VLADIMIR PUTIN
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OF THE 2008-2012 PRIME MINISTER
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VLADIMIR PUTIN

Media Review

30 november, 2011 16:40

Rossiiskaya Gazeta: "What will regions do with 10 billion roubles?"

Vladimir Putin reviews regional plans for state funds.

Vladimir Putin reviews regional plans for state funds.

Yesterday's Government Presidium meeting had an unusual format. Governors, who don't usually participate in the meetings, joined federal government officials at the table.

An incentive fund, amounting to 10 billion roubles a year, was introduced for the regions that achieve the best results in attracting investment, so the governors were eager to share their plans for spending it. Before listening to the Governors' reports, Putin reviewed general issues. The prime minister asked Energy Minister, Sergei Shmatko, to speak to him about energy cooperation with Ukraine after the meeting and then asked him to report on preparations for the winter.

"We inspected 536 network companies – nearly all of them, in fact," said Shmatko. "Following the inspection, we decided to issue certificates to 533 network companies including 58 energy companies." All the state network companies have been certified without any exceptions or issues. Three power generating companies failed to obtain a winter certificate on time. Those were TGK-14, Ulan-Ude Heat and Power Station No. 1 (part of TGK-14) and the South Kuzbass Thermal Power Station.

"The main problem with TGK-14 is that the Ulan-Ude station is not prepared to distribute heat," explained Shmatko. "A week ago we discussed this issue at the meeting of the Government Commission on the Development of the Electric Power Industry, and we invited the shareholders."

"In general, we view this situation as an emergency," said Shmatko. "In February 2008 there was a big fire at this station. For three days, local residents went without heat. We can't allow this to happen again," said the minister.

Shmatko recalled how Putin had emphasized making sure these certificates were not simply pieces of paper, he called them "credentials that represent the right to run and own generating facilities." If companies and their owners fail to achieve their objectives, external control must be introduced.

"Send for them and work with them right here. Have them come to the ministry," suggested Putin.

Minister of Communications and Mass Media, Igor Shchegolev, reported more positive news about a postal office in Krasnaya Polyana.

"This is the first Olympic facility that was commissioned as part of our programme," explained Shchegolev. "The new postal office was built in place of the old one that would have been 100 years old next year. It was made of wood, now we have a modern building with two front offices and a full range of services," said the minister.

"It should have been made into a museum," Putin was surprised by the long service life of the old building.

"It was in bad shape, it was made of planking, not logs," said Shchegolev. "Besides, there is a very good communications museum in St Petersburg."

Shchegolev spoke about other achievements. Russia became a top ten country in offering high-speed broadband internet. Russia leads in terms of internet growth: 20% a year. A number of satellites will be launched to provide access to the internet where other forms of communication are lacking. It will be provided at affordable rates.

Deputy Prime Minister Sergei Ivanov continued the satellite discussion.

"We need to build four satellites by 2015 and launch them," said Ivanov. They'll cover the full expanse of Russia's territory, providing both mobile and broadband high-speed internet services.

One more satellite has recently been sent into the orbit under the GLONASS programme. We now have a total of 30 satellites in the orbit, and 24 of them work as navigational.

"The same ratio as our American counterparts. One to one," said Putin, adding that the ground-based and business components of the project should not be ignored. "Once again, I draw the attention of our departmental and ministerial heads, especially of our transport agencies, to the need to use the GLONASS system, especially since it is a dual system – GLONASS/GPS. But we should opt for GLONASS and use this national facility."

Minister of Culture Alexander Avdeyev spoke about less material issues, the All-Russian State Musical Competition. The winners will be announced by the end of the year, the grand prize is 240,000 roubles.

"Will there be a general concert by the winners?" asked Putin.

"We will hold a concert," said Avdeyev.

"Yes, of course, it must be held; we should show these talented young people to the country. Make it a beautiful concert," said Putin.

The prime minister moved to the legal documents that had to be approved, primarily, a package of legal acts on social benefits for service personnel and Interior Ministry agencies. Their wages should be higher than the average wage in key sectors of the Russian economy. Pensions for all military pensioners will increase an average 1.6 times. Yesterday the officials discussed amendments to the legislation that will enable military pensioners to receive their pensions when they change their place of residence without extra bureaucratic formalities.

Much has already been said on that issue; everyone understands that it should be done. Vladimir Putin recalled that an incentive fund was introduced for the regions that achieve the best results in attracting investment. That fund will amount to 10 billion roubles a year.

The funds will be distributed among 20 regions that will be allowed to use the money at their discretion.

Putin then invited the governors to speak.

"We will become a donor region," said the Governor of the Kaluga Region, Anatoly Artamonov. "I don't know if it's good for us, there are both pluses and minuses."

"This is good for you," assured Putin, adding: "The Kaluga Region will receive 2 billion roubles."

"Thank you," said the governor. He promised to spend the money on restoring water and sewerage facilities, as well as on kindergartens.

"Several years in a row we have had the highest production growth rates in Russia," said Artamonov. "This year our GRP will increase 24%-25%."

"You see how Siluanov (Russia's acting Finance Minister Anton Siluanov) is fidgeting; he's heard these figures," laughed Putin. "You have outstripped China by two or three times!"

"We are great friends with the People's Republic of China and they are implementing some projects here, so to some extent we are following their example," said the governor.

Governor of the Tyumen Region Vladimir Yakushev is going to spend the money on repairing residential housing and demolishing unsafe housing.

"So we have decided not to spread the money too thin, and to use the entire grant to address these two problems," said Yakushev.

Governor of the Novgorod Region, Sergei Mitin, is planning to convert boiler rooms to gas and pellets and create an Eastern martial arts centre and a hospital.

Vladimir Putin reminded him about the problems with the moat around the local Kremlin. It is federal property. The Ministry of Culture repaired only half of it, explained Mitin, and asked for help in repairing the second half. It will cost 25-30 million roubles.

"That's a lot of money for us," said Avdeyev. "We must do it together."

According to the law, we can't do it, interrupted Ivanov.

"So, you can take a chunk out of the 25 million from the money that we have allocated to you," suggested Putin.

"That wouldn't be fair, Mr Putin," retorted Mitin. "We maintain and repair a lot of other monuments."

"You see whose company you are in – the culture minister is sitting across the table and the finance minister is right next to you. They will solve the problem together," Putin decided finally.

After listening to some other reports, Vladimir Putin announced that a special group in the government is currently reviewing the authorities and the investment sources at various government levels. The regions that are being developed more aggressively should be able to receive more money and should be allowed to keep more money.

"We should accelerate the process of reviewing the system of inter-budget relations and establish additional incentives for the regions," Putin concluded.

A propos

According to the prime minister's spokesman, Dmitry Peskov, Putin's presidential campaign programme can be published as early as January.

Kira Latukhina