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
The delegates to the congress were guessing who would be the next President. Mr Putin, said deputy Iosif Kobzon. "I have to think. I can't answer off the top of my head. There is still a lot of time ahead," answered gymnast Alina Kabayeva. She has not yet decided whether she prefers Mr Putin or current President Dmitry Medvedev, but she is in favour of a longer presidential term. "Six years is just right. You see, it takes nine hours just to fly to Vladivostok."
In November 2003, portraits of Russian Prime Minister Vladimir Putin were burned in Moldova. Five years later, the Moldovan authorities invited him to Chisinau. YURI ROSHKA, the Vice Speaker of the Moldovan Parliament and one-time leader of the Moldovan opposition, commented on both events to our correspondent, VLADIMIR SOLOVYOV.
Dmitry Medvedev's speech at the Council on Foreign Relations in Washington came as a surprise for the US establishment. The audience witnessed a different Medvedev. This was not the statesman who had given a speech the day after the US presidential elections that included statements on Russia's foreign policy and that were taken by many as anti-American both in Russia and outside the country. In Washington, Medvedev made a candidly pro-US speech. Many of his statements drew back major points made by then-President Vladimir Putin in Munich. Medvedev actually sounded opposed to Putin, disappointing those who support a confrontation between Russia and the US. So what are the reasons for this change?
The Government does not pay much attention to high technology. This is a luxury at the moment. Nevertheless, it was pondering ways to support the IT sector and the media industry.
The region will deal with the financial crisis at the expense of public sector employees in rural areas. Deputies of the regional legislature adopted a 2009 budget that, for the first time, does not include tax breaks for health and cultural sector workers. They paid housing and communal bills at half the rate. As Andrei Alyokhin, Omsk Communist leader, told Novaya Gazeta, United Russia deputies, who hold 38 out of the 44 seats, "would have gladly voted for taking benefits away from teachers, too, but these are protected by a federal law".
What's the point of increasing the presidential term? The most widespread opinion is as follows: the economic crisis makes the Government everybody's scapegoat. Inflation, unemployment and poverty are sending the popularity rating of Vladimir Putin's Cabinet down. In the past eight years the Russian political system has had only one flimsy support: Mr Putin's personal popularity. To keep afloat, the establishment should save face at all cost. This is what Russia's near future might be: first come constitutional amendments, followed by early election, in which the electorate would exercise its right to vote for a new president and State Duma in compliance with the updated constitution. So Putin will return to presidency or become the Speaker of Parliament, where United Russia has an absolute majority.
As former Prime Minister Viktor Chernomyrdin once sadly remarked, any political party set up in the new Russia ends up as another version of the Communist Party. He was famous for his succinct pronouncements. His edict would be just as appropriate for the 10th congress of United Russia, which elected a milkmaid to the party General Council-not because she was a Russian counterpart of Lech Walesa to start from a low social status for a dazzling political career. No, she was elected just because she was a milkmaid. It went without saying that the vote was unanimous just as on all the other congress decisions. United Russia has no room for debates as the Soviet Communist Party had none in its time.
At a congress of the United Russia party, Prime Minister Vladimir Putin put forth his ideas for ways of surmounting the crisis for the nation's small businesses. "We must join efforts to create the most comfortable environment for entrepreneurs, to help those people who want to open their own business, but are still hesitant and doubtful, to make a positive decision. The federal measures will be much more effective if they are supported and developed in the regions. We must invite small and medium-sized enterprises (SMEs) to implement state and municipal orders, help them to get premises and connection to public utility networks, and also remove administrative barriers to business, including limited access to local markets," Mr Putin said. Judging by all signs, this is only the beginning.
Russian Prime Minister Vladimir Putin seems to be trying his hardest not to overshadow his superior, President Dmitry Medvedev. Putin chose the United Russia party congress - obviously, out of delicacy - to deliver his almost revolutionary announcement about tax reforms and state aid for the country's real economy, including profit tax cuts.
"Parties are created not to satisfy the ambitions of their leaders, but to develop the state and help people in their daily life." This is certainly true of the party that gathered at Gostiny Dvor for its regular congress on November 20. The words were spoken by Dmitry Medvedev, an honoured guest at the 10th Congress of United Russia. First, the ambitions of the UR's leader, Mr Putin, had been met long before he became the head of the party. Second, the governing party today is indeed more in touch with the "daily life" of the voters than ever before.
The main theme of both addresses was social problems. Specific issues discussed included: ensuring that the government follows through on the social liabilities it has taken on; making the elites responsible for the nation's well-being and social stability; a number of other measures put forward by the party's chief, ranging from raising unemployment benefits and guaranteeing timely salaries to state-paid employees to suspending advance payment of income tax and a sharp increase in tax refunds for apartments worth up to 2 million roubles. These measures concern state-paid employees, the middle class, and SMBs.
The Russian government will cut the profit tax from 24% to 20% in 2009, saving companies around 400 billion roubles, as part of the anti-crisis package of proposals, Prime Minister Vladimir Putin said at a meeting of the United Russia party. In addition, businesses will save another 100 billion roubles due to the increased profit tax amortization premium. First Deputy Prime Minister Igor Shuvalov said the changes would compensate businesses for more than half of the rise in social payments planned for 2010. And, more to the point, the profit tax breaks will only help if companies post profits in 2009.
Prime Minister Vladimir Putin acknowledged for the first time on Thursday that the Russian Government's handling of the economic crisis was for the most part a reaction to force majeure. The Government does not plan any essential changes in the country's economic development strategy, he said. On the contrary, he considers the Government's earlier economic policy to be a major factor in helping Russia's economy weather the crisis and preserve its potential for a better tomorrow.
The spectre of the economic crisis hovered over the 10th Congress of United Russia
The 10th Congress of United Russia (UR) was held at Gostiny Dvor on Thursday. For the first time, it was conducted by Vladimir Putin, the Prime Minister who doubles as the Party's Chairman. The focal topic of all the speeches was how to protect the Russian economy against the world financial crisis. Mr Putin, President Dmitry Medvedev and United Russia Supreme Council Chairman Boris Gryzlov all spoke about it. They promised tax cuts to enterprises, financial aid to banks, and increased social benefits and tax breaks for citizens. Mr Putin did not formally join United Russia, in spite of rumours ahead of the Congress that a party card had been prepared for him.
The Prime Minister and Chairman of the United Russia party yesterday addressed the party's 10th Congress, presenting a programme of the country's social and economic development through the year 2020. He promised to avert an economic shock, protect people's savings in banks, and the interests of shareholders in housing construction. These were just some of the measures proposed. The party will draw up its own action plan to fit the programme of Mr Putin's Cabinet. The "Government-Party tandem" is beginning to work, and the State Duma will pass the leader's proposals into law today.
Prime Minister Vladimir Putin demanded that, starting in 2009, profit taxes be cut to 20% for everyone and to 5% for small businesses, and that depreciation premiums be tripled.
Prime Minister Vladimir Putin told the United Russia party's congress that the defence industry would receive 1% of allocations, or 50 billion roubles ($1.8 billion), under the federal economic bailout plan. However, this amount is too small to solve the problems even of the major companies.
The Government admits that the financial crisis has now escalated into an economic crisis, and plans to use tax breaks for bailing out domestic industries.
The United Russia congress that is due to be held today may produce as big a sensation as the previous one, when Prime Minister Vladimir Putin became the ruling party's chairman despite not being a member. This congress may see the Premier receiving his party card. Some deputies make even bolder guesses: Mr Putin may quit his post as Prime Minister, which is hardly the most comfortable post during a massive economic crisis, and become the speaker of the State Duma. Political analysts note that Mr Putin likes to spring surprises in order to tighten his grip on the Government.
At first glance, nothing unexpected has happened. Back in the summer of 2007, I suggested in Novaya Gazeta that after the end of his second term as President, Vladimir Putin would move to the Prime Minister's seat, keeping his grip on government and appointing a stand-in who would not possess full powers but would "keep the seat warm" until he became President again. One of his missions would be to adopt constitutional amendments to extend the presidential term while he himself would probably stay in power for no more than two years.
Russian oil companies claim that oil export turns loss-making business. The Russian oil sector, which has long been considered the main source of Russia's prosperity and the driver of its economic growth (on a par with Vladimir Putin's policy, of course) helping Russia to rise from its knees, has been hit by the crisis. The heads of oil majors are begging for money everywhere - from its own government to China. With only three-quarters of Russian pipeline capacity being used, state-run pipeline monopoly Transneft is asking for additional funds to build new pipelines.
One day before the United Russia party congress, the top government officials in charge of the national economy discussed the future of the economic crisis and specific troubleshooting measures. New initiatives include federal guarantees for legal entities' bank deposits, revision of the federal budget in January-February 2009 in favour of the regions and increased investment allocations in excess of the projected 1.17 trillion roubles ($41.8 billion).
Legendary British composer Andrew Lloyd Webber, the author of Jesus Christ Superstar, Cats, The Phantom of the Opera, and Evita, among the world's most popular musicals, visited Mr Putin at Novo-Ogaryovo, his country residence outside Moscow.
Despite negative tendencies in the Russian economy, people trust President Dmitry Medvedev and Prime Minister Vladimir Putin more than they did a month ago.
On November 7, 2008, the Government published a plan of action to rehabilitate the financial sector and some other economic sectors. The media immediately dubbed it an "anti-crisis plan" though the document specially avoided the word "crisis". The adoption of this plan is the second stage in the efforts to improve the economy in Russia.
There is no crisis in Russia. As Prime Minister Vladimir Putin has said, "the crisis has hit the world financial system, while Russia is only experiencing its after-effects." He is right. There is no crisis in Russia. Industry in the Urals is at a standstill; the Magnitogorsk Iron and Steel Works has cut production by 70%; the Central Bank's reserves are melting away at the rate of $3 billion to $7 billion per day; Russian bonds are selling at a 20% discount - they are the least credible sovereign debt in the world today. Who said, it's a crisis? No, the word is different, it is curtains. As for a crisis, Russia has none. Here I agree with the Prime Minister.
Last week, the State Duma approved the amendments to the Constitution that extend the President's term to 6 years and the parliament's term to 5 years. We asked Gleb Pavlovsky, President of the Effective Policy Fund, to explain the thinking behind the reform.
One can offer numerous explanations for why Russia has gradually started accepting the idea of the rouble's inevitable devaluation in early November 2008. Kommersant-Vlast commentator Dmitry Butrin is trying to find out whether a weaker rouble is part of the Russian Government's tactical plan, whether this is its blunder, or both. Most importantly, no explanations can eliminate the link between the rouble's exchange rate and oil prices, the main national economic issue.
The key item on the United Russia congress agenda will be Prime Minister Vladimir Putin's report on Concept-2020; the main intrigue is whether or not he will officially become a party member and what steps would follow.
"Saakashvili knew that Putin was out to hang him by his balls," the French press wrote yesterday. The Georgian President confirmed it after he met with Nicolas Sarkozy at the Elysee Palace. When a local radio journalist read him a dialogue between the Russian and French Presidents, Saakashvili said, with a nervous grin: "I knew it, but with no gory details. That's ridiculous-but no matter." This was not the first leak of this conversation. By the looks of it, Western leaders enjoy circulating unsavoury phrases from their conversations with their Russian counterparts.
Yesterday, the State Duma passed the first reading of President Dmitry Medvedev's amendments to the Constitution, which extend the presidential term to six years and the term of the State Duma, lower parliament chamber, to five years. Only the Russian Communist Party (KPRF) voted categorically against the amendments, declaring that the strengthening of the presidency without the counterbalancing strengthening of the legislature would increase "authoritarian rule" in the country.
Yesterday, Moldova hosted a session of the Council of CIS Prime Ministers. Its participants adopted the Commonwealth's economic development strategy through 2020 and discussed the world economic crisis. Watching the CIS Prime Ministers at work, Kommersant special correspondent Vladimir Solovyov concluded that if they continue addressing economic problems as slowly as they did in Chisinau, they may fail to fulfill the strategy's objectives in time.
At yesterday's meeting, the government discussed railway reform, regional development issues, and some international cooperation issues.
At the most recent Government meeting, the ministers addressed the effectiveness of regional governments. Prime Minister Vladimir Putin indicated that last year, about 440 billion roubles of regional budgetary resources were spent ineffectively, which accounts for almost 10% of the regions' total expenditures. The cabinet will evaluate the state of affairs in the regions based on such criteria as population income growth, the state of the education and healthcare systems, and the housing and utilities sector. The better performing regions will be rewarded and the poor performers will be censured.
Dmitry Medvedev and Vladimir Putin did not refute the rumours of possible pre-term presidential elections. Answering direct questions from journalists, they have only raised new ones.
Yesterday, the Government approved a draft law on increasing pensions and other social benefits in 2009.
The CIS Heads of Government Council is meeting in Chisinau today. The event may become a turning point in the history of the Commonwealth. It is expected to adopt a long-term economic development strategy to strengthen the deteriorating alliance of the post-Soviet states. The meeting is also important because Russian Prime Minister Vladimir Putin is visiting Moldova for the first time since Chisinau refused to accept the Transdnester peace settlement sponsored by Mr Putin. Kommersant reporter Vladimir Solovyov tried to find out whether Mr Putin has "forgiven" Mr Voronin.
The planned increase of export duties on Russian round timber has been suspended at least until the autumn of 2009, Prime Minister Putin said following his meeting with Finland's prime minister. The Russian timber industry supported the decision to postpone the duty increase. The latter was intended to attract investment in the industry, however the majority of investment projects would have required credit. The suspension of the duty increase to €50 per cubic meter will mostly hurt large timber producers - prohibitively high duties helped them drive smaller competitors out of business.
The Presidium of the Peoples Democratic Union (NDS) adopted a statement yesterday declaring that during President Dmitry Medvedev's 6-month rule, "there has been no evidence of revision of the faulty political course of the previous years". Furthermore, in his address to the Federal Assembly, the President introduced measures aimed at regime strengthening and de-facto restoration of the Soviet-style single-party system, as well as initiated constitutional changes to extend presidential and Duma terms.
Experts from Russian Railways (RZD) are predicting that freight turnover in 2009 may decrease by 6%. This prognosis differs from the 3.5% GDP growth predicted by World Bank experts. The latter view is also shared by the Russian Finance Ministry.
Germany voiced its support yesterday for the construction of the Nord Stream gas pipeline. The statement followed Russian Prime Minister Vladimir Putin's comments expressing doubts about whether Europe needed the pipeline, RIA Novosti reported, citing Reuters.
A CIS summit of heads of government is starting in Chisinau today. The meeting is planned to adopt a CIS economic strategy through 2020. Moldova will be assuming CIS chairmanship from 1 January 2009, and this will give even greater significance to the event, said Sergey Lebedev, Head of CIS Executive Committee, at a meeting with the President of Moldova Vladimir Voronin.
US Treasury Secretary Henry Paulson and Russian Prime Minister Vladimir Putin have proposed similar economic bailout plans. Just like Russian President Dmitry Medvedev's recent State of the Nation address and a speech by US President-elect Barack Obama, both documents have many common aspects but differ in details.
Experts say that the Russian President's state-of-the-nation address met with smaller interest than before, and blame this on the financial crisis.
A regular Russia-European Union summit will be held in the French resort town of Nice on November 14. The main topics to be discussed are a new long-term Partnership and Cooperation Agreement (the previous agreement expired on December 1, 2007), anti-crisis measures within the Group of 20, and European security. The agenda has long been agreed on and will not be changed. However, Prime Minister Vladimir Putin (who will not go to Nice - the Russian delegation will be led by President Dmitry Medvedev) caused a sensation yesterday by suggesting another vital topic for the summit. He said, "The Europeans must decide whether they need gas in the amounts that they are getting. If not, we will not build the pipeline (Nord Stream - Gazeta), we will build liquefied gas plants and ship gas to the world markets by tanker." And he added, "Only, it will cost you more. You can easily calculate it on the computer".
In November, Vladimir Putin fulfilled the promise he made during his visit to the Ulyanovsk-based Aviastar-SP aircraft factory in September, signing a decree to introduce zero import duties on aircraft with a capacity of over 300 seats.
The statement about a more flexible currency rate and the trend of a minor weakening of the rouble made by the Central Bank Chairman Monday became an instant hit. In fact, it required a lot of courage, as politicians are there to reassure the public and prevent panic, without, however, getting too far away from reality.
United Russia will measure pre-strike sentiments at major industrial facilities. The party leadership circulated this edict yesterday among the regional branches. The local branches have been told to monitor discontent among workers and report the data to Moscow, without taking independent actions to squash tensions. The information from the enterprises will be conveyed to the party's leader, Prime Minister Vladimir Putin.
The heads of CIS Governments will meet in Chisinau at the end of this week. Concurrently, Vladimir Putin will pay a working visit to the Moldovan capital. This will be the first visit to Moldova by a top Russian leader in the last five years. That is, if one does not count the cancelled flight to Chisinau in 2003, when Putin learned shortly before boarding the plane that the Moldovan President would not, after all, sign the plan for settlement of the Transdnestr conflict that had been prepared at the Kremlin and agreed with the Moldovan leadership.
The Bank of Russia will continue efforts to curb the outflow of capital, as President Dmitry Medvedev supported Prime Minister Vladimir Putin's efforts by saying that cash liquidity supplied to the market was not to be immediately converted into foreign currency. Analysts say that the record outflow witnessed in October, $50 billion, will not be repeated, at least not this year. Unable to channel their assets abroad, banks are now sending the money back to the regulator. Their deposits with the Bank of Russia have grown by 200 billion roubles since November 1.
