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 ask banks to reschedule private clients' mortgage payments for next year. This is all the more practicable as bankers know what their clients can afford. In compensation, bankers should be entitled to rescheduled payment guarantees from the Housing Mortgage Agency."
"Whatever we do should concentrate on man. We must focus attention on helping honest workers who coped with their housing and other problems as best they could but are now in dire straits through no fault of theirs.”
"We would step up labour policies that would necessitate considerable allocations and demand target programmes. We should law away up to 50 billion roubles for the purpose. These, I stress, should be extra allocations apart from those already made to fund employment services in Russia's constituent entities. Such extra funding demands amending the law On Employment and the federal budget."
“Last decade, primarily in the early and mid-1990s, the system of sports schools for children and teenagers was discontinued. This is obvious: We have lost a lot of professional coaches and must now reinstate these programmes. Although we have made some strides in the last few years, it is not enough. We will step up these efforts despite all difficulties.”
“We are implementing a football-field construction sub-programme under the federal target sports-development programme. We are doing this in conjunction with the Russian regions. This implies construction of small football fields and large stadiums. All this is part of our plans which will not be downsized.”
“The whole point of our agreements with our Ukrainian partners is that we pass on to market pricing. The price of gas is linked to world oil prices, and if the oil price goes up, the gas price goes up to, if oil goes down, the gas price goes down and we will then lose some of our earnings. But that is fair, we do not control these prices.”
”Many things contribute to tariff growth. One of them is a monopolised services market. We have set up a fund for reforming the housing and utilities totalling 240 billion roubles, a huge amount, and we are not using the money elsewhere, despite financial difficulties: the money has been allocated and will be used for its stated purpose. But we intend to give it only to the regions that make their own moves to improve the housing and utilities situation.”
“We have taken a decision allowing the regions to adopt a simplified procedure and to reduce small-business taxes from 15% to 5%; regional funds for support of small businesses and micro-crediting funds that issue loans of between 200,000 roubles and one million roubles will continue to operate.”
“As for kindergartens, that is above all the responsibility of the regions and cities. At the federal level, we will do everything to encourage that work, we will help the regions to do it, but I would like to tell you that the shortage of places at kindergartens all over Russia has dropped by 30 percent in 2008 alone. That is a major step forward.”
“It must be said that this year we have nearly doubled allocations under different agricultural assistance programmes.”
“I will say that the Government is preparing a series of moves, which are as follows: first, we will substantially increase federal budget support, raising it to 10.5 billion roubles; then, additional funds will be allocated by Vneshekonombank - 30 billion roubles; we will also preserve all former types of support for small and mid-sized businesses.”
“As for agriculture, it posted record-high growth over the past few years, 8.8%. We have gathered in a record-large harvest, including over 100 million metric tons of grain, which is the highest in many years.”
“First, we are trying to limit red meat, namely, pork, beef, and even poultry, imports. We cannot stop such imports or bring them down to critical levels because, frankly speaking, our agricultural sector is still unable to fully meet the demand of large cities. We must heed the interests of agricultural producers and consumers, especially those in large cities, so that our actions in the customs-tariffs sphere do not cause sharp and unjustified food price hikes.”
“I can tell you that we have allocated over 30 billion roubles, I think it is 34 billion roubles, to the Agriculture Ministry from the budget for this purpose. We have purchased 2.5 million tonnes of grain at a price that is above the market price, at 5,000 roubles, and at 6,000 roubles in the Urals and Siberia. I repeat, we have purchased 2.5 million and the Ministry is now buying 5,000 tonnes per week. We will keep up the pace until we use up all of the allocations.”
“We hear that the relations with Russia should be built with respect for our interests. If these are not just words, and if they are translated into practical policies, then of course we will react in kind and our American partners will immediately feel it.”
“You know that we have signed mutual assistance treaties with South Ossetia and Abkhazia. This is the best guarantee of the fact that Russia does not plan to leave this region. Given the desire of these states' citizens, we will be ready to provide any aid even at this difficult time of the global financial crisis.”
“I will start with the last part. I think that the trade unions have started carrying out a natural function in this country, which is very important for them. I mean defending the interests of working people. They have stopped being some school of communism, or something else. This is an entirely different sphere of activities. They have stopped being a political appendage of some party, but have begun fulfilling an independent function. Responsible conduct of trade unions is very important, very much in demand.”
“We will continue improving the work of this public organisation, which, in my view, is becoming increasingly significant, as well as strengthening the country's multi-party system. I believe party pluralism is an important element of democratic institutions in present-day Russia.”
“The main thing is to ensure stable revenues for the pension system for the long term, which is why we plan to reform it. In 2010, we will reassess the pension rights of those Russian citizens who retired in the Soviet period. They will get a 10% increase plus a 1% increase per each working year since 1991.”
“In short, we will do our best, and I am confident that we will ensure sufficient pensions for those Russians who attain the retirement age in 2010. We will ensure that their pensions will be equivalent to 40% of the reference wage. This is fully in keeping with global and European standards as stipulated by the International Labour Organisation.”
“Prices and tariffs are growing too, but when I said pensions would grow 12% next year, I meant growth minus inflation. Of course, our pensions are not sufficient, they are small, but they are still growing faster than inflation. We will try to keep up the pace.”
“Therefore, we will take additional measures next year to raise pensions. They will be raised three times - the basic pension twice and the non-funded pension once. If inflation grows too fast, we will increase the non-funded pension twice. On the whole, we plan to raise pensions by approximately 34% next year.”
“I believe that the use of maternity capital in the amounts planned to begin on January 1, 2010 may be moved to early 2009 in view of the financial problems in the world and in this country, so as to allow the families and mothers to use this money to pay off their mortgages.”
“I believe people should react accordingly because, under current legislation, the mayors of municipal entities, including such cities as Nizhny Novgorod, are elected through universal suffrage by secret ballot. Such elections involve the populations of their territories. Municipal leaders would feel the people's reaction during subsequent elections, unless they respond to their concerns.”
“We admitted a number of European companies - Finnish, Italian and German - to our energy sector; they acquired the biggest blocks of shares with our power companies, invested literally billions of dollars and euros. We invite such investments. We admitted them to participate in the development of hydrocarbons - both oil and gas.”
“I have to do justice to our European partners. For their part, they ventured the construction of new routes for our energy resource supplies to Europe. An excellent example is the constructing of the North Stream gas pipeline and our plans for the South Stream, as well as some other projects. Europeans have also admitted us to their energy transport system, namely the trunk pipeline. These are very good examples of integration in a crucial economic sphere: energy.”
“When oil prices were high, we took most of oil companies' windfall profits away from them and into the budget - through export and customs duties and taxes, as much as 80% and sometimes even 90%. It was thanks to these revenues that we formed most of the country's gold and hard currency reserves, which today, as I said earlier, are the third largest in the world - $450 billion. They are our "safety cushion" and allow us to make things easier during the crisis for millions of people.”
“What is particularly important for us is the results of our efforts in the social sphere. The increase in take-home wages will be approximately 12.6% and pensions slightly more than 12% - 25% in nominal figures. Industrial production growth will be nearly 5% (4.8%).”
“We have problems with inflation. The target figure was slightly above 12%, but annual inflation is likely to be 13%, because of the global crisis and because the Central Bank and the Finance Ministry had to inject a huge amount of liquidity into the economy.”
“On the whole, our economic results in 2008 are positive even despite the negative effects of the global financial crisis. Let me just remind you of the figures. The economic growth target was above 7%, or more precisely 7.5%. The annual growth rate will be around 7%, possibly 6.8% or 6.9%. This is good.”
"As for the banks' demands of early clearance of mortgage loans, it is basically a civil law issue. If your loan agreement contains a recapture clause stating that, if the collateral value drops, the bank has the right to require additional collateral amount, then the bank's demand is formally legitimate. Usually banks ask their clients to repay part of the principal loan. However, banks really shouldn't be doing this, because they end up with the same problem as their borrowers: property as collateral. The bank won't be able to liquidate an apartment easily now."
"I think the Government could issue state guarantees to banks through the Agency for Housing Mortgage Lending. The banks could use these guarantees to solve their financial problems rather than "terrorise" their customers. I think it would be the best solution for all."
“I expect the reforms that have been planned and are being implemented in the armed forces will certainly influence our defence capability - for the better, by improving it. This is why we are doing it. As for the dismissals you mentioned, we are not planning mass layoffs. Moreover, only the officers who are slated for retirement - the first category - will be dismissed in 2009. The second category includes officers conscripted for two years after finishing military training at civilian higher schools, whose conscription period is ending.”
“Now to the housing problem. In 2010 all officers are to be provided with permanent housing, and all servicemen will receive service housing in 2012.”
“We need to get rid of monopolies on the market, which prevent airlines from buying jet fuel at market, not inflated prices. We will continue to address this problem persistently.”
“We have allocated an additional 10 billion roubles to cover the price gap in the fuel sector. If necessary - we have coordinated the issue with the Agriculture Minister, who maintains contacts with agricultural producers - we will analyse the result and possibly increase allocations in the first quarter of next year. We have also allocated additional funds for fertilisers.”
"To support the industry we allocated 175 billion roubles. These are long-term loans which must be directed to production or service-based businesses. At the same time, we will demand from the banks that they report to us on three sectors to which they are going to lend money. What are these sectors? These are farming, the defence industry and small and medium-sized businesses, as well as a long list of enterprises which we recommend."
“We will allow airlines, first, to buy such aircraft as our industry will not produce and, second, to lease the aircraft our industry plans to manufacture. We will lease foreign-made aircraft and will return them as soon as we start producing the aircraft of the same quality, noise and fuel standards.”
"We will not allow leaps in the economy and sudden changes in the exchange rate of the national currency. To secure the interests of both the citizens and the economy we will, if necessary - and we have done so before - we will carefully use the gold and currency reserves and the other funds at the Government's disposal."
"Regional budgets will receive an additional 0.5% of federal profit tax proceeds, or 50 billion roubles ($1.8 billion). These allocations will also be channelled into regional budgets. Moreover, regional budgets will receive 100% of petrol, oil and lubricants excise tax proceeds. The latter system will apply in all the Russian Federation's constituent entities and will account for another 53-54 billion roubles ($1.9 billion). As I have already said, these measures are expected to channel another 110-120 billion roubles ($3.9-4.3 billion) into regional budgets."
“The overall cost of the project discussed here, the YaMZ-530, is 13.4 billion roubles. In effect, this amounts to the construction of a new modern plant that will produce next-generation engines. The project's implementation will create 1,200 jobs in the Yaroslavl Region.”
“A package of measures has been drafted to support Saturn. First, its debts will be refinanced. Our Foreign Trade Bank will spend about 10 billion roubles to this end. Second, the Rosnanotekh Corporation (a state-run nanotechnology corporation) is prepared to implement together with Saturn a project to produce modern nanomaterials and products that incorporate them. The total investment will be one billion roubles, half of which will be contributed by Rosnanotekh. Finally, we should secure the sales of Saturn's produce to its key customers - the Defence Ministry, airline companies, the United Aircraft Building Corporation, the power industry, and Gazprom.”
"Obviously, it will be very difficult, if not impossible, to resolve these problems without the state's participation. It is also important for public companies with experience in high-tech machine building to increase their contribution to Saturn's development. In this context, the owners have agreed to sell almost all shares of the enterprise to the Oboronprom State Corporation. Packages of shares of the private owners will be purchased on a commercial basis, and at market prices."
"The Government is now working on a package of legislative acts to simplify access for small businesses to electric power grids. The idea is to fix a lower connection tariff for small facilities and introduce an instalment payment plan. We also need to organise a control system over grid companies to make sure they observe all the established connection rules."
"Wherever advisable, businesses should be allowed to buy out the properties they hold on the most beneficial terms possible. For example, payments should be spread out over a period of at least three years. Secondly, small and medium-sized businesses should gain real access to municipal and regional orders. I am talking here about businesses that are run efficiently, not the ones that have the protection of local officials."
“Polls show that large numbers of people, especially among young people, seek to try their hand at creating their own businesses. In the ultimate analysis, it is such energetic and purposeful people that must form the core of a large middle class in this country. And the state's task is to help them realise their potential, build a reliable future for their families, and create new jobs.”
"In 2009, the federal budget will allocate considerable resources in support of small businesses - 10.5 billion roubles. A further 30 billion roubles will be channelled through the Development Bank. I want to stress: control over the purposeful and effective use of these funds will be extremely strict."
"The first priority, however, is to protect the rights of investors, to form a system to compensate citizens for the damage caused by bad-faith actions of market agents. Attempts to use insider information and manipulate the market should be stopped."
"For Russia to position itself as an international financial centre, further steps will be needed. For example, the adjustment of tax legislation, streamlining of the visa requirements for businessmen, and the creation of a comfortable infrastructure for the work of financial companies."
