign cars and trucks. Let me emphasise that I am referring to so-called "direct imports" here.”
“As for the new assembly plants recently established in Russia by major foreign automakers, we also regard them as part of the domestic auto industry. In this sense, I am making no distinction between Volkswagen, Renault, Ford and Toyota plants, and Russian VAZ and GAZ. Foreign assembly plants operating in Russia are entitled to government support as much as local manufacturers - naturally, assuming they comply with the required domestic content agreement.”
“Many manufacturers chose to suspend vehicle assembly in December 2008-January 2009. The industry's problems stem from plummeting consumer and commercial demand. Therefore, government action in this case should try to mitigate this alarming trend. To begin with, I think the Government, natural monopolies and preferably the largest private companies should purchase predominantly domestic products.”
“The struggle against terrorism remains a key direction in the work of security services. <…>We should concentrate on preventive actions. We should prevent the very possibility of acts of terror in Russia, and eliminate foreign sources of funding for the criminal mob. The FSB Frontier Guards bear special responsibility in this respect. It is necessary to continue comprehensive efforts to consolidate the state border.”
“We should curb any attempts to sow religious and ethnic strife in this country. These actions should be viewed as a direct threat to the territorial integrity and unity of our state.”
“As you know, the federal budget has entirely funded ambulance and school bus programmes as national priorities, though they legally belong to municipal affairs. I deem it necessary to help cities with modernising other municipal transport-passenger and special. I have given necessary instructions to the Economic Development, Regional Development, and Finance ministries.”
“We will also discuss strengthening the financial basis of local self-government today. I think we should ponder the prospects of passing additional sources of tax revenues to city halls. The Government is analysing relevant initiatives.”
“Moreover, an additional 50 billion roubles have been reserved in next year's budget to conduct active policy in the labor market. All these funds will be transferred to the regions through the channels that you are already familiar with, but they are designed to fund concrete programmes to create jobs and organise public works. These programmes should be drafted with the active participation of local authorities by February 1 of next year.”
“To support people who are facing problems with jobs, we have raised the maximum unemployment benefits to 4,900 roubles per month and provided for a number of measures to help families who find it difficult to meet mortgage payments. I will also add that people who have lost jobs or had their wages considerably reduced because of layoffs will be allowed to delay interest payments on mortgages or the principal debt if the time has come to pay off loans.”
“I want all tasks, in particular those concerning the forthcoming budget expenses, to be prioritised in a more precise manner. We reiterated on several occasions that we are not going to save on priority national projects - they remain one of the key areas of our activity in the social sphere and in some branches of the economy. But that does not make redundant the need to justify expenditure.”
"We have discussed on a number of occasions the need to optimise and increase the efficiency of budgetary expenses. We have allocated huge funds for priority national projects, and they should work with maximum efficiency - to both address social problems, and, which is of vital importance under the current circumstances, to stimulate demand in the economy."
“It is necessary to regulate the grain market. For that, the Agriculture Ministry should greatly increase the effect of purchasing interventions. With that end in view, we have agreed to increase the authorised capital of Rosselkhozbank once again-by 45 billion roubles this time, after this year's recent 35 billion roubles. The money will expand grain purchasing interventions and so help farmers with sales and improve their financial standing.”
“We need to retain the volume and terms of agricultural crediting. As I have said, this will promote cattle breeding, dairy production and other essential projects, and guarantee spring sowing. Agriculture needs roughly 400 billion roubles worth of loans-half of them short-term, and the other half long-term, up to 850 billion grand total. It will take 72.3 billion roubles to finish livestock unit construction. That, too, demands Government support.”
“We have determined to subsidise agricultural loans, or farm production will drop. The matter came under detailed discussion yesterday, too. As you know, subsidies presently cover two thirds of interest. The Central Bank has increased its refinancing rate, so commercial bankers are also sending rates up. The entire national economy is under that burden, and it should be distributed between all branches more or less evenly. Still, we should make agriculture an exception, as in previous years, to ease pressure on it. We have agreed to subsidise 80% of agricultural credit refinancing.”
“The decision on new poultry, meat and pork quotas mentioned today has been signed. Our talks with foreign suppliers took six months and were very difficult. We have come to an agreement at last. Extra-quota meat import tariffs will rise substantially, while poultry meat quotas will be reduced by 300,000 tonnes, etc. The figure corresponds with annual Russian production increase. That is what we will focus on. We must guarantee that increase-it is crucial.”
“New farm leasing terms are entering into force. They have been extended from 10 to 15 years, and advance payments of up to 7% of leased equipment cost have been abolished. Now, the first instalment should be made 12 months after equipment is received.”
“When preping and approving new targeted programmes proceed from the real economic situation, selecting elements of the new programmes carefully, and trying to find the most rational and economically justified ways of implementing them.”
“I'd like to tell you that we have long set ourselves the goal of launching a commodities and raw materials exchange for trade in oil and oil products. We were planning to do this in St. Petersburg, and would like to discuss with you potential cooperation. Maybe, it makes sense to open a subsidiary of this exchange in Kazakhstan, say, in Alma Ata or Astana, or wherever you suggest. At any rate, the closer our cooperation here, the better it will be for both of us.”
“You are aware that we have cut foreign labour immigration as a forced and temporary measure. We are reducing the original quota declared by the regions by half. Let me stress that this move is prompted by labour issues inside the Russian Federation. I hope you will understand the rationale behind the decision. At the end of the day we are all interested in a civilised labour migration policy.”
“The last Government meeting decided to offer an extra 300 billion roubles in guarantees to core enterprises. Just yesterday I chaired a meeting in Rostov-on-Don in support of agricultural equipment production. We made some important decisions including the expansion of leasing offers to essentially boost demand - this is the biggest problem for this sector. To solve the problem we have decided to allocate an additional 25 billion roubles for leasing programmes. We have decided to subsidize interest rates on loans to businesses and farms at two thirds of the bank rate. A package of tax amendments has been passed to support industry, agriculture and small and medium-sized enterprises. We are shortly to consider an additional package of measures for agriculture. We will also take special measures to support the construction industry. Some are being developed and we are considering other options.”
“Russia will see a 6% GDP growth by the end of this year, even despite the problems. People's real incomes will have grown by around 7%; the growth in January-October was 7.6%. Eleven-month inflation was 12.5% and is expected to hit 13.5% in 2008. We have also seen an economic slowdown in the past few months.”
“The declining global prices of oil, metals and other commodities Russia traditionally exports, may still lead us to a negative foreign trade balance. This is a factor of pressure on the national currency. Nevertheless, we are determined to do our best to prevent sharp fluctuations of the rouble. Russia has sufficient reserves for that.”
“On the upside, industrial production will show some overall growth by the end of this year: it went up 4.9% in January through October (0.6% in October alone). Yet, as I have said, a number of sectors are currently forced to slash production to reduce costs. Our metals and chemical industries, building materials production and engineering were hit the hardest because they depend heavily either on exports or on investor demand.”
“Russia will fully abide by its international financial commitments and take part in anti-crisis measures together with other countries. If necessary we will support our partners on a bilateral basis. I have already said publicly that we have transferred $1 billion to the International Monetary Fund which redistributes the money, with our participation, among the countries that are the hardest hit by the crisis. I repeat, if necessary, we will support our partners on a bilateral basis, not stopping short of credit lending.”
“I'd like to emphasize the importance of speeding up the formation of the Customs Union of the Troika: Russia, Belarus, and Kazakhstan. The sides have signed a cohesive package of agreements for developing regulating standards, including rules for applying common customs tariffs.”
“We believe that cooperation within EurAsEC is an effective strategy with the potential to ensure economic stability and further growth in the region. We therefore support the expedition of the integration processes, above all the organisation and launch of the EurAsEC Customs Union. It is vital to stimulate mutual trade, joint investment projects, production cooperation and thus preserve jobs and open new markets for our businessmen.”
"I note with satisfaction that our trade has been growing: last year it reached $1.2 billion and this year will approach two billion, or about $1.7 billion. Russian direct investments in the Kyrgyz economy have also been growing."
“The Kazakh and the Russian economies have some endemic issues. I'm referring to a big share of the mining industry, and the role of oil and gas in both economies. We have discussed this. I believe that we should not simply help each other as we have been doing and are going to do in the future, but that we should coordinate more proactive plans.”
“I think in this difficult situation we should support Russian farm equipment producers (with an emphasis on equipment actually manufactured in Russia) by increasing new and second-hand farm machine import duties.<…> I think we should agree with manufacturers and establish combine harvester import duties at 15% but no less than 120 Euros per cubic centimetre of the engine displacement.”
“Steps should be made at the regional level to promote Russian agricultural equipment sales. First of all, manufacturers should meet clients halfway - don't forget this! You should reduce the sale price of commodities standing idle in stores. What matters most now is to keep the sales market afloat and to revive working assets to continue production.”
“We would continue subsidising interest on industrial modernisation loans. We have said this. A billion roubles will be allocated to the Industry Ministry next year. I think it is possible to earmark 300-500 million roubles for farm equipment production.”
“We will go on subsidising loan interest for agriculture. Subsidies will reach two thirds of the whole, as you know. The 2009 budget earmarks more than 30 billion roubles for this purpose.”
“I think we should spend budget allocations in agriculture on purchasing Russian-manufactured machinery. This has been discussed today, and I stress once again that we will do so. Importantly, 70% of machinery purchases, including imports, have been made on soft credit with two thirds of the interest subsidised. Soft credit should be available only for domestically produced equipment. I insist on this.”
“There is an opportunity to extend farm machine modernisation programmes, in particular, by promoting the leasing market. I think we can afford to add 25 billion roubles to Rosagroleasing authorised capital. A relevant decision has been made. I expect it to stimulate sales of the produced machinery, and I insist on urgent equipment deliveries to clients.”
“As for Rosselkhozbank, we have added 30 billion roubles to its capitalisation, and you have received 25 billion roubles in junior loans. We can also discuss opportunities for collateral capitalisation. We should see how you are doing and what assistance industry is getting from you. I know Rosselkhozbank copes with its responsibilities. However, it remains in obscurity as you mentioned. Sberbank is issuing loans at 14% interest - high but passable for today - while Rosselkhozbank has not done anything yet. Work harder! If you improve, we will think about extra allocations for you.“
“Support of essential industries is one of the Government's main duties today. Agricultural machinery production is one example.”
"The next important issue concerns amendments to the law on education aimed at improving the mechanism of state assistance to people with children. In 2007, we started compensating a part of parents' spending on kindergartens. The regions receive relevant subsidies from the federal budget."
"Compensation totalled 20% of the fee [for a place in a kindergarten] for the first child, 50% for a second child, and 70% for a third and subsequent children. Total funding under this programme should be 9.5 billion roubles in 2009, 10.2 billion roubles in 2010, and 10.9 billion roubles in 2011. So far compensations are provided only to those who attend state- and municipally-owned preschool centres. However, they make up an absolute majority, 5.4 million children."
"In the future, we should create equal conditions and a competitive environment for state/municipal and private preschool centres, where budgetary allocations on kindergarten education and maintenance will be distributed through tenders based on municipal contracts."
"We will also consider amendments to the 2009 federal budget. It has been proposed that state guarantees be affirmed at 300 billion roubles for loans taken by defence and other strategic companies. Another 150 billion roubles will be allocated for supporting the labour market and the manufacturing industries."
"The Government, as I have said before, plans to compensate the region's imputed losses from the latest tax innovations. I am referring to a reduction in the profit and small business taxes and an increase of the tax rebate for people buying housing to 2 million roubles. This will allow the people to save double the sum during the acquisition of housing compared to the old scheme. This is why we have decided to turn over to the regional budgets an additional 0.5 percent of the profit tax and 100 percent of excise taxes on fuels and lubricants. The Finance Ministry has drafted the relevant amendments to the tax and budget codes."
"The use of maternity capital to pay mortgages. This norm should become effective in January 2009. We'd like everything to start working in the first half of January."
"The Government approved decisions on additional assistance to the citizens with mortgages. The idea is that we need a system of state guarantees to be provided through the Agency for Housing Mortgage Lending, so that the people who bought housing with a mortgage but have lost their jobs because of the economic crisis, or lost a considerable part of their income due to decline in the operation of their companies, will be freed in 2009 from payment of mortgage loan interest, or payment of the principal debt due in 2009."
"Our [Russia and Argentina] economic relations are making steady headway. In the last four years, our trade has increased five times over to reach $1.5 billion. We are developing traditional directions of cooperation, and creating new opportunities."
"Argentina generates 20% of its electricity with Russian equipment. We could cooperate in nuclear power generation, space, and other high-tech spheres."
"We consider the expansion of big Russian companies like Gazprom, INTER RAO UES, Russian Railways, and some banks, the VTB Bank, for instance, in Armenia to be quite useful."
"I would like to note with satisfaction that bilateral relations are developing rather successfully in virtually every area, including the energy sector. We are implementing ambitious projects and maintain large-scale cooperation."
"To support liquidity, the Central Bank will give other banks an opportunity to refinance mortgage obligations guaranteed by the Housing Mortgage Agency, which boils down to government guarantees, as I said yesterday. That will enhance economic liquidity. More than that, the Housing Mortgage Agency will extend its practice of redeeming standard mortgage credits in direct support of banks active in mortgage loaning. That means private creditors will receive support, as well."
"Even at the start of next year, private persons will be able to use maternity capital for interest and mortgage payments. This requires legal and budgetary amendments - a measure that takes time but shall be urgently implemented. The population needs it no later than January 2009."
