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Old December 23rd, 2017 #721
Alex Him
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Presenting national awards for outstanding achievements in human rights and charity work



Vladimir Putin presented the 2017 National Award for Outstanding Achievements in Human Rights Activity to Lyudmila Alekseyeva, chairperson of the Moscow Helsinki Group. The National Award for Outstanding Achievements in Charity Work was presented to Vladimir Vavilov, chairman of the Board of the Anzhela Vavilova Regional Public Charity Foundation for Children with Leukaemia, Republic of Tatarstan.



December 18, 2017 - 17:30 - The Kremlin, Moscow









President of Russia Vladimir Putin:

Good afternoon, friends,

I am pleased to welcome you all to today's grand ceremony.

Today, according to the already established tradition, National Awards for outstanding achievements in human rights and charity work will be presented. The laureates are extraordinary people who prove that there are no barriers to those who strive to be of use and to uphold truth and justice, and that an individual driven by selflessness can accomplish so much, can change the world around them.

It is important that the number of caring and energetic people in our country grows every year, which means that our society is becoming more mature and humane. Of course, such people have different views, professions, ages, and income levels, but they share common moral values ​​and ideas about life, a willingness to help those who are truly in need and to take responsibility, as well as to generously share the warmth of their hearts and souls.

Friends, many worthy candidates from many regions have been nominated for national awards in charity work and human rights. A lot of, frankly, difficult work was done by independent experts and the Public Commission to choose candidates.

However, sometimes there is a person chosen by unanimous vote. The National Award for outstanding achievements in human rights activity was awarded to Lyudmila Alekseyeva. She has been true to herself, her beliefs and ideals throughout her life regardless of the circumstances.

One can disagree or argue with Ms Alekseyeva on certain things – which I occasionally do – but this does not keep me from holding her in high esteem for her courage and point of view. Today's award is a token of gratitude to Ms Alekseyeva for the years and decades that she has devoted to human rights, and for her honest and dedicated service to people.

Vladimir Vavilov has won the National Award for outstanding achievements in charity work. In memory of his young daughter and to help other people, he did his best to create a hospice in Kazan both for adults and children, where patients are surrounded with love and care of their families and friends.

Let me remind you that last year the charity award was also conferred upon a man who is committed to the care of seriously ill children, Archpriest Alexander Tkachenko. He is in this hall today.

Creating a modern palliative care system, supporting people who face serious, incurable diseases is not only the most important aspect of healthcare development, but also our moral, human duty, highly humane and compassionate work. And it is necessary to do this work in active cooperation with public organisations that are well aware of the problems of people who need such help.

And of course, we need consistent efforts from the state. In this connection, I would like to note that it was decided to allocate from the federal budget an additional 4.3 billion rubles in 2018 to provide care for seriously ill people, providing them with medicine, medical equipment, including for home use. Such financing – on a regular basis, with a gradual increase – will continue in future years.

I am sure citizens, public and charitable organisations, business, and government authorities at all levels will continue to unite around meaningful projects that benefit people.

I want to thank once again the winners of the National Awards for their selfless work, for setting a moral example and a path forward for millions of people, because no matter how the world changes, the foundation will always be kindness, freedom, solidarity, mercy, and a commitment to truth and justice.

I wish you good health and all the best.

Thank you very much for your attention.







Lyudmila Alekseyeva:

Esteemed Mr President, ladies and gentlemen,

Last year the National Award for human rights was awarded for the first time and it was deservedly given to Liza Glinka who is not with us anymore, for which we all grieve. She passed away within two weeks of receiving the award while on the way to those who needed her help. However, the charity organisation she established, Doctor Liza’s Spravedlivaya Pomoshch [Fair Aid], continues her cause.

Mr President, I would like to request that you and her assistants take Doctor Liza’s foundation under your patronage, making it easier for the foundation to continue and expand its noble mission. Thank you.

I am grateful to receive the award this year. To be honest, some of my human rights colleagues like Svetlana Gannushkina deserve it more than me. She is working not only selflessly but also tirelessly. Regrettably, I can no longer do this. I guess I am receiving this award for the totality of my human rights activities over more than half a century, since the very beginning.

On December 5, 1965 – then Constitution Day – about twenty Muscovites gathered on Pushkin Square for what is now called an unauthorised rally under the slogan “Respect the Constitution!” What other slogan could be used on Constitution Day?

The USSR disappeared 25 years ago and we now live in the Russian Federation that has a different Constitution. It recognises human rights as a supreme value and compels the state to protect them. The human rights movement is no longer a handful of dissidents as it was half a century ago. We do not have a single region where there are no human rights advocates but our slogan has not changed: “Respect the Constitution!”







It is addressed to authorities at all levels, because under the Constitution the Russian citizens have no fewer rights than citizens of the most advanced democracies. But what do the homeless gain from the constitutional right to housing or the unemployed from the right to work, or victims of torture in the Dalny police department from the ban on torture, or residents of Chelyabinsk from the right to an environment? All these people need protection of their rights. They need help from both civil society and the state.

Today, representatives of the government keep assuring us of their respect for the rights of man and citizen. These assurances are a major step towards real observance of our rights because this shows they understand that this is their obligation.

The institution of Human Rights Commissioner now exists in this country. This is a real step towards the observance and protection of human rights by the state, the Presidential Council for Civil Society and Human Rights is also an important human rights institution. I would risk calling it a public government body since it consists of civic activists and is headed by a presidential adviser. The President meets with us, members of the council, from time to time and listens to our reports on topics which we choose ourselves. He then gives the Government and his Executive Office instructions to remedy human rights violations uncovered by the council members.

These are joint steps our society and state are taking towards building a truly democratic, legal and social state in Russia, as our Constitution reads.

So why, despite the clear recognition of our responsibility to observe human rights, do representatives of the Russian government allow themselves to commit violations?

Let us carefully read the second chapter of the Constitution, dedicated to rights and freedoms. Its articles say: citizens have the right. Citizens are people who have shed the slave mentality, who refuse to accept the notion, implanted during the many centuries of our history, that we are little people and nothing depends on us. Citizens are not simply the population or residents: they know their rights and fight for them. Citizens form civil society, whose centre is non-profit organisations, which protect human rights and the environment, educate and do many other things. I do not exclude civic-minded people, who may not be members of a non-profit organisation, but participate in, for example, public oversight.

However, our civil society is still inexperienced and weak, and the authorities in a country really observe human rights and respect human dignity only if civil society is strong and experienced. Only by developing civil society can we become a truly democratic, legal and social state. Only strengthening civil society will change how the government sees civil society, and at the same time, how civil society sees the government.

Of course, the obstacles short-sighted politicians set on the path of civil society development as well as repressive measures slow this process down, but they cannot stop it.

In the 19th century, Alexander Herzen wrote that Russia needs two “unwhipt generations” to become a free country. One such generation has already grown up, I can see it looking at the young people in our civil society, at those who are about 25 now. But in the 21st century, history is moving much faster than in Herzen’s time, and we will not need another 25 years for our civil society to ripen.

When I was preparing my speech, my colleagues from various non-profit organisations called me. Each of them urged me to speak about the difficult situation of people he or she works with: prisoners, large families, orphans, people with disabilities living in care homes or about sick people who cannot buy the medicine they need.

There is an ocean of human misery. But because all these problems are important and because there are so many of them, I am speaking only about the things necessary to improve the situation of everyone in Russia: to strengthen the civil society and to provide for its equal interaction with government. It is impossible to do by adopting new legislative prohibitions or hollowing out real human rights institutions, such as the Public Oversight Commission.

We, citizens, should not blame government for everything, saying that nothing depends on us. Of course, it depends on us, because we are citizens, this is our country, and the future of this country all of us love so much depends on us no less than the government.

Thank you for your attention.







Vladimir Vavilov:

Mr President, thank you for this award, which is very important to me, and your high praise of my contribution and the Anzhela Vavilova Foundation’s contribution to promoting charity work in palliative care.

We are happy because in recent years you and the Russian Government have paid significant attention to supporting non-profit organisations providing palliative care. The Kazan Hospice was the first one in Russia built by a non-profit. We managed to implement this project thanks to the support of President of Tatarstan Rustam Minnikhanov, and all Tatarstan helped my team open the hospice.

Building hospices is a socially important activity which non-profits are ready to develop with state support. Many non-profits want to open hospices in the regions, following our lead, but to do this it would be advisable to amend the Russian Land Code to allocate free land for building hospices.

Mr President, we hope that the institution of hospices will develop in Russia with your support because hospices are the last and most important link in the palliative care chain.

Thank you once again for this award. It is a powerful impetus to continue my and other non-profits’ activities for the benefit of Russian people.

The team at our hospice is about 80 people, and when they saw on TV that you will run for the presidency, they asked me to tell you that we are with you, we support you and Russia is proud to have such a president.

Thank you.



Vladimir Putin:

Friends and colleagues,

While congratulating today’s laureates once again, I would like to start with what they just said and add a few words.

Saint-Simon and other utopian socialists, and later other people, who sincerely aspired to goodness, dreamed of cities of the sun, but these cities do not exist and are unlikely ever to appear.

Ms Alekseyeva spoke about our Constitution. You may know, because it is not a secret, that passers-by were interviewed on the street in the US. They were asked questions, after hearing articles of the Constitution, in particular, the Bill of Rights. One person threatened to call the police, another called it obvious propaganda and warned that they would call the FBI. I think that the situation is the same in most countries.





The source of information - http://en.kremlin.ru/events/president/news/56401






Greetings to participants and guests of the 25th awards ceremony of the Faith and Fidelity International Prize



Vladimir Putin sent greetings to participants and guests of the 25th awards ceremony of the Faith and Fidelity International Prize.



December 18, 2017 - 19:00



The message reads, in part:

“For 25 years now the Faith and Fidelity International Prize has occupied a well-deserved spot on the calendar of significant events in Russia and has gained widespread recognition.

Winners of the prize come from diverse professions and callings, but are all talented, passionate and committed to what they do. They strengthen our country and make an important contribution to its advancement and to promoting noble spiritual and moral values through their honest and conscientious work. Their responsible civic engagement, which inspires creative, productive participation in the future of our Fatherland, deserves the sincerest respect.”





The source of information - http://en.kremlin.ru/events/president/news/56405






Meeting with Yury Osipov and Sergei Kravets



Russian Academy of Sciences (RAS) member Yury Osipov and executive editor of the Great Russian Encyclopedia Sergei Kravets presented the 35 volumes of the Great Russian Encyclopedia to Vladimir Putin.



December 20, 2017 - 17:00 - The Kremlin, Moscow







The decision to publish the Great Russian Encyclopedia was taken in 2002. By executive order of the President of Russia, Yury Osipov was appointed head of the GRE’s editorial board.

Between 2002 and 2017, over 120 members of the Russian Academy of Sciences and staff at leading academic organisations and universities took part in compiling the encyclopedia’s articles.









Yury Osipov:

Mr President, in October 2002, you issued an Executive Order on the publication of the Russian Encyclopedia. This is the first volume that precedes everything, it does not have a number, and it is called ”Russia“. It contains your greeting to the readers.

And here is the 35th volume, the last one. And so, your instruction has been fully implemented, and Russia has a universal encyclopedia. Of course, the Academy of Sciences, Moscow University, St Petersburg University, and many outstanding academic centres, universities and institutes were involved.

The executive order certainly helped get a lot of famous academics, cultural figures, educators and even statesmen involved. They also participated in this. Several hundred writers of professional encyclopedic articles were involved. There are more than 80,000 articles in these volumes.

This is a universal encyclopedia in the sense that it covers the world and all phenomena in the world.

I think, if I may say so, that not every state is able to create such an encyclopedia in its national language. By creating such an encyclopedia, we take our rightful place in this elite club of unique, universal encyclopedias. There are two such encyclopedias in addition to the Russian one. These are Britannica and Brockhaus, German encyclopedia published together with Sweden.

I would like to say that the results of this work, achieved thanks to your support, once again shows that Russia has enormous intellectual capacity.



Vladimir Putin:

I remember it almost completely stopped at some point.







Sergei Kravets:

It was in 2014. Your instruction had a powerful impact then. We completed the publication of the book. We completed the online version, it is available now. All the Russian-language world can have access to these entries.

Then, thanks to your instruction, we started developing something absolutely new, a national educational encyclopedic portal. We have suggested a name for it: “Russia: Territory of Knowledge.” The aim of this portal is not only to provide access to entries from this encyclopedia or thematic ones, the Orthodox Christian Encyclopedia, the Elementary Mathematics Encyclopedia – we have a lot of contemporary encyclopedias. Another aim is to collect accurate information from museums, institutes and universities and to update it. The most important thing now is for information to be accurate and up-to-date.

We have done this and now we are starting to fulfil your message of creating such a full-scale portal. Of course, we need your support again because this is a common goal for all of us.



Yury Osipov:

You issued the instruction back in June2015. Mr Fursenko did a great deal then, helping us.



Sergei Kravets:

An interdepartmental group has been set up in the Government to deal with this. The portal concept has already been developed. It is important that when this portal is ready, it will be a huge resource for various educational services and tools.



Vladimir Putin:

When was the Great Soviet Encyclopedia completed?



Yury Osipov:

In 1978.







Sergei Kravets:

Twenty-five years passed between publication of the Great Soviet Encyclopedia and the start of work on the Great Russian Encyclopedia. The Great Russian Encyclopedia is absolutely new. The reason is not only the different political conditions, though they are important. All life has changed in the past 25 years. So now we are updating entries in the initial volumes, just updating them, there are many new entries in the online version. It will be possible to read entries of 2004 and also of 2017.



Vladimir Putin:

What should be done to speed up the work?



Yury Osipov:

We have prepared a letter to you.



Vladimir Putin:

Good.



Yury Osipov:

Mr President, I would like to say that besides from the visible part, there is also an invisible one. Russia now possesses a huge verified body of information, which is very large and classified.

In addition, during the work on the encyclopedia, some communities of science editors, experts and authors of entries were formed. This is great, it is actually a large achievement.



Vladimir Putin:

I would like to thank you and congratulate you on finishing this very interesting and important work that lasted for many years. You are right, when they read Wikipedia online, people get a lot of varied and important information. However, when it is not entirely accurate, it does more harm than good. This is why this information touchstone is so valuable.

Thank you very much! Congratulations!





The source of information - http://en.kremlin.ru/events/president/news/56450






Gala evening marking Security Agency Worker’s Day



The President attended a gala evening marking Security Agency Worker’s Day.



December 20, 2017 - 18:30 - The Kremlin, Moscow









President of Russia Vladimir Putin:

Comrade officers, colleagues,

I congratulate you, current and former officers of Russian security agencies, as you celebrate your professional holiday.

Today we honour those who defend our national interests, protect our society, our lives, the rights and freedoms of our citizens, and ensure the stable, peaceful, and sovereign development of the country, as well as the inviolability of Russia’s borders.

This year marks the 100th anniversary of the All-Russian Emergency Commission for Combating Counter-Revolution and Sabotage (VChK). We understand that it is an inseparable part of our history, and the history of our internal special services, which, to be sure, dates back more than one century.

Regardless of historical circumstances, the absolute majority of the people who choose this difficult profession have always been true servants of the state and patriots who went about their duties with dignity and honesty, and placed service to the Fatherland and our people above all else.

Our distinguished service veterans set precisely this example of how to do your job and lead your life. The great accomplishments of those who fought against the Nazis, the heroes of the Great Patriotic War who bravely and resolutely upheld the interests of our state, will remain forever in our memory, the memory of our people. These traditions live on as they are passed down from generation to generation.

We remember and will never forget how young men, our comrades-in-arms, rescued hostages, used their bodies to shield people from the bullets of militants, and eliminated terrorists, which they continue to do to this day. I am aware of your skilful and expert field work as you continue to outwit foreign intelligence services and deliver blows to organised crime and corruption.







I am sure that such requirements to security officers as strict adherence to the Constitution and the law, the highest utmost responsibility, honesty and personal decency, and readiness to take on the most difficult and sometimes the most dangerous tasks will always be a constant.

You took on precisely such tasks while supporting the anti-terrorist operation in Syria. The timely information you provided, shutting down channels of support for militants, disrupting their contacts and command systems were a worthy contribution to the efforts of the army and navy and contributed to the defeat of the main group of terrorists and the elimination of a bridgehead from which they threatened Russia.

I would like to emphasise that we will continue to neutralise the hotbeds of international terrorism as decisively as possible, to work together with other countries, with all who are ready to fight this global threat. We are ready to work together and exchange information.

This year Russia’s security agencies have thwarted plans to carry out over 60 crimes of a terrorist nature.

As you know, terrorists are trying to adapt to a changing situation. International terrorism today is both lone-wolf fanatics, and networked, top-secret groups, and underground so-called sleeper cells. Therefore, it is necessary to continue systematic and consistent efforts and to maintain maximum concentration.







It is necessary to strengthen both the external and internal tracks of Russia's antiterrorist security, to work to destroy the financial and recruitment networks of criminals and to counter the attempts of extremists and radicals to influence youth, to spread the ideology of hatred, religious intolerance and aggressive nationalism.

Great responsibility is borne by intelligence and counter-intelligence units. We must erect a solid barrier against foreign interference in our public and political life and disrupt the efforts of foreign intelligence agencies trying to step up their activities in Russia, which is no secret. We should provide analytical and media support to important government decisions in defence and foreign policy.

Your efforts in all other key areas should be equally effective, such as combatting crime and corruption, border control, security at special government facilities, and supporting reliable government communication and management systems.

Friends, I trust that in every concrete task you will aim to achieve the highest results and act resolutely, professionally and effectively.

Thank you for your service and your major contribution to the country’s security and sovereignty.

I wish health and happiness to you and your families. Congratulations again, happy New Year!

Thank you for your attention.





The source of information - http://en.kremlin.ru/events/president/news/56452






Greetings on the 15th anniversary of Moscow International Performing Arts Centre



Vladimir Putin sent his greetings to participants and guests of a gala event marking the 15th anniversary of the Moscow International Performing Arts Centre.



December 21, 2017 - 19:00



The message reads, in part:

“From the very outset, the Moscow International Performing Arts Centre delivered on the expectations of the most exacting audiences and has become the centre of attraction for aficionados and connoisseurs of the arts. World stars and famous orchestras, choirs and folklore groups gave concerts at the Centre, which also provided its stage to young talented performers. They lavishly share their talent, professionalism and their hearts and souls with us, adding to the rich palette of cultural life in Moscow and the country as a whole.

While maintaining the glorious traditions of Russian arts, the Moscow International Performing Arts Centre is always open to new ideas and initiatives, daring experiments and creative pursuits. I see this as an accomplishment of your staff and primarily your maestro, Vladimir Spivakov, a top professional and an enthusiast of music.”





The source of information - http://en.kremlin.ru/events/president/news/56469






Congratulations to current workers and veterans of the energy industry



Vladimir Putin congratulated current workers and veterans of the energy industry on their professional holiday, Energy Industry Day.



December 22, 2017 - 10:00



The message reads, in part:

“You work in a sector that is of strategic importance for the national economy and have every reason to be proud of your achievements. Your hard work, professionalism and competence make possible the construction of new power and grid capacities and the implementation of major high-tech projects to improve the energy systems of Crimea, Kaliningrad Region and the Far East. You unfailingly supply electricity to Russian companies, social facilities and households.

Today you are facing new challenges posed by new realities, the most important of which is to upgrade equipment, increase energy efficiency and enhance the affordability of energy services. You should also make use of research achievements and the best international practices.”





The source of information - http://en.kremlin.ru/events/president/news/56467






Night Hockey League friendly match



December 23, 2017 - 09:30 - Red Square, Moscow





























































Late last night Vladimir Putin took part in a Night Hockey League friendly match on Red Square.





The source of information - http://en.kremlin.ru/events/president/news/56477
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Old December 23rd, 2017 #722
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Vladimir Putin addressed Russian Popular Front Action Forum



The President took part in a plenary session of the Russian Popular Front (ONF) Action Forum.



December 19, 2017 - 14:20 - Moscow







The President was also updated on several ONF projects, listened to a report on the operations of the forum’s themed platforms and talked with presentation participants.

Vladimir Putin was updated on the ONF Cleaning Project launched to get rid of illegal landfills. The main element of the presentation was an interactive map of landfills. The President asked about the number of such landfills. Project coordinator Dmitry Mironov said there are over 15,000 of them.

The ONF representatives also told the President they had reviewed the results of this project and used them to select the best and the worst regions in terms of effectiveness of removing the illegal landfills. They also said that the interactive map of the landfills would be forwarded to the Ministry of Natural Resource and Environment.

After that, Vladimir Putin was told about the ONF Youth project. Project coordinator Sergei Boyarsky pointed out that several independent projects have been launched within ONF Youth over the past four months and that some of them have already produced results. For example, the President learnt that over 10,000 people took part in the Russia’s Future Image project and provided statistical data on the interests of Russia’s young people.

This year’s forum is the largest in the ONF history. It is being attended by over 4,000 delegates from across Russia, including active ONF members and representatives from public and volunteer organisations and from federal and regional authorities.









President of Russia Vladimir Putin:

Good afternoon, friends,

I am very glad to be with you today at the Russian Popular Front’s forum. First of all, I would like to thank you for your active and fruitful work.







I have just held a meeting with your colleagues to discuss some of the projects you are implementing. It is for this joint work in the interests of Russia and Russian citizens that we have created the Popular Front.







Your actions are designed to consolidate the principles of honesty and openness and to combat all forms of bureaucracy, indifference, wastefulness and corruption. Your actions force the authorities to more actively satisfy the needs and requirements of our people.







The essence and the main mission of the Popular Front are to help people, to uphold the truth and justice and to protect our people. It is not surprising, as I have said, that the idea of the Popular Front was proposed in Volgograd, a city that fought to the bitter end during the Great Patriotic War, when our soldiers died for their families and for our future. Of course, we are living in peaceful times now, but you have identified correct and useful areas for protecting people’s interests.







These concern your famous projects, such as public control in the fields of state procurement, healthcare and education, environmental protection and town planning, as well as roads, that is, infrastructure development.







The main thing is that these and your other initiatives have produced concrete results for our people. It is very important that these results have been achieved thanks to thousands of caring and active people in all Russian regions. You are doing very well. My congratulations. Good work. Thank you.







I am very happy to note, as I said earlier, that the very idea to establish the Russian Popular Front has not deteriorated into some nonsense, if you don’t mind me saying so. It has turned into a broad nationwide project, which is alive and responds to the most pressing challenges and issues the country has to face. The aspiration to work for the common good and to care for the country’s destiny and future is the most reliable foundation for successfully solving the tasks we have now.







Of course, there are still many of them, many unresolved issues, both routine and more long-term, strategic. We are moving forward and trying to be modern, successful and strong. I am sure we will succeed.







We have already proven that we can make our dreams and most ambitious plans come true and overcome the most difficult obstacles despite the situation. We heard all kinds of prophesies at the beginning of the 2000s: they said the country would break apart, the state would collapse, the nation would die off, that we would fail to tackle the challenges facing us as we fought international terrorism and that we will never be able to resolve many of our social and economic problems.







And it is true, the situation was very difficult, and even critical sometimes. But we not only managed to preserve Russia’s unity and sovereignty and to travel the complex path of revival, but to achieve true breakthroughs in the most important development areas.







We have made a giant step forward: in the economy, the social sphere and the country’s security. We have created a powerful foundation with reserves and up-to-date potential needed to continue our steady progress.







We have managed it ourselves, through the efforts and will of our workers, engineers, farmers, researchers, businesspeople, teachers and military personnel, through our faith in ourselves and in our country, in Russia.







Remember that after the dissolution of the Soviet Union we heard a lot of magnanimous and sympathetic words, but in reality, nobody did anything to help us. And we did not expect them to. We do not need help. We were building a new country and reviving an independent Russia. We have learnt to defend our interests, we realised our strength and the continuity of our common history, the value of our achievements and the reliability of cohesion.







I will repeat: there is still much that needs to be done. Above all, for the sake of people's wellbeing and in order to overcome poverty and inequality. So far, the level of these problems remains, unfortunately, too high. We must properly face these crucial, historic challenges. What are these challenges?







Preserving and enlarging our nation, building a new economy, developing the Arctic, the Far East, Siberia and, in fact, all regions of our enormous country.







Finally, there is a challenge of the future – a real breakthrough in medical technologies, in technology in general, in a broad sense. In education. Shutting ourselves off from these global trends or just trying to follow in someone's stead is certainly not our choice. This cannot be our choice.







We have every opportunity to restore the competencies in which we were always undisputed leaders, and we have succeeded much already. We will, by all means, break through to new competencies that we need for our development. There is no doubt about that.







We must be leaders in knowledge, intellect and social and cultural development, while at the same time preserving, of course, our identity and relying on our best traditions.







Those are our tasks for years ahead. We must not stumble, must not turn off the chosen course, otherwise we will have to start everything virtually from zero.







There are so many young people here in this hall today. But all of us, young and old, as the saying goes, we must all remember that Russia, our people, and, in fact, all our families, lived through a very complicated and extremely hard period in their history in the past century: through revolutions, wars, cardinal overhauls of their lifestyle.

Today, it is our obligation to safeguard our statehood and freedom, stability and social harmony, safeguard everything, even the modest successes we have achieved so far, so that our achievements and real improvements become irreversible and our strength benefit the wellbeing and development our Fatherland.

In this I see our common task, my personal duty and my civil and human responsibility, both as the active head of state and a candidate for President of the Russian Federation. We all need a strong and future-oriented Russia and everything depends only on us!

Thank you very much for your support. Good luck!





The source of information - http://en.kremlin.ru/events/president/news/56410






Meeting with representatives of major Russian businesses



Vladimir Putin met in the Kremlin with representatives of Russian business circles and associations. The participants discussed issues of concern to the business community.



December 21, 2017 - 18:10 - The Kremlin, Moscow







Over 60 business people, heads of public and private companies, banks and public organisations took part in the meeting.









President of Russia Vladimir Putin:

Good afternoon, friends,

First of all, I would like to wish you a happy New Year. I want to wish success to you and your loved ones in your undertakings, not just business, but everything that you may be doing. I wish you success and prosperity.

We meet not just to wish each other a happy holiday, of course, but also to sum up the results of the outgoing year, and to discuss matters that are important for both the state and business.

A few words about the situation in our economy. The recession is clearly over, and you and I can see it. According to the Ministry of Economic Development, GDP grew by 1.4 percent in January-November.

Although the 4th quarter showed some slowdown in growth, the trend is clearly up. You and I know that this slight decrease is due to a decline in industrial output.

However, in general, the trend is encouraging, and it relies on a number of factors. I recently spoke about it, and you yourselves know everything about it. However, I will still go over certain things. This includes the growth of trade and consumer demand, which, starting September, has been growing by about three percent compared to 2016.







This also includes steady increases in rail freight, which has recently amounted to about 6 percent, as well as an increase in demand for labour and a reduction in unemployment. All of this clearly indicates that the economy has overcome the recession. With regard to unemployment, it was back to 5.1 percent as of November 2017.

As I have already mentioned, in order to ensure sustainable growth, we need to increase productivity and engage structural factors. This is the most important task for the medium term. Of course, it is important to continue the systematic work to improve the business and investment climate, and to promote competition.

I would like to inform you that – as a matter of fact, you may know it already from television – I have signed the Executive Order On Basic State Policy Guidelines to Promote Competition. It focuses on major reductions in the state-owned portion of the domestic economy across all competitive spheres, and the creation of a level playing field and freedom of economic activity throughout Russia.

This refers to restricting the creation of unitary enterprises and increasing the share of high-quality Russian products in the domestic market, including such sectors as information technology and agriculture.

We intend to severely curb violations of antimonopoly legislation and improve the mechanisms of tariff regulation. By 2020, we plan to double the share of purchases of small and medium-sized businesses and NGOs in the state and municipal order.

In this regard, I would like to note that starting in 2019, state and municipal authorities and institutions will be obligated to conduct their procurements in electronic form only. At the same time, suppliers can submit applications remotely.







This will shorten the time it takes to execute contracts and will expand the opportunities of domestic companies from Russian regions. And of course, such a mechanism will reduce corruption risks, and, I hope, increase competition.

I would like to address one more topic, directly related to the development of competition and the purchase of more goods and services from small and medium-sized businesses.

As a result of the interaction between the Government, the Corporation for Small and Medium Business Development and state-owned companies, the volume of purchases from small and medium-sized enterprises in 2017 grew by one-third , or by half a trillion rubles, and amounted to two trillion rubles. There is every reason to bring this figure to three trillion rubles in 2018. This was largely due to the increase in the share and expansion of the range of high-tech products.

The main thing is that experience shows that cooperation between state-owned companies and small and medium-sized businesses is profitable and effective, as it also increases the competitiveness of large businesses. I expect that not only state-owned companies but also large private businesses will benefit from such opportunities and advantages of working with small enterprises.

Friends, let me tell you about a number of other resolutions designed to make Russian jurisdiction and the domestic market more competitive.







First, we intend to expand the array of financial tools for long-term major investments in the domestic economy. A law on syndicated loans will take effect as of next February. Its mechanisms make it possible to significantly increase lending volumes and improve the access of the real sector of the economy to resources, while considerably reducing risks for lenders.

We also need to introduce amendments to the laws that enable banks and other professional market participants to issue structured bonds. We have repeatedly talked about that. This is a new type of debt security with partial coverage of their nominal value. In other words, these are bonds with higher risks, but also higher yield, compared to traditional bonds. Incidentally, a corresponding draft law is currently being prepared for its second reading in the State Duma and will be passed early next year.

During our previous meeting, you asked that suitable mechanisms be created for the return of capital to Russian jurisdiction. You suggested using external government bonds denominated in foreign currency as a tool.

The Government and the Central Bank have thought out this matter. I instructed them to determine the necessary conditions and parameters for issuing these bonds to Russian investors and to get them into circulation already next year.

In September, we discussed this matter at the Russian Union of Industrialists and Entrepreneurs (RUIE). Actually, it was your proposal. It was considered by the Ministry of Finance, the Ministry of Economic Development and the Bank of Russia –the proposal raised no objections.







We also agreed to improve the legal status of controlled foreign companies, given the existing practice of how this institution functions and in keeping with your proposals. Corresponding amendments have been prepared.

This is what I wanted to start with. I think we will exchange some ideas along the way.





The source of information - http://en.kremlin.ru/events/president/news/56461






United Russia Party congress



Vladimir Putin addressed the plenary session of the United Russia political party 17th Congress.



December 23, 2017 - 14:20 - Moscow







Nearly 2,500 people are taking part in the congress, including 455 delegates from the party’s 85 regional branches, heads of ministries and agencies, State Duma deputies, representatives of the regional executive and legislative bodies, secretaries of United Russia regional political councils, and representatives of the expert and scientific communities.

The congress has two discussion venues on key items of the party’s agenda, where the participants sum up the year’s results and set tasks for the future.









Vladimir Putin:

Friends, colleagues,

Many of you present here today took part in building the United Russia Party. We did it at a complicated and critical stage in the life of our state, when the nation needed a powerful unifying force for its steady development, for strengthening its statehood and addressing large-scale challenges. The United Russia Party has achieved and continues to achieve this goal. I am very pleased to note that and would like to thank you for that.

United Russia has earned its leading position by real actions in the interests of the people, to the benefit of our regions, and to the benefit of the whole country. The people of Russia and all of us have walked down a hard but monumental road of development. We did not sidestep from the designated track and responded well to the challenges of the hardest trials and crises, including global ones, often completely out of our control. We stood together in countering the assault of international terrorism, in standing up for Russia’s independence and self-reliance, and we showed unity in deciding the fate of Crimea and Sevastopol.

We turned around seemingly insurmountable trends in the economy, demographics and social sphere. We ensured Russia’s enhanced security and growing influence in the world. Huge infrastructure projects and large-scale construction sites, new enterprises and advanced industries are the results of our joint work.

If we managed to achieve anything, the credit definitely goes to the Russian people, their will, labour, confidence, sometimes sacrifices, faith in patriotism as a key idea, belief in their Motherland. All that is the decisive force behind our progress

Yes, we realise that we could have achieved more. This is always the case when one takes up the most difficult tasks, when one sets ambitious goals. And it is clear that if such super tasks are set, we can be sure from the onset that we may fail in some areas. But it is much worse when such ambitious goals are not set. Then nothing will come out at all.







At the same time, we must honestly identify unresolved issues and persevere in solving them, removing everything that impedes progress. We must set even more ambitious goals and achieve results. There are many urgent things we must work on. What has been done is just the foundation but not a guarantee of further successful development. The future depends on our ability to ensure that changes are irreversible, to preserve and considerably augment what we have achieved over the past years.

I would like to emphasise, to draw your attention to the fact that the irreversibility of achievements and changes means our readiness to respond to global challenges, to defend Russia’s statehood and people’s lives and security from threats and shocks, and to lay the foundation for growing prosperity for everyone.

Everyone must be ensured a worthy place in the future. We must keep opening up broad opportunities for the success and self-fulfilment of each individual. Securing such continuity, sustainable and uninterrupted development of the nation is the main responsibility of all the constructive and visionary political and social forces.

It means that despite all the differences in opinions, approaches and proposals on developing the country, we must be guided by the citizens’ rights and freedoms, Russia’s long-term interests and the strength of our statehood. We can succeed in implementing our plans only on condition of general national accord.

For our country to live, to be revived, to preserve its identity, we must protect the basic values existing in society. They are patriotism, mutual understanding, concord between the peoples of our multi-ethnic nation, and respect for our history, culture, traditions, freedoms, rights and the dignity of man.

These values fortify our resolve to work for the common good and fuel the energy of volunteer activities. Caring, selfless people make an invaluable contribution to solving specific issues. They do not wait for somebody else to come and do it for them.







People’s responsibility, their participation in devising and implementing the development agenda is the basis for a strong and mature civil society, and undoubtedly, for a stable political and state system.

Stability must not meat inertia, stagnation, or a frozen petrified structure that lags behind the challenges of the time. If it were like that, everything could collapse at any moment and expose the country to the risk of destruction and dissolution, as it happened in our recent history.

We remember those lessons of history and that is why we keep developing our state and political system, making it more flexible, capable of adapting to the rapid changes of the modern world. The ability to meet the demands of people and society, their growing desire to actively participate in the life of the country – these are the things that we should be guided by.

I would also like to stress that nothing undermines stability and steals the resource of development as much as untruth, injustice, lawlessness, the rust of corruption and bribery, indifference to one’s own country and distancing oneself from people’s needs, whether displayed by politicians, officials, businesses or those who call themselves “the elite.”







All these things weaken and undermine sustainable development, our social solidarity and stability. Let me underscore this – it is these matters, not people’s fair demands to solve outstanding problems.

It is my conviction that we should further expand the mechanisms of direct democracy, fully release the potential of civil activities laid in our Constitution, encourage the competition of ideas, proposals and approaches to solving development issues. We must have a respectful attitude towards competent and responsible opposition. And being such opposition means not only the wish and readiness to argue with the authorities or to accuse them of every mortal sin. We are aware of the problems the country is facing. Being responsible means having a clear-cut programme of positive action.

Let me emphasise that I see the key guarantee of the irreversibility of change in a strong, responsible, free civil society, as its structures operate for the sake of creation, for the good of the people and the country, and take part in addressing the most complicated social issues.

Such society rejects populism and idle talk. Such a society is resistant to any attempts to destabilise it. It will never let the country be dragged into chaos, be led astray, made weak and dependent. We know that such examples are plentiful in many countries around us. It can happen very fast if we are not committed to stability in society.







Colleagues, the irreversibility of our development largely ensures the firmness of Russia’ sovereignty and the combat capability of its army and navy. Our strength is directed at defence from external threats, from terrorism. We are not and will not be looking for confrontation with anyone. We will continue to pursue an open and honest foreign policy, we will strengthen the Eurasian Economic Union with our partners, and promote our initiative on establishing a new broader integration contour – the Grand Eurasian Partnership. We are ready to work with all countries – both in the West and in the East, on the principles of trust and equality. Yet we will never sacrifice the security of our citizens and our national interests (Applause).

For our people, for Russia to carry on, we must overcome the drastic aftermath of the demographic gaps the country faced last century, to preserve, and in the future to increase the country’s population . This is what our new additional measures on the support of motherhood, childhood and families with children are targeting. I would even say that the whole policy, all our work – in the economy, social sphere and other fields – should be aimed at preserving the nation, at solving the issues of demographic development.

That means modern healthcare and promoting a healthy active lifestyle, decreasing the mortality rate and increasing life expectancy in the coming years. It means new schools, crèches and kindergartens; creating a modern environment for living in cities and rural areas; good environmental conditions, modern infrastructure, utilities and roads; comfortable quality housing that is affordable for millions of Russians. Finally, it simply means people’s wellbeing and welfare – it consists of all of the above. We must achieve continuous stable growth of real incomes for our citizens, as well as pensions and social benefits.

We must certainly continue our efforts to decrease the number of people with incomes below the subsistence level, eradicate poverty, decreasing its level and the number of low-income people, which is a threat for the stability and unity of our society as it denigrates people. The situation should become intolerable when a person who has a good profession and qualifications gets a meagre wage for his or her work and literally lives from hand to mouth.







Let me remind you in this connection that we should certainly not adopt populist policies, give promises that cannot be kept or squander money the way it was done in the 1990s. We remember that under the pressure of circumstances Parliament and the Government often approved decisions that could never have been implemented; then they did nothing and took on new obligations that were never met either.

This is a path that we must certainly avoid. We remember what it led to. It led to 40 million people living below the poverty line in 2000, which was almost one third of the population back then. Today the figure stands at 20 million, and this figure too is unacceptably high.

We had a period when the figure stood at 15 million but, unfortunately, crisis effects, external restrictions and falling demand for our traditional exports in the world markets did their dirty deed. But now Russia has recovered from the recession, we have reached the stage of sustainable economic growth, and we must target poverty by taking advantage of the economic growth and labour productivity. We must do it the way we targeted inflation, and we have managed to achieve positive results, as you know. We must do the same in this case.

It is vitally important to radically change this situation, as people’s wellbeing, the wellbeing of their children and families, their social perception and confidence in the future are a guarantee of sustainable, progressive development of the country. I am sure that we can and must ensure conditions for every person regardless of age or any restrictions to be able to raise their qualifications, open their own business or have a good job.

What must we do to achieve that? We must establish a new employment market and a flexible modern system of vocational training.







Economic crises, and as I have already said, and external restrictions did not allow us to fulfil the task of reaching an economic growth above the world’s average. But it is imperative that we do it, and we will. Russia must not only secure a place among the world’s top five economies, but also approach the level of the advanced countries in terns of GDP per capita. It is this indicator that shows the quality and technological level of the economy, labour productivity and ultimately people’s wellbeing.

To achieve that, we will have to drastically modernise the country’s infrastructure, which is a top priority task for the short term. Raising efficiency and labour productivity in the traditional branches of the economy, making a breakthrough here similar to the one underway in agriculture, transport and communications, telecommunications, the pharmaceutical industry and the military-industrial complex of Russia.

Our successful large and growing companies should enter the world market and become global champions. Meanwhile, the top political, economic and social priority for the coming years remains the development of small and middle-sized business.

Russia must become a space of true economic freedom for every individual who has his or her own business, for tens of thousands of new startups, small family businesses, farms, self-employed entrepreneurs. This is also a guarantee of the irreversibility and sustainability of our development. We have to establish most favourable conditions for efficient labour, investment, business initiatives, to remove artificial barriers and unfounded restrictions. We will certainly pursue this work in the future.









I believe it important to continue improving and liberalising the existing legislation, including by dropping all the vague, ambiguous, unclear legal norms that are used by corrupt law enforcement officials to harass businesses, to force them to pay up and defraud them of their property.

Of course, we should develop fundamentally new industries. This is crucial, there can be no future without it. Industries related to the introduction of advanced digital and industrial technologies, bio-engineering, robotics. The branches are already shaping the future of modern civilisation and must ensure our country’s sustainability, progress and standing in tomorrow’s world.

Science and education play an enormous role here. Russian schools must be among the world’s best in terms of quality and scope of training, and our colleges, vocational schools and universities must adopt leading standards in training workers, engineers, researchers and specialists of the new technological paradigm.

We focus on developing the abilities and talents each child, each young person has. Work skills contests and grants for young researchers, support of gifted school and university students, the Sirius educational centre and the whole constellation of children’s techno parks, creative groups – all these projects are united by a common aim. This network must continue to expand. It is much too narrow today.







This means a successful future for the nation, its development that will be ensured by the strong, creative, talented and bright young generation of Russians. The key is that young people in large cities and small towns, in the countryside and in villages should have equal opportunities for self-fulfilment.

Only then will we ensure that strong young professionals enter politics and business, government agencies, industries, and all other spheres. Patriotic, honest, daring, committed, active people who understand and share the country’s development agenda and participate in its implementation, who consider it to be their own agenda which meets their dreams and aspirations. We must do all we can to ensure such continuity. Young people are the people of the coming new age. I am sure they will firmly stand up for Russia’s interests, will lead the country along the path of progress, leadership and prosperity.

Friends, Russia is made up of millions of very different people with their joys, hardships and problems. They toil, work, make families, and raise children. And it means our centuries-old history goes on. Our joint work, determination, energy and responsibility for Russia’s present and its future is the most reliable guarantee of its dignified, breakthrough, irreversible development.

I am confident of our success because millions of Russians are with us. We are together, we are moving forward. And there is certainly no power that can stop Russia’s forward movement. We will make our way from one victory to another. This is sure to happen!


<…>


Friends, Mr Medvedev, colleagues,

I cannot but say a few words, literally a few words.

Russia is a country with a thousand-year history. But we should not treat it as a beloved granny – give her medications on time so that she does not have any pains, and do nothing else. Not at all.







We must make Russia young, focused on the future, and it is becoming like that with every new generation. But to achieve that we must resolve all those issues that we have just spoken about. We must introduce significant changes in the development of healthcare and education, in infrastructure, because without healthcare and education we will not solve another key task – bringing innovation into our economy, developing digitalisation, biotechnology and so on, the things Mr Medvedev has just spoken about in his speech. This cannot be done by people who are not healthy or educated. All that is closely interconnected in the modern world.

There are very many people, both here, among this audience, and those who are not here but who support us, who do their job, working on the ground, as we say. They know that these tasks cannot be resolved with slogans and catchwords alone or just by handing out money to someone at a certain political stage without caring about what will happen tomorrow. This is a road to nowhere. United Russia has always been a very responsible political force and it has always had a professional approach to tackling the challenges facing the country.

What does that mean? It means – and I would like to address those who are responsible for taking concrete decisions in Parliament and locally – it means that by identifying development tasks we must make timely decisions, however debatable they might seem at the time when they are taken.







We must shed everything that stands in the way of Russia’s renewal – we have a lot of things accumulated here – everything that stands in the way of making it young, forward-looking and driven. All that must be identified and discarded. We must create mechanisms that will let us move forward.

Everyone knows that we need funding to solve the tasks we have spoken about. Where can we get it? Do we have funds or not? We do, but we have to make a lot of adjustments to the tax system, we have to absolutely and categorically ensure the development of the pension system so that current retirees and those who will retire in the future can be confident that everything is reliable and stable in that area.

We must continue to ensure the country’s defence capability. We have a great many tasks, and we must act responsibly and professionally, basing our actions on the long-term prospects of the country’s development rather than on the present-day situation. The key issue here is the ability to explain to the people what is being done and for what purposes, and what we are expecting to achieve. In that case, the people will support us, and we will be able to rely on them. And if something goes wrong, we have to say clearly, honestly and sincerely, “Yes, we wanted it that way but it turned out otherwise; we can see that and we will rectify it with your support and with your help.”







This is the only way to achieve what I spoke about at the end of my speech. Only in that case will we be able to march from one victory to another. I really count on your support, thank you very much for it.

Thank you.





The source of information - http://en.kremlin.ru/events/president/news/56478
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Meeting of the Council for Strategic Development and Priority Projects



Vladimir Putin chaired a meeting of the Council for Strategic Development and Priority Projects in the Kremlin, which was convened to discuss the implementation of the housing development strategy.



December 20, 2017 - 14:50 - The Kremlin, Moscow









President of Russia Vladimir Putin:

Good afternoon, colleagues,

Today we will be discussing issues that concern absolutely all people and families in Russia. We will talk about housing, the way our cities will be developed and changed to create a favourable, comfortable and modern living environment and to make new buildings and apartments accessible and of a high quality.







Our construction companies have greatly moved forward over the past few years. As you probably remember, in 2015 we built the largest volume of housing in our history, including the Soviet period – over 85 million square metres. The construction sector continues to hold the bar high.

This result was achieved largely thanks to the development of the mortgage market. This year, banks will have issued over a million mortgage loans worth some 2 trillion rubles, and the current mortgage interest rate has fallen below 10 percent.

I remember that it was only recently that we were dreaming of cutting the mortgage rate back to below 12 percent, and that some people said this would not just be an acceptable target but that it would provoke rapid growth on the construction market. Today the mortgage rate is below 10 percent.







We are completing the programme to relocate people from buildings that were declared to be dilapidated as of early 2012. We will need to think about the dilapidated housing stock as a whole. Overall, 684,000 people will move into new buildings under the relocation programme this year.

However, there are problems remaining in the housing sphere and housing construction. We will discuss them today. At the same time, I believe that we have reached a level and have accumulated the resources that are sufficient for formulating a strategic national goal that I spoke about several times: the goal of enhancing the accessibility of housing for our people in the next few years, especially for young families and for young families with children.

I would like to note that, according to experts, 35 percent of Russian families currently have a real opportunity to improve their living conditions through bank loans. By 2025, there will be 50 percent of such families. According to the Agency for Housing Mortgage Lending, in the early 2000s the figure stood at under 5 percent.







Experts’ assessments show that 110–120 million square metres of housing will need to be built annually. I want to emphasise that people should be able to move not into nondescript blocks of flats, or ant hills as they used to be called, but into comfortable flats with the necessary infrastructure, social and sports facilities, parks and public spaces.

I repeat, it is a system-wide task and its solution will have a huge impact on the demographic situation, people’s quality of life and the country’s economy.

What areas should we focus on? First of all, we need to eliminate bureaucratic obstacles in housing construction, because the system is still too cumbersome despite all the changes and attempts to improve it. There are still not enough land plots for development. Also, not all cities have approved urban development plans.







Between 2012 and 2017 in the Doing Business index, the Dealing with Construction Permits indicator for Russia has changed: we moved from 178th to the 115th position. It seems an improvement, but the 115th place leaves much to be desired. In the top ten regions, developers have to undergo nine procedures and wait for 86 days; in the ten least successful regions it is 16 procedures and 165 days of waiting.

We fall behind as many as 114 countries which can do all this faster. Why are we still in the 115th place?

I want to draw the attention of the Construction Ministry: it is essential to boost the efforts to develop convenient, transparent construction regulations, eliminate bureaucratic obstacles and excessive oversight – of course, without compromising the quality and reliability of the buildings and the interests of the people who invest their money in housing construction.







The same applies to land allocation. All the necessary instructions have been issued, including on the use of vacant, unused land plots and former industrial zones in the city, many of which are in federal ownership. The Government has all the necessary mechanisms, and I would ask to use them to resolve this matter.

Further. No one needs a race for square metres, so we should not build uncomfortable, poor quality housing. We must build not just a large amount of housing, but also housing that is modern. And here it is important not only to update the standards, but also to find economic incentives for developers to build new residential buildings based on advanced design solutions and technologies, using quality modern materials.

Naturally, we must also ensure that mortgage lending grows and interest rates decline, and continue the development of the mortgage securities market by attracting pension funds, insurance companies and individuals to this market. It is necessary to create guarantees against the appearance of bubbles. I would ask the Government, the Central Bank, and the Mortgage Agency to work closely on this issue.







In fact, we have quite good indicators; there is no cause for concern. Mortgage indebtedness in Russia is 5 percent of GDP (in Western countries it is 40–80 percent), and the volume of mortgage securities is less than 1 percent [of GDP] (in Western countries, it may amount to 40 percent). But this does not mean that we should pay less attention to these issues and think that we will not be affected. It can affect us, if we do not keep financial discipline.

Also, in 2018, a special mortgage lending programme will be launched for families where a second or third child is born. They will be able to count on the state subsidising the interest rate in excess of six percent per year.

Another important task is the formation of a sustainable mechanism for financing housing construction. People who invest their money in housing construction sometimes face high risks. This is a very serious, acute and long-lasting problem, both economic and social.







We agreed at one of the recent meetings that we will gradually transit from the mechanism of shared-equity construction to bank financing of construction projects, when risks will be assumed not by individuals, but by professional market participants.

We need to lay the groundwork for such a transition. It is important not to allow failures, not to find ourselves in a situation where one mechanism has already been abandoned, and the other has not yet been adjusted or created at all.

I have issued the corresponding instructions. And I would like to address those members of the Government who are directly concerned: these instructions were made on your proposal, you drafted them and you did it so that nothing would be forgotten, nothing would be left out and so that everything would work properly. Please, prepare the necessary changes as soon as possible.







[The instruction to the Government] was issued on November 5 and it was supposed to endorse a plan of action to replace the funds of housing equity holders with bank loans and other forms of funding during the next three years. Does this plan exist?



Minister of Construction, Housing and Utilities Mikhail Men:

Yes, Mr President, the plan exists. It is already with the Government and will be endorsed in the next few days.



Vladimir Putin:

It was supposed to be endorsed by December 15 and we are past it. Please speed this up.

Let me add that people should have different options of resolving their housing problems, for instance, by renting. Needless to say, the rental market must follow civilised, transparent rules.







A year ago, we agreed to launch pilot projects on leasehold buildings. The first leasehold building opened in Moscow this year. More facilities are under construction in the Far East and Tobolsk. We must launch more projects on rental housing and build on this experience.

On a par with housing people need parks, squares, playgrounds and sports grounds and social infrastructure – in a word, everything that forms the image of cities and creates a favourable environment for life.

This plan consists of many successful and interesting projects, including those for small cities. It is necessary to build on these successful projects and introduce them all over the country.

I would like you to think about launching a special programme of professional development for Russian architects. I would like the Ministry of Construction and the Agency for Housing Mortgage Lending to jointly elaborate a mechanism for carrying the said programme using the available resources.







In addition, I think it is important to enhance the status of chief architects. They should have an opportunity to offer and carry out their projects, thereby producing a real influence on the formation of a new, modern and bright image of Russian regions and cities.

Let us get down to work. But before giving the floor to Mr Men, I would like to say a few words about one more subject that is worrying people and was mentioned at the recent news conference. I am referring to the growth of fees for the maintenance of buildings. Unlike utility fees they are not regulated at the federal level. We have spoken about this more than once. It is necessary to put things in order in this area. This should have been done long ago. It is necessary to establish limits on housing fees and, as we agreed, to keep managing companies away from managing financial flows.





The source of information - http://en.kremlin.ru/events/president/news/56423






Meeting with Head of Tatarstan Rustam Minnikhanov



Vladimir Putin held a working meeting with Head of the Republic of Tatarstan Rustam Minnikhanov. Mr Minnikhanov briefed the President on the region’s socioeconomic situation.



December 20, 2017 - 17:40 - The Kremlin, Moscow









President of Russia Vladimir Putin:

How is everything, Mr Minnikhanov?



Head of Tatarstan Rustam Minnikhanov:

Everything is okay.

Mr President, I would like to report to you on the expectations and results of this year. I prepared several presentation materials on our socioeconomic development, on the projects that we are carrying out in our republic.

We expect our gross product to grow by 103 percent.



Vladimir Putin:

Regional product?



Rustam Minnikhanov:

Yes, two trillion.



Vladimir Putin:

This is higher than the national average.



Rustam Minnikhanov:

The volume and index of industrial production – 102 or 102.2 percent, or 2,167 billion. Agricultural production has increased by 5.5 percent to reach 260 billion. The scale of construction has not decreased – 356 billion rubles. We will put into service 2,407,000 square metres of housing.



Vladimir Putin:

How much more is this compared to last year?



Rustam Minnikhanov:

100 percent. We stick to this figure. The main point is that about 500,000 square metres represent affordable housing for those categories of residents that we included in our programmes.

Fixed investment is 677 billion. I think it will be at the same level as last year. Foreign trade amounts to 16 billion rubles. The processing industry has grown as well.

I have conducted an analysis. Compared with 2010 our production of diesel fuel went up by 10 percent, petrol by 167 percent, we produce 725,000 tonnes of synthetic rubber which is 142 percent, polyethylene production grew by 120 percent, mineral fertilizer production increased six-fold with the construction of a new plant, manufacture of tires 112 percent, lorries 150 percent, and cars 110 percent.

I would like to tell you about the projects that we are carrying out in the republic. First of all, this is the most pressing issue…



Vladimir Putin:

Roads?







Rustam Minnikhanov:

Yes, roads. This year we have carried out almost 28 billion [rubles] worth of republic-wide programmes. This includes modernisation, repairs, paved roads and roads for our farms. Gravel-sand mixture is a good, low-cost project. It is not asphalt but a special surface for rural streets where traffic is not very heavy.

The municipal road fund. Thank you very much for safe, high-quality roads.



Vladimir Putin:

I believe you have used different lane width standards.



Rustam Minnikhanov:

Yes, a new category, Category Five roads. This is significantly cheaper; there is no need to spend huge amounts of money.



Vladimir Putin:

I agree. This is good, positive experience. Generally, it is a little wider here than in other countries. However, if traffic is light, there is no such need.



Rustam Minnikhanov:

We proposed this as a standard. The Transport Ministry supported us.

I would like to update you on our programmes. We have 37 programmes. Next year there will be 38. Total investment is 44 billion [rubles], including 25 billion from budgetary funds. This includes major repairs of outpatient clinics. As I told you, we are to bring all primary-level facilities – outpatient clinics – up to standard within two years. Major repair programmes for educational facilities. Every year, we perform maintenance and repairs at schools and kindergartens. In all, this is about 140 facilities.

There is a very good programme on public spaces. We have done 68 facilities worth nearly 3 billion. In this case we also received federal support.

Resource centres, training centres. To meet the goal you have set – blue-collar jobs – we already have 25 resource centres. In 2018, there will be another five such centres.

Teen clubs, children’s camps. We have launched a maintenance and repairs programme, doing 10 camps a year.

Cultural facilities. We are building at least one club in every district and are also repairing clubs.

The housing renovation programme includes 984 buildings. The programme is up and running.

We are currently helping vegetable and gardening communities with water, roads and gas supplies. They have kind of fallen between the cracks. We have a special programme whereby we provide 550 million [rubles] a year addressing [their problems]. Water supplies, sewage, utilities.

We also have a programme to bring rural facilities up to scratch. [There are] co-financing [programmes]. We provide part [of the funds]. These include cowsheds, silage and haylage trenches, vegetable storage facilities, machine-tractor stations – a total of around 2.35 billion rubles, 646 facilities.

Lighting programmes. In rural areas, transitioning to standalone boilers, the Accessible Environment programme. Boilers. There are many programmes – 37 of them. All are under way.

As for the May executive orders, Mr President, we are also carrying out the roadmap: all targets on education, higher education and medical care are being met. The same goes for this year’s roadmap.







Vladimir Putin:

Are you also helping large families?



Rustam Minnikhanov:

Yes, we are also carrying out a programme for large families, providing land plots.



Vladimir Putin:

I believe this programme has been running since 2007.



Rustam Minnikhanov:

There is a social mortgage lending programme; it is ongoing. Almost 10,000 flats a year [are provided] under this programme.

As for budget execution, growth is over 6 percent. We address all these issues.

There is the issue of [defrauded] housing equity holders. We are currently setting up a fund. We will help [them] with land and infrastructure. There is such a category. A federal fund is currently being established, but it is for the future. We will also help those who have ended up in difficult circumstances.

I have also briefed you on the issue of [defrauded] depositors. A fund has also been created. Small amounts have already begun to be paid to legal entities. This work is also in progress.



Vladimir Putin:

Good.





The source of information - http://en.kremlin.ru/events/president/news/56451






Meeting of Presidential Council for Culture and Art



Vladimir Putin chaired a meeting of the Presidential Council for Culture and Art at the Kremlin.



December 21, 2017 - 15:15 - The Kremlin, Moscow







The participants discussed the implementation of the Executive Order On Approving the Basis of State Cultural Policy, including the improvement of the state cultural policy, closer cooperation with cultural associations and organisations and representatives of performers, as well as legal regulation of cultural activities.









President of Russia Vladimir Putin:

I would like to begin by saying that the meetings of this council are usually held in December, which is a good tradition and an opportunity to wish you a happy New Year.

We completed work on the Basis of State Cultural Policy three years ago. Much has been done in this sphere since then. In particular, we have completed a number of major cultural projects, and the system of state support for creative activities has become more flexible.

At the same time, certain problems rooted in our attitude to cultural development have come to light. It is vitally important to resolve these problems.







Cultural issues are not only multifaceted and complicated. They are also critical for all aspects of our life, including the economy, education, technological development and sovereignty. This sounds like a platitude, but I have to say this. Here is one thing: culture concerns our world outlook and is primarily a multipurpose instrument for the preservation and maintenance of traditional moral, spiritual and aesthetic values. It is also the basis of a harmonious and free society capable of maintaining its integrity while remaining open and appreciative of global development trends of our civilisation.

As you know, a month ago St Petersburg hosted a conference on supporting talented youth in the arts. Just as at other meetings with masters of the arts, those attending the meeting in St Petersburg pointed out that the current attitude to culture as a social sector that provides certain services must change. I would like to say that renouncing this narrow approach to culture is also stipulated in the Basis of State Cultural Policy.







It is now necessary to transfer this principle into legislation and managerial approaches and seriously upgrade the state’s humanitarian policy, where culture plays a key role.

In this context, it has been proposed that we develop a new law on culture. I suggest we talk about its content today. I would like to note at once that the draft law should undergo broad public discussion. This law should clearly reflect the needs of the culture sphere, its comprehensive nature and importance – as both a mission and a public good.







We realise and perceive this fairly well. I have the following proposal in this context: I believe it would be best if members of the council together with their colleagues and representatives of relevant departments draft a new law on culture themselves and establish a working group for this purpose.

Your involvement in drafting the law guarantees that it will be efficient and will work. I do realise that you are engaged in your own creative work. Each of you has a busy schedule and many plans. But what we are discussing today is of major importance for organising work in Russia in the area to which you have dedicated your lives.







There is still another area that in your own opinion requires additional adjustment. I am referring to the training of personnel for culture because the general standards established for the system of education do not take into account art schools’ specific requirements. I agree that this issue should by all means be resolved without upsetting the structure of the entire educational system. We talked about this in St Petersburg as well.

I suggest elaborating – with your participation – special norms for financing education in creative professions in the interdepartmental commission of the Culture Ministry and the Science and Education Ministry. Art schools should have an opportunity to shift to these norms via a lawful, understandable and transparent mechanism. Let me add thatsome of your initiatives made in St Petersburg have already been implemented or are being carried out.







First, it has already been decided that we will allocate, starting from 2018, one billion roubles each year to identify and support young talents.

Secondly, a decision has been approved on the Theatre for Children programme. We discussed this in St Petersburg. Next year and thereafter, its funding will increase more than threefold to 700 million roubles.

Of course, the new draft law we are discussing should maximally preserve and develop the existing successful forms of state support for culture, such as grants to pay salaries to members of leading creative teams. In 2018, their amount will increase by 2.3 billion roubles to over eight billion.







In addition, it is important to ensure the possibility of assisting creative non-profit organisations, including through the Foundation for Presidential Grants for the Development of Civil Society.

The work on the new culture draft law will, of course, take some time. Therefore, I am asking you to solve, at your earliest opportunity, the most painful and sensitive issue affecting creative teams and individuals. I am referring to amending the law on the contractual system. We have repeatedly discussed this.







Obviously, it does not always take into account the peculiarities of the cultural sphere and occasionally puts people employed there in an ambiguous position. All parties, both representatives of the cultural community and the state, have a stake in correcting it and in setting clear, logical and transparent financial rules for creative organisations.

In conclusion, I would like to mention one more point: Daniil Granin, a writer, thinker and a true hero, would have turned 100 years old in 2019. He once said these precious words: “Culture cannot be managed”, it “should be understood” and “borne within oneself.”

An Executive Order has been signed on celebrating Daniil Granin’s anniversary in 2019 and on perpetuating his memory. I believe it very important that this become a real event rallying our society. Our great compatriot’s heritage should serve for the benefit of Russian culture.

Thank you for your attention. Let us start our work.


<…>


Vladimir Putin:

To conclude, I would like to thank you for today’s work and in general for your efforts, your creativity and your contribution.

It is thanks to you and others working across the country that our culture is advancing, despite all the challenges and problems we face. There are many people working in this area across the country. Some are well known within their regions, others are not.

Working in their specific positions, they all dedicate their efforts to the essential task of preserving our cultural code that is central to the Russian state and statehood.

Thank you very much and I wish you all a happy New Year. All the best!





The source of information - http://en.kremlin.ru/events/president/news/56456






Working meeting with Prime Minister Dmitry Medvedev



Vladimir Putin held a working meeting with Prime Minister Dmitry Medvedev. The Prime Minister briefed the President on the Government’s work on a presidential executive order on major areas of Government policy to foster competition. The order is to provide additional regulatory authority in the sphere of competition.



December 21, 2017 - 17:15 - The Kremlin, Moscow









President of Russia Vladimir Putin:

Mr Medvedev, quite recently the head of the anti-monopoly service reported to me – and I know he met with you as well – and we agreed to draw up a presidential executive order that will enhance regulatory authority in the sphere of competition. This is a fundamental issue for economic development.

I know that the Government and you personally worked on this document, and now we have an opportunity to complete this work.



Dmitry Medvedev:

Absolutely, Mr Putin.

In accordance with your instructions, the Government drafted an executive order on major areas of Government policy on promoting competition. As you rightly observed, this is a fundamental document, which is exactly why it should be issued in the form of a presidential executive order, although it largely deals with economic issues.

“Fundamental” because fostering competition remains a core element of state economic policy, which enables us to look to the future and harmoniously develop all sectors of the Russian economy.

Let me say straight away that apart from general provisions that are within the competence of the anti-monopoly service and the Government, the executive order provides for the endorsement of a separate anti-monopoly plan to promote competition from 2018 to 2020, which envisages support for small and medium-sized business, indispensable for improved competition, and additional anti-monopoly regulatory measures. This reflects our changing understanding of monopolies. Today it is not enough to say that some organisation is a monopoly. It is necessary to establish what elements are part of the infrastructure and are naturally a monopoly and what can be separated and transferred to the competitive market. This makes the operation of monopolies less expensive and reduces their costs, thereby changing the rates they set.

There is also a number of measures and presidential instructions designed to improve regulations. In particular, recently, in order to reduce competition at the regional or municipal and sometimes even federal level, decisions have been taken to create unitary enterprises in competitive sectors. Mind you, not in sectors where this can be accounted for by security or some other special reasons, but precisely in the competitive sector. They create a unitary enterprise, and then everything has to go through it. Of course, these measures essentially hold back the competitiveness of our economy.

This executive order either outlaws such decisions or, if necessary, they should be taken only based on special acts issued by the President or the Government.

This executive order also contains a number of other measures to improve legislation nationwide, which the Government would like you to sign.



Vladimir Putin:

With regard to unitary enterprises, you and I are aware that, unfortunately, even some of the functions of the ministries and departments are transferred to unitary enterprises after such enterprises have been created. So we are delegating the functions of federal governance bodies to them as well.

We need to carefully consider this, including during the privatisation process, when the Government will be forming a privatisation plan. This segment needs to be carefully looked at.



Dmitry Medvedev:

Will do.



Vladimir Putin:

As for the executive order itself, of course, I will sign it right away. I want to thank you for completing such an extensive amount of work. Now, we will need to follow closely the law enforcement practice to see if it works in real life.



Dmitry Medvedev:

The Government will take care of it, Mr Putin.





The source of information - http://en.kremlin.ru/events/president/news/56459
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Expanded meeting of the Defence Ministry Board



Vladimir Putin visited the Peter the Great Military Academy of the Strategic Missile Forces, where he took part in an annual expanded meeting of the Defence Ministry Board.



December 22, 2017 - 15:50 - Balashikha, Moscow Region







Prior to the meeting, the President toured the Academy’s training and laboratory building and the training and research centre, and examined the Academy’s comprehensive development plan.

The Peter the Great Military Academy of Strategic Missile Forces is one of the largest military training institutions of the Russian Armed Forces. The Academy trains commanding officers and military engineers, and conducts research in the main areas related to the Strategic Missile Forces.









President of Russia Vladimir Putin:

Comrades officers,

Before I begin, I want to congratulate the Armed Forces, primarily, the Strategic Missile Forces, on such a remarkable new facility. It is not just a modern [facility], but a facility that makes it possible to train personnel and develop the sector in the broadest sense of this word according to the latest and most advanced standards. This is extremely important, and I want to thank the Defence Ministry’s senior officials for this.

I would like to start also by expressing my gratitude to the servicemen who took part in the anti-terrorist operation in Syria, and I want to thank the entire Armed Forces personnel.

The Defence Minister will report on this in more detail. I will only say the main thing, which is that in fighting international terrorism, an absolutely global threat, our soldiers and officers acted bravely, professionally and, importantly, effectively, demonstrated the qualitatively new modern capabilities of the Armed Forces of Russia and made, without any doubt or exaggeration, a decisive contribution to defeating the most capable group of international terrorists.

You are aware that, in fact, it was more than just a group. It was an entire terrorist army, which was well organised, united, trained and armed, which directly threatened our country, and, admittedly, the entire world.

In cooperation with the Syrian troops, Russian forces have liberated practically the entire Syrian territory from the gangs of militants, saved the lives of hundreds of thousands of people, preserved Syria’s statehood and opened opportunities for political settlement of its domestic conflict. The actions of our army and navy can only be described as excellent.

We will always remember the feat of our comrades-in-arms who perished defending Russia and our people. Our human, moral and ethical duty is to support their families. The state and their fellow servicemen will do everything for this purpose.

Please honour their memory with a minute of silence.

(Minute of silence.)

Colleagues, the situation in Syria, with which I started and the military political situation as a whole, confirm the correctness and timeliness of our decisions to consolidate the army and navy and channel the required resources into active military development.

We have worked hard in the past few years – we have completed deep structural reforms of the Armed Forces and enhanced the efficiency of the entire system of military administration.







We are steadily re-equipping all branches and arms of our Armed Forces. I will cite only a few figures that demonstrate the dynamics of this process. In 2012 modern weapons and hardware accounted for 16 percent in our troops, whereas now, at the end of 2017 it increased to about 60 percent and should reach 70 percent by 2021.

Six large-scale inspections conducted this year have confirmed the high readiness of our forces, their ability to quickly strengthen their units in the Arctic and to create self-sufficient and effective groups in other key areas of national defence.

The Zapad-2017 joint Russian-Belarusian strategic military exercises aiming to maintain the Union State’s security became an important stage of combat training programmes.

In the upcoming years, we must continue working consistently and to ensure the Armed Forces’ qualitative development. Here, I would like to underscore the following: we can see that the world is experiencing a real economic, technological and educational revolution. Obviously, these profound transformations will also inevitably influence the military sphere and the state of leading countries’ armies. Apart from merely heeding these trends, we must make them the foundation of our military planning and development.

Russia should remain among the leading states, and in some areas, it must become an absolute leader in the creation of a new-generation army that would fit into a new technological era. This is of paramount importance for our sovereignty, peaceful life and security of Russian citizens, ensuring the country’s confident development and implementing an open and independent foreign policy line in the interests of our country.

We must focus on the following high-priority aspects of our current and future work. First, we must closely monitor changes in the global balance of power and the military-political situation, primarily near Russia’s borders, as well as in strategically important regions that have key significance for our security. This also concerns the Middle East, the Korean Peninsula, where a high potential for conflicts persists, as well as Europe, where NATO and the United States continue to rapidly build up their infrastructure. As you know, NATO and the United States have recently outlined their defence strategy. It is an offensive strategy, to put it in diplomatic language, and in military language it would be called aggressive. We need to take this into account during our practical work.

Let's be clear: this is offensive infrastructure that is being created in Europe. This is about violations of provisions of the 1987 INF Treaty by the United States, unfortunately. Many in this audience are well aware of what I am talking about.

For example, multipurpose missile launchers have already been deployed in Romania, and are being deployed in Poland, as part of the missile defence system. Formally, they are deployed for interceptor missiles, but the point is, and experts are well aware of this, they are multipurpose units. They can be used to launch existing sea-based cruise missiles with a range of 2,500 kilometres and, in that case, they cease to be sea-based missiles, and can easily be moved to land. That is, anti-missile launchers can, at any time, become units for medium-range cruise missiles.

Another example: target missiles used by the United State for testing anti-ballistic missile systems are identical to medium- and shorter-range ballistic missiles. They are already there and are operational. Their production in the United States may indicate the development of technologies outlawed by the INF Treaty.

Also, the Pentagon received funds for creating a mobile ground-based missile system with a range of up to 5,500 kilometres in 2018. Thus, the United States is, in fact, working towards violating the INF Treaty. They never stop looking for some kind of violation on our part, while consistently engaging in violations themselves, just like they consistently and persistently sought to pull out of the Anti-Ballistic Missile Treaty, which, eventually, as we know, they did in a unilateral manner. Of course, this significantly reduces the level of security in Europe and the world in general.







We have the sovereign right and every capability to respond adequately and rapidly to such potential threats. If necessary, please promptly prepare and submit substantiated proposals on adjusting military planning documents seeking to improve the level of our country's defence capabilities.

Second, our new State Armament Programme will get underway next year. We discussed its key features in May and November at our meetings in Sochi and numerous meetings in Moscow. A special emphasis must be made on equipping troops with high-precision air, land and sea weapons, unmanned airstrike complexes, and individual equipment for servicemen, as well as advanced reconnaissance, communication and electronic warfare systems.

It is necessary to ensure efficient, smooth implementation of the plans from the very first months. Obviously, we will continuously monitor this process as we did with the previous armament programme.

Third, as I noted we are detecting further attempts to upset strategic parity by deploying the global missile defence system and conventional attack systems that are comparable to nuclear weapons. In terms of strike power and accuracy, they are hardly inferior to nuclear arms. What are they designed for? I believe they serve only one purpose, blackmail, because they create the illusion of a potential unpunished strike.

Today our nuclear forces reliably ensure strategic deterrence but we must develop them further. By the end of 2017 the share of modern weapons in Russia’s nuclear triad reached 79 percent and by 2021 they should be equipped with modern arms by up to 90 percent. I am referring to missile systems that are capable of confidently overcoming existing and even projected missile defence systems.

Fourth, we must substantially enhance the mobility of our Armed Forces. This concerns organisation of their logistics and supplies, and an ability to be promptly deployed and operate wherever national security demands.

It is essential to consolidate the potential of our Special Operations Forces. I also request a review of the issue of equipping, the qualitative and quantitative strengthening of the Airborne Forces.

During next year’s Vostok 2018 military exercises, the Armed Forces should practice transferring a large group of personnel with ground equipment and aviation over several thousand kilometres and deploying it in new areas.

Comrade officers,

Bolstering social guarantees for servicemen and their families has been and remains one of the state’s most important tasks. Now the economy is recovering. We have resumed annual adjustments of service pay and consider this a priority of our budget for the next three years. Over 82 billion rubles will be allocated to Defence Ministry servicemen alone for this purpose in the next three years. Simultaneously, military pensions will be increased from January 1.

We will continue improving the system of medical support and health resort services for the service members and their families, and helping them resolve their housing issues. This year 9,000 of them received permanent housing and over 31,000 received service housing. In all, 457,000 of enlisted personnel have received housing in the last five years.







The image of military towns is changing. The largest of them have sports and entertainment centres. Much has been done to improve the work of housing and utility services. Meanwhile, in some military towns it is still difficult to find places for children in kindergartens and schools. I know it because people write to me about these problems and the number of appeals is growing.

I would like the Defence Ministry to pay more attention to this problem. The commanders of districts, fleets and military towns should step up their cooperation with the local authorities in resolving this and other issues concerning life in military towns. I know that heads of regions and large municipalities are always ready to help but it is necessary to work with them more actively.

In conclusion, I would like to thank once again the commanders and all military personnel of the Armed Forces for the results we have achieved. I know that each of you will continue to honestly and conscientiously serve Russia and our people. I wish you success.

Thank you very much.



Defence Minister Sergei Shoigu:

Comrade Supreme Commander-in-Chief,

Thank you for your high assessment of the military operation carried out by the Armed Forces. It would have been impossible without your personal attention to the Army and the Navy and the almost constant coordination of our activities in Syria.

More than 48,000 Russian service members, of whom over 14,000 were presented with state decorations, received invaluable combat experience in Syria with 80 percent of the operational-tactical crews and 90 percent of the army aviation crews having 100 to 120 sorties under their belts. The long-range aviation crews practiced striking at important militant targets. In total, the Aerospace Forces carried out 34,000 sorties over the course of two years.

Pilots of sea-based aviation from the heavy aircraft carrier Admiral Kuznetsov participated in combat operations for the first time, with 420 sorties. High-precision long-range missiles, such as Kalibr, X-101, Iskander, Tochka-U, and X-55, to name a few, were used to hit the most important targets.

Ships and submarines performed 100 strikes, and strategic aviation delivered 66 strikes at a range between 500 km and 1,500 km. Each missile hit the assigned target.

The task of eliminating the leaders of illegal formations and terrorist facilities located deep behind the frontline was accomplished by the Special Operations Forces. They also coordinated air strikes and artillery fire using the latest guidance and targeting systems. The Special Operations Forces demonstrated high professionalism and readiness to perform the most complex tasks.

The S-400, S-300V and Pantsir complexes, in conjunction with fighters, ensured the total dominance of our Aerospace Forces over Syrian airspace. There was not a single violation of the security areas of Russian bases in Tartus and Khmeimim. The capabilities of the Pantsir complex, which were expanded to include the ability to intercept rockets and other small targets, made it possible to destroy 16 unmanned aerial vehicles, and 53 multiple-launch rocket system missiles.

We tested most of our military equipment during the Syrian operation, that is, 215 types of weapons. In combat, 702 defects and problems were identified, 99 percent of which were eliminated. We are grateful to our industry partners for their prompt actions.

As a result of the operation, 8,000 units of armoured vehicles and pick-up trucks outfitted with heavy machine guns were destroyed, plus 718 factories and workshops that made weapons and ammunition; 60,318 militants were taken out, including, 819 leaders of illegal formations and 2,840 nationals of the Russian Federation.

Our aviation achieved the critical goal of depriving terrorist organisations of their sources of revenue from sales of petroleum products, which amounted to at least $3 million a day; 396 illegal oil wells and refineries, as well as 4,100 fuel tankers, were destroyed.

Backed by the Russian Aerospace Forces, the Syrian government troops and militias liberated 1,024 populated areas from terrorists, including such major cities as Aleppo, Palmyra, Oqeirbat, Deir ez-Zor, al-Mayadeen and Abu Kamal. This enabled 1,300,000 refugees to return to their homes.

In Aleppo, in order to avoid massive casualties, a humanitarian operation of unprecedented scale and complexity was carried out. As part of this operation, 28,752 persons were evacuated within four days. Humanitarian corridors for civilians were opened. Centres of temporary accommodation, food services and medical aid were deployed. There was no experience of conducting an operation like this during an armed conflict.







For the first time, four de-escalation zones were established in order to end the civil war. They paved the way for a ceasefire between armed opposition formations and Syrian government troops with Russia, Iran and Turkey acting as the ceasefire’s guarantors.

Thanks to efforts by the Russian Centre for Reconciliation, as many as 2,301 populated areas with an overall population of 10,500,000 million joined the ceasefire.

Humanitarian aid to the Syrian people is delivered regularly: 1,696 humanitarian deliveries were carried out, during which 700,000 civilians received food aid. The United Nations and the International Committee of the Red Cross provide assistance in the delivery of humanitarian supplies.

Russian engineers cleared mines from 6,533 hectares of land, 1,410 km of motor roads, and found and destroyed 105,054 explosion hazards. Officers of the Russian International Mine Action Centre in Syria established a branch to train demining specialists. In all, 740 Syrian army servicemen have been trained and can now detect and destroy explosive objects on their own.

Russian military medical workers provided assistance to 66,852 civilians, including 435 that were evacuated to hospitals on Russian territory in special medevac modules.

Let me emphasise that the military operation in Syria was conducted within the limits of the allocations initially provided to the Defence Ministry by streamlining operational plans and combat training. Additional expenses related to increased use of ammunition and the need to repair hardware were earmarked by redistributing the funds of the state armament programme without changing its major parameters.

Speaking about the operation in Syria, it is necessary to recall the implementation of our President’s initiative on the destruction of Syrian chemical weapons in 2013. It removed the threat of strikes by American cruise missiles on Syrian territory and the violent overthrow of the current government, as was the case in Yugoslavia, Iraq and Libya. In all, Russia, the United States, France, Italy, China and Finland jointly withdrew and destroyed 1,300 tonnes of chemical weapons.

Today, Russia’s air group of the Aerospace Forces at Khmeimim air base and the Russian naval support and maintenance facility in Tartus are fully operational on the territory of the Syrian Arab Republic. Modern military and social infrastructure has been built there, which makes it possible to maintain strategic stability in the region and deter terrorist groups from getting into Syria.

Preparations are being conducted for the Syrian National Dialogue Congress to create the conditions for a political settlement of the conflict. Representatives of all Syrian ethnic and religious communities, political parties and armed groups have been invited to attend it.

Now I will speak about the main results of this year. In the Strategic Missile Forces, three regiments were equipped with Yars ground mobile missile systems. Strategic aviation nuclear forces received three modernised planes.

Now on general purpose forces. The Land Force has new means of control as well as 18 new formations and military bases. It has also received 2,055 new and upgraded weapons, which equipped three formations and 11 military bases.

We have established a logistics aviation division as well as a special aviation division in the Aerospace Forces, which received 191 modern aircraft and helicopters and 143 air defence units. Starting this December, we have a unified space system on trial airborne alert.







The Navy has received 10 ships and combatant crafts, 13 logistics vessels and four Bal and Bastion coastal defence missile systems. Naval aviation has received 15 modern planes and helicopters. The command of the 14th army corps has been established in the Northern Fleet.

Separate air assault and recovery battalions have been established in the Airborne Forces equipped with 184 new armoured vehicles and self-propelled guns.

The Armed Forces have gained 59 complexes representing 199 unmanned aerial vehicles.

The capabilities of the unified tactical control system have met all the requirements set by the Defence Ministry. During military exercises, we have managed to reduce organisation times by 20–30 percent, and by 1.5–3 times for combat control.

In general, the measures envisaged in the 2017 state defence order have been fulfilled.

The Armed Forces’ real capacity to carry out missions has been confirmed by six snap inspections, which involved all military districts and military branches as well as federal and regional state agencies of the Russian Federation. Today, the snap inspections are the main way that the combat training of the Armed Forces is assessed.

We have had about 15,000 different training exercises this year, which is 20 percent higher than last year. The intensity of joint training has also grown 16 percent, and the number of bilateral drills has doubled.

The most significant event of operational training was the Zapad-2017 Russian-Belarusian military exercises. Our armies confirmed that they are ready to protect the Union State of Russia and Belarus by force of arms.

This year, military cooperation activities included 90 countries. Thirty-five international exercises of various levels were conducted, the most ambitious of which were Combat Brotherhood, Naval Interaction and Indra.

The annual Moscow Conference on International Security this year was attended by a record number of delegates – over 800 representatives from 86 countries and eight international organisations. In 2017, 44 conference and exhibition events were held in Patriot Park of the Ministry of Defence. The key event of the year in this sphere was the ARMY-2017 International Military-Technical Forum. In terms of organisation and the number of participants, it equalled the world's leading arms exhibitions.

Following the Supreme Commander-in-Chief’s instruction, the Main Naval Parade was held in St Petersburg for the first time in recent Russian history. It confirmed the status of Russia as a strong naval power. In accordance with your decision, this parade is now annual and next year will be combined with the Naval Salon.

Comrade Supreme Commander-in-Chief,

With the opening of the Petrozavodsk Presidential Cadet School, your instruction to establish a network of such educational institutions covering all federal districts was fulfilled. A branch of the Nakhimov Naval Academy in Murmansk was opened.

But we will not stop here. Next year, two integrated training centres will be opened in the Nakhimov Naval Academy in St Petersburg following your instruction, as well as a physics and mathematics school for gifted children at the Military Academy of the Strategic Missile Forces here in Balashikha.

Thanks to the opening of an integrated clinic of the Kirov Military Medical Academy, the Ministry of Defence was given the opportunity to provide a full range of high-tech medical care at the level of international standards. The clinic's performance indicators are comparable to world indicators: more than 35,000 inpatients per year, 19,800 surgeries, of which 16,000 are complex and high-tech.

A telemedicine system has been established and is operating effectively on the basis of the Academy. It allows for consulting medical staff and monitoring the condition of critical patients in all garrisons. For the military in the Arctic alone, over 100 emergency and planned telemedicine consultations have been conducted over the year. In general, the overall servicemen morbidity was reduced by seven percent.

In accordance with your decision, special funds for the construction of military infrastructure for new equipment have been included for the first time in the state programme. This made it possible to fully synchronise the completion of facilities under construction with the delivery terms of modern weapons. This year, 3,287 buildings and premises with a total area of 3,200,000 square metres were built, which is six percent more than last year’s figures.







As part of the construction of 25 production and logistics complexes, the first pilot complex Nara was put into operation this year. This will ensure the reduction of 25 large storage facilities and optimise the cost of their maintenance.

Thus, the tasks of 2017 have been completely fulfilled by the Defence Ministry.

With the 2018 elections so close, we certainly need to sum up the development of the Armed Forces for the past five and a half years under the leadership of the Supreme Commander-in-Chief.

I will begin with assessing the growing threats. Since 2012, the numbers of NATO military contingents deployed on Russia’s western borders have increased three-fold. Four battalion task forces and a US Army armoured brigade are stationed in the Baltics and Poland; the multinational NATO divisions are headquartered in Poland and Romania. NATO priority forces have increased from 10,000 to 40,000, and their notice period has been reduced from 45 to 30 days.

The US missile defence system in Europe has been brought to the level of initial operational readiness. Its components are also deployed in Japan and South Korea. The intensity of NATO aerial reconnaissance actions at our borders has increased 250 percent, and marine reconnaissance, 50 percent. But we resolutely shut down any attempts to violate Russia’s air and sea borders.

NATO has doubled the frequency of military exercises near our borders. In 2014, the Alliance conducted only 282 exercises; in 2017, as many as 548. Annually, more than 30 exercises are conducted on Russia’s western borders, their scenarios based on armed confrontation with our country. We carefully monitor every NATO doctrine and take appropriate measures.

To respond to new threats and maintain strategic balance, we have expanded the area for long-range aircraft and marine patrolling. Over the past five years, 178 strategic air patrolling flights have been carried out by strategic missile carriers, and the Russian Navy ships have made 672 trips to all strategically important areas of the World Ocean.

Efforts have been made to improve the quality of the Russian Armed Forces. Over the period of five years the Armed Forces have acquired 80 intercontinental ballistic missiles, 102 ballistic missiles for submarines, three Borei-class strategic missile submarines, 55 spacecraft, 3,237 tanks and other armoured combat vehicles, more than 1,000 aircraft and helicopters, 150 ships, six submarines, and 13 Bal and Bastion coastal defence missile systems.

This made it possible to arm 12 missile regiments with the new Yars systems; 10 missile brigades with Iskander systems; 12 aviation regiments with MiG-31BM, Su-35S, Su-30SM, and Su-34 aircraft; three army aviation brigades and six helicopter regiments with Ka-52 and Mi-28 helicopters; 16 anti-aircraft missile regiments with S-400 air defence missile systems, 19 divisions with Pantsir-S systems, and 13 divisions with Bal and Bastion missile systems. Thirty-five combined-arms groups have been provided with Ratnik-2 modern combat gear. The new equipment the army units received is deployed on a modern infrastructure base.

For the first time in modern Russian history a continuous radar field of a missile attack warning system has been created along the perimeter of our borders. This was achieved through the deployment of six new high-operational compatibility Voronezh radar stations, and the finalisation of three active radar stations, Daryal, Dnepr and Volga.

As a result of the State Armament Programme’s implementation, the army and navy are 59.5 percent equipped with modern weapons. In the Strategic Nuclear Forces, the share of modern equipment is 79 percent, in the Land Forces, 45 percent, in the Aerospace Forces, 73 percent, and in the Navy, 53 percent.

In order to make budget spending more effective, the Defence Ministry has introduced a unique information system to control the movement of money allocated to finance the state defence order. We have managed to overcome negative tendencies related to the overadvancing of industry and full payment on unfulfilled contracts. The volume of arms and military equipment delivery has grown while the prepayment on the signed contracts has decreased. The state defence monitoring system we have created makes it possible not only to see what the budget money was spent on and how the state defence order impacted the economy, but to assess its effectiveness.

Some people think that military spending is used only to maintain the army. This is not true. About 60 percent of the military budget is spent on high-tech products from defence industry companies located in all regions and influencing their development. The federal and regional budgets receive more than 480 billion rubles in taxes due to the contributions of the defence industry companies. Expenditures on personnel (salaries) in the sector exceed 440 billion rubles a year.

This means that a stable state defence order involves re-equipment of the army, population income (wages), state income (taxes) and business income (profit). In fact, the money allocated for financing the army is state investment, which provides for the development of various economic sectors as well as Russian regions. It guarantees the growth of the scientific, technological and industrial capacities of companies as well as the new jobs created for and held by highly qualified specialists.

Those who think that our military expenses are too high do not know, probably, how it was done in the 1990s. The military budget was reduced every year: in 1992, it was 16 percent of the GDP, and in 2000, it was already 2.6 percent, or $5 billion. It did not reflect the real needs of the Armed Forces: the military infrastructure was not developing, little equipment was received and wages were not paid on time, so specialists were leaving the army. In fact, Russia had Armed Forces but no battle-ready units and bases back then.

Starting in 2000, we managed to increase the combat potential of the army and the navy. Since 2012, the share of advanced military equipment has grown almost four-fold, military construction – 15 times, the number of military personnel – 2.4 times and the intensity of military training – by 30 percent. At the same time, the military budget is balanced, meets all the demands of the Armed Forces and will account for 2.8 percent of the GDP, or $46 billion, next year, when it will be over $700 billion in the US, about $60 billion in the United Kingdom and $40 billion in France and Germany. Enough said.







Today, the Russian Army is upgraded, mobile, compact and efficient. We do not engage in sabre-rattling and have no intention of fighting anyone. At the same time, we do not advise anyone to test our defence potential.

The newly established National Defence Control Centre of the Russian Federation has radically changed approaches to building a management system for the military organisation of the state. As we established it, we advanced to the fifth-generation control system. The data platform of the National Centre allowed for uniting 158 federal and regional bodies of power, 1,320 state corporations and enterprises of the military industrial complex in a single system.

One of the Centre’s peculiarities is the round-the-clock monitoring and control over the execution of the state defence order. As a result, the implementation of the state defence order increased to 97 percent. Nothing like it has ever been created in the world.

The composition of professional military personnel has undergone significant changes in the past five years. The number of conscripts has fallen by 50,000 from 290 to 240 thousand, whereas the number of contract soldiers increased from 162,000 in 2012 to the current 384,000. The selection quality has improved: 70 percent of enlisted contract soldiers have a university degree or secondary professional education. Today, military formations and units have 95 to 100 percent of professional military personnel, making it possible to keep the Russian Army in the state of high combat readiness. The Russian Defence Ministry’s higher education network comprises 36 institutions and fully provides the Armed Forces with qualified specialists.

Within a short period of time construction was completed of facilities at the Kirov Military Medical Academy, Margelov Ryazan Higher Airborne Command School, Peter the Great Military Academy of Strategic Missile Forces where we are today.

The information and education environment of military schools is developing, a unified e-library for military schools has been set up. Just one year of its effective operation led to a considerable increase in the training quality of military personnel and the level of knowledge acquired. Moreover, the introduction of electronic education resources into the military units has expanded the possibilities for continuous professional training of service personnel throughout the duration of their service.

Research companies [of troops] have become a reliable resource for raising the military research capacity of the Armed Forces. Approximately one in every four servicemen decide to reenlist when their conscription is up. Since such companies were formed, the total number of service members who became officers totals 365.

The social welfare of service members is a priority of the state. In the past five years, 457,000 people have had their right to housing honoured with 149,000 living in service apartments, 120,900 got permanent housing, 107,700 servicemen were given tax-free housing allowances for rented residences, and 79,400 obtained a residence under the Savings and Mortgage System.

Rent subsidies, a new system of providing housing, has demonstrated its effectiveness – since 2014 it was used by 24,100 servicemen. The rent subsidy made it possible to solve long-term problems for servicemen under command. Since 2016, allowances to officers for renting residences were raised to reach the country’ average amount.

The massive use of standard and modern technological projects resulted in the best prices for the facilities under construction. This allowed for the cost of one square metre of constructed facilities of the Defence Ministry to be under 32,000 rubles which is below the national average. In total, 10,221 buildings and facilities have been built in the past five years. Each ruble invested yields one ruble and forty kopeks in fixed assets. Construction is underway throughout the whole country including the Arctic regions and military bases abroad.

Overall in the past five years, 425 facilities with a total area of 700,000 square metres were commissioned in the Arctic on the islands of Kotelny, Alexandra Land, Wrangel, and on Cape Schmidt. They accommodate over a thousand service personnel as well as special armaments and equipment. Innovative and energy-efficient technologies were used in their construction. Three unique complex military facilities were built in the Arctic – the “Arctic trefoil.” Construction is ongoing on a fully operational airfield on Franz Josef Land Archipelago which will be capable of accepting airplanes all year round. No country has ever implemented such large-scale projects in the Arctic under the severe conditions of the Far North.

Released military property has been transferred to regions and municipal authorities of the Russian Federation – 1,396 military towns that had no prospects of use; 56,000 property assets, including 525 boilers, 40 schools, 439 kindergartens and 244 medical facilities. This transfer has made it possible to release about 40,000 civilian employees of the Defence Ministry and save 3.7 billion rubles allocated for the upkeep of unused military towns.

The Defence Ministry has fully carried out the Government’s programme on transferring 467 kindergartens to local self-government bodies. We hope the municipal authorities will honour their commitments to provide places for children of military service members in these pre-schools. As for the Defence Ministry, it will take all the necessary measures to fulfil your instruction.

The Defence Ministry has adopted an approach towards concluding life cycle contracts, recovering maintenance bodies in military units, and carrying out planned repairs at its own and other defence industry enterprises. As a result, up to 94 percent of arms and equipment are now in good shape that is maintained.

The Defence Ministry is getting rid of the dead load of extrinsic functions and tasks that are a heavy burden shouldered by the army. The transfer of 110 military plants with a workforce of about 30,000 to the Rostec State Corporation and the Ministry of Industry is being completed for this purpose. This will make it possible to ensure the development of these enterprises in the national defence industry.

The Armed Forces are completing their work to eliminate environmental damage in the Arctic. They have cleaned 100,740 square metres of land on the Novaya Zemlya Archipelago, Alykel airfield, and Kotelny and Wrangel islands. In all they collected 16,000 and removed 10,000 tonnes of scrap metal. All of 432 buildings slated for demolition have been taken down. Another 13,155 square kilometres of land will still have to be cleaned.

The Defence Ministry has carried out its Efficient Army programme since 2014. As a result of its implementation, we did not need to attract additional funds for unforeseen expenses that occur during the entire fiscal year. Some 129 billion rubles have been saved in three years. The saved funds were used to cover the shortage of money for basic indicators of material-technical support and utilities.

By upgrading its communal services, the Defence Ministry saved 7.8 billion rubles. The work of the recovered line maintenance bodies in army units makes it possible to save about 2.8 billion rubles per year. The introduction of the access control system and food orders in 729 canteens saved over 1.6 billion rubles. The repair centres and shops restored in warehouses made it possible to fix 1.7 million missiles and ammunition (their purchase would cost the budget 117 billion rubles). About 70,000 modern ammunition containers have been purchased and put into warehouses. This amounts to an annual savings of up to 700 million rubles.

These are far from all the measures carried out under the Efficient Army programme. By the end of 2020 its measures will have saved 337 billion rubles.

Oil companies have put eight fuel service complexes into operation on military airfields and the construction of another five complexes is nearing completion. I would like to thank the leadership of the oil company Gazpromneft for this. Next year, another two companies will join the project: Rosneft will build nine complexes and Lukoil another three.

The construction of 580 ammunition supply bunkers for several hundred thousand tonnes of ammunition will soon be completed in a move to improve and optimise locations for storing weapons, rockets and ammunition.

The International Army Games are attracting more and more interest from abroad with each passing year. It all started with a military competition in tank biathlon that eventually developed into a large-scale international event to evaluate military skills and the reliability of military hardware. The number of competing countries has increased to 28. It was the first time that the games were held on the territory of five countries – Russia, Azerbaijan, Belarus, China and Kazakhstan. In the run-up to the games, 149 training grounds have been modernised.

On the Defence Ministry’s initiative and with support from the Supreme Commander-in-Chief, the Yunarmiya youth movement has been created, which now brings together 188,000 youth. Within a short space of time, it has become one of the most popular youth organisations in the country. About 16,000 youth attended Yunarmiya athletic and patriotic camps. This work will spread to other regions in Russia.

Sociological data shows what has been achieved over a five-year period. Since 2012, the proportion of Russian society that approves of the Armed Forces’ activities has been steadily going up. Negative marks have declined by 77.8 percent, from 31 percent to 7 percent. Today, 64 percent of Russian nationals believe that serving in the Army is a good experience for youth. Currently, 93 percent of the population in the country, an all-time high over the entire period of sociological research, have confidence in the Russian military. Such a strong vote of confidence requires that we live up to people’s expectations.

In 2018, the Defence Ministry will have to address the following key tasks: bring the proportion of modern weapons and equipment in the Armed Forces to 61 percent of the total, specifically to 82 percent in the Strategic Nuclear Forces, 46 percent in the Land Forces, 74 percent in the Aerospace Forces and 55 percent in the Navy.

The task for Strategic Missile Forces is to put 11 launchers carrying Yars ballistic missiles on full combat alert; commission six modernised strategic missile carriers; and introduce the lead nuclear underwater Project 955A cruiser Knyaz Vladimir carrying Bulava ballistic missiles into the Navy.

The task for the Land Forces is to create seven military formations and units and supply over 3,500 items of new weapons to them.

The task for the Aerospace Forces and Navy aviation is to supply 203 new and updated aircraft and helicopters, four divisional sets of the Pantsir anti-aircraft artillery weapon systems and 10 divisional sets of the S-400 Triumf anti-aircraft weapon systems and ensure the fulfillment of the pilot combat duty tasks assigned to the single space system.

The Navy is to accept 35 ships and supply vessels into service; we are to prepare and conduct the Vostok strategic command exercise; support the development of the financial monitoring system for the state defence order with respect to oversight and estimating the optimum cost level for manufacturing arms and military equipment; finish overhauling and building 11 air fields, including Severomorsk-1, Mozdok, Baltimor, Belbek, Alykel, Chkalovsky in Kaliningrad Region; open 3,000 buildings and facilities; set up the Era innovative military science park.

Comrade Supreme Commander-in-Chief, the momentum that the Armed Forces have gained will continue into next year. Solutions were found in the course of addressing problem areas and they will be taken into account in the Defence Ministry plans for 2018.

This concludes my report.



Vladimir Putin:

Colleagues and friends,

In his report, the Minister covered practically everything. I will add a few words to what has been said by us both. We know very well that the number of challenges in today’s world is growing rather than going down. We mentioned the fact that NATO infrastructure is getting closer to our borders.

Actually, when we move our forces on our territory, it is perceived and portrayed as a threat to somebody, but when foreign military bases and infrastructure approach our borders and new complexes are deployed, that is perfectly fine. At least that is what those who do it think, but not us.

We understand that the number of threats is growing. Take the US military defence doctrine that I have mentioned already. It was recently presented to the world and the US people. and it is definitely marked by an offensive-minded if not to say aggressive posture. This doctrine is not just words or a piece of paper, it is underpinned by concrete actions and funding: the US spends over $700 billion on defence, or, to be more exact, military purposes.







It is true that we sometimes hear that our defence budget is very large. As the minister just mentioned, it is 46.6 billion rubles, that is all. Last year it was 4.1 per cent of the GDP, which is a lot for the Russian economy. Still, it was not linked to exceeding our operating expenses last year or the year before.

Last year, this increase in the share of GDP was caused by the decision to repay the loans, which the Defence Ministry had to take in order to implement the armament programme. It is not that the ministry had to borrow – it coordinated the move with the Government and, naturally, with the Finance Ministry. That is, every year over the recent period the funding was regular and met the target figures but part of it was borrowed money. When the loan amount had accumulated, the Government decided to allocate additional funds to repay the loans. The Defence Ministry did not spent more than it had previously announced, however, formally, the share of GDP increased.

Next year, the share in the GDP will be a bit more than 2.8 percent – 2.85 percent or 2.86 percent – and later it will even start to edge down. This begs the question: can we be self-reliant in these circumstances, given the potential we have, and can we reliably and unconditionally ensure that our country’s defence capability is maintained. We can, we must and we will do it.

One may ask, how will we do it? Alexander Suvorov taught us that the thing that matters at war is skill rather than numbers. We have plenty of good proverbs, for example, this one: You do not need wits if you have strength. However, we need to have our wits about us. We will not rely only on the military muscle and we will not rush into a senseless arms race that is crippling for our economy –we will certainly not do that.

What shall we then rely on in addressing the matters of defence capability and security? The answer is very simple: on brains, intellect, discipline and organisation when handling relevant tasks. We have a remarkable foundation that we have inherited from the past decades but we also have new, absolutely cutting edge projects developed by our young researchers, designers and engineers.

What are the component parts of the funding allocated by the government to the Defence Ministry and other security services? They are maintenance and equipment, and both components have the potential for what we call development, while development is important for both of them. Why is it important for maintenance? Because it can save money, in any case, it can help us avoid squandering money, scattering it like a farmer sowing seeds – rather we can update the maintenance system, making it worthy of our Armed Forces and our military but economical at the same time.

As for the development itself, it is primarily, of course, about modern Armed Forces in the direct sense of the word – modern equipment. It is the development of new, promising, high precision and high technology types of weapons that are unique in terms of their effectiveness. To achieve these goals we need, as I already said, to demonstrate creative approaches, discipline and responsibility. I have no doubt – my confidence is based on the estimates and on our joint work – that we will reliably and unconditionally ensure that our country’s defence capability is maintained.

There is something else that we rely on in our estimates. There is no irony in my words: we rely on our peaceful foreign policy. It is important because we do not need an endless number of military bases around the globe and we do not plan to take on the role of a global policeman. We do not need this by definition simply because this costs a lot of money and is not in our plans altogether. If we all keep this in mind and fulfil all this in a disciplined, creative and responsible manner, we will deliver on the task as the Russian people expect us to do: we will reliably and unconditionally ensure that our defence capability is maintained, create conditions conducive to peaceful life and development in all areas, including the economy and social sphere.

I would like to wish you every success and good luck in this very important work. Thank you for your service. Please accept my New Year greetings!

Thank you.





The source of information - http://en.kremlin.ru/events/president/news/56472






Meeting with senior Defence Ministry officials and commanders of military districts and the Northern Fleet



Vladimir Putin met with senior officials of the Defence Ministry and commanders of military districts and the Northern Fleet during his visit to the Peter the Great Military Academy of the Strategic Missile Forces.



December 22, 2017 - 16:20 - Balashikha, Moscow Region







Defence Minister Sergei Shoigu reported to the Supreme Commander-in-Chief on the withdrawal of Russian forces from the Syrian Arab Republic.





President of Russia Vladimir Putin:

Please.



Defence Minister Sergei Shoigu:

Comrade Supreme Commander-in-Chief,

Your order to withdraw Russian forces from the Syrian Arab Republic has been fulfilled. Air force units, specialists of the International Mine Action Centre, military medics, a combined medical detachment, military police battalion personnel and Special Operations Forces personnel have returned to Russia.

Thirty-six planes and four helicopters arrived at their base aerodromes. In addition, six long-range Tu-22 bombers arrived at their home bases and 127 units of automotive special hardware were transported to Novorossiysk by sea.

Staying in Syria as part of efforts to assist the political settlement and restore peaceful life are the Russian Centre for Reconciliation of Opposing Sides, at full strength, and three military police battalions exercising control in de-escalation zones in accordance with your decision.

Also, in accordance with international treaties, our two bases, the air force group at the Khmeimim air base and the naval supply and maintenance facility at Tartus, stay on a permanent basis.

In accordance with your order, the permanent presence of Russian ships and submarines carrying high-precision long-range weapons will be ensured in the Mediterranean Sea.

In this connection, I ask you to approve the structure and personnel of the units deployed at Tartus and Khmeimim.





The source of information - http://en.kremlin.ru/events/president/news/56474
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Telephone conversation with President of Azerbaijan Ilham Aliyev



Vladimir Putin had a telephone conversation with President of the Republic of Azerbaijan Ilham Aliyev.



December 24, 2017 - 23:35



Vladimir Putin congratulated President of Azerbaijan Ilham Aliyev on his birthday, wishing him good health, future success in his high office as head of state and all the best.





The source of information - http://en.kremlin.ru/events/president/news/56480






Telephone conversation with President of Turkmenistan Gurbanguly Berdimuhamedov



Vladimir Putin had a telephone conversation with President of Turkmenistan Gurbanguly Berdimuhamedov on the initiative of the Turkmen side.



December 25, 2017 - 15:10



Vladimir Putin and Gurbanguly Berdimuhamedov discussed topical matters on the bilateral agenda and cooperation within the Commonwealth of Independent States.

Vladimir Putin and Gurbanguly Berdimuhamedov also exchanged New Year greetings.





The source of information - http://en.kremlin.ru/events/president/news/56490






Condolences to Philippines’ President Rodrigo Duterte



Vladimir Putin sent his condolences to President of the Republic of the Philippines Rodrigo Duterte.



December 26, 2017 - 13:00



The message reads, in part:

“Please accept my deepest condolences on the numerous casualties and devastation caused by the Vinta Typhoon and a large fire in your home city of Davao.

It is especially tragic that this happened on Christmas Eve.”

The President of Russia asked to convey his words of sympathy and support to the families and friends of those killed and wishes of speedy recovery to those injured.





The source of information - http://en.kremlin.ru/events/president/news/56497






Informal meeting of CIS heads of state



An informal meeting of the heads of CIS states was held at the presidential residence in Novo-Ogaryovo.



December 26, 2017 - 20:20 - Novo-Ogaryovo, Moscow Region







The meeting was attended by President of the Republic of Azerbaijan Ilham Aliyev, President of the Republic of Armenia Serzh Sargsyan, President of the Republic of Belarus Alexander Lukashenko, President of the Republic of Kazakhstan Nursultan Nazarbayev, President of the Republic of Kyrgyzstan Sooronbay Jeenbekov, President of the Republic of Moldova Igor Dodon, President of the Republic of Tajikistan Emomali Rahmon and President of the Republic of Uzbekistan Shavkat Mirziyoyev.

The leaders of the CIS countries summed up the results of Russia’s CIS Presidency in 2017 and exchanged views on the further development of cooperation in different areas.

Vladimir Putin had a brief bilateral meeting with President of Moldova Igor Dodon on the sidelines of the informal summit.









President of Russia Vladimir Putin:

Colleagues, friends,

I am happy that we managed to hold this informal meeting ahead of the New Year, as we agreed, to sum up the results of our joint work in the framework of the Commonwealth of Independent States during this year, to talk about our plans for the future and, of course, to discuss topical issues on the regional and international agendas.










Over the past period, Russia has chaired the CIS and put great effort into promoting integration in Eurasia and strengthening the global reputation of the CIS and the effective work of its executive bodies.










The main attention was focused on bringing down barriers in the movement of goods and services and facilitating customs procedures. Let me note that this year trade between the CIS countries has grown significantly. According to the data for the first 10 months, it has grown more than one-fourth (25.7 percent) to reach almost $117 billion. Just for reference, it was $94 billion last year. Trade between the CIS and third countries has grown almost as much: plus 24 percent.










The contractual foundation of the Commonwealth has grown stronger. The agreements on innovations, nuclear power engineering and transport security have entered into force. Documents countering the spread of counterfeit products and protecting intellectual property have been adopted. The work on an important agreement – on free trade in services within the CIS – is nearing completion.










The CIS countries are enhancing their cooperation in the struggle against terrorism, cross-border crime and drug trafficking. In May, the CIS countries’ secret services staged the large-scale exercises, “Dushanbe-Anti-Terror-2017 in Tajikistan. Concepts for cooperation in countering corruption and the legalisation of illegal income have been reviewed and endorsed.










Humanitarian ties have been further developed. As part of the Year of the Family, the CIS countries have introduced a package of measures to support the institute of the family and traditional values. A number of promising joint projects have been carried out in youth policy, education, culture, sport, tourism and healthcare. A forum of the artistic and scientific intelligentsia was successfully held in Moscow in December.










Our states are closely cooperating on urgent regional and international issues and supporting the formation of a fair global world order based on universally recognized principles of international law and the key role of the United Nations.










I am convinced that the further deepening of cooperation in the CIS meets the vital interests of our nations. We will work together to resolve our tasks of socio-economic development and consolidating the stability and security of our states.










Colleagues, on January 1 Russia will transfer its CIS Presidency to Tajikistan. I would like to wish success to Mr Rahmon and all our Tajik friends.










And, of course, I would like to sincerely wish a happy New Year to all of you and also to wish you, your families and friends, all the people of your countries, and all those who live in the CIS, good health, happiness, wellbeing, peace and prosperity.





The source of information - http://en.kremlin.ru/events/president/news/56503






Meeting with President of Kazakhstan Nursultan Nazarbayev



Vladimir Putin had a meeting with President of the Republic of Kazakhstan Nursultan Nazarbayev.



December 27, 2017 - 12:40 - The Kremlin, Moscow







The presidents of Russia and Kazakhstan took part in an informal meeting of the heads of CIS states yesterday.





President of Russia Vladimir Putin:

Mr Nazarbayev,

I am delighted to have had the opportunity to speak with you and discuss bilateral relations yesterday during our joint informal meeting with all our colleagues from the CIS countries, and also to continue our joint work today.

To begin with, I would like to note that the relations between Kazakhstan and Russia are going from strength to strength. Our trade grew by over 34 percent in the first ten months of the year. This is a major step forward.

However, strictly speaking, this is not the most important thing. Perhaps, not even the fact that we have invested over $10 billion in accumulated direct investment in the economy of Kazakhstan. What is important is that we are transitioning to another level in our relations.







Just now, we discussed with our colleagues and you energy issues and our relations in space exploration, I mean not just the use of the Baikonur Cosmodrome, but also Kazakhstan’s advancement on the way of acquiring new competencies as well as innovative technology.

However, no less important, and perhaps an even more important thing that looks towards the future, is our cooperation in high-tech industries and digital technology. We are grateful to you for your initiative to introduce in Kazakhstan a meeting of specialists at a high level of expertise in the development of digital technology.

In general, I would like to say that Kazakhstan has been and remains our key partner in the sphere of the economy and, of course, our strategic partner in general, meaning in the field of security and ensuring the defence capability of our states.







With this in mind, I want to wish you and the entire nation of Kazakhstan every success and all the very best in 2018.



President of Kazakhstan Nursultan Nazarbayev:

Mr Putin, thank you for inviting me to this meeting.

Yesterday we had a trust-based meeting with our CIS colleagues, and a free exchange of opinions as well as a very intensive review of the outgoing year. The main thing we pointed out is peace, tranquillity and stability in the CIS countries which allows our citizens to work and raise their children calmly.

It was not an easy year for Russia. We all know about the sanctions policy and the war in Syria, which Russia joined at the request of the Syrian Government. This victorious war, which was waged under your guidance, has restored Russia’s pride and has shown that Russia is a power that can be in charge of peace around the world. Kazakhstan is pleased about this as Russia’s closest neighbour, partner and ally.

We have met several times this year. There are no unsettled questions between our countries. Over the 26 years of their independence, both Russia and Kazakhstan grew ever closer together and created a legal framework for normal cooperation.

We have become convinced of the possibility and necessity of developing cooperation within the framework of the Eurasian Economic Union (EAEU). When people ask me what we need the EAEU or the Customs Union for, I reply that if there had been customs borders between Europe and America, Columbus would not have travelled to America and Marco Polo would not have reached China via Kazakhstan. Many years after those feats, we have opened the borders and have seen the benefits of this.







Our trade and cooperation are growing. We have come to an agreement on all complicated questions, such as the border, the Caspian Sea, as well as the Baikonur Cosmodrome, which Russia intends to use for many years to come. We are working on new projects at Baikonur, such as new rockets and new, more eco-friendly fuel. Our interregional meeting [the Russia-Kazakhstan Interregional Cooperation Forum] in Chelyabinsk brings joy to our people, who have always lived and will continue to live side by side, because this is how God has decided to place our countries and our people.

I believe that my task is to strengthen our relations as well as to further develop them before handing them over to my successor. The New Year is only a few days away, a pleasant time and we are all waiting. The year 2018 will be a very important, though a challenging year for Russia.

It will be the year of the presidential elections. I do not want to be ahead of the situation, but I have the right to have an opinion and to speak out freely. Here it is: I do not see any other leader for Russia at this point of time. You have proved the ability to stand up against pressure, to develop the economy, to create conditions for the people and to move to a new development level. You have proved your ability to do all of this.







I am sure that the Russian people will make the right choice. Let me put it bluntly: Kazakhstan is on your side.



Vladimir Putin:

Thank you.



Nursultan Nazarbayev:

I wish you every success and all the very best!

I would like to take this opportunity to wish all Russian people a happy New Year. Let it be the best year, and let it bring joy to every family and every person, as well as satisfaction with their life and occupation. I also wish prosperity to the Russian people and the Russian state.





The source of information - http://en.kremlin.ru/events/president/news/56509
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Greetings to 6th Congress of Russian Local Government Council



Vladimir Putin sent greetings to the participants in the 6th Congress of the Russian Local Government Council.



December 25, 2017 - 13:30



The message reads, in part:

“It is good to see your authoritative organisation, which unites heads of municipalities, deputies and representatives of the expert community, strengthen its potential every year, and today it operates in almost all of the country’s regions.

I would like to emphasise that the development of local government and boosting its financial independence and resources is a priority for the state. Local government bodies play the key role in solving the most important and pressing issues that determine the quality of life, such as the improvement of social infrastructure and improvement of territories as well as ensuring order in housing and utilities. Of course, it is also necessary to involve more citizens in it, especially young people, and encourage public initiatives.”





The source of information - http://en.kremlin.ru/events/president/news/56494






Meeting with Alexander Gusev



Vladimir Putin had a working meeting with Alexander Gusev, and announced the decision to appoint him Acting Governor of Voronezh Region.



December 25, 2017 - 14:10 - The Kremlin, Moscow













Vladimir Putin signed the Executive Order On the Early Termination of the Voronezh Region Governor’s Mandate. The President accepted the resignation of Voronezh Region Governor Alexei Gordeyev and appointed Alexander Gusev Acting Governor of Voronezh Region until an elected governor takes office.





The source of information - http://en.kremlin.ru/events/president/news/56487






Nikolai Tsukanov appointed Presidential Aide



Vladimir Putin signed the Executive Order On the Post of Presidential Aide.



December 25, 2017 - 14:20



The President appointed Nikolai Tsukanov Presidential Aide in charge of local government issues, relieving him of his current duties.





The source of information - http://en.kremlin.ru/events/president/news/56483






Alexei Gordeyev appointed Presidential Plenipotentiary Envoy to Central Federal District



Vladimir Putin signed the Executive Order On the Presidential Plenipotentiary Envoy to the Central Federal District.



December 25, 2017 - 14:25



The President appointed Alexei Gordeyev Presidential Plenipotentiary Envoy to the Central Federal District.





The source of information - http://en.kremlin.ru/events/president/news/56485






Alexander Beglov appointed Presidential Plenipotentiary Envoy to Northwestern Federal District



Vladimir Putin signed the Executive Order On the Presidential Plenipotentiary Envoy to the Northwestern Federal District.



December 25, 2017 - 14:30



The President appointed Alexander Beglov Presidential Plenipotentiary Envoy to the Northwestern Federal District, releasing him from his current post.





The source of information - http://en.kremlin.ru/events/president/news/56484






Meeting with current and former regional governors



As part of New Year celebrations, Vladimir Putin met in the State Kremlin Palace with current and former regional governors.



December 27, 2017 - 19:00 - The Kremlin, Moscow









President of Russia Vladimir Putin:

Colleagues, we are meeting in such an unusual format. Former regional governors and those who replaced you have come together here. We have never met in this format, but I think it makes sense to meet like this in order to show continuity and that young albeit already experienced governors can rely on what their predecessors did and not only rely but also hope for your support.

I remember one colleague who is present here once said that we will not interfere and this is right. It is necessary to make a new head of the region that bears tremendous responsibility for people, their prosperity and wellbeing, feel like a full-fledged leader of the region. Otherwise his work will not produce results. Let me repeat that at the same time he could rely on what was done before him, on your experience and knowledge.

I would like to see continuity of work in those areas that were obviously successful, and I am hoping this will be the case. There were many such areas and many successes scored by governors that left their positions.

I have already said this and would like to repeat: you worked in very difficult conditions and had many internal economic problems linked with lower prices on our traditional goods and external restrictions. In general, all governors coped with their duties and their work very well.

I would like to express the hope that while working in new positions, you will continue contributing to national development. I would also like to wish success to your colleagues. Naturally, I wish happy New Year holidays to all of you. Please accept my best wishes.





The source of information - http://en.kremlin.ru/events/president/news/56514
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Meeting with Federal Assembly leaders



Vladimir Putin held a traditional meeting with the leaders of the Federation Council and the State Duma, as well as relevant committees of both chambers of the Russian parliament.



December 25, 2017 - 20:10 - The Kremlin, Moscow







The participants summed up the results of the parliament’s performance in 2017 and discussed urgent matters concerning law-making and priority tasks for next year.





President of Russia Vladimir Putin:

Ms Matviyenko, Mr Volodin, colleagues,

I am very pleased to see you at the close of this year. We made a tradition to have such meetings at the end of each year. They allow us to sum up what has been done. Both chambers of the Federal Assembly have carried out a lot of work, an enormous amount of work, on law making in support of the state’s activities. They have made very important and sometimes vital decisions in the economic, social and foreign policy as well as security areas.

Of course, the work on the budget for 2018 and two subsequent years has been the most important and productive part of your activities as usual. I would like to thank you all for this joint work.

I also consider important and would like to thank you for the prompt response to the proposals on demographic matters. Indeed, broader use of family maternity capital and all measures to support Russian families where the first, second, or third child is born and easy mortgages with Government subsidies of interest rates over six percent concern hundreds of thousands and even millions of our citizens. These are extremely important decisions. I would like to thank you once again for properly finalising your work on them and adopting them in a short span of time.







Both chambers are conducting large-scale international activities. They are similar to public diplomacy because you are dealing with your colleagues who have been also elected by the people in their countries. This is very important. It is also important that these contacts continue despite certain restrictions, including restrictions linked with the activities of representative government bodies.

For our part, we are not going to restrict anything. We are ready and open to such contacts and we will work with all our colleagues who want to work together with us.

Completing my brief opening remarks, since we are meeting at the close of another year, I would naturally like to wish you all a happy New Year and all the very best.

Ms Matviyenko, please.



Federation Council Speaker Valentina Matviyenko:

Mr President, first, I would like to thank you on behalf of all Federation Council members for your attention to our work and for such meetings as this one, which, as you said, have become a good pre-New Year tradition.

Together with the Russian people, we have worked hard and long in order to celebrate the New Year in a good mood. It should be said that there are solid reasons for our positive mood. Here are some of them.

The country has weathered a very hard period of crisis and foreign restrictions. Ultimately, we have entered the growth and development trajectory, thereby showing the world that the system created in new Russia is stress resistant, has a large margin of safety and is therefore viable.

The outgoing year has vividly demonstrated that Russia’s political weight and prestige on the international stage have grown dramatically. All attempts to drive Russia into isolation have failed. There are many examples of this. I will only provide the one that concerns parliamentary activity: the 137th Assembly of the Inter-Parliamentary Union (IPU), which was held in St Petersburg, was the largest in IPU’s 128-year-long history with delegates from 160 countries and over 90 speakers.

It looked like our colleagues demonstrated their respect for Russia and the Russian President, thus showing their support for Russia. Mr President, thank you for attending that event, which has enhanced its status enormously. Many attendees recall your direct contacts with members of the national delegations after the opening ceremony.







I would also like to point out the global political importance of the victorious conclusion of the military operations to rout terrorists in Syria and the withdrawal of Russian military personnel from that country.

Practice has shown that we were right, that your decision to launch a large-scale counterterrorism operation was the only correct option. Mr President, you assumed the political responsibility by making that decision, and all our expectations have materialised.

Russia has emerged the winner in this situation, and today we are proud of our combat-ready army and our soldiers and officers who did their duty courageously. And we are very happy that they have returned home in time for the New Year holidays and that they have been welcomed as they deserved, that is, as heroes.

The Putin Demographic Package, as the media has dubbed it, is certainly great news for almost every family. It is difficult to overestimate the significance of the measures that you have put forward. It is also wonderful that the Decade of Childhood National Project begins with decisions of this kind. As the parliamentary chamber that represents the regions, the Federation Council will closely monitor the implementation of these proposals across the country, and building on the measures you have announced, we will also promote measures on the regional level. All families in Russia can now be more optimistic about their future and plan on having children with confidence, knowing that the state will be there to offer generous support.

Mr President, what matters even more is that you announced in the last days of the year your intention to run in the upcoming presidential election. I think that upon hearing this, the entire country heaved a sigh of relief and said, “At last!” I also think that this did not happen only in Russia. Most importantly, this eased the tension that had been building in the run-up to your decision.

Not only did the Federation Council exercise its constitutional powers by setting the date for the presidential election, but it also contributed proactively to the legislative process. At the initiative of Federation Council members, we adopted a number of laws designed to ensure fair, competitive and trusted elections.







I believe that the changes and novelties that we have introduced were a major step in the development of a depoliticised, impartial and quality election monitoring system.

I would also like to briefly highlight a number of other matters. As in any federative state, inter-budgetary relations and the financial sustainability of the regions are a priority for the Federation Council. You, Mr President, as well as the Government, have been paying close attention to these matters in recent years.

The overall situation has been improving. We have conducted an inventory of our regional powers and their financial situation. In addition, a number of serious or even, should I say, unprecedented measures were taken to ensure balanced regional budgets.

You have also made a timely decision to restructure debt on budget loans, which enabled regional budgets to channel more than 400 billion rubles into delivering on social policy priorities.

On the other hand, we need to move forward next year, towards a fairer redistribution of the tax revenue in favour of the regions and in accordance with their powers, or we will need to redistribute the expenditure authority.

For example, the Federation Council has proposed considering the possibility of moving the power to buy medicines for orphan disease patients to the federal level. We have 17,000 such patients, some 9,000 of whom are children. Firstly, the people are not to blame for living in the poor regions and hence not always being able to receive the medicines they need on time.







Secondly, a centralised system of purchasing medicines will help save budgetary funds and ensure strict accounting and control of such patients.

Mr President, I ask you to support this idea and, in general, the upgrading of inter-budgetary relations, which will strengthen the federal system. In fact, the concept of inter-budgetary relations that was adopted in the 1990s no longer meets the new realities and challenges.

The Finance Ministry, the Accounts Chamber, the State Duma and the Federation Council have been working together on a new concept of inter-budgetary relations. It is our strong desire to liberate the regions from their strict dependence on the federal budget and to give them an opportunity to find more sources for replenishing their budgets under federal control, of course. Therefore, we ask you to support next year the preliminary work we have already done.

One more thing: your demographic initiatives have an important element, that is, support for children’s outpatient clinics. I would like to ask you to extend it also to children’s hospitals. The situation at children’s hospitals is very difficult: 16 percent of them need comprehensive renovation or major repairs, or should be demolished.

A large number of outpatient clinics – I do not want to cite the figures, which I have at my disposal, so as not upset anyone – are working in leased or converted premises. Some children’s hospitals do not have running water or central heating. This is an issue of regional priorities and the responsibility of regional administrations. I would like to ask you to support this proposal and to instruct the Government to explore the possibility of including not only outpatient clinics, but also children’s hospitals in your initiative.

Mr President, in 2018, the Federal Assembly will be celebrating its 25th anniversary. This is an opportunity for us to look back at the path travelled by our country and the Federal Assembly, the State Duma and Federation Council, as well as an opportunity to set plans for the future taking into consideration the instructions that you have and will issue to the Federal Assembly.







Colleagues, on behalf of the Federation Council, I would like to wish you a Happy New Year and a Merry Christmas, and I would like to wish you, Mr President, only one thing: the very best of luck and good luck and once again good luck as in my opinion I think that you might need it. (Applause.)



Vladimir Putin:

Thank you.

Mr Volodin, you have the floor.



State Duma Speaker Vyacheslav Volodin:

Mr President, colleagues,

My colleagues from the State Duma and I have returned today from a trip abroad. We represented the Russian Federation at an international conference on security in Central Asia, also attended by parliamentarians from Iran, Turkey, Afghanistan, Pakistan, and China.

Of course, all the participants in the conference shared a single concern, which is the need to combat terrorism entrenched in Afghanistan. It gets substantial resources from drug trafficking. Neighbouring Pakistan and Iran believe that since the arrival of the US-led joint forces, areas under opium poppy cultivation in Afghanistan expanded thousands of times, and the number of drug laboratories surged dozens of times.

This is a matter of concern not just for these countries, but also for Russia, since we understand that Europe-bound drug trafficking routes go through our neighbouring countries, and even the Russian Federation. We spoke of drug trafficking and terrorism being closely intertwined, since the proceeds from drug trafficking are a source of financing terrorist activities, among other things.

In that respect, the countries that took part in this conference have serious concerns. In terms of positive cooperation — the Chinese, the Iranians, and we have initially said this — all have spoken of the positive experience that the world has in tackling terrorism and ISIS, which could have become a terrorist state.

I would like to pass on to you the gratitude of our colleagues in other countries because they believe it to be your personal achievement. If you had not taken this stance at a very difficult time there would be no Syria but there would be a terrorist state.







Everyone was on the same page here. For that reason, I would like to express gratitude on behalf of our colleagues as well, because the world has appreciated it. Still, if we do not continue with this fight, it is clear that the terrorists may spread to other countries and the threat may emerge in a different region, a different country.

I would like to highlight again the positive experience that we have never had before of several nations taking part in a settlement process. In this context, the Russian military force was called back after fulfilling its mission and preserving its bases in territories where the threat may potentially re-emerge so that the Russian forces could come back. Many countries understand it, especially at the level of parliaments.

Mr President, last week we concluded our last session of the year. The State Duma has finished its work. In a very short period, the autumn session being the shortest, we passed 230 draft laws. If we look at the period since the parliamentary elections just over a year ago, we have passed 656 bills.

During the first meeting between you and the newly elected chamber, attended by committee chairs, we talked about the need for better quality law-making, which will, of course, contribute to the efficiency of law implementation.

One of the tasks we considered necessary to achieve was to sort out all the accumulated draft laws: going back to 1994 there were 2,020 of them, they are several decades old and conclusions for many of them are obsolete. However, in accordance with the Constitution, we have to review them.

In case we manage to sort out these draft laws, there will be more time for the current agenda as well as the work to prevent problems and create an environment to address today’s issues. Therefore, it was important to do this efficiently.







We can summarise interim results today, considering that we were doing this all year: as of now, 74.7 percent of these draft laws were reviewed. I have to say, that about 14–15 percent of them have been adopted, which means that not all of them have lost their edge, they remain topical despite being rather old. In this connection, I would like to speak about the current, priority agenda.

One of the key priorities is the implementation of the Presidential Address to the Federal Assembly. In accordance with the address that we had to implement this year, we had to adopt 97 laws; 74 of them were supposed to be passed this year and 23 laws in 2018.

Mr President, summarising the results, we can say that we passed 74 laws this year; 21 of them are legislative initiatives of deputies and 43 were initiated by the Government. We had a lot of complicated discussions but managed to find solutions that will help us implement the Presidential Address in full this year.

Based on the experience gained, we would like to ask you to assist in distributing it on a range of other matters that need more efficient passage through the State Duma, but at the same time require the entire discussion procedure: hearings and expert assessments that are usually especially important when headline-making laws are passed.

I am referring to your decisions that have recently been made public during a meeting of the Presidential Council for Strategic Development and Priority Projects and concerned the financing of housing construction and protection of investors. If we were able to follow up on the decisions that were stated and approved at the Council meeting the way we do the Presidential Address to the Federal Assembly and to us, State Duma deputies, we would be able to begin discussing them with the Government and the interested parties now, and then implement them without bureaucratic procedures that usually take months.

In some cases, there will be deputies’ initiatives if we have common approaches on this agenda, or governmental draft laws, but we definitely could save some time here. This is important because sometimes years pass between the decision and its implementation, and then we postpone them further because the regulatory acts are not ready yet.







We have improved the situation with regulatory acts somewhat, given the regulations adopted by us and in the Government, so we can synchronise them and reach agreement as the Government prepares draft regulatory acts by the third reading.

However, if we take on the core issues voiced by the President and adopted by the Presidential boards, citizens will receive the solution much faster and there will be less time between the decision and its realisation. We understand that it would require a change in procedure and may mean additional work for deputies, but actually, it is what deputies want because it is based on this initiative.

Another widely discussed issue mentioned here is your initiative related to the support of business and protection of entrepreneurs – the return of capital to Russia. We support this decision and want to take part in its implementation in order to pass relevant laws as soon as possible and to provide businesses with the opportunity to work here, in Russia, and feel safe and have development guarantees as the presidential initiative requires.

You mentioned the need for a discussion and further decision-making related to tax reform. We have started this work. The Committee on Budget and Taxes is coordinating it in conjunction with the Ministry of Finance and the Federal Tax Service, but, most importantly, with representatives from civil society and business communities.

We also want this work to be carried out well before the adoption of any laws so that society would be better informed, and we could submit our proposals if final decisions were to be made, because this would only serve to improve the quality of the decisions made.

Mr President, I want to fully support Ms Matviyenko, who said the main words, that with your decision to run for president we received not only hope, but also the future, because there are things in the past that can be appreciated, things that can be appreciated in the present, and in this case we can talk about the future which is extremely important for our country.







Because the country is facing an enormous number of challenges, we must be strong, and only then can we be competitive, we will get there but it is necessary to have a strong President. We have such a President. Clearly, the State Duma is a chamber structured on a political basis, and there are parties represented in it. By the way, we have been working during the past 12 months or so based on the decision that was adopted here at a meeting with the leaders of political parties represented in the Duma on your initiative, when we decided that 50 percent of the committees will be headed by representatives of opposition parties, and 50 percent by United Russia.

We see eye to eye and understand each other when it comes to making major decisions, when the matter is about our country, or the challenges that the entire country is faced with. We have arguments, we have discussions, so I think my colleagues will forgive me for my position, because they may have a different view, but what Ms Matviyenko said now and what I support is the position of our citizens, and it is important that you are also aware of this position.

Happy New Year, Mr President. I wish you happiness and good health in the new year.

I think that the fact that we have resolved at least some of the tasks that you set before the lower house, will be a good New Year's present.



Vladimir Putin:

Thank you very much.

Mr Klishas, you have the floor.



Chair of the Federation Council Committee on Constitutional Legislation and State Building Andrey Klishas:

Mr President,

Allow me to say a few words about the timeliness of adopting by-laws. In May 2013, the Federal Law on Parliamentary Control came into force, in accordance with which the Federal Assembly chambers control the timeliness of adoption by the Government of by-laws that are necessary for implementing federal laws.

Unfortunately, the number of by-laws that were not adopted in time is still quite large. When we were summing up the results for the third quarter of 2017, there were more than 400 of them. For example, the law of 2013 provided for the adoption of an order by the Transport Ministry establishing requirements for making aircraft easily accessible for people with disabilities. The law has been in effect for four years now, but the order has not been adopted yet.







There are, of course, objective difficulties in this matter. For example, in connection with the transfer of authority on migration to the Interior Ministry, it was necessary to pass a large number of by-laws, and the Federation Council repeatedly discussed this issue. Much has been done, but not all the necessary by-laws have been adopted.

Notably, the Ministry of Justice was much more effective in this area, although there are also a number of questions regarding its work. When the Federation Council considers socially significant laws, we recommend that the Government submit draft by-laws at the same time (Mr Volodin just mentioned this) so that by the third reading in the State Duma and the Federation Council we could already see how many by-laws are coming our way.

There have been positive developments as well, such as the law on luggage, which we reviewed. We looked at all the regulations already alongside amendments to aviation rules, which allowed us to ensure that citizens’ rights are observed and at the same time create legal prerequisites for reducing the prices of air tickets.

Thus, the consideration of laws in combination with the basic regulatory requirements of by-laws should be one of the main areas of focus to improve the quality of legal regulation. In this regard, we absolutely agree with our colleagues from the State Duma.

On December 8, at a meeting of the Federation Council Speaker with state secretaries of federal agencies it was proposed to create a special electronic base for developing by-laws. We suppose that after a law is signed by the President, the Government should publish there the list of by-laws required for the implementation of the law, that is, to make the process transparent.

During the preparations of these draft laws, all ongoing processes that are related to their development and adoption should be published. The introduction of such an electronic base would help systematise control over the preparations of by-laws. In this context, Mr President, I would like to ask you to issue relevant instructions to the Government to develop such a base and make it operational.

The Federation Council pays special attention to by-laws that are necessary for the implementation of laws on defending our national interests. The Law on Media as Foreign Agents has come into force. It is a response measure to the unfriendly moves that were taken, first of all, by the United States towards the Russian media. The register of such media is being held by the Justice Ministry.

Our colleagues from the State Duma and we have developed and submitted two more draft laws that stipulate a series of new laws related to the media as foreign agents. For instance, those requiring the registration of a Russian legal entity, special markings of distributed news items, the possibility to limit access to the information resource in case of violation of the rules of material distribution, and administrative liability. These changes are introduced in the interests of informing Russian citizens about foreign states that distribute information.







Mr President, it is a socially important matter. We need regulatory acts to implement it, therefore we ask you to assist and issue relevant instructions to the Government in order to develop and adopt them as soon as possible.

Thank you very much, and Happy New Year to everybody.



Vladimir Putin:

Thank you.

Mr Burmatov, you have the floor.



Head of the State Duma Committee on Ecology and Environmental Protection Vladimir Burmatov:

Mr President,

Not so long ago, just a few days ago, the State Duma has completed its work on a very important law. The subject of this law is a highly socially sensitive issue that concerns each and every Russian citizen: the issue of waste management. And now, separate waste collection, which was a key aspect of this issue, has been legitimised in Russia. We have solved this problem on your instructions, which you issued to three ministries: the Ministry of Natural Resources and Environment, the Ministry of Construction, Housing and Utilities and the Ministry of Economic Development.

Unfortunately, we did not see the necessary mechanism in the document submitted to the State Duma. There were several guidelines, but no clear-cut solution. That is why we decided to fully re-draft the document. Last Friday, it was finally adopted in the third reading. We managed to find the necessary solution once we separated the terms “waste collection” and “waste accumulation”.

We have abolished licenses for waste accumulation, thus creating the incentive that you talked about when you assigned this task to us: to introduce this activity, which has been already implemented all around the world, for businesses and for people in Russia. And we have eliminated numerous administrative barriers that impeded the introduction of this system.

This was not the only problem we have solved. We have also implemented several other initiatives, which are, I believe, of public importance: I am talking about territorial waste treatment schemes, which include creating landfills, waste incineration plants and so forth. Now such decisions are only taken after public hearings held on a mandatory basis in order to avoid a public backlash, which often fairly and naturally appears in response to poorly considered decisions of local governments.

Now we have delegated these responsibilities to the regions, so that we will not have the situation that we had until recently, when the Ministry of Natural Resources and Environment had to approve at the federal level all territorial schemes, the location of every rubbish bin in every town.

We have now delegated this task to the regions; therefore, they will be the ones responsible for the adopted schemes. We are hoping that before 2020 we will hold all public hearings to discuss the existing territorial waste treatment schemes, so that they are approved by our citizens, thus relieving public tension in the regions.

Another important decision in this sphere was adopted last week concerning the specifics of distributing the environmental fee funds. Frankly, we criticised the Environment Ministry and their plans for disbursing the environmental fee. We were absolutely not happy with this, and came up with what I believe are more fitting arrangements, and 20 regions received these funds. We went even further to make sure that these funds are used for waste management rather than other unrelated spheres.

As we were dealing with these issues, we found a number of blank spots in the legislation, which we would like to address in 2018. For example, medical waste amounts to 2 million tonnes a year by the most conservative estimates. No one even counted it, that is, there are no official statistics, whereas medical waste is contaminated waste, including pathological and radioactive waste, which represents the first class of danger, but is not regulated in any way. There are no regulations governing who removes this waste and where it is buried.

At best, someone just takes it to a landfill and dumps it there (radioactive or contaminated waste, with serious infections). However, most often, they are not allowed to use landfills, and what they do is dump it in a ravine or just a wooded area. We plan to deal with licensing, accounting, and neutralising this waste in 2018 and we will need your support.

Construction and demolition waste is another painful subject, because the pace of construction in some regions will pick up sizably, and demolition rates will be off the charts. According to our analysis, the debris are taken to the same landfills for solid municipal waste, dumped there, and then literally buried in the ground. However, some of that can and should be recycled, such as sand, crushed stone, cement, etc.

We also plan to engage in regulating this sphere, just like the sphere of industrial waste, including the creation of administrative incentives, not just economic ones. Of the 5 billion tonnes of waste produced annually, approximately 90 percent, if not more, is industrial waste. Again, no one counted it, because enterprises keep it on their off-balance accounts. The regions do not see it, it is not accounted for in the territorial schemes, and we also want to address this subject, because these industrial sites are nothing short of a Klondike… There are companies that are willing to do this as a business, whereas some businesses are just sitting on these things like a dog in the manger.

Bulky household waste is an issue that directly concerns people, what with all these piles of dumped fridges, TV sets, couches and the like in our courtyards that make them look ugly in the literal sense of the word. It is still not even clear what type of waste they are, so we are determined to start regulating this area, as this is a very sensitive social issue.

We will also think about establishing liability as we would like to have liability depend on the gravity of violation and, regrettably, this is criminal liability. Article 247 of the Criminal Code, which covers these issues, is not properly applied. We have started analysing the law enforcement practices and we will complete this work in the first quarter. But it is absolutely clear that we will have to expand the scope of this article and the area of its implementation by law enforcement agencies. Such are our plans.

Most importantly, each decision, if it is carefully considered and correct and if it takes into account what the expert community and our people say to this effect, will be beneficial for the people and the benefits will be tangible. Therefore, we ask for your support support us and we count on it.



Vladimir Putin:

Thank you.

With your permission, I will just make a few comments on what our colleagues spoke about earlier, lest it is forgotten. Let us begin with what the last speaker said.

It is an extremely important task. The Year of the Environment is over but, of course, work to preserve the environment will never stop. I will not go over everything you said. Absolutely all of those things are extremely important, be it waste separation or waste disposal – everything you mentioned.

As for territorial schemes, I would like to speak about them in more detail and say that your approach is correct. There should be no schemes that do not provide for people’s direct participation. No doubt, coordinating a territorial scheme with the people is a complicated process but it is the only right way. People must understand what is happening, where and why and only then this will be accepted and will function.

As for bulky household waste, say, TV sets, fridges and other large domestic appliances, we must consider the issue. I do not mean that we should immediately introduce something. Of course, we must think how we can avoid putting an additional burden on the economy and manufacturers; however, our car industry has introduced a car scrappage scheme that allows it to create industrial clusters for the disposal and recycling of unwanted cars. This is what we should think about but without rushing to take a decision and without any commotion. It is a very important area, I fully agree with this and I am ready to provide every support.

Another important matter concerns the timely adoption of by-laws. This is an old problem. It is strange that it is still on the current agenda, considering what you have said. This is strange because the Government adopted a decision several years ago now, under which by-laws were to be prepared simultaneously with the drafting of laws. It appears that this is not being done though. We will need to discuss this issue with the Government.

As for the law on foreign agents, we did not intend and do not restrict the freedom of our citizens. Of course, this law should be improved. We must do this so as to adjust the law towards achieving its stated goal, that is, to preclude any direct foreign interference in our internal political life or foreign interference through the financing of agencies operating in Russia. Actually, this is the stated goal of the law. If there are any wrinkles or unsettled matters, we need to take a closer look at them.

At the same time, we see that the actions we did not take have been taken in a great power across the ocean, where Russian media outlets have been ordered to register as foreign agents, and where the regulation of foreign agents’ activity is much stricter than stipulated in our own law.

In this context – this is not a decision, only a thought – we must not restrict the freedom of the internet, but we do need to look at how some companies work on the internet and in social networks as well as how much they are involved in our internal political life. In addition to this, we will need to analyse their behaviour now and during the presidential election campaign.

Do you remember the ballyhoo raised about the advertising time RT and Sputnik bought in the United States? It turned out the amount was tiny, only several basis points. What is the situation in Russia? How many foreign agents are working here? I am not urging anyone to take hasty decisions. This is not something that needs to be done immediately or before the elections. We need to see what is going on, to analyse the situation, and only then make a decision, provided we decide that any decision is really necessary.

Now a few other points. Regarding centralised purchasing of medicine for orphan diseases: as you know, generally the purchasing of a large share of such medicines takes place at the federal level, and when the purchasing is done regionally, the funding is still provided from the federal budget.

The funding from the federal budget is transferred on time and in full – that is a fact, I have checked it myself. Yet it is true that there is a shortage of medicines. What is the main problem here? We must increase the funding, and this is already envisaged to a certain degree. It We can transfer it to the regions or take it back to the federal level, but the issue will remain unsolved if we do not increase the funding. We need to see if we need to transfer anything from there or not, or just allocate more money from the federal budget.

Regarding children’s hospitals: you raised the issue of working not only with children’s outpatient clinics, but with children’s hospitals as well. Ms Matviyenko, I have already spoken about this, at the beginning, here in this hall. I said that I am talking about children’s outpatient clinics and the clinical departments of children’s hospitals. We mean hospitals, too; it has been envisaged from the beginning.



Valentina Matviyenko:

You are talking about outpatient clinics at the hospitals and I am talking about profile hospitals, children’s in-patient facilities…



Vladimir Putin:

We will see.



Valentina Matviyenko:

Mr President, in-patient facilities are in very bad condition.



Vladimir Putin:

We will check them both. To tell the truth, I thought that you meant children’s hospitals too.

Mr Volodin said earlier that the lower chamber is comprised of representatives of political parties, which created factions. This is natural; this is global practice. Here is what I would like to point out in this connection.

We have the presidential election coming. The lower and the upper chambers, as well as the Government, should not concentrate only on the current political calendar. They must address essential issues of the country’s life.

Of course, we must approve the necessary regulations that the country is waiting for and is in need of. Therefore, I ask you not to plunge into political competition and never to forget about your main job: legislative activity.

Regarding the demographics. We have taken all the necessary decisions, passed all the necessary laws, and now we need to monitor how they work in real life. We need to monitor law enforcement practice, and on the basis of this analysis we must decide together whether we need to introduce new measures or amend the existing ones. This is highly important, considering that the upper house represents the federal regions of Russia, and the lower house does too, since State Duma deputies always work directly with their voters – which is why I ask you to pay closer attention to this issue when working with people directly.

Now, regarding what Mr Volodin just mentioned, the terrorist threat, namely the one emanating from Afghanistan. The situation has deteriorated in the period that the coalition forces, primarily the US forces, have been present there. It really has, that is a fact. And it continues to deteriorate, but if it was not for the US forces, it would probably have gotten even worse.

Our relations with the United States are complicated, but we have to be objective when approaching this matter, and that is the way it is. Even though there are Taliban forces based along almost the entire length of the border between Afghanistan, Tajikistan and Uzbekistan, we simply have to keep that in mind.

Today I spoke with the President of Turkmenistan, and he reminded me of his plans to build a pipeline system that will run through the territory of Afghanistan further to its neighbours, Pakistan and India. He is inviting us to participate in the construction. All in all, some of the projects there are being implemented, and quite successfully, too, including by Turkmenistan.

We have to see to what extent such projects are being implemented, of course. But there are positive signals like this. However, there are some alarming signals too – ISIS forces have appeared in Afghanistan and are already fighting the Taliban. This is another factor that is making the situation worse.

You mentioned Syria. There is no longer any need really for using the Armed Forces there. I will not repeat myself any more, you are aware of my assessments. We have two bases there, and we will, of course, continue to fight terrorism there, including in Syria, and to deliver pinpoint strikes, if this should be necessary.

To reiterate, we may do so, but not as it was until now with such a wide use of all the components of our Armed Forces. Hence the withdrawal, since there is no longer any need for such large amounts of equipment or personnel. At least, for the time being.

Another important matter. Mr Volodin mentioned our actions related to returning capital from abroad. Recently, as you may be aware, I had a meeting with our business people. We discussed the need to improve the regulatory framework for the so-called CFCs – controlled foreign companies, that is, companies that are actually owned by our citizens, and our citizens are the ultimate beneficiaries. We discussed it. I have two more proposals, which I have not yet publicly spoken about.

The first is to extend the amnesty period for the capital, bearing in mind the external constraints, which are not becoming smaller, but, on the contrary, appear to have a tendency to be increasing. This is my first proposal.

The second proposal is to relieve business people who close their businesses abroad and transfer them to Russia, from paying the 13-percent tax. Overall, this can be an additional incentive, which, first of all, makes things easier, and secondly, is an incentive for transferring capital back to Russia. We will continue to work towards this end. Thank you very much again for your cooperation.

Before we talk any more in this informal manner, I can see that Vladimir Kondratyev has got to his feet and is trying to creep away. Mr Kondratyev, please stay with us.

Vladimir Kondratyev is one of the founders of electronic media in Russia, he turned 70 yesterday. Happy birthday, Mr Kondratyev!





The source of information - http://en.kremlin.ru/events/president/news/56495






Meeting with Government members



Vladimir Putin held the last meeting with Government members this year at the Government House.



December 26, 2017 - 15:50 - Moscow









President of Russia Vladimir Putin:

Good afternoon, colleagues.

As per our tradition, we have only one issue on the agenda of our meeting today. I would like to wish you a happy New Year and all the best, as well as happiness and health to you and your families and loved ones.

I would like to say that we have been working together not just this past year but for over five years. It was a difficult period for the country and for those who were responsible, each in his or her particular position, for continued development and for overcoming the difficulties that the global and Russian economy faced. I am referring to the well-known problems created by foreign restrictions and the downturn on the markets of our traditional exports.

I would like to say that the Russian Government has been doing more than its best. In fact, you have resolved the issues that faced our economy. In this connection, I would like to thank the Prime Minister and his deputies and the heads of ministries and agencies on what they have done in the past few years, as well as the staff of the Executive Office and all those who worked together for our common cause and to a common end.

Of course, there were problems as well and I will talk about them now, but I would like to note positive things before I do this. One of them without any doubt… Elvira Nabiullina [Governor of the Central Bank] is here, and using her presence, I would like to say that this is the work of the Central Bank. This achievement would not have been possible without the Government’s economic bloc. We have managed to have the lowest inflation rate in Russia’s entire history, which is obviously an achievement of the last few years and gives us grounds to hope that this macroeconomic foundation will facilitate our further economic development.

The dependence of the federal budget on oil prices has been reduced, and in general, the Russian economy is less susceptible to all kinds of external shocks and influence. We have scored success in stepping up our efforts to improve the business climate. There are many outstanding issues in this area as well, but our progress is obvious.

The import substitution and export support programmes have produced a tangible effect. Indicatively, the domestic agro-industrial sector has become our largest non-energy exporter. Quite recently, this was hard to imagine (we often talk about this and have every reason to do so), but now it is a fait accompli.

I am not referring only to the agro-industrial sector. Large-scale construction sites and industrial, infrastructure projects have been launched. I will not mention all of them but just a few: this is the well-known Crimean Bridge, the Vostochny Cosmodrome, the Moscow Central Ring, the Western High-Speed Diameter in St Petersburg, the Yamal-LNG project and a number of other modern high-tech enterprises.







I would like to mention the results that have directly influenced the living standards of people: tens of thousands of people have been moved from dilapidated housing and the issue of waiting lists for kindergartens has practically been resolved.

As for resettlement from dilapidated housing, we understand that we had certain time constraints, but this does not mean that the task has been fully carried out. We still have people who are residing in housing that is not fit for living in. Let us be quite straight about this. However, I must admit that the task that we set forth to fulfil over a certain period of time and that we received from the past has been resolved. Nevertheless, we must obviously move on.

As I have already said, the problem of waiting lists for kindergartens has been practically resolved. Now we are facing another task though, and Mr Medvedev has recently recalled it in public. We now have a waiting list for nurseries. This is not just a programme that will help bring up children. It is closely linked with demographics and will give young women more free time, allowing them to work. As we well know this means much in the decision making of young couples wanting to start a family and have children.

The programme for building new schools and creating modern school places has been launched.

The quality of government services has been changed by the formation of a network of multi-purpose integrated centres. They are now functioning all over the country. This is important for people and I am pleased to say they do not exist just on paper but they are really working.

However, as I mentioned earlier, there are still many unsolved issues, and the main one, as we are all well aware, is the large number of people living on incomes below the subsistence level. In 2000, we had almost one-third of the population living like that, more than 40 million people. Today, this figure is down to about 20 [million], but there was a point in time several years ago when it dropped to 15 million. The economic crisis of recent years, lower oil prices, and some other reasons, including external restrictions, have done their dirty deed, and the number of people living below the poverty line has unfortunately increased.

Our goal is not just to reach the best indicators of recent years, but also, as I recently said at the United Russia party congress, to target poverty. We discussed this issue with the Finance Minister, and the Finance Ministry also agrees: we need to stick to the salary parameters that have been achieved recently or must be achieved in 2018 with regard to the level of salaries in the public sector. I mean teachers at schools and higher educational institutions, doctors and healthcare in general, and everything that we did in this sphere in recent years.







We can slip very quickly without knowing it actually happened if we do not focus on it at all times. In any case, the parameters that we are about to reach in 2018 must be complied with in the years to come, please keep that in mind.

Of course, it is imperative, as I have just said, to finish fulfilling the May Executive Orders. On some of them, work must be completed in 2018. It is necessary to achieve tangible results from implementing the projects aimed at increasing productivity, developing modern education and the healthcare, increasing housing affordability, and forming a modern people-friendly urban environment.

We have adopted a number of additional decisions designed to develop our regions. In addition, officials with successful experience in the Government, ministries, and departments are now working in the regions. Please keep comparing notes with the top officials of the regions who are well aware of the local issues, maintain close contacts and dialogue with them, and continue to work with the parliament in the same way, because the overall result depends on mutual understanding between authorities at all levels.

We have done much on state defence procurement and acquisition, and I would like to thank the Ministry of Industry and Trade for this. This was done in cooperation with the Defence Ministry and law-enforcement agencies in general. This work was done on a very large scale and done well. I hope this will affect not only the state’s defence capability but also civilian sectors of production.

We are facing this task, and we are well aware of this. It is necessary to monitor this attentively and to help relevant enterprises and industries to make sure that when state procurement decreases, the production assets in which we invested about three million rubles are not idle but work efficiently.

Needless to say, we must aim for the world’s highest standards so that civilian products are in demand not only on our domestic market but may be exported abroad. Mechanisms to achieve this are well known, and we need to make sure they are used promptly and productively and receive the required resources.

We are still facing many tasks that we must resolve as I have already said, but I am sure that if we keep up the style of work that has taken shape in the past few years, we will resolve the tasks facing the country and will do this even better than before.







Let me wish you a Happy New Year once again, thank you for our joint work and wish you all the best.



Prime Minister Dmitry Medvedev:

Mr President, colleagues,

First of all, I would like to thank you, Mr President, on behalf of the Government for your support that we feel continuously, and for the assessments that you have just given. This is not only pleasant but also helps us to better formulate our strategic tasks and determine priorities in our daily work.

The President has already spoken about the main events and achievements of the outgoing year and the past few years and expressed his opinion on current problems.

Naturally, one of the Government’s main tasks is not just to consolidate positive trends. The President has just mentioned them: GDP growth, record-low inflation, and the general sustainability of the financial system with a minimum budget deficit.

However, of course, these trends should be consolidated by creating incentives for the development of business and new jobs. We must resolve the most urgent problem about which the President has just spoken – increasing real incomes. In this context, the situation remains fairly complicated.

Of course, the Government is doing all it can to complete its work on the President’s Executive Orders of May 7, 2012, where some decisions still have to be made. We will carry out the package of demographic measures that the President has just announced. I must say that at the Government meeting we have just allocated almost 21.5 billion rubles for those families in the regions that will soon have their first baby. In other words, we have already started working on this package.

Understandably, the forthcoming year is special for this country. The main political event is the presidential election. This is an important period not only for the participants of the election campaign but also for the entire system of government power. I am sure the members of the Government and heads of departments will do everything to go through this period properly.

On behalf of the Government, I would like to wish you, Mr President, success in implementing your plans and victory in the presidential election.



Vladimir Putin:

Thank you very much.



Dmitry Medvedev:

Happy New Year!



Vladimir Putin:

Thank you.

There is one more point to remember. When we recently met with business representatives and discussed issues linked with support for Russian business with some colleagues, many proposals were made. One of them is to extend the amnesty of capitals and another – not to levy 13 percent if business abroad is stopped and transferred to Russian jurisdiction. I would like to ask the Ministry of Finance and the Ministry of Economic Development to work on these proposals and Mr Medvedev to support this.

Considering that external restrictions continue, we see that many business people want to return to our jurisdiction but there are certain things to consider to make people feel comfortable and safe and not to spend extra money. As for CFCs, it is necessary to study this issue more attentively. There are some aspects that require additional regulation. I would like to ask you to complete work on this issue in cooperation with the business community and major associations of entrepreneurs.

Thank you very much.





The source of information - http://en.kremlin.ru/events/president/news/56502
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Old December 28th, 2017 #728
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Vladimir Putin met with children attending Kremlin New Year Party



The President talked to children taking part in the National New Year Party on Cathedral Square of the Moscow Kremlin.



December 26, 2017 - 15:20 - The Kremlin, Moscow

























By tradition, the best pupils, winners of various competitions, and children from orphanages attend the National New Year Party. This year over 5,000 pupils from all regions of the country were invited.





The source of information - http://en.kremlin.ru/events/president/news/56500






Congratulations to Emergencies Ministry staff and veterans on their professional day



Vladimir Putin congratulated the staff and veterans of the Ministry of Civil Defence, Emergencies and Disaster Relief on their professional day, Rescue Worker’s Day.



December 27, 2017 - 10:00









President of Russia Vladimir Putin:

Friends,

I am happy to congratulate the staff and veterans of the Emergencies Ministry on your professional day, Rescue Worker’s Day, and to thank you for your work, courage, gallantry and professionalism.

Emergencies Ministry personnel are always on duty and are the first to arrive at a rescue scene, helping those who are in trouble or up against the elements, man-made disasters or armed conflicts.

Each new emergency calls for concentration, self-possession, and the ability to take a correct decision and to act professionally and effectively even in the most difficult situation.

Your efficiency, reliability and top training skills have earned you respect, and not just in Russia. You have also worked professionally and promptly when fighting large-scale fires and the consequences of other emergencies beyond Russia.

Participation in international humanitarian operations is a major part of your work.

I am convinced that Emergencies Ministry personnel will continue to uphold and strengthen their glorious traditions and will bring up young people with these traditions, enhance interaction between services and units, strengthen partner ties with their foreign colleagues and serve Russia honestly and faithfully.

I wish you good luck, strong health and all the best, as well as a happy New Year.





The source of information - http://en.kremlin.ru/events/president/news/56504






Congratulations on Rescue Worker's Day



Vladimir Putin congratulated employees and veterans of the Ministry of Civil Defence, Emergencies and Disaster Relief on their professional holiday, Rescue Worker’s Day.



December 27, 2017 - 10:00



The message reads, in part:

“In the eyes of millions of people all across the world, Russia’s rescue services have become a symbol of hope and effective support in some of the most challenging situations. I congratulate the Emergency Ministry for always being on the frontline when it comes to fighting natural or man-made disasters. You are the first to offer help to those who need it, and in every emergency situation you are expected to demonstrate composure, tenacity as well as skill in making the only right choice.

You acted this way in 2017, when you were called upon to provide emergency relief, put out our major fires, take part in international humanitarian operations, including in Syria. In doing so, you were highly professional, competent, and ready to deliver on the set objectives in a skilful as well as timely manner.

I strongly believe that the Ministry workers will treasure the established traditions, fulfilling their duties, serving Russia with courage as well as in good faith.”





The source of information - http://en.kremlin.ru/events/president/news/56507






Vladimir Putin submitted nomination papers to the Central Election Commission



December 27, 2017 - 13:40 - Moscow






















Vladimir Putin visited the Central Election Commission to submit his nomination papers for the 2018 presidential elections.





The source of information - http://en.kremlin.ru/events/president/news/56510






New Year reception at the Kremlin



Vladimir Putin attended a gala reception celebrating the New Year 2018.



December 27, 2017 - 19:20 - The Kremlin, Moscow







As part of the gala events organised at the State Kremlin Palace, the President also attended the performance of Russia’s Children’s Choir and met with elected and acting regional governors as well as those who resigned in 2017.









President of Russia Vladimir Putin:

Colleagues, friends,

I am happy to welcome you as we approach the New Year 2018.

Today everyone has a lot of pre-holiday concerns. We are trying to complete urgent tasks and observe the review schedule.







This holiday has its own New Year’s challenges and commotion as well as good traditions. We are following them with the hope and belief in the best things.

Each of you, every family has had its own record in the outgoing year. Some people will consider it successful whereas for others it was not easy. For them, it has been a year of overcoming difficulties.







But I am sure that each of us has tried to fulfil his goals, do something good for the country, for people around, for our families, and for those who are near to us and who need help and support.

The road to achieving a goal and attaining a result, for progress and preparedness to be useful always means development, gaining experience and knowledge, and displaying persistence and resolve, courage and responsibility.







Those who have gathered here today are displaying these very qualities and helping achieve our common goals – the prosperity of Russia and our people.

I am sincerely grateful to you for your honest, professional work, successes in government service, on the battlefield, in public affairs, business and creative endeavours.







Let us remember the outgoing year as yet another important stage in our life. We are bidding farewell to it, understanding that many new concerns, tasks and ambitious plans lie ahead. I am convinced that we will achieve success by all means and resolve even the most complicated challenges. Everything is in our hands and everything depends on us alone!

Please accept my sincere greetings on the coming New Year 2018. I wish you and your families and friends good health and energy, and a striving to reach new goals.







Allow me to offer a toast.

To the wellbeing and prosperity of the people of Russia!

To our Motherland!

To Russia!

Happy New Year to you!





The source of information - http://en.kremlin.ru/events/president/news/56513






Meeting with service personnel who took part in the anti-terrorist operation in Syria



Vladimir Putin met with Russian Armed Forces service personnel who took part in the anti-terrorist operation in the Syrian Arab Republic. During the meeting that took place in the St George Hall of the Grand Kremlin Palace, the President presented state decorations to those who distinguished themselves while performing special missions in Syria.



December 28, 2017 - 11:00 - The Kremlin, Moscow







Over 600 soldiers and officers from all branches of the Russian Armed Forces have been invited to attend the event.









President of Russia Vladimir Putin:

Comrade officers, friends,

I am honoured to welcome you to the Kremlin’s St George Hall, the hall of Russian military glory to which you have added your own bright and victorious page.







Today we are celebrating you as true defenders of Russia. You did your duty excellently. You fulfilled the most difficult tasks in Syria and have returned home to your relatives and loved ones victorious. As your Supreme Commander-in-Chief, I thank you and all your comrades-in-arms for your professionalism and selflessness and for your commitment to your military duty and your oath.

But my warmest words go to the female military personnel who endured combat hardships alongside their comrades at the forefront of hostilities. Thank you very much.







Over 48,000 Russian soldiers and officers took part in the operations in Syria in a little over two years. They came from nearly all military fields: Air Force and Navy, special units and military police, mine clearing units, reconnaissance, communications, special medical and logistics services, military command and military advisers. Each of you acted valiantly and resolutely, as the sons and daughters of our great Homeland, the soldiers of our Army and Navy should, considering their enduring and heroic traditions of valour, honour and dignity.

You fought for Russia’s interests, for Russia, for your home, for the right and just cause. Therefore, our entire nation was behind you. I am sure that you felt this civil solidarity and patriotism, and this unity between the army and the people empowered you. The public followed the daily developments and reports from Syria. Our people believed in you. They are proud of you and our Armed Forces. They felt the pain of every grievous loss sincerely, as their own.







We will always remember your comrades who were killed in the line of duty. They perished defending Russia. Their names will be eternalised in the personnel lists of their units. Their heroic deeds will serve as examples to the younger generation of officers and soldiers. We will always support and take care of their families, parents, children and loved ones. We will do everything for this.

Now let us honour their memory.

(A minute of silence)

Comrade officers,

The memory of our heroes will strengthen our determination in the fight against international terrorism as well as other threats to our country.







As it has happened many times in history, Russia made a crucial, decisive input to the defeat of the criminal forces that challenged the entire civilisation, to the destruction of the terrorist army, the barbaric dictatorship that brought death and devastation, erased hospitals, schools, mosques, churches, historical and cultural monuments from the face of the earth, and planned to turn Syria and its neighbours into a launching ground for global aggression targeting our country. Should the terrorists have won in Syria, expanded their ranks with new recruits, accessed money, oil sources and modern weapons they would have certainly continued their global attack with new and advanced forces.

They received a deserved punishment for their crimes. Their equipment, headquarters, infrastructure and thousands of militants were destroyed.







As you know, a terrorist attack was perpetrated in St Petersburg yesterday, and the Federal Security Service has recently thwarted another terrorist attack. And what would happen if hundreds and thousands of people whom I have just mentioned came back here well trained and armed?

By the way, I instructed the Director of the Federal Security Service yesterday to act within the bounds of the law while dealing with these thugs and arresting them. However, if the lives and health of our operatives and officers are at risk, the FSB must act resolutely, take no prisoners and eliminate terrorists on the spot.







The Russian Army and Navy have displayed their improved capability in full measure, and they have successfully used up-to-date weapons and equipment. Aerospace Forces pilots flew 34,000 sorties and launched 166 high-precision strikes against terrorist facilities. The Syrian Army has liberated the entire country and over 1,000 population centres with the key support of Russia’s Aerospace Forces and Navy.

Your heroism and professional actions have made it possible to preserve Syria’s statehood, to stop mass murders, executions and terror against civilians, have made it possible to launch a political settlement of the conflict in that country, to restore normal life and to return tens of thousands of refugees.







Syrian citizens will remember with gratitude the courage of Russian service personnel who sometimes delivered food, medications and essentials under fire. They will remember with gratitude the peacekeeping efforts of Russian officers who worked at the Centre for the Reconciliation of the Opposing Sides to stop bloodshed and to give people hope.

Comrade officers,

You have performed all the missions that were assigned to you. Your military units have returned back to the places of their permanent deployment in Russia. In Syria, two Russian bases – an air base in Khmeimim and a naval facility in the port of Tartus – will remain and operate on a permanent basis. This is an important factor in defending our national interests as well as ensuring Russia’s security in one of the key, strategic sectors.







We intend to continue improving the Armed Forces and their combat and technical capability, to create a new-generation army, and to develop a system of special guarantees for service personnel, their family members, and military pensioners. These are our absolute priorities, because the Armed Forces are the basis of Russia’s independence and security, which means its irreversible, sustainable development and progress.

In this large-scale and responsible work to promote military organisation, strengthen the army and the navy, and address other large-scale tasks facing our country, I certainly count on you, merited and still very young veterans of the Syrian operation, on the patriotism, willpower, experience and military conditioning of all our officers and men.







I wish you every success in your careers. Let me congratulate you on returning home. I am happy to have this opportunity to present state decorations to you.



Colonel General Sergei Surovikin:

Comrade Supreme Commander-in-Chief of the Russian Armed Forces,

Permit me to express my gratitude for your appreciation of my military service and the high decoration I have been awarded today. This obliges me to many things, such as to continue to serve Russia selflessly to my last breath. I believe that this state decoration has been awarded to me not just for the services I have done personally, but primarily for the services done by my subordinates and comrades-in-arms, as well as for the mastery of my commanders and my teachers, which they shared with me during my student years as well as my military service.







While doing our combat duty in Syria, we never forgot for a second that we were protecting Russia and that we must do this to the best of our ability, as we had pledged to do in our military oath when entering military service, as well as out of the deep understanding of our responsibility to the country for eliminating the global terrorist threat.

Speaking on behalf of all service personnel, I thank you, Comrade Supreme Commander-in-Chief, for your high appreciation of our military operation in Syria, for your efforts to strengthen peace, Russia and the army, as well as for your concern for service personnel.







We are ready to fulfil any task you will give us. Please, rest assured that the Aerospace Forces will ensure the inviolability of Russia’s borders and will protect national interests in the air as well as in space.

Allow me to wish you and all citizens of Russia a happy New Year and to wish you all the very best, happiness and prosperity.

Thank you.



Major Maxim Makolkin:

Comrade Supreme Commander-in-Chief of the Armed Forces of the Russian Federation,

Let me express my sincere gratitude to you for this high state decoration.

Military pilots are proud of being the ones whom you entrusted to be the main attack power of the Russian forces in Syria. We received a unique opportunity to test our weapons and hone our piloting skills in combat conditions. The high potential of our aviation equipment, its reliability as well as the professionalism of our aircrews enabled us to feel our indisputable superiority in the sky.







On seeing our Western coalition partners in the air, we always tailed them, as pilots say, which means a victory in real combat.

Comrade Supreme Commander-in-Chief,

Let me assure you that Russia’s military pilots are always ready to defend our Motherland, ensure its stability and protect its interests in any region of the world.

Thank you.



Senior Sergeant Tatyana Kovaleva:

Comrade Supreme Commander-in-Chief of the Armed Forces of the Russian Federation,

Let me express sincere words of gratitude to you for the opportunity to represent here, in the heart of Russia, at the Moscow Kremlin, the medical specialists who were performing their mission in the Syrian Arab Republic.

It is the greatest honour for me today to receive a state decoration from you personally, from the President of our country and Supreme Commander-in-Chief of the Armed Forces of the Russian Federation. I share this very high assessment of my work with my comrades-in-arms, my glorious Airborne Troops and Medical Specialists Corps of the Russian Army.







While in Syria, we acted in accordance with our Russian traditions, in Russian style: protecting the Syrian people, showing mercy and compassion through real deeds and rendering comprehensive assistance and support to the population of that long-suffering country. Russian military medics, often at the risk of their lives, provided medical aid to hundreds of people, delivered medications to remote villages, trained and consulted our Syrian colleagues and helped restore the war-embattled medical system. And all the time, we remembered that we represent Russia and this helped us do our job.

Mr President, let me, on behalf of all medical specialists, thank you for the high assessment of our work and assure you that we faithfully serve and will continue to serve our Fatherland, great Russia led by our President.

Thank you.



Vladimir Putin:

Comrade officers, friends,

I would like to once again congratulate the recipients of the state decorations, and everyone attending this ceremony, as well as the 48,000 service personnel who took part in the Syrian operation.







You know and see better than anyone else that our armed forces have changed radically over the past two years, because our people have proved equal to the task, which is the most important thing, as well as because they have seen how our military equipment works, how command and logistics elements work, and how modern our Armed Forces have become. The entire world has seen this as well, but the most important thing is that our people have seen it. This is very important, because people must feel protected; they must feel that their security is reliably guaranteed.







I would also like to express my gratitude to the defence industry, whose personnel often worked side by side with you, doing their duty by adjusting the latest military equipment to combat duty and turning this modern equipment into a powerful force.

As I have told you, we will continue to modernise our Armed Forces, the Navy and the Army. I pin my hopes on you and those like you. This means that I pin my hopes on the entire Army and Navy, which is made up of such people as you.







I also want to extend my gratitude to your families and loved ones, who worried about you, and to thank them for their understanding and support.

Thank you, and a happy New Year!





The source of information - http://en.kremlin.ru/events/president/news/56516
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Old December 29th, 2017 #729
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State Council meeting on improving investment appeal of Russian regions



Vladimir Putin is chairing a State Council meeting on improving investment appeal of the Russian regions in the Kremlin.



December 27, 2017 - 15:45 - The Kremlin, Moscow









President of Russia Vladimir Putin:

Good afternoon, colleagues,

We are holding this year’s final State Council meeting. Of course, I wish you all the very best for the festive season, and would like to thank you all for your work in the outgoing year, and wish you every success in the new year.

As is customary, we sum up the results at the close of the year. Today, we will discuss what we managed to accomplish and what remains to be done in the key area such as improving the investment appeal of the Russian regions, creating a comfortable environment for opening and running businesses, and launching new production sites. This means creating new jobs, increasing real wages and personal incomes, which is undoubtedly our top priority.

I would like to say that enhancing investment and business activity is an economic task designed to create conditions for economic growth and for strengthening the regions’ taxable revenue base. But it is also a political task, because taxes provide resources and increase reserves for the development of our healthcare, education and the social sphere in general, as well as for implementing improvement, urban development and environmental projects.

It should be said that investment trends largely depend on the regional management teams. Over the past three years, investment has decreased in the country by 7.9 percent due to the crisis. At the same time, 21 regions have reported an increase of investment in fixed assets. Investment in the best 10 regions has grown by nearly 40 percent in real terms. These are the Amur, Arkhangelsk, Vologda, Kaliningrad, Leningrad, Murmansk and Tula regions, as well as the republics of Yakutia and Kabardino-Balkaria and the Yamal-Nenets Autonomous Area.

It takes a systemic approach to improve the business climate. I consider it to be exceptionally important that we applied this approach in the past few years. The efforts taken by our companies, the federal and regional authorities and the Agency for Strategic Initiatives (ASI) have been brought together within the framework of a completely new mechanism.

I am referring to the National Entrepreneurial Initiative, which has allowed us to simplify the federal legal framework by eliminating over 50 excessive administrative procedures which were not essential for doing business but were a considerable burden on it. Companies spent over a year on completing all these procedures instead of doing business.

According to ASI, the National Entrepreneurial Initiative has helped us eliminate 50 excessive procedures that took a total of 435 days to complete. Specifically, the time required to register property has decreased from 43 to 13 days between 2012 and 2017 and the time needed to register a company from 30 to 10 days. The process of getting an electricity connection, which was a major headache for the national economy, has decreased from 281 to 83 days. The time associated with the preparation of papers and the process of moving export goods across the border has been cut from 139 to 97 hours between 2015 and 2017.

Of course, it is necessary to continue improving the legislation. It should support business initiatives and streamline entrepreneurs’ day-to-day operations.

Let me emphasise that it is important not only to control and monitor compliance with legislative provisions but also to find the most successful practices of improving the business climate. Its efficiency should be assessed by business itself. At any rate, we should proceed from what is happening in real life. This is where we get a real picture.

This is the approach that underlies the National Investment Climate Rating. Its key task is to promote development and facilitate the dissemination of the best experience on boosting the investment appeal.

We have a group of regions that set high standards in the investment area. Let me repeat, I have mentioned those that have been the most successful but there are more of them as well. This is Tatarstan, Chuvashia and the Tula, Kaluga, Tyumen and Ulyanovsk regions and the Krasnodar Territory. It is important to point out that the Far Eastern regions, such as the Khabarovsk Territory and the Amur Region have substantially strengthened their positions this year.

Let me add that this rating is yet another step in the direction of increasing the transparency of the government administration as well as its responsibility to the society and citizens. It has already become a good impetus for the regions to achieve some progress. They must work on a daily basis to increase their investment appeal and managerial competitiveness.

I would like to ask the Agency for Strategic Initiatives to continue this work in cooperation with the Government and business associations, to develop and improve the National Investment Climate Rating.

Last January we approved 12 target models on the basis of the most successful regional investment experience. These are instructions on making business easier with clear-cut instructions on how to register land allocation, receive a construction permit, which is still so difficult in many respects, and get connected to such things as technology networks.

We agreed to introduce target models before the end of this year. Let us discuss today what has been done in this respect. I ask the governors to say what has already been done and what difficulties they are facing in practice.

Colleagues, it is obvious that besides the improvement of the legal framework and regulations, investment attractiveness depends on other factors too, and the key one is providing business with personnel.

I would like to emphasise again that it is necessary to develop vocational education, first of all skilled workers, engineers and specialists together with the business community and business associations.

We need to think about how to organise and modernise the vocational education system using the best Russian and world standards. Let us talk about this too. Another important issue is the efficient interaction between federal, regional and municipal structures.

Businesses regularly complain about the actions of the oversight and security agencies at the local level. And those entrepreneurs who work in accordance with the law suffer, while those whose activity is only half-legal and who operate in the grey area benefit from them.

Once again, there must be no detachment in improving the business climate. All structures – federal, regional and municipal – have the common task of attracting investors, creating conditions for starting and doing business, developing the regions and improving people’s quality of life.

I suggest that today we discuss this issue, as well as the coordination of the activity of the federal agencies with their local colleagues.

Next, the favourable environment for business includes modern roads, networks, logistics – I am talking about eliminating infrastructure obstacles for the development of the Russian economy.

Approximately six months ago, the Government suggested launching a so-called “infrastructure mortgage” mechanism which will make it possible to attract additional financial resources to the construction sector as well as for efforts to improve the quality of the roads. I ask the Economic Development Minister to report today on the progress of this work.

Let me stress in this context that we shall have to tackle comprehensive large-scale tasks involved in developing the regions, including the infrastructure. It is these goals that are outlined in the updated Basics of the State Policy in the Area of Regional Development until 2025.

In the coming year, the Government should adopt a strategy for this country’s long-term spatial development, which will define the competitive advantages and growth points for each constituent entity of the Russian Federation, as well as their economic specialisation and the role in international cooperative ties.

Based on this, it is necessary to adjust the relevant state and municipal programmes and natural monopolies’ plans to locate transport, energy and social facilities. I have just examined yet another construction-related document sent by the Government.

A concrete case in point concerns enterprises in the shipbuilding industry and port installations. We don’t need any duplication or wasting of funds. We should focus on achieving concrete results and determine the mechanisms for guaranteed funding of priority infrastructure projects that are of importance for developing the regions and for business operations.

In this way, we will be able to set clear, predictable long-term guidelines for implementing private investment initiatives as well as business projects and give them proper state support.

Financial stability is yet another factor in the regions’ investment appeal. Investors and the business community trust those regions that are able to live up to their obligations, conduct responsible and balanced budget policies, and avoid excessive borrowing.

I understand perfectly well what the state of regional finances was in previous years and the reasons for this state. As you know, we have launched a programme for rescheduling loans extended by the government to improve the financial standing of the regions and give them additional funding they can use to handle their current tasks, as well as those they plan for the future.

Colleagues, I would like to specifically stress this point in order to bring your attention to it, as it is very important, so I would like to remind you of it yet again: regions that have joined this programme have undertaken to reduce their commercial debt load and their budget deficit. I ask you to take this seriously and give attention to this.

The funds you get must lead to financial rehabilitation in the regions. You should not take out new loans to squander them, spending money as you think to be reasonable and starting to run up debt again. I would like everyone to know that I have asked relevant ministries and agencies to regularly report to me on efforts to achieve financial rehabilitation in the regions across the Russian Federation.

I already spoke about this in public and can repeat this to you with a heavy heart: there are regions which are in no hurry to refinance their loans, although they have the opportunity to do so, and continue borrowing from private banks. It is strange. I will look into [the situation] one more time.

They have the opportunity to repay their loans by fresh borrowing at a lower interest rate through government funding, however, they still obtain loans from private banks at a high interest rate. Whom do you allow to make money on this? Please, think about this, the situation has to be resolved as soon as possible.

I would like to bring the attention of both the regions and the federal bodies to the need to fulfil all obligations undertaken under the rescheduling agreements in full. We will consider this to be an important indicator of how efficient and effective the performance of regional authorities and heads of departments is, while today, we will analyse progress achieved in the government loan rescheduling.

Let us start. I will give the floor to the head of the State Council working group, Mr Nikitin.

Please go ahead.







Novgorod Region Governor Andrei Nikitin:

Mr President, colleagues. When the Agency for Strategic Initiatives launched the National Entrepreneurial Initiative in 2012, we pursued primarily business interests. We were drafting amendments to federal legislation and monitored law-enforcement practice together with entrepreneurs.

Naturally, we relied on the experience of the Kaluga Region, the Republic of Tatarstan and other regions of the Russian Federation that have achieved considerable success in creating a comfortable business environment in a short span of time. Our colleagues used a practical example to show that for all the significance of the current legal framework, competent work of regional teams is of major importance.

Today I can assess the launched mechanisms as the head of the region. The national rankings allow us to see better the best practices and approaches, and strongly motivate us to be the best. In turn, target models are in fact a KPI for executive government bodies of the Novgorod Region with understandable, concrete targets, tasks, and of course, deadlines.

I would like to note that we have worked for less than a year, but already rank in ninth place among the Russian regions in introducing target models. We see the results produced by adopted decisions. The development of business is creating jobs with decent incomes and opportunities for our citizens to start their own business.

Colleagues, to go forward, we should resolve the systemic problems that are seriously obstructing normal conditions for doing business. These barriers are obvious at regional and local levels. As the head of the State Council working group, I would like to discuss several key areas.

I would like to start with one of the most sensitive issues for entrepreneurs. I am referring to the increase of administrative burden on business. The working group has made specific proposals and my colleagues will speak about them. I would like to make a number of important points.

We have a unified registry of inspections, but for the time being it does not contain all information. I think it should include all supervisory and other measures that are conducted as regards entrepreneurs on the territory of each region of the Russian Federation. Inspections should be accompanied by video recordings that should be kept for no less than one year and granted to the bodies of the Prosecutor’s Office for the exercise of their supervisory authority.

The next subject is reliably ensuring the right of property on specific plots of land. Without this we will not be able to attract investment and develop our cities and villages.

Today we do not have normal territorial planning and land use. Master plans of cities and villages are formalistic and not always fulfilled. I will quote a specific example. We have launched a project on creating a 3D model of a region with the help of drones. More than 860 plots of land with a vague status have been found within Veliky Novgorod alone. There are industrial buildings and housing on this land. The cadastral value of these land plots is 585 million rubles, which are actually illegal. So, what do we suggest in this respect?

First, to update the territorial planning documents on the basis of uniform methods and a regulatory framework.

Second, to digitise services on urban planning and put them on the relevant regional information systems. Thus, all information will be accessible to citizens, entrepreneurs and investors. We believe decisions on introducing such documents on territorial and urban planning should be made at the regional level and also carried out as a separate project under the Digital Economy programme. There are best practices in this area as well in the Moscow and Tyumen regions.

Now about the deadlines, procedures and quality of heat, water and gas supply services. We work on target models, we regularly conduct business surveys that help us understand how effective our steps are. But here is what is important. Often getting a utilities connection and obtaining energy resources is provided by private organisations, which for a number of reasons have a monopoly in certain territories and do not seek to optimise the technological connection processes or introduce modern services.

It is impossible to submit an electronic application, and to be blunt, certain persons simply demand an additional fee to speed up the resolution of some matters. We believe that companies which provide public services to citizens and entrepreneurs and are monopolies in any sphere, regardless of the form of ownership, should work according to uniform rules and standards. This primarily refers to providing services and reducing deadlines, including in the one-stop-shop form.

Colleagues, I would like to address another very important issue for the development of entrepreneurship. Some of our fellow entrepreneurs believe that it is more profitable to work without registration. Illegal entrepreneurs do not bear any responsibility for poor-quality services, do not pay taxes or contributions for employees to mandatory funds, force people to work illegally, without any guarantees, can fire employees at any time and pay wages in envelopes, which means that this revenue will not be taken into account when forming pension rights.

Municipalities, in turn, lose income, which they could spend on the development of territories. In the Pestovo Municipal District of the Novgorod Region alone, 6,000 people out of the 12,000-strong working population worked at unregistered enterprises. Thanks to the support of the Prosecutor's Office, we managed to officially employ 500 of them in the last few months, and these people began to receive official salaries. I would like to note that the total amount of revenue from personal income taxes the local budget lost may amount to about 90 million rubles (this is one-sixth of the total revenue of the municipal district).

Another example is the provision of tourist services by persons who do not officially have the status of entrepreneurs or legal entities. So, one of the most popular booking resources contains more than 200 reviews on a private hotel. During an inspection, the owner said that his relatives came to his place, and he does not make any profit or engage in entrepreneurial activity.

At the same time, major investors are openly telling us: we are not prepared to work in the absence of fair competition, because we will be losing to illegal businesses in terms of the economy. I emphasise, proper conditions are being created for small companies and sole proprietors at the federal and regional levels. I would like to thank the Corporation for the Development of Small and Medium-Sized Businesses for their Business Navigator for small and medium-sized entrepreneurship, lending programmes, guarantees, and access to procurement by monopolies.

The regions are taking steps to reduce tax rates for those who use the simplified taxation system. There are ways to quickly register a business. I believe we cannot allow the shadow sector to destroy the competitive environment, or to put honest businesspeople at a disadvantage. So, we propose taking another look at liability for illegal entrepreneurship.

Colleagues, on a separate note, I would like to spend a moment discussing the mechanisms for supporting investment projects in the regions. Today, the regions have been given broad authority regarding tax benefits. However, no one can tell whether a particular preference is good for business. In the end, the investor does not feel any support, and the budget loses money. We suggest developing a methodology for assessing the effectiveness of tax incentives and introducing accountability for project outcomes.

Also, a programme for compensating expenses of the regions on creating regional industrial parks started in 2015. The funds available under it cannot exceed the amount of federal taxes effectively paid by tax residents. Clearly, the VAT payments are the largest ones, and the companies get a refund when exporting products meaning that the VAT is not taken into account when calculating compensation amounts.

It turns out that, on the one hand, we are striving to increase exports of domestic products and, on the other hand, we are depriving regions of motivation to work with the companies oriented towards foreign markets. In this regard, we believe it is necessary to adjust the mechanism for compensating the costs involved in creating industrial parks.

Colleagues, today, you can hear almost every large company cite a lack of young skilled personnel. At the same time the prestige of blue-collar jobs is growing and our youth are willing to receive a quality education that will allow them to find an interesting, in-demand job and receive a decent income.

We must meet the demand from domestic business, and of course, from young people. To do this, we must help our colleges, including technical colleges, be up to the highest global standards, to massively renovate their facilities and install new equipment and also have teachers upgrade their skills. We suggest implementing the state programme for developing the system of basic and intermediate vocational education that will be co-financed by both the regions and businesses.

Mr President, colleagues,

Six years ago you tasked us with creating conditions for doing business in Russia on par with the world’s leading countries. We have made a significant step forward. But in the contemporary world, to be the best and competitive, we need to constantly improve and move faster than other countries. We need a mechanism that will allow us to promptly respond to businesses’ growing demands regarding the quality of the business environment.

I am talking about timely changes in the laws and regulatory acts, as well as exchanging best practices. In this connection, we suggest that a centre for monitoring and lifting regulatory restrictions be established under the Ministry of Economic Development and a coordinating body at the governmental level.

Thank you for your attention. This is the end of my report.







Vladimir Putin:

Thank you very much.

Please, Mr Golubev, go ahead.



Rostov Region Governor Vasily Golubev:

Mr President, colleagues,

The working group has presented a comprehensive and detailed report. Mr Nikitin spoke about the main provisions, so I’d like to comment on several proposals.

First, it is evident that one of the factors influencing the investment appeal of the regions is increasing their budgetary self-reliance. Reaching this goal is possible only as a result of pursuing a responsible and well-balanced budget policy, planning real revenue without any “soap bubbles,” economical and effective spending within the limits of one’s authority, and strictly observing financial discipline all while meeting the social commitments to the people.

Another challenge for investment appeal is the region’s debt burden. As of December 1, the public debt of Russia’s territorial entities totalled 2 trillion 141 billion rubles.

Mr President, at the State Council Presidium meeting in Ulyanovsk, you made a landmark decision to restructure budgetary loans, which is very important to our regions. This will allow us to ease-off regional debt burdens.

In addition, based on your instructions to the Government Commission for Regional Development, the Ministry of Finance made decisions to adopt budgetary rules that will prevent unbalanced budgets. However, the problem of high cost of commercial borrowings remains. In the regional budgets, the debt load this year was about 140 billion rubles and the loans themselves exceed one trillion rubles.

If the federal authorities had not supported regional financing, we would be talking about insolvency in some regions today. For this reason, observing financial discipline should be a top priority in all budgetary relations. In other words, the obligations the regions assume when signing contracts with the Ministry of Finance, should be fulfilled, just as the federal authorities’ obligations to regions.

The issue of reducing interest rates for the Russian Federation’s constituent entities to ensure financial stability remains very relevant. The Bank of Russia has adopted certain regulatory measures; there have been recommendations to lend funds to the constituent entities at no more than a key plus one percent rate.

In this regard, we are suggesting considering a further reduction of interest rates on commercial loans for the regional budgets. At the same time, the regions need to provide a balanced budget and prudent debt policies, consolidation of internal state financial controls that focus on preventive measures, as well as budget transparency.

Allow me to express the collective opinion of all the constituent entities: we need to find a milder version of the model of interaction between commercial banks and Russia’s regions.

Mr President! We are asking you to instruct the Russian government to work with the Bank of Russia to develop new measures to reduce the interest rate burden on the budgets of the regions.

For example, we are proposing a special lending schedule for the Bank of Russia, which, if approved by the Russian Ministry of Finance, would provide credit support to the regional budgets at a reduced interest rate.

The second suggestion. It is no secret that the activity of law enforcement agencies greatly influences the investment climate. Once there are signs at the regional level of something being done in an unprofessional way – and in middle management this happens quite often, or even worse (as you said recently), that there are unscrupulous law enforcement officials involved – any functioning investment climate management system collapses. It is obvious that under the present circumstances the issue of establishing a confident environment for conducting business activities and developing entrepreneurship must become a priority for the authorities in the regions.

Under the presidential executive order, coordination meetings have been created in the regions, which include the heads of the law enforcement and oversight bodies. In this regard, I propose informing the Government about the role and the influence these bodies have on the investment climate in each region based on their performance during the year.

There is one more proposal. The time has come for business representatives to come together and have permanent and systematic platforms for interaction between themselves, the Government and business, and of course, vertically from the municipal level all the way up to the federal government.

This will allow us to prepare and implement validated and effective economic solutions, which is important today, and this approach will lead us to a place where businesses will also be accountable to society. I am referring to the negative things that happen in economic activities. I believe our society and our people should be aware of this.

There are proposals that the Chamber of Commerce and Industry of the Russian Federation should assume this role. This organisation has offices all the way from the district level to the federal centre, and also has administrative staff and expertise. This approach is common in many countries. Some of our regions also have positive experience in this area, and the role of chambers of commerce and industry is notable in developing economic policies, including investment policies.

There are instances where regional chambers of commerce and industry are entitled to legislative initiative, and this is working effectively today. I am convinced that implementing these measures will really create the proper environment for improving the investment climate.

Mr President, please have the above proposals included in the list of instructions to be drawn up following today's State Council meeting.



Vladimir Putin:

Thank you.

Mr Vorobyov, please go ahead.



Moscow Region Governor Andrei Vorobyov:

Mr President, colleagues,

Mr President, I would like to begin with words of gratitude for creating the ASI platform in its own time, because the rankings that are compiled and published at the St Petersburg Forum are an important reference point for us, and each territory wants, of course, to improve its investment potential. It is good that we have an opportunity to regularly share experience and use best practices in our regions.

To further improve the investment climate, I would like to ask you to pass down instructions in three areas.

First, these are special economic zones. In May 2016 an inspection revealed violations and inefficiency in special economic zones. Since then the Government of the Russian Federation and the regional authorities have carried out a lot of work and I think there is every reason to remove this moratorium.

This would allow the regions to establish new special economic zones to attract new investors and of course, grant a package of regional and federal benefits. This is the first request or proposal that I would like to submit.

Second, I would like to talk about e-services. The problem is that to build a plant or factory, investors have to apply for 22 approvals – nine regional and 13 federal permits. My request, Mr President, is to forward an instruction on mandatory e-document exchange with the federal departments. This would drastically reduce the paperwork and the number of applications that are required from entrepreneurs and investors.

We have already amassed positive experience both with the Special Guard Service and Rosaviatsiya (Federal Air Transport Agency). We signed agreements with Rospotrebnadzor (Federal Service for the Oversight of Consumer Protection and Welfare) and Rosavtodor (Federal Road Agency) the other day and they have greatly improved the investment climate. They make it possible to approve documents and build new enterprises with much less delay.

There are some issues in approving documents in the Ministry of Culture and the Federal Agency on the Use of Mineral Resources. The problem is that you have to get approvals no matter where you want to build a plant, even on an old site. You have to get approvals from the Ministry of Culture and the Federal Agency on the Use of Mineral Resources. This is required by law. I would like to suggest amending it so that both this ministry and the agency are required to list the areas that are of special value to them. We have already done this as regards territories near airfields where the owners themselves publish what territories are under restrictions.

And the third issue that you mentioned in your speech is a reduction in the utility connection times. Indeed, all regions made a breakthrough both in gas and electricity because there is a law on standardised fees. I have already talked with the Prime Minister on this issue; he understands where we are with this.

We need a federal law on standardised fees for heat, water discharge and water supply. This would also enable us to drastically reduce the infrastructure connection times and facilitate the commissioning of new enterprises.

So, Mr President, these are my three proposals that I wanted to draw your attention to.



Vladimir Putin:

Thank you very much.

Mr Oreshkin.



Minister of Economic Development Maxim Oreshkin:

Thank you very much. Mr President, colleagues,

Today, indeed, it was noted that we made great progress in the Doing Business rankings, and the national ranking system encourages the regions to compete among themselves and to improve procedures. However, the analysis shows that there is not always a clear relationship, for example, between the rankings and investment dynamics.

The fact is that the benchmark models and the investment standards offered to the regions are necessary, but of course, insufficient conditions for ensuring favourable investment climate sometimes exist.

I would like to spend a moment to discuss a number of issues.

First, today we talked about the importance of regional financial sustainability. I am not going to delve into matters that Mr Siluanov will take up in his remarks, but I will make just one point taking advantage of the fact that so many governors are present here today. This week we have completed the first stage of the work to identify the so-called redundant, and occasionally even absurd, requirements that the federal authorities set for the regional authorities. I will give you a couple of examples.

We have, for example, an order by the Ministry of Communications that requires everyone to switch to a certain type of franking machines for mail correspondence beginning February 1, 2018. The regions will pay three billion rubles to comply with that next year. Or take, for example, an order by the Ministry of Labour, which identifies a list of equipment that needs to be installed at the organisations that provide social services. The list includes the number of mirrors and the number of clocks on the walls, and how many checker and chess sets should be available on the tables.

We made the first list of such requirements, and submitted it to the Government this week. We suggest either changing or cancelling them. Our ultimate goal is to create an institutional mechanism which will prevent these kinds of requirements from ever surfacing. Recently, we discussed this with the State Duma and the Federation Council, and we are already working to this end.

The second point I would like to make is the stability of the tax system which is an important part of the investment climate. I will give you an example as well.

With regard to the story about returning the right to grant tax incentives on movable property to the regions, beginning next year, if a region does not decide on an incentive, the rate will be set at 1.1 percent. Here, we can see that different regions proceed differently. What, for example, are the regions, for which the stability of tax terms is of primary importance, to do? I will give you an example of the Ivanovo or Nizhny Novgorod regions. They maintained this incentive in key industries, but not all of them. They chose the ones where the tax really represents a tax on modernisation, and ensured keeping this incentive. It is important, when taking decisions, to always think ahead and to understand what ramifications can follow any short-term gains in revenue.

The third thing that has already been mentioned today is control and oversight. Here, it is important to not just limit this activity head on, but rather make it smart. The pressure on businesses should decrease following reorientation of the control agencies to high-risk sites, which systematically commit gross violations of the law. With that, low-risk facilities, on the contrary, should be completely exempted from planned inspections.

Here, too, importantly, a significant portion of these controls should, in the near future, become remote, and the opportunities that the digital economy opens before us will make it possible to automate control to an even greater extent.

The law on control and oversight which describes the new system was put together this year and submitted by the Government to the State Duma. I hope we will work it through in detail next year, as it needs more work, and then adopt a draft law to this effect.

Infrastructure is the fourth important area that you, Mr President, mentioned. Clearly, when the quality of roads is low and energy or railway infrastructure is not available, this can put an end to any investment project, be it large or small. Again, I will give you an example.

The town of Novomoskovsk in the Tula Region has a good industrial park, with properly developed sites for the construction of plants. However, trucking the output from this area is a challenge. The bridge which connects this area with the mainland has one lane closed for safety reasons, as it is in poor condition. No proper transport infrastructure, so everything else is just not working. Indeed, creating an infrastructure that is adequate for economic needs is a prerequisite for improving investment activity.

We have accomplished certain things, though. We drew up a detailed plan for implementing the new programme. This plan, as well as a number of amendments to draft laws, have already been submitted to the Government. In the first quarter, we will need to do a lot of work to put these changes into practice. We are working actively on pilot projects with the regions such as the Tula Region – everything I mentioned about it – the Novgorod Region, the Perm Region, and a number of other regions, because they are moving forward fast.

The fifth point is competition. It is possible to have ideal infrastructure and perfect procedures but investment will decrease if competition rules are violated.

Mr Nikitin talked about illegal businesses but there are also other problems such as the creation of unitary enterprises in the market, and other forms of regional protectionism. There are also problems with regulations that put competing enterprises in the same industry into different conditions and many other things.

Mr President, you recently signed an executive order on competition and it reflects all these important points. Now our task is to match reality to this executive order. I also think it is important to establish an institutional mechanism that will monitor whether the actions of the authorities correspond to the provisions of the signed executive order.

The sixth point is the human factor, of course. Mr Nikitin spoke about personnel. Indeed, the economy of the 21st century is based on human capital. Therefore, an environment that ensures high living standards and allows people to develop and realise their potential is an absolutely indispensable part of the general investment climate. For instance, the goal of increasing the global competitiveness of Russian cities is highly important in this respect.

Returning to the start of my speech – administrative procedures – I must admit that we need to win global competition rather than simply compete. We must make breakthroughs in some areas, and digital technology allows us to achieve this.

Mr Nikitin talked about the 3D-model of the region that revealed, as a result of cooperation with Rosreestr (Federal Service for State Registration, Cadastre and Cartography), unregistered plots of land, which could increase tax revenue in the region.

Another project that Rosreestr is beginning to carry out jointly with Moscow is on a higher level. It is not just a 3D-model of the region. It is basically the issue of full 3D cadastre registration for buildings, which will substantially facilitate real estate transactions in the capital.

This is one of the examples where new technology makes it possible to raise procedures to an entirely new level. Understandably, it is not always possible to implement these ideas under current law for the simple reason that some areas have not yet been covered. This is why experts are working hard in cooperation with business to change the laws and regulations for the Digital Economy programme.

The part of the programme that we reviewed at the commission meeting with the Prime Minister already contains 53 drafts that should be amended in the next eighteen months. We are ready to listen to the ideas of our regions. If there is a new specific, tech-savvy solution that cannot be carried out because of legal restrictions, we will be happy to include it in this plan.

In closing, indeed, we are now faced with a critical mass of initiatives and goals to increase our investment appeal in the broad sense of the word. Mr Nikitin suggested creating a single centre for monitoring and eliminating normative and regulatory restrictions on business. I support this idea, we will be happy to take on such a function.







Vladimir Putin:

Thank you.

Mr Siluanov, please go ahead.



Minister of Finance Anton Siluanov:

Mr President, colleagues,

Clearly, the country's investment climate is formed in the regions. It includes infrastructure, tax regulations, promptness of opening and running a business, connecting to the grid, and so on.

Much depends on a regional leader’s pro-active stance. There is a big difference between the regions where the governor and his team are looking for investors in Russia and around the world, and are working to create a proper investment climate in their respective regions, and the regions, which spend most of their time trying to get more financial aid from the federal centre. So, motivation tools are being introduced at the federal level to encourage the regions to develop pro-investment regulations in their respective territories.

What do I mean by that? This includes grants that the federal centre is making available to the regions in recognition of their success in achieving benchmarks, including increases in investment, creating new jobs, and increasing the gross regional product. It also includes profit tax refund that is credited to the federal budget as regards profit tax gains for the regions which showed growth for this indicator during the financial year under report, that is, in effect, ensured investment activity.

This also includes accounting, as part of calculating financial assistance, for the so-called tax expenses or incentives provided by the regions, and the incentives which, according to our criteria, fall under the effective incentive indicators. They will be taken into account when deciding on not reducing the amount of financial aid provided by the federal centre.

Additional tax incentives to encourage investment will be introduced in 2018. This includes an investment tax break, the corresponding law has been adopted. Now, the regions can make a decision on granting a tax incentive as it applies to new investment. In other words, new investment will, in fact, be deducted from the taxable profit tax base. This also includes the so-called special investment contract in a new format: for major investors with over one billion rubles in capital, special conditions will be created protecting them against changes in tax legislation, providing preferential terms for stable infrastructure solutions, and preferential taxation terms. This also includes subsidies for the regions to develop industrial parks using the revenue that comes to the federal budget from these industrial parks (the regions will get a refund to compensate for these expenses). We have a number of other tools as well. All we need to do is use them. Unfortunately, we can see that not all regions take this into account in their activities.

And, of course, the budget policy. Mr President, you have already spoken about this that indeed the drafting of patently unrealistic budgets, and the failure to comply with commitments on agreements and infrastructure projects and also accounts payable that are revealed with new governors are creating mistrust and a lack of motivation to invest in a region that pursues such an irresponsible financial policy.

In the last few years the Ministry has been trying to put regional finances in order. We have signed agreements on budget parameters and on debt as a condition of granting financial aid and loans, and agreed on responsible financial policy loan restructuring.

I would like to report that today 74 of 78 regions that can sign loan restructuring agreements, have already addressed us and we will sign these agreements before the end of this year. Four regions have not yet addressed the Finance Ministry because the sums they owe are insignificant. Probably, such debt will not be restructured, but again, this is not critical for the budgets of these regions.

I would like to draw the attention of the regions to the need to observe the commitments under these agreements. There are precedents when agreements on loans and financial aid were signed. In three or four cases they were not fulfilled. This is a systematic failure to comply with your commitments. How can this happen? Naturally, under these conditions it is impossible to talk about investment appeal. In these cases we resort to treasury support. In effect, the Treasury itself determines its priorities – whom to fund in the first, second or third place. Obviously, investors will not be attracted to such regions.

To sum up, there are investment tools, and they simply need to be used. The Government will toughen the responsibility of the regional governors for creating a business environment. Naturally, a realistic and well-balanced budget and sustainable financial policy facilitate trust and success and create the investment appeal of the region. It is necessary to take this into account by all means.



Vladimir Putin:

Thank you.

Please, colleagues, do you have any comments or suggestions?

Please, Mr Zyuganov.



Chairman of the Central Committee of the Communist Party of the Russian Federation Gennady Zyuganov:

Colleagues, three important speeches have been made that I believe, will influence both domestic and foreign policy, including the investment climate [in our country].

President Vladimir Putin has addressed the country with his, I will call it, message Russia Focused on the Future, in which he set forth guidelines on how to lead the country to make it competitive, intelligent, successful and secure.

Speaking at a Chinese Communist Party meeting, Xi Jinping presented a programme for the next 30 years. They plan to eradicate poverty by 2021, when they will mark the 100th anniversary of the Communist Party, and become the world’s leading country within the next five years. [Donald] Trump presented his national security strategy, referring to Russia and China for the first time in the history of the United States as the US’s two main adversaries or, maybe, even enemies.

Never before have UN foreign policy statements like this been made, because [Henry] Kissinger, one of the most intelligent strategists, invariably said: we can never allow Russia and China to cement their common interests. Apparently, global policy in the next few years will be confined to a triangle of American globalism, Russian revival and China’s breakthrough into the future. Much will depend on how fast [each of them] moves.

Mr President, in your Address last year, you set an absolutely correct and realistic objective for the country to reach global economic growth rates. This year, the growth rate for Russia will be 3.5 percent, in China it will be 7.5 percent and the US economy will see global growth. We must do everything to deliver on your instructions because [our] competitiveness, in this case, security, is at stake.

Any country which cares about its future should begin with a law on the distribution of productive forces and population. Given our vast territory, this law acquires a special meaning, and we need it to identify areas of investment activity. If you use a compass and draw a circle with a radius of 1,000 kilometres around Vladivostok on a map, you should know that in our country only 3.5 million people live in this area while 350 million people live in the neighbouring territories.

The recent efforts of the President and the government on developing the Far East – the cosmodrome, a scientific centre, laying our [gas] pipeline – are a good start. However, if we do not triple are efforts in this area, the situation will aggravate for us. This is why we should think together about how to proceed with that line, all the more so given that the current relations with China allow us to implement a number of programmes.

Our Governor Levchenko’s visit to China with Ms Matviyenko has already achieved the realisation of four large investment programmes. And such regions as the Irkutsk Region, the Krasnoyarsk Territory, the Novosibirsk Region could be an engine for the development not only of the Siberian but also the Far Eastern regions. Yet the key territories whose development is essential for us are Crimea and Kaliningrad which are largely strategic territories, and we will have to work together on that.

Mr President, five years ago you undertook, in my view, an exceptionally crucial attempt to plan future work by issuing 11 decrees. They determined development parameters, deadlines and personal responsibility. As we are review the results now, we see that the matters related to security and defence that you oversaw, yielded excellent results, including Syria, equipment renewal, and creating new technologies.

Regarding a number of areas of investment nature, new equipment and productivity, we have not reached the goals that were set. I think one of the reasons for this is the lack of tough and due accountability and personal responsibility. Many issues could have been resolved.

When the most influential people speak at our Duma – you spoke there, so did His Holiness Patriarch Kirill, Nobel Prize winner Zhores Alferov – there emerged a formula which, in my opinion, is the groundwork for exiting the crisis, for the revival of the country. They are the values of the Holy Rus, Russia’s millennium-long statehood and Soviet justice. Where we had those as guidelines, in my view, we had the best results.

For example, 132 delegations came to us for the centenary of the Great October Revolution, and you supported sending these invitations to the delegations. I would like to stress and inform everyone – including the governors, and to thank you as you were very considerate about the issue – all 132 delegations (there were 500 MPs and 60 general secretaries), without exception, supported our foreign policy, the policy of fighting terrorism, the policy of security, the policy of strengthening peace on the planet, all the delegations supported us on Crimea and Sevastopol, and all of them without exception took support for Donbass seriously. We recently sent the 68th [humanitarian] convoy related to the New Year holidays.

The Syrian example shows the result that can be achieved when the state machinery, parties, movements, ministers, service personnel and citizens work towards one and the same goal. Everyone believed that it was impossible to accomplish this task, but it was accomplished in the shortest possible time and extremely effectively. However, we must not rest on our laurels. I saw that you met with your CIS colleagues yesterday. The situation will shift to Afghanistan and Central Asia, and we must therefore display maximum vigilance.

Last time when we contacted you on the Artek issue, you supported all State Duma party factions. It took us three years to turn Artek into the best place on Earth. Brilliant programmes have been introduced. We must thank Crimean leaders who have built 60 new facilities. In 1986, Artek received 38,000 children, an all-time high during the Soviet period, and 40,000 will stay there in 2017. This is an impressive result.

We must consider the supply of milk to children today. We have discussed this issue before. We hope you will support this measure. This would be an effective form of assistance for all families. The agricultural sector has posted a good harvest, but the processing industry is lagging behind. Unfortunately, this excellent harvest has not reduced the price of one loaf of bread even by one kopeck at local shops.

I would like to highlight several threats that all of us will have to deal with, and we will need to provide substantial extra investment. I have assessed the share of foreign capital in the energy sector. Our big country has a cold climate, and this share exceeds 90 percent. The share of foreign capital in the railway engineering sector is about 75 percent, and its share in vodka and tobacco is 53 percent. Most importantly, we cannot give away our sources because they will ensure the country’s overall stability.

I would like to thank you for addressing the poverty issue in full measure. In your last three speeches, including at your meeting with deputies, you set this out clearly.

Incidentally, throughout 2017 the State Duma became more actively involved in resolving the most complicated matters, including the housing renovation or housing equity holders.

I am confident that if we pool our efforts we will obtain the desired result. All of us must be wary of the liberal revanchism. I never thought that all these characters who staged protests in front of the Bolshoi Theatre and in other squares in the 1990s would ever resurface again. All of us must remember that the liberal surge in February 1917 led to the breakdown of the state.

Hitler came to power with the help of liberals and unleashed the war. The very same liberals helped Mussolini, Franco and Pinochet come to power. Therefore, all of us must be vigilant because the Americans are shoring up these people every day, and we can feel it, especially in the media.

And the last point concerning our priorities and investment. Poverty. We must first address the children of the war. There are still 12 million of them; 140 billion rubles is nothing, we can afford it, but I feel ashamed looking them in the eye. Several big anniversaries are approaching, including the victories in the Moscow, Stalingrad, Orel and Kursk battles, and Victory Day.

As regards the defence industry, investment has been quite extensive. Even the smallest cuts are not acceptable. I have reviewed the funding plan. You recently met with the new president of the Russian Academy of Sciences. Please support their initiative. Four billion for the academy and scientists but 80 billion for the Federal Agency for Scientific Organisations which has no idea about scientific inquiry? It allocates the funding to those in favour rather than those who need it and can solve problems. This is not right. There is a respective petition.

As concerns rural areas and construction, these are the two driving forces that always drag us out of a crisis if the money is invested properly. I am appealing to you because of the situation with traditionally ethnic Russian areas. Back in 1990, our population was 81 percent Russian. Now, unfortunately, Russian ethnicity is 75 percent and the death rate in traditionally Russian regions is higher than in others. Therefore, it is important to think about measures to support the state-forming ethnicity which is the core of our security and which is an internationalist nation uniting 190 peoples and languages preserving each and every culture, faith and tradition.

Finally, I wish you a Happy New Year. Thank you to the State Council for the support of this anniversary event. The iconic Red Army’s 100th anniversary is coming up, along with the 100th anniversary of the Lenin Komsomol, the 200th birthday of Ivan Turgenev who comes from the same region as me. Andrei Klychkov is working effectively on the Orel Region’s development, with your support. So, I hope we can deal with the current difficulties and challenges together.



Vladimir Putin:

Thank you very much.

Mr Zhirinovsky, please.



Chairman of the Liberal Democratic Party of Russia Vladimir Zhirinovsky:

I do not want to argue, but the world will not turn to China’s path. No matter how we criticise Europe, its liberalism, freedom in economy, media and culture. Some of these liberties go too far. However, young people will still look up to Europe rather than Asia.

We need to merge our constituent regions to improve investment climate. Consider the case of the Voronezh Region. Under the Tsar it had the population of 8 million. It is 2.4 million now. Why is that? There is a decline even though the region is one of the largest. We need to bring together 30 such large entities under the term namestnichestvo, a Russian word. Most of the terms we use are foreign: region, rayon (district), governor. It is a reason why we are not always treated with respect when we speak Russian. Out of every 10 words seven come from other languages. It makes people think that we are not such a developed nation.

That is not our fault, but our ancestors’. Still, today’s officials borrow foreign terms, and it plays a role. Today’s Council focuses on the investment climate. Where are Russian words in that? We are used to the word ‘climate’, but what about ‘investment’? Why can’t we say it is an issue of ‘putting money into the national economy’? Anyone listening to us right now would understand it, even children.

Transport is the main issue. It is our only advantage. Transport, transport economy — that doesn’t sound good. Transport engineer is not a model job. People want to become actors, or whatever, but not transport engineers, even though the economy stagnates without transport.

Look at the Ural-North motorway. The idea to build it was put forward in 1912, but we will actually finish the project in 2023. It will have taken us 118 years to build a road! How can that even be? Why? Small regions, none of them have sufficient funds. If we had one large region, a territory — whatever we would call it — the road would have been long built. As it is, we just hear the small regions ask for more funds, because they lack them. And the project isn’t going anywhere.

We grew a lot of grain but we do not have enough elevators. If all is well with production, the transport issues will not allow us to deliver the product. If transport is all right, then there are issues with processing and storing. All retail chains are owned by foreigners, and they don’t want our products, but prioritise imports. We need the right professional orientation here.

The cryptocurrency concept emerged. Have students enrolled at a cryptocurrency department September 1? Is there a department or maybe a seminar? In four years, these specialists in cryptocurrency or other currencies will start working for the economy. This will be a trend. Not a single university has opened even one department, and no experts are available. Those who graduate from economic universities in the summer of 2018 should be trained accordingly. We need career guidance and a revision of professions to really improve the investment climate.

Regarding the repatriation of capital, we are doing everything as we should, but we are unable to guarantee banking secrecy. Is it possible to guarantee 100 percent privacy in at least one bank? The Central Bank should open a subsidiary for foreign currency assets. This would guarantee banking secrecy, and no one would know the names of those transferring money or the amounts. In fact, no one would even have the right to ask such questions. In Switzerland, people are jailed for asking how much money their neighbours have. They are not supposed to inquire about other people’s assets. And this information is available all over Russia, including on the internet… Everyone has to file declarations and show how much money he or she has at various banks and accounts.

Look, we need classified declarations. It’s no good telling the whole world where wealthy people live in this country because it will boost economic crime. Therefore, we need 100 percent banking secrecy that can be guaranteed forever by decisions signed and approved by the President, the Government and the parliament. And investigators should deal with criminals alone, if any.

And of course, foreign investors. And the problem here is that they should not push out local producers. They are having a hard time, and I understand that inexpensive foreign money is issued quickly for longer terms. Nevertheless, we must not allow this to hamper our investors.

We have done everything right with regard to the land issue and cadastre values. But why do cadastre values exceed market prices by four times? The cadastre price of my friend’s land plot is 80 million, and its market price is not more than 15 million. How will he sell his land? People want to buy it for 15 million, but the official cadastre price is 80 million, as determined by the authorities. But who has determined the price? You can understand a 10, 20, or even 30 percent price gap, but a four to five-fold increase is a bit over the top! Who did this? People will stop buying and selling anything; they will be afraid to pay exorbitant taxes.

As I see it, we have some positive information. The Smolensk Region is showing a favourable investment climate. As far as I know, this is an objective estimate. The region is creating jobs, and it boasts a good information website, the best, in my opinion.

There is progress with regard to the Far East, but I propose that we introduce a tax-free economy on Sakhalin Island. We can try it, and if it proves successful, we can extend it to the entire Far East and then Siberia. Step by step. Remember, Sakhalin is like a ‘Utopia’ island. We could build Communism within the limits of one island, which we would not be able to do on the scale of our big country. The same goes for new trends in the capitalist economy. The island is small. Its population is under 1 million if I am not mistaken. It is isolated. We could try a tax-exempt economy there. But all of the revenue must be invested in Sakhalin. I can assure you the outcome will be good. The island will attract more people. Many want to become millionaires fast but legally. Once it is a success, we can extend this plan. Perhaps in 30 or 40 years, it will reach Kaliningrad.

The same applies to other aspects. I was very bothered by the fact that the regions with large debt to private banks were offered cheaper loans but refused to refinance. This is the first indication of a corrupt scheme. “Why are you keeping your region in debt chains? Here, pay it off, the new loan will be cheaper. You will pay off your debts faster.” “No, I don’t want to.” It means the banker has direct links with the decision-makers. The authorities in the regions that refuse to refinance must be replaced as soon as possible and investigated by the Federal Security Service and prosecutors.

And last, fraud. Here is an example: a new Bryansk to Moscow flight. A promotion campaign offered the cheapest tickets for the destination. Local competitors such as the railway bought all the tickets. The planes were sold out but flew empty. Who benefits from this? Of course, passengers want to reach Moscow in 45 minutes. But no, they must ride a train for four hours. Somebody must investigate this.

Here is my advice. I am not saying that we should encourage ‘fingering’ or informants. But I think every ticket salesperson should inform their management and the deputy governor in charge of transport about “an organisation that buys all the tickets.” Why on earth did you buy 200 tickets? Is your whole company taking a business trip to Moscow? It is just so easy to expose. Staff must inform their management and the management must inform the city officials about such ‘surprises.’

Another example. A plane flies from Nizhny Novgorod to Nice. A private charter – no problem. Business people – no problem. But it is the city mayor’s office and officials that are on the plane. Why are you flying to your holiday destination on somebody else’s plane and on somebody else’s money? These things get reported to us. If airport officials informed the governor about a group of public officers who did not buy their own tickets (meaning, the plane was paid for), it will be easier for us to expose these kinds of violations.

We are not forcing anyone to inform on others. This is about the recovery of our economy, discipline and preventing embezzlement and fraud. It requires improving law enforcement. Security comes before economy. If economy came before security I think there would be people who would take advantage and line their own pockets and the money would drain abroad.

I am finished now.



Vladimir Putin:

Thank you.

Mr Mironov, please.



Chairman of A Just Russia party Sergei Mironov:

Mr President, colleagues,

Today we are discussing a very important practical issue. Some very useful and practical proposals have been made by the head of the working group and two governors, and the heads of relevant ministries have spoken very clearly and in a business-like way about this crucial issue – the regions’ investment attractiveness.

I would like to devote my short speech to four other concrete aspects of investment attractiveness that are of vital importance for many regions.

Speaking about the investment attractiveness of agricultural regions, I believe that our agricultural achievements allow us to do the following.

First, we should revive our selection system. It is unacceptable that we lack our own breeding animals and stock seeds. More specifically, 98 percent of hatching eggs are imported. The situation with agricultural sciences is improving, though very slowly. Selection and agricultural genetics are not just a business but a vital condition of the national food security.

Second, our regions, the Russian regions, are capable of producing large amounts of organic foods. As of now, only 5 percent on the global organic foods market come from Russia. A law on organic foods is being discussed in the Government. It is a very good law, which we really need, but its implementation requires serious investment.

I believe that the economic and social effect of this investment will be enormous. We have created a system of agrarian education, which we did not have before. It comprises 54 universities. I believe that the farms attached to these institutions must be able to receive state support, which is provided to the agricultural sector in general. Where there are people, there will be investment.

Third. A huge area, specifically, 57.7 million hectares are accounted for by Rosreestr (Federal Service for State Registration, Cadastre and Cartography) as belonging to agricultural producers you can’t find. That is, its ownership is documented but the owners are nowhere to be found. Another 30 million hectares are not assigned to anyone at all. Imagine the area of Spain that belongs to ‘dead souls’ or Italy that is hanging in the air because nobody knows whose land it is.

Therefore, I believe it is necessary to enact into law the deadline after which such unclaimed farmland must be transferred into municipal property. We must also specify who has the priority for a discount price or gratuitous ownership to such land.

The second issue concerns the development of the northern territories. An area’s investment appeal largely depends on its links with industries and production in other regions. Let us take the northern territories. Despite understanding the importance of production chains, the Arctic projects hardly ever involve the mainland production capacities – particularly, the southern Siberian regions.

Each territory seems to be isolated. Last year, a directory of Siberian companies’ products and services for the Arctic projects was released. However, the majority of contractors and subcontractors are still foreign, often not for a good reason and despite our counter-sanctions. The development of the northern territories can produce a multiplier effect similar to that of the defence industry.

Another matter concerning the North is the remuneration policy. Due to a mess in the system of benefits and social protection for northern workers, which has continued since the mid-1990s, only 12 out of the 36 articles of the North law are actually in force. Russia’s North has lost its former appeal as a source for earning good wages. As many as 1.6 million people have already fled the North. My belief is the North cannot and must not be developed by people working on a rotational basis. If the local population’s income falls the people will leave and investors will not go there.

And the fourth subject is geological prospecting. Indeed, geological prospecting ranks among promising regional investment projects. The Accounts Chamber estimates that geologists have studied just 23 percent of Russia’s territory to date. One is worried about the absence of the required number of implemented prospecting projects, the insufficient volume of geological and earlier-than-planned geological and physical and geological survey works.

We have managed to make headway in providing information support for geological prospecting operations as well as to pass legislation simplifying access to geological information for all market players.

A state information system listing geological information about natural resources has been created. This is a highly important step for the establishment of a geological information market that exists in many countries.

However, regional geological policies are lacking, although the law on natural resources delegates specific powers to Russian regions.

I believe it is high time to seriously amend legislation on managing mineral deposits. First of all, we need to pass legislation that would regulate the powers of the executive branch for stockpiling strategic reserves of mineral resources.

Moreover, geological prospecting companies must be able to more easily access promising sectors from the unallocated fund. The pricing system for geological prospecting operations also needs to be upgraded.

Thank you.







Vladimir Putin:

Thank you.

Mr Neverov, you have the floor.



Deputy Speaker of the State Duma and Head of the United Russia Party Duma faction Sergei Neverov:

Thank you, Mr President. Colleagues, all previous speakers have dwelled upon the subject of today’s meeting in sufficiently great detail. I’ll make it very brief.

Many Russian regions continue to receive federal-budget subsidies. Of course, this factor influences overall economic growth rates because the country’s well-being depends on the success of every region. Doubtless, there are leading regions that lead the way in terms of their popularity with investors.

Mr President, you have just noted this, and substantial attention is now being devoted to the regions of the Russian Far East that have a tremendous potential. But every region is unique, and I am confident that each of our 85 regions has a potential that needs to be unlocked and displayed.

The creation of an investor-friendly environment that would guarantee safe investment is an important aspect. And all of us realise that a favourable investment climate is a combination of the most diverse factors, and we have also discussed this issue today. This includes a stable tax system, legislation and regulations. And the business community must sense stability.

I want to say that the business community must sense stability, including political stability. And I would like to address my colleagues, leaders of parliamentary parties, to ask them to select regional leaders in a more responsible way because their current regional agenda sometimes negatively influences the investment climate.

This includes spreading rumours that any specific regional governor will resign soon. Various media outlets publish these stories all the time, and the situation is being constantly incited. And, of course, investors are not attracted by these loud and frenzied statements which sometimes aim to boost media ratings.

I am confident that we need to prioritise the region’s interests and its future, rather than time-serving political ambitions. The region’s prospective long-term investors are deterred by the lack of confidence in the positions of incumbent regional leaders and by the apprehensions of those who invested under the current leadership.

I am not talking about only one agenda. Each of us has a right to express his or her opinion on various methods for building a rich and prosperous Russia. But we must do our best to avoid actions capable of destabilising society and, as I have already said, making it possible to implement one’s own personal time-serving political interests. In this context, substantial responsibility rests with representatives of political and parliamentary parties.

I would like to say that current national challenges must unite us, despite our political views because national interests are more important than party interests.

Happy New Year, everyone!



Vladimir Putin:

Thank you. Mr Titov, you have the floor.



Presidential Commissioner for Entrepreneurs’ Rights Boris Titov:

Thank you very much, Mr President.

In his report, Mr Nikitin spoke about the shadow economy, or, as we say now, the “garage” economy and called for increasing liability, in particular, for illegal business activities according to Article 171 of the Criminal Code. The problem is huge indeed. According to our institute’s estimates, trade in the shadow sector is worth 33.6 trillion rubles, or 39 percent of the GDP, which speaks volumes about our economy.

Of course, we should demand full compliance with the law, but we must realise that in most cases legalisation is fraught with many risks for small businesses. First of all, it is fraught with losses, because it is unprofitable to work while paying all the taxes, and, of course, administrative and even criminal pressure.

The Stolypin Institute for the Economy of Growth has drafted a programme, because it should be a comprehensive programme, which, on one hand, creates incentives for entering the legal sphere, and on the other, increases liability if it is not done. The general direction is clear, and we should only strengthen separate measures.

For example, we should set the simplest, most comfortable and profitable terms for the smallest, micro business, or as we say, individual entrepreneurs with no right to employ. We have been talking about it for a long time, but I would like to repeat that it would be a serious step in legalising businesses.

Also, of course, the main problem for the small shadow businesses is to gain access to money, resources and loans. For them, for the shadow businesses, money is very expensive. So, if we can give them some proposals on [creating] a special fund similar to the Industrial Development Fund, with rates at five percent for five years, this might very much interest them in entering the legal sphere.

Industrial infrastructure, which Mr Oreshkin talked about, is very important, but, unfortunately, we have already created enough of it, and it is very expensive for many people. I mean we should create more business-friendly and cheaper infrastructure for “garage” businesses, to make them come out.

And the main thing I would like to say: we should give them time. With all these conditions, which we, of course, should set clearly and correctly, we will give them a chance to become legal and free themselves from the liability they might face in connection with their past. This concerns several articles. In particular, Article 171, illegal business activities, but also several articles of the Administrative Offences Code.

If we give them time, if they come out and work legally, they will not be responsible for the past. But if they commit another violation or do something wrong again, that is when they must bear full responsibility according to the criminal and administrative legislation.

One more thing I wanted to say. Mr President, we are talking about the fact that the poverty rate in our country is very high. 20 million, you said. But in fact, this shadow economy hides among these 20 million. We have 15 million people who do not pay taxes at all; we see no income. So, statistically, people who are not really poor are often included in this figure. Thank you.



Vladimir Region Governor Svetlana Orlova:

Mr President, may I?



Vladimir Putin:

Yes, go ahead.



Svetlana Orlova:

Mr President, colleagues,

The matter that the State Council is discussing today (I believe, everyone would agree) is of great importance. Mr President, I would like to say that both the Russian Government and Dmitry Kozak’s Commission conducted a very meticulous piece of work. We held many meetings, had our disagreements, but now have reached common ground, which must be mandatory for all of us. Regarding the replacement of business loans. Each region had its own results of addressing this subject, some regions have debts, some do not. In any case, there are certain things that stimulate an investment climate today.

For example, I would ask for those 20 billion rubles allocated for socioeconomic development of the regions – this year there were not 20, but 40 regions, Mr President. The regions were given an incentive, and the Ministry of Finance, the Ministry of Economic Development, and Mr Kozak as well, developed such a scrupulous approach. And then there was not enough for northern regions, but our colleagues reached an agreement and revised everything. Our budget was cut a little, but this served as a very good incentive. We allocated most of the funds, Mr President, to address social needs.

Regarding the attraction of investments. Let me give you an example. Six months ago, we presented the Leningrad Region and Karachayevo-Circassia before the Council of Europe. The presentation of our regions, our territories was done brilliantly; all of us already have planning offices, thanks to the Agency for Strategic Initiatives, Industrial Development Fund, SME Corporation, and the export centre, too. Mr President, today our export centre is conducting a great deal of work to promote our products. Two years ago we used to export to 90 countries, but today our rather small Vladimir Region is exporting to 110 countries. Many other regions are also developing, as you already mentioned.

What should we also mention? Well, Mr President, on December 21, we commissioned a new factory. So, I am reporting: it is producing the first NGV-fuelled buses in Russia; everything is automated. We are now to close a special investment contract, the Ministry of Industry and Trade is supporting us, we have leasing funds. I know that Tatarstan is making progress in addressing this matter, too. We have 3.6 billion, Mr Zhirinovsky, I’m responding to your question, these are the funds of a Russian investor, and we have a lot of Russian investors in the region already.

But if we switch to buses manufactured in our own country, to Russian fire engines, tourist vehicles, vehicles for medical staff, what kind of money are we going to save? That is right: budget money. And we have to admit, Mr President, despite the complicated situation with guaranteeing suppliers, with provision of gas, water and heat supply, the Energy Ministry and the prosecutor’s office helped us, and you too, Mr President, and we solved a number of issues.

In general, Mr President, I would like to say that our investments have not decreased. The ASI ranks us in 15th place in terms of investment, even though we have no oil or gas. Over the past five years, we transferred 12 billion rubles to the budget. It is thanks to you and to all our colleagues that we have put the issue of financial stability and investment at the top of the agenda.

I wish everyone the best of luck, love, harmony and health.







Vladimir Putin:

Thank you.

Ms Golikova, will you speak about love as well?



Accounts Chamber Chairperson Tatyana Golikova:

Yes, I will speak about love of finance.

Mr President, colleagues,

I would like to speak about a matter that has not been touched upon today, although it is very important for balancing regional budgets, on the one hand, and for the investment climate, an issue on our agenda today, on the other hand.

As of now, the distribution of financial assistance is not based on the regions’ budgets but on the consolidated budgets of constituent entities, which means that we also take into account the municipalities that comprise constituent entities.

The debt restructuring measures we are taking now concern the public-sector debts of constituent entities but not the debts of municipalities, whose finances fall within the exclusive competence of the regions.

Unlike the regions’ public debts as of December 1, which is the most recent data, where the share of commercial loans has decreased to 27.4 percent – we hope that this share will continue to decrease – the municipalities’ debts are quite another matter. Although they are smaller overall, only 343 billion rubles, the share of commercial loans is much larger, 63 percent.

Regrettably, some regions have no commercial debts, but the municipalities they incorporate do have them, and these debts are quite large.



Vladimir Putin:

Are you referring to the debts of municipal organisations and various regional publicly-funded institutions?



Tatyana Golikova:

Yes, I am. Regrettably, the authorities either did not get around to this problem, or it does not fall within the federal competence but concerns a different level of public authority as per the Constitution. And it is probably more difficult to deal with this problem at this level than if it fell within the federal competence.

In this connection, I would like to bring your attention to yet another matter, which we are not discussing, however, it is glaringly obvious and it has to do with efforts to balance the regions’ overall consolidated budgets.

Since the delineation of authority reform, we have delegated 113 areas of responsibility, which fell within the terms of reference of the Russian Federation, to the regions. For this purpose, 1.5 trillion rubles were allocated from the federal budget in 2012–2016. This is quite a sum. What I want to say is that given financial constraints, some regions in the Russian Federation have devolved the delegated responsibility down to municipal entities.

Today, work is being carried out at the federal level to oversee, so to say, how regions are exercising the delegated authority, however, nothing is being done to analyse this work. As of January 1, 2017, since the annual figures for 2017 are unavailable as yet, 7,429 local government bodies as well as other organisations exercised authority delegated to them by their regions.

I would like to remind you that we have mainly delegated authority related to, among other things, social security and the provision of social services. Regarding what you just said, that they also started running up credit debts, the reason for this is the same, that is, an unbalanced budget policy but this time at the municipal level. It seems to me that it is crucially important to establish a liaison between the federal government, regional authorities and municipal entities, although we are aware of all the difficulties associated with this, as we now have 85 regions and nearly 22,000 municipal entities. Of course, it is extremely difficult to administer this work, nonetheless these matters may move to the forefront as the regions settle their debts to the federal government and additional funds are made available to them. This should be given special attention. Thank you.



Vladimir Putin:

Thank you.

Mr Kondratyev, please, go ahead and then we better wind this gathering up.



Krasnodar Territory Governor Veniamin Kondratyev:

Thank you.

Mr President,

Indeed, the investment climate depends on the local governments in the Russian Federation constituent entities, self-government bodies. But, Mr President, here we need your support. In what sense? Mr Nikitin already said that certainly the natural state monopolies such as enterprises, or power or utility providers also have a serious impact on the investment climate. Sometimes, the connection time as well as the limits make a real difference to us.

Another, significant aspect – the local federal ministries and agencies. They also contribute to the investment climate. I have a request to make: could you include the work of the federal natural monopolies and the regional power and utility providers, and local ministries and agencies in the rating compiled by the ASI. This is of primary importance to us. Then we will at least be working on a parity basis. Otherwise, we are trying and doing our best, but there is a problem, which is not always obvious, but it is sometimes of crucial importance. And here, not only me, we ask for your support.



Vladimir Putin:

Thank you. That was a good and useful proposal.

Mr Medvedev, over to you.



Prime Minister Dmitry Medvedev:

Thank you, Mr President.

I’ve got three bits of feedback to what we heard here. Mr President talked about the need to work on a strategy of long-term multi-dimensional development through to 2025. It is nearly ready and will be considered soon at a Government Cabinet meeting and made public.

As for the problem of numerous decisions that have to be coordinated through the Russian Ministry of Natural Resources and the Ministry of Culture, we are aware of this. I have given instructions and we must study this matter and maybe abolish the need for coordination on non-essential things because it does undermine the investment climate development efforts.

And finally, somebody mentioned the property tax here. We could consider the future of this tax in the context of improving the tax legislation, which is in our plans following the President’s instructions.







Vladimir Putin:

Thank you very much.

I will make a few comments as well and then say a few words at close of the meeting too.

First of all, I agree with what Mr Kondratyev said. Indeed, much depends on the efficiency of the work concerning the natural monopolies in the territories, where their enterprises are located plus how efficiently the local federal agency bodies work. To a certain degree, this is a restriction in the regional teams' activities. This is absolutely true. And I would like to ask you to consider this while developing a general assessment of what is really happening in the regions.

This is as true as what Ms Golikova has just pointed out. We don't take into account the debt of the regional budget-funded institutions while it poses a growing problem for the municipal entities. I would like everyone, heads of the corresponding departments and, of course, our colleagues in the Russian regions, to pay attention to this as well.

As regards natural gas vehicle (NGV) fuel, this is certainly a very important direction. Gazprom has started to switch its transport to NGV fuel, and this immediately resulted in the company drivers' massively leaving their jobs as they no longer can get their hands on this fuel by syphoning it off. And what about the army? What is occurring in the Defence Ministry as a whole and other agencies? I think any comment here is superfluous.

Secondly, NGV fuel is certainly more eco-friendly. We have great competitive advantages in this regard as we have an abundance of this type of fuel. And selling oil and oil products on foreign markets is even more profitable then selling natural gas.

NGV fuel can be used domestically to a great economic effect and this will create absolute competitive advantages for the national economy as a whole. This is why further efforts should be taken to support the development in this field both at the government and regional levels. I would like to point out that this is very important.

Now step by step. About the “grey” economy. Boris Titov said that we have, according to their data, about 39 percent of the GRP. You know, there’s nothing strange about that. In some European countries, it is 40 percent. I heard it from their leaders. That’s what they said. I mean the situation is not unique for Russia, but bad. We must do better than them, and for this we must get rid of this “grey” zone.

I agree that to get rid of it we must not use repressive measures only, making it work its way into the “white” zone; we must create conditions. This depends on the Government, but also on what is going on in the Russian regions.

In fact, this is what we are trying to do. Let’s say, in resolving the matter of capital amnesty, we create conditions for people to incur no expenses when deciding to transfer their business or capital to Russia, and we have additional proposals in this area.

And inside the country too, the decisions, let’s say, which were taken concerning individual entrepreneurs, are also based on the same principles: to introduce a grace period and to save people from possible damage or persecution, God forbid. This is how it works. But, of course, we should expand this practice.

Now about the Central Bank’s recommendations or instructions to commercial banks on easy-term lending to the Russian regions. I do not know how it is possible, but this is what I would like to point out. We have already talked with the Central Bank’s Governor.

What is happening here? Commercial banks give any loans to the regions at rather high interest rates, but it is not clear why the rates are high, and not clear why they extend these loans so freely, even if the region is going through a difficult financial situation. But it is unclear only at first sight, while in reality, everything is clear and can be easily explained: because the state gives guarantees. They are practically giving away loans with a state guarantee.

And here, of course, we should take measures to stimulate accounting when extending loans to the regions with guarantees provided by the state, on one hand; and on the other hand, we should examine some limitations we could introduce in this regard, because a commercial bank will not give money to its customers for no reason whatsoever. It always analyses the financial and economic situation of the company. This is not somehow taken into account when we finance the regions.

I have already asked the Central Bank and the Finance Ministry to think about it and I am now asking them to make proposals.

And now, I would like to say a few words about what, I think, the Moscow Region Governor’s said – the creation of priority development areas all over the country. We have already established these areas. Theoretically speaking, this idea is good in itself. These areas are good, and they have won a reputation for themselves. In reality, we can see that they are developing successfully.

But we did this to improve the investment climate in the regions which we need to develop, in the first place. First of all, this concerns the Russian Far East. If we spread these privileges to the entire Russian territory and economy, then what advantages would be retained by high-priority areas on which we are focusing? These areas would simply disappear. In that case, we would have to stipulate some other privileges for them.

Mr Zhirinovsky has suggested exempting Sakhalin from all taxes. I would simply like to tell everyone that the Sakhalin Region ranks among the best regions in terms of its economic results and financial performance. In effect, the region is faring much better than most Russian regions. Local authorities collect substantial tax proceeds, and regional companies develop rather intensively. As you know, this includes energy companies. If exempted from taxes, the region might turn into a tax haven.

But chances are that the entire Russian economy would immediately reregister in that tax zone. However, these ideas have some common sense, and all we should do is focus on their implementation.

Various federal departments voice excessive demands to regional agencies. We need to eliminate this practice, including the number of wall clocks and mirrors that these agencies should have. It is good that they are not telling officials about the colour of their pants and other underwear they should choose. This is already funny. And, of course (Mr Medvedev has noted this), we need to pay attention to this, and this excessive regimentation of all aspects is pointless and harmful.

We have talked about the growing network of unitary enterprises today. Some of our colleagues have said this. I fully agree with them that it is a dangerous trend both at the federal and the local levels. The growth of these enterprises will create a situation where they will take over the powers of the authorities. Instead of doing their duty for the people by developing the economy, the authorities transfer budgetary funds to these enterprises and eventually lose control of their administration.

In addition, these enterprises receive certain benefits, which destroys competition and increases costs. We all know the perils of delivering a deadly blow at competition. It means no investment in other companies. Indeed, why invest when new unitary enterprises will be created to take over the market? Why invest in creating new production facilities or encourage production? Completely useless. This is what we need to eliminate. I want you to take this into account. We have already discussed this matter with the Government. I urge the regional heads to monitor this situation.

As for labour efficiency, I’m glad Mr Zyuganov has raised this issue. Of course, it is a vital component of economic development. Of course, it can be said, or rather, we must admit that we have not reached our targets here.

During a recent meeting with the Economic Development Minister, we pointed out that labour efficiency decreases as GDP declines, because it falls in those sectors where it was expected to grow predominantly. Now that the Russian economy is recuperating and has entered a period of growth, and these trends are growing stronger, we need to seriously consider a way to enhance labour efficiency, which is a key issue of economic development.

By the way, I would like to say it again, although we have said this more than once: the growth of wages and real incomes must be based above all on the growth of labour efficiency.

Wed talked about agriculture and the harvest today. The harvest is very good. We should congratulate our farmers on this. It is their achievement and their result.

What should we point out in this connection? The harvest is record high, but what are the grain prices? I can understand the decisions on grain intervention and the like. But we also have other instruments for supporting our farmers, and now is the time to put them to use. Or we should use grain interventions but at the same time support agricultural producers, so that the results of their hard work will not create new economic problems.

As for why young people do not choose engineering professions at universities. They already do. There has been a significant increase in the number of applicants to engineering or technical universities. This is very good news.

Surely, a special focus must be placed on working with staff for the training of quality specialists in the labour and technical professions. This is important. We must support this network in the regions and bring it closer to industrial centres and new industrial enterprises.

We have discussed this many times, what needs to be done to achieve that and what we need to focus on. I will not elaborate on this now. I just want to stress the importance of this in our work.

As regards enlarging the regions. True, from an economic viewpoint, this is often expedient. First, we have the Constitution and the necessary laws. We cannot and will not impose this without asking. Second, we have had an enlargement of regions in our history. In Soviet times, you know, Lenin's idea on how the Soviet Union should be created got through.

In fact, large and strong super regions were created in the Russia of those times. It does not matter what its name was back then, it was the Soviet Union, the fact is that large regions were created. Moreover, they were granted the right of exit, which was fixed in the 1924 Constitution. And later, all this moved from one constitution to another. The result is well-known: the breakup of the Soviet Union.

True, there were many other reasons, but this bomb also took its toll. Therefore, we must, together with the Federal Assembly deputies, consider both the pluses and the risks and make optimal decisions, but we must be very careful in addressing such matters.

Now a few words about the north. I will not go into details. Indeed, the work is the north has become largely unattractive. This is true. In Soviet times some incentives were created, but this was done in the framework of the planned economy when everything belonged to the state. Now it is not possible to create the same conditions with the old methods in the new economic reality. Building new cities beyond the polar circle…

As you know, the ecology system is changing and the climate is changing. What shall we do with the many towns and villages that we built on permafrost? Many cities are built on piles. They are driven into a permafrost that is melting. This is the first point.

Second, is it worth building new housing, new cities and permanent structures in the Extreme North and moving people there? Maybe, in some cases this makes sense. Maybe.

As you know, we have now started organising the Northern Sea Route, this transport corridor. We are doing this in a comprehensive way, ensuring security and protecting nature, bearing in mind that we are increasing economic activity in these hard-to-access northern regions that are very sensitive to any interference in nature. But I assure you that sometimes this rotating scheme is much more efficient than an investment of billions and maybe hundreds of billions of rubles in major construction work.

Here is a good example of regional development – the well-known Yamal LNG project. People are working on a rotating basis and earning good money. They are working in good conditions – these conditions are really very good. Maybe they could be better and they will improve them further but they are quite decent. Gazprom has many examples like this. Other companies have them too, so we should look at this on a case-by-case basis.

And finally, I must agree with one of the last speakers and would like to ask you to support what has been said. To make investment conditions reliable and attractive we need a stable tax policy, different administrative and legal procedures and political stability. Without these there will be no investment.

Who will invest in a region or a country if nobody knows what will happen there tomorrow? So, we do need changes and some progress. But all this should take place in a calm atmosphere via evolution whereby each step forward will be predictable.

Thank you very much. Happy New Year to you!





The source of information - http://en.kremlin.ru/events/president/news/56511
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Old December 30th, 2017 #730
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Meeting with Head of Aeroflot Vitaly Savelyev



Vladimir Putin had a working meeting with General Director of the public joint-stock company Aeroflot – Russian Airlines Vitaly Savelyev to discuss the company's performance in the outgoing year, the situation concerning the air transport market, as well as further plans for expanding the holding company.



December 28, 2017 - 15:40 - The Kremlin, Moscow









President of Russia Vladimir Putin:

I am aware that you are prepared to report on your company’s performance in 2017, but let us begin with a subject that worries a great many of your passengers – rates, flat rates.



General Director of Aeroflot – Russian Airlines Vitaly Savelyev:

Mr President, you are absolutely right.

First of all, allow me to report that Aeroflot is now well and truly back in the global civil aviation club 30 years on. In 2009, when I joined the company, Aeroflot ranked 68th internationally in terms of passenger traffic, and now we are in 20th place, that is, we have joined the top twenty international leading airlines. This is an important achievement not only for us but for our country too.

I will tell you a little later separately, if I may, about the current developments on the market. Pobeda, our low-cost carrier, which was created with your participation, has shown impressive results.

With regard to flat rates, in fact, they are very popular. We fly to five cities in the Russian Far East, Kaliningrad and Simferopol. Our passengers, the Russian people, really like it. This year, we carried 1.5 million passengers using flat rates and since the beginning of 2015, 4.5 million passengers.

Since the passengers are disappointed that we run out of flat rates fairly quickly, we have a proposal, if you agree, to transfer our airline Rossiya to flat-rate arrangements next year as well. That will provide about 75 percent of additional seats, and we will thus make an equivalent of 900,000 seats available on the market.

The only thing is, there will be a small difference in prices, considering that Aeroflot is a premium segment, and we will have to raise the rate to the Far East from 22,000 rubles to 25,000 rubles for a return trip. Rossiya airlines will then start flying at our current flat rate of 22,000 rubles for a round trip.

Aeroflot will leave flights to Kaliningrad and Simferopol without adjustment for inflation. If such a proposal is interesting, we are willing to consider it, and make it happen through our airline’s subsidies.



Vladimir Putin:

Good. Let us do it.



Vitaly Savelyev:

May I ask you my second question straight away? We want to suggest to you what we see as a good idea. Next year is very important for us – Russia will be hosting the FIFA World Cup.



Vladimir Putin:

Will you let fans travel free of charge?



Vitaly Savelyev:

We could but…



Vladimir Putin:

I know this is a good idea – you will charge them one ruble.



Vitaly Savelyev:

No, not free of charge Mr President. We will charge them five rubles. We want the World Cup to be a great success.

We will charge all the Russian fans five rubles (including all charges and fees) for a one-way trip on all Aeroflot routes to any city that is hosting the World Cup matches. To avoid hype, we will sell tickets three days before a match and three days after it.

We would like to ask you, as we noted in our letter, to instruct our partner Roscongress to help us distribute air tickets using FAN IDs and match tickets.



Vladimir Putin:

Are you referring to the matches of the Russian team?



Vitaly Savelyev:

Yes, the Russian team alone.

This amounts to about 70,000 seats for us. Naturally, we are pegging hopes on our team. If our team gets to the finals, this number will increase. This is why we proceed from this figure.

We think our team should perform well and its fans should be happy. This is why we are submitting this initiative to you. If you support it, we will start selling tickets to our fans as of January 1.



Vladimir Putin:

All right.







Vitaly Savelyev:

If I may, I would like to say a few words about our company.



Vladimir Putin:

Yes, go ahead please.



Vitaly Savelyev:

Mr President, I told you that we have become one of the world’s top twenty companies ahead of time. We were supposed to reach the required parameters in 2025 but we did it this year. We carried over 50 million passengers, including 25 million in Russia.



Vladimir Putin:

What place do you occupy in Europe?



Vitaly Savelyev:

We are seventh in Europe. In 2009, we were 15th. Europe has major players but we have the time. We should be among the world’s top five companies by 2025. I hope that we can achieve this before that year.

This year was particularly generous to us in terms of awards. We received over 60 awards of all kinds, but I will focus on a few of the most interesting ones.

The first award concerns Aeroflot becoming the world’s and Russia’s strongest aviation brand. The strongest brand is also the most recognisable brand with particular customer loyalty. We are pleased to know that we represent Russia not only in the aviation business, but all other businesses as well.

With regard to the second, just a month ago, we received five stars from the US company APEX, which is comparable to Skytrax in Europe. We are a five-star company by American standards, and the decision was made by passengers.

We also confirmed our four-star rating assigned to us by Skytrax. It has to be confirmed annually, which we managed to accomplish this year.

On December 10, we received a World Travel Award, also known as the World Tourist Oscar. We are the world's leading aviation brand. This brand is indicative of loyalty as well. Importantly, we received this award up against Emirates.

We have also become China’s favourite foreign airline. We managed to achieve it this year. We outdid the five-star Qatar Airways, and this is also important for us.

The world’s largest traveller website recognised us as the best in Europe, and our business class as the best internationally.

A few words, if I may, about the Aeroflot Group. First, I would like to thank you for your support and signing the laws on black lists, which we discussed about a year ago, and the law on baggage-free rates. All of that makes it possible for the Aeroflot Group to develop on a fairly sustainable basis. Aeroflot remains a premium segment airline. We will have transported about 33 million passengers by the end of this year.

Rossiya Airlines, our subsidiary, works in the middle-class segment and will transport 11 million passengers; Pobeda will transport 4.7 million passengers, and Aurora Airline 1.5 million. In general, we will have transported over 50 million passengers by the end of 2017.

On a separate note, I would like to take a moment and say a few words about Pobeda. Initially, with your support, we created Dobrolet, which fell under sanctions later. We decided not to waste our time and just reformatted it by launching Pobeda. In fact, Pobeda turned out to be a victory for us [Pobeda means victory in Russian – Tr.]

This company is an absolutely independent market participant. We do not finance it, nor do we support it in any other way. It has been profitable for the second straight year. This year, we expect it to bring a net profit of 3.5 billion rubles, just like in previous years, half of which will be paid out as dividends.

In two years, Pobeda carried over 11 million passengers, including over a million that had never travelled by air. They were railway passengers on which we relied. The passengers are content with Pobeda.

There are many questions, but there is one good thing about Pobeda – it is the world champion in using American Boeings. It keeps them in the air for 16 hours. It takes at most 36 minutes to turn them around on the ground. They are 95 percent full.

The main point is that Pobeda does not depart from Vnukovo alone where it is based. It also flies from other Russian cities – St Petersburg and Sochi. We are moving it further into the central part of Russia. Today Pobeda makes half of its flights from cities outside the Moscow hub.

I think this is an interesting slide (showing slides) where we show the development of the European and US markets – from five to 6.8 percent. The figure for the world market is 6.8 percent.

Mr President, in our estimate, our market will grow by 21 percent for the first time. I am referring to the civil aviation market, which is very important because people primarily give up travel when they are running out of money and begin to save. As you can see, the decline started in 2015.

The Aeroflot Group was continuously growing. It was growing steadily but slowly. This year we see considerable growth, and if it proves that high, as we expect, it will reach 121 million, and this will be the biggest passenger traffic figure in the past nine years.







Vladimir Putin:

I hope the purchasing power has grown a bit.



Vitaly Savelyev:

The economy is doing better, and the purchasing power has grown. The airlines that openly engaged in dumping quit the market. In general, the situation is getting back to normal, and we are witnessing this. As I said, Aeroflot will carry 33 million, and the main point is that it is not a monopoly or dominant company in the market. Our flights make up just 41 percent of the market. We have competitors on every route.

We are trying to preserve our competitive advantage that is linked with the upgrading of our fleet. Our fleet is the youngest in the world (the average age of our aircraft is 4.1 years) among the companies with over 100 aircraft.

Mr President, this diagram shows (showing the diagram) the passenger loyalty index. We have measured it since 2009. We are behind Emirates only by two-tenths of a percentage point. Other European airlines are two or three times below us.

One percentage point of this index gives us the revenue of 1.3 billion rubles. In other words, Aeroflot is working well according to its own passengers.





The source of information - http://en.kremlin.ru/events/president/news/56519






Meeting with Rosselkhozbank CEO Dmitry Patrushev



Vladimir Putin had a working meeting with Rosselkhozbank Management Board Chairman Dmitry Patrushev, who informed the President about the Bank’s 2017 performance and long-term projects to support the agro-industrial complex.



December 29, 2017 - 13:45 - Novo-Ogaryovo, Moscow Region









President of Russia Vladimir Putin:

Please tell me about your Bank’s performance, its loan portfolio and main projects, primarily those supporting the agricultural sector.

I know that you wanted to tell me about support for small rural businesses. Please go ahead.







Rosselkhozbank Management Board Chairman Dmitry Patrushev:

Thank you, Mr. President.

With your permission, I will make two presentations. The first one deals with the main bank performance indicators, and the second one shows projects that were launched in 2017 and those scheduled to be launched.

First, let me thank you for supportingRosselkhozbank, its additional capitalisation allows us to provide the economy with the same loan volumes. This concerns the agro-industrial complex, our main partner, in the first place.







I would like to report on our results achieved since the start of 2017. We continue to invest in the real economy. We are outpacing the market in terms of loan issue rates. Rosselkhozbank’s loan portfolio already exceeds 1.9 trillion roubles.

We control over 30 percent of the entire Russian market in terms of loans to the agro-industrial complex, and Rosselkhozbank’s loan portfolio for this complex is already approaching the 1.2 trillion rouble mark.







We are still the main bank lending assets for seasonal fieldwork. In principle, these loans guarantee the good bumper harvests posted in the Russian Federation.

Naturally, I would like to note that the farmers’ substantial loan demand could be explained by extremely high current state-support levels.







I would like to note that the soft loans mechanism, implemented as per your instructions, is functioning very smoothly. Under the new mechanism, agricultural produce manufacturers receive loans carrying not more than 5 percent annual interest.

In our opinion, this mechanism greatly reduces outlays for agro-businesses. We are actively involved in issuing loans under this mechanism.





The source of information - http://en.kremlin.ru/events/president/news/56521
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Old December 30th, 2017 #731
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Christmas and New Year greetings to heads of state and government



Vladimir Putin sent Christmas and New Year greetings to heads of state and government and heads of international organisations.



December 30, 2017 - 12:00



In his message of greetings to President of the Republic of Abkhazia Raul Khadjimba, Mr Putin noted steady progress in the development of relations between Russia and Abkhazia over the last 12 months. The President of Russia expressed confidence that the two countries would maintain their joint efforts to promote an alliance and strategic partnership to the benefit of their brotherly peoples and for strengthening peace, security and stability in the Caucasus.

In his message to President of Armenia Serzh Sargsyan, Mr Putin noted that only recently Russia and Armenia marked two milestones: the 25th anniversary of diplomatic relations, and the 20th anniversary of the Treaty of Friendship, Cooperation and Mutual Assistance. The President of Russia said he was confident that by working together Russia and Armenia would be able to further develop their alliance, as well as partnership within the Eurasian Economic Union, the CSTO, the CIS and other international frameworks for the benefit of the peoples of the two countries, and in the interests of better regional security and stability.

In his message to President of Azerbaijan Ilham Aliyev, Mr Putin stressed that in 2017 Russia and Azerbaijan celebrated 25 years since the establishment of diplomatic relations, and that this anniversary was marked by new achievements in developing mutually beneficial bilateral cooperation in various areas. The President of Russia went on to express hope that the two countries would continue their constructive dialogue and work in close cooperation with the view to further stepping up partnership ties between Russia and Azerbaijan in all areas in the interests of their peoples and for strengthening security and stability within and beyond the Trans-Caucasus region.

In his message of greetings to President of Belarus Alexander Lukashenko, Mr Putin emphasised that by marking the 25th anniversary of diplomatic relations between Russia and Belarus the two allied countries were reminded of the significant achievements in promoting mutually beneficial cooperation in all areas. The President of Russia said he was confident that building on the good traditions of friendship and mutual assistance, the Russian Federation and the Republic of Belarus would continue their fruitful efforts in addressing the relevant matters on the bilateral agenda, strengthening integration ties within the Union State and the Eurasian Economic Union, and effectively coordinating their efforts within the CIS and CSTO.

The President of Russia sent New Year’s greetings to the President of Kazakhstan Nursultan Nazarbayev, in which Mr Putin reminded his counterpart that the two countries had recently celebrated the 25th anniversary of establishing diplomatic relations, and that this milestone was accompanied by new achievements in almost all areas of bilateral cooperation. Mr Putin said he hoped that the momentum in promoting the strategic partnership and alliance between Russia and Kazakhstan would be maintained with a view to ensuring stability and security in Central Asia and across the Eurasian space.

In his message to President of Kyrgyzstan Sooronbay Jeenbekov, Mr Putin noted that the outgoing year could be viewed as proof of the solidity of the strategic partnership and alliance between Russia and Kyrgyzstan. Specifically, the two countries were proactive in promoting political dialogue, implementing mutually beneficial bilateral projects in various areas, and coordinated their efforts with a view to resolving urgent regional issues. Mr Putin expressed his strong belief that the two countries would continue working together to expand constructive bilateral cooperation, promote integration processes within the Eurasian Economic Union, and deepen their partnership within the CIS, the CSTO and the SCO.

In his message of greetings on the New Year and Christmas to President of Moldova Igor Dodon, Mr Putin praised the efforts by the Moldovan leader to promote relations between the two countries, and expressed confidence in the further strengthening of constructive cooperation in political, trade and economic, cultural and humanitarian and other areas in the interests of the friendly peoples of Russia and Moldova and for the sake of regional stability and security.

In his message to President of the Republic of South Ossetia Anatoly Bibilov, the President of Russia notes that Russia and South Ossetia have done a great deal in the passing year towards the implementation of the Treaty on Alliance and Integration. Vladimir Putin expressed confidence in continued consistent efforts to strengthen Russian-South Ossetian relations in all areas in the interests of our fraternal peoples, as well as peace and stability in the South Caucasus.

The President of Russia sent his New Year’s greetings to the President of Tajikistan Emomali Rahmon, noting that their two countries were making steady progress in promoting their relations in the spirit of allied and strategic partnership. In addition, Mr Putin said that he was confident that Russia and Tajikistan would continue their joint efforts to further step up mutually beneficial cooperation in various areas next year, while also coordinating their initiatives in resolving urgent regional and international issues.

In his message of greetings to President of Turkmenistan Gurbanguly Berdimuhamedov, Mr Putin noted that the outgoing year was marked by significant achievements in strengthening the strategic partnership between Russia and Turkmenistan. Specifically, the meetings between the presidents in Ashgabat and Sochi showed that the two countries were guided by similar approaches in dealing with topical matters on the regional and international agendas. The President of Russia said he was confident that by working together the countries would carry forward the momentum in their bilateral relations in all areas for the benefit of their peoples, and for the sake of peace and stability in Central Asia.

In his message to President of the Republic of Uzbekistan Shavkat Mirziyoyev, Vladimir Putin writes that thanks to joint efforts, 2017 became a breakthrough year for Russian-Uzbekistani relations. The parties signed several important agreements, which have advanced bilateral relations in many areas to a fundamentally new level. The President of Russia expressed confidence that the two countries would use the results achieved to bolster the development of bilateral strategic partnership and alliance and achieve greater cooperation towards strengthening peace and stability in Central Asia.

In his message of greetings on Christmas and New Year to President of the Argentine Republic Mauricio Macri the President of Russia reaffirmed his desire to promote cooperation between the two countries in many areas, both at the bilateral level and within the G20, which will build up its activity under Argentinean Presidency, Vladimir Putin wrote.

The Russian head of state extended his Christmas and New Year greetings to President of the Federative Republic of Brazil Michel Temer, noting that much had been done this year to strengthen Russian-Brazilian strategic partnership. Specifically, the parties maintain a substantive political dialogue, trade, economic, cultural and humanitarian cooperation produced good results, and Russia and Brazil interacted constructive in the UN, BRICS and the G20. Vladimir Putin expressed his interest in continuing working together to strengthen the entire range of bilateral relations to the benefit of Russian and Brazilian people.

The President sent birthday, Christmas and New Year’s greetings to Prime Minister of Canada Justin Trudeau. He wished the Prime Minister, his family and the entire Canadian nation happiness and prosperity.

In his greetings to President of China Xi Jinping on the New Year and upcoming Spring Festival, the Russian President noted that 2017 has brought more success in Russian-Chinese relations, with substantial growth in mutual trade and dynamic exchanges in science and technology, and culture and the humanitarian sphere. Vladimir Putin emphasised the fact that Moscow and Beijing cooperate extensively in global affairs and contribute greatly to the solutions of current international problems. Interregional links are also intensifying, with the Years of Interregional Cooperation planned for 2018 and 2019. Moreover, the Russian President confirmed his willingness to further cooperate in expanding comprehensive trust-based partnership and strategic interaction between Russia and China for the benefit of the two neighbourly peoples.

In his message to President of the Council of State and Council of Ministers of the Republic of Cuba Raul Castro on the Republic’s national holiday, Liberation Day, as well as Christmas and the New Year, Mr Putin noted steady progress in promoting the strategic partnership between Russia and Cuba and expressed hope in continuing joint coordinated efforts to step up mutually beneficial political, trade and economic, scientific and technical, cultural and humanitarian and other types of cooperation.

The Russian President also extended his Christmas and New Year greetings to Czech President Milos Zeman and expressed confidence in the agreements reached at the recent meeting in Sochi facilitating development of Russian-Czech relations, mutually beneficial bilateral cooperation for the good of the two countries.

In his message to Finnish President Sauli Niinisto, the Russian President expressed hope for continuing the constructive dialogue and active cooperation on strengthening neighbourly Russia-Finland relations in the interests of the two nations. “This year marked the 100th anniversary of Finland’s independence. I have warm memories of the festive events in Savonlinna and our substantive meeting,” the President noted in his greetings.

Vladimir Putin sent holiday greetings to French President Emmanuel Macron. “Our meeting in Versailles and telephone contacts have allowed us to discuss many current issues of bilateral relations and key international issues at length. I expect to continue our constructive dialogue and joint work aimed at strengthening Russian-French links. I look forward to your visit to Russia,” the message reads.

In his Christmas and New Year greetings to German Federal Chancellor Angela Merkel and Federal President Frank-Walter Steinmeier, Vladimir Putin confirmed his commitment to continuing the dialogue and cooperation, and expressed hope for Russia and Germany to advance on topical issues on the bilateral, regional and international agendas that will meet the ultimate interests of the two nations, and to contribute to stronger security and stability in Europe and beyond, in the upcoming year.

Vladimir Putin wrote in his message of greetings to Prime Minister of Hungary Viktor Orban that Russian-Hungarian relations developed constructively even in the current complicated international situation. The President of Russia also expressed hope for the success of their continued cooperation towards promoting mutually beneficial bilateral cooperation in the interests of their people and the European continent as a whole.

In his greetings to Indian President Ram Nath Kovind and Prime Minister Narendra Modi, Vladimir Putin noted that the passing year has been marked with an important anniversary, 70 years of diplomatic relations between Russia and India. Appreciating the outcome of bilateral contacts in 2017, the Russian President expressed confidence in further advancing the privileged strategic partnership between Russia and India even further in politics, trade, the economy, science, technology, culture and other areas in the upcoming year, and in expanding constructive cooperation within the UN, BRICS, the SCO and other multilateral bodies in the interests of solving current regional and global issues.

Addressing Prime Minister of Israel Benjamin Netanyahu, Vladimir Putin noted that Russian-Israeli relations are of a friendly and constructive nature. The Russian President stressed that he relies on further consolidating bilateral cooperation in politics, trade, the economy, culture and other areas, as well as partnership in ensuring stability and security in the Middle East.

In his greetings to Italian President Sergio Mattarella and Prime Minister Paolo Gentiloni, Vladimir Putin stressed that Russia highly values relations with Italy, which are based on centuries-long traditions of friendship, mutual respect and affinity, and despite the challenging international situation, Russian-Italian cooperation in 2017 has progressed rather successfully. The Russian President also expressed his confidence in the fact that, by coordinating their efforts, Russia and Italy can make a significant contribution to increasing stability and security in Europe and the world in general.

In his greetings to Prime Minister of Japan Shinzo Abe, the President of Russia noted with satisfaction that recently, Russian-Japanese relations had progressed in a number of key areas. Thus, the political dialogue has intensified, with foreign and defence ministers’ consultations resuming in the ‘two plus two’ format, and inter-parliamentary links have expanded. The Russian President stressed that the upcoming year would be marked by a large-scale bilateral event, the Year of Russia in Japan and the Year of Japan in Russia, which is to facilitate increased trust and mutual understanding between our peoples. In addition, Vladimir Putin invited Prime Minister Abe to the opening ceremony of the cross-years next May in Moscow as well as to the St Petersburg International Economic Forum.

The President of Russia sent his greetings to President of the Republic of Korea Moon Jae-in, expressing the positive momentum in the friendly relations between the Russian Federation and the Republic of Korea, which was attributable largely to the meaningful and constructive talks in Hamburg and Vladivostok. Mr Putin went on to express hope in further strengthening bilateral ties by working together for the benefit of the peoples of the two countries and for the sake of peace and stability on the Korean Peninsula and Northeast Asia in general.

In his message of greetings to Prince Albert II of Monaco, Mr Putin noted that Russia valued highly the personal contribution by the Prince of Monaco to strengthening mutually beneficial cooperation between the two countries. The President of Russia also expressed hope that 2018 would open up new opportunities for friendly and trust-based exchanges on topical matters on the bilateral agenda and on key international issues.

The Russian President also sent Christmas and New Year’s greetings to President of the Republic of Serbia Aleksandar Vucic. In his message, Mr Putin noted the recent meeting with the Serbian leader in Moscow and emphasised that he hoped the two countries would continue working together with a view to stepping up bilateral relations in all areas to the benefit of their brotherly peoples and for the sake of regional stability and security.

In his message to the President of the Republic of Slovenia Borut Pahor, Mr Putin noted that in 2017 relations between Russia and Slovenia were developing constructively, and expressed hope that by working together the two countries would further strengthen mutually beneficial bilateral cooperation in politics, the economy, humanitarian and other areas for the benefit of the peoples of Russia and Slovenia.

Addressing South African President Jacob Zuma, the President underlined that in 2017 relations between Russia and South Africa have progressed in politics, trade, the economy, science and technology, culture and other areas, which was significantly promoted by the productive and substantive talks in Hamburg and Xiamen. Vladimir Putin expressed confidence in the fact that the upcoming South African Presidency in BRICS would further intensify this multilateral association’s activity and expand opportunities for interaction between Moscow and Pretoria on current international issues.

In his holiday greetings to King Felipe VI and Queen Letizia of Spain, the Russian President expressed hope for developing mutually beneficial links between Russia and Spain in 2018 for the good of the two nations and in the interests of stronger stability and security on the European continent.

In his message of greetings to the President of the Syrian Arab Republic Bashar al-Assad, the President of Russia expressed hope that in 2018 the situation in Syria would continue changing for the better. Mr Putin noted that defeating terrorists and rapidly bringing the situation in the Syrian Arab Republic back to normal would be in the best interests of the whole world and would improve security in the Middle East. In addition, Mr Putin confirmed Russia’s commitment to assisting the Syrian Arab Republic in upholding its state sovereignty, unity and territorial integrity, and promoting a political settlement and economic recovery.

The President of Russia also sent greetings to the President of the Republic of Turkey Recep Tayyip Erdogan, stressing that in the outgoing year Russia and Turkey not only succeeded in putting their bilateral relations back on track, but also achieved substantial progress in enhancing their bilateral cooperation in many areas. “By working closely together our countries have succeeded in preventing the terrorist threat from spreading further across the Middle East and created conditions for launching the political settlement of the Syrian conflict,” the message reads. In addition, Vladimir Putin confirmed his interest in continued constructive dialogue and proactive engagement on all matters on the bilateral, regional and international agendas.

The head of state sent his Christmas and New Year’s greetings to Queen Elizabeth II of the United Kingdom of Great Britain and Northern Ireland and Prime Minister Theresa May. He pointed out that closer Russian-UK cooperation would be in the basic interests of the Russian and British people and Europe as a whole.

In his message of greetings to President of the United States of America Donald Trump, Mr Putin noted, among other things, his strong belief that in the current challenging international environment, it is especially important for Russia and the US to engage in constructive dialogue with a view to enhancing global strategic stability and finding the best solutions to the global challenges and threats. The President of Russia stressed the importance of the principles of equality and mutual respect as the foundation for developing bilateral relations. “This would allow us to make progress in promoting pragmatic cooperation designed for the long term,” the message reads.

In a message to His Holiness Pope Francis, the President of Russia expressed hope for continued constructive cooperation between Russia and the Vatican towards protecting peace and global human values and strengthening dialogue between civilisations and religions. Vladimir Putin wished His Holiness the Pope health, happiness and success in his noble endeavours.

The Russian leader sent Christmas and New Year greetings to President of the Bolivarian Republic of Venezuela Nicolas Maduro. Vladimir Putin wrote in his message that the recent talks in Moscow were very constructive and productive and expressed hope that they would continue to work together to strengthen the relations of strategic partnership between Russia and Venezuela.

Vladimir Putin also sent his greetings to President of the Socialist Republic of Vietnam Tran Dai Quang and General Secretary of the Vietnamese Communist Party Central Committee Nguyen Phu Trong. He expressed satisfaction with the development of Russian-Vietnamese strategic partnership and hope that the implementation of the agreements they reached in Moscow and Danang would help boost bilateral relations in all spheres and joint actions by our two countries in the interests of stronger peace, stability and security in the Asian-Pacific region.

The President of Russia also extended his New Year greetings to several heads of international organisations, specifically UN Secretary-General Antonio Guterres, Managing Director of the International Monetary Fund Christine Lagarde, Honorary President of the International Olympic Committee Jacques Rogge, President of the International Olympic Committee Thomas Bach, honorary member of the International Olympic Committee Jean-Claude Killy, President of the International Ice Hockey Federation Rene Fasel and President of the International Judo Federation Marius Vizer.

The Russian President also sent greetings to President of the Fédération Internationale de Football Association (FIFA) Gianni Infantino and thanked him for his assistance in the successful organisation of the 2017 FIFA Confederations Cup and expressed confidence in further efficient cooperation on the largest sporting festival, the FIFA World Cup.

President Putin also sent Christmas and New Year greetings to several former heads of foreign states and governments as well as political figures, including Almazbek Atambayev, Silvio Berlusconi, Romano Prodi, George H. W. Bush, George W. Bush, King Juan Carlos I of Spain, Nicolas Sarkozy, Francois Fillon, Gerhard Schroeder and Tarja Halonen.





The source of information - http://en.kremlin.ru/events/president/news/56543






Telephone conversation with President of Finland Sauli Niinisto



Vladimir Putin has had a telephone conversation with President of Finland Sauli Niinisto.



December 30, 2017 - 13:50



The leaders exchanged warm New Year’s greetings and extended their best wishes to the people of both nations.

President Putin and President Niinisto discussed the current year’s progress in Russia-Finland relations across various areas and the prospects for mutually beneficial cooperation in 2018.

The presidents also touched upon some topical international issues, including resolution of the Syrian conflict and the crises on the Korean Peninsula and in Ukraine.

They also agreed to schedule further contacts.





The source of information - http://en.kremlin.ru/events/president/news/56564
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New Year Address to the Nation



December 31, 2017 - 23:55 - Moscow









President of Russia Vladimir Putin:

Friends,

We are on the threshold of a New Year, year 2018. Although we celebrate this every year, we are always happy to usher the year in as something new, hoping that the wishes we make at the stroke of midnight do come true.

New Year’s Eve is above all a family celebration. We mark it just as we did when we were children, with presents and pleasant surprises, as well as with a special warmth and expectation for change.

Change will certainly come to our lives if each of us takes care of our parents and values every minute we spend with them, if we try to better understand our children and their aspirations and dreams, and if we support those nearest to us who need our help and our generosity.

The ability to help, to show concern and understanding for others and to do good deeds fills our lives with true human meaning. As we celebrate, be it with family and friends, or out in the streets, we all share the same festive mood, while modern technology allows us to share our feelings with our nearest and dearest who may be hundreds or even thousands of kilometres away.

As usual, my special words are extended to those who are working at the moment, who are doing their military or professional duty at hospitals or on board aircraft or trains.

We are all together on this wonderful New Year’s night. We are also together in our everyday life as well. Unity, friendship and selfless love for Russia multiply the strength we need for worthy deeds and high achievements.

I am sincerely grateful to all of you for believing in yourself and in our country, for your work and its results. I hope there will always be trust and mutual understanding in your life.

Friends,

A New Year, year 2018 will begin in just a few seconds. This is the time when we should say the most important words to each other, forgive one another’s mistakes and forget old grudges.

Embrace, say words of love, and show that you really care. May the life of each family and individual improve for the better, may you all be healthy, may children be born that make us happy.

I wholeheartedly wish happiness and all the very best to all of you, as well as peace and prosperity to Great Russia, our one and only homeland.

Happy New Year!





The source of information - http://en.kremlin.ru/events/president/news/56591
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Piglet said that the best place would be somewhere where a Heffalump was, just before he fell into it, only about a foot farther on.
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Telephone conversation with Israeli Prime Minister Benjamin Netanyahu



Vladimir Putin had a telephone conversation with Prime Minister of the State of Israel Benjamin Netanyahu.



January 1, 2018 - 16:40



The President of Russia and the Israeli Prime Minister agreed, among other things, to hold a meeting soon to discuss bilateral relations and exchange views on various international and regional issues.

Vladimir Putin also wished Benjamin Netanyahu a happy New Year. The two leaders wished all the best to each other and the peoples of Russia and Israel in 2018.




The source of information - http://en.kremlin.ru/events/president/news/56593






Greetings to Channel One team and veteran staff



Vladimir Putin congratulated the Channel One team and veteran staff on the 50th anniversary of the legendary Vremya programme.



January 1, 2018 - 21:00



The message reads, in part:

“From its very launch, Vremya proved to be a striking addition to Russian television, laid down traditions of news broadcasting and became a landmark event in the life of the country.

Importantly, even despite the advent of new cutting-edge information technology and communications, the programme has not ceased to attract wide audiences just as it did 50 years ago.

I am certain that professional excellence, acquired skills, openness to new experiences and respect for the creative heritage of your predecessors will help you to continue working successfully and resolving the tasks at hand.”

Vremya is a Russian television programme broadcast by Channel One (since 1995), and earlier by the Central Television of the USSR (1968 – 1991), the All-Union State Television and Radio Broadcasting Company (1991) and the Ostankino Russian State Television and Radio Broadcasting Company (1994–1996). The programme has been broadcast daily, except on December 31 and January 1, at 9 pm Moscow time since 1972. It was launched on January 1, 1968.




The source of information - http://en.kremlin.ru/events/president/news/56621






Telephone conversation with Indian Prime Minister Narendra Modi



Vladimir Putin had a telephone conversation with Prime Minister of India Narendra Modi at the Indian side’s initiative.



January 3, 2018 - 16:50



Mr Putin and Mr Modi exchanged New Year greetings.

Development of bilateral relations and current international issues were discussed. The two leaders confirmed their commitment to further developing the privileged strategic partnership between Russia and India, and agreed to continue top-level contacts.




The source of information - http://en.kremlin.ru/events/president/news/56624






Christmas greetings



Vladimir Putin congratulated all Orthodox Christians and all Russians celebrating Christmas.



January 7, 2018 - 09:00 - St Petersburg







The message reads, in part:

“I sincerely wish you a happy Christmas.

This happy holiday brings joy and hope to millions of believers as they feel closer to their spiritual roots and national traditions, united through eternal Christian values and our nation’s centuries-long historic and cultural legacy.

With great satisfaction, I would like to acknowledge the fruitful and truly selfless efforts of the Russian Orthodox Church and other Christian denominations that support civil society and accord in our country, and the development of the inter-faith and inter-ethnic dialogue. Another important contribution they make is to strengthening lofty moral values and ideals in society, educating the younger generation and resolving current social issues.

I wish all Orthodox Christians and everybody who is celebrating Christmas good health, success and happiness.”


* * *


Vladimir Putin attended Christmas mass at the Church of St. Symeon the God-Receiver and Anna the Prophetess in St Petersburg. After the service, the President presented the church with a mid-19th century two-tiered icon featuring the images of The Birth of Holy Theotokos and Christ’s Resurrection, as well as those of Saints Elijah the Prophet, Anna the Prophetess, Symeon, Saint Michael the Archangel and other saints revered by the church.































The Church of St. Symeon the God-Receiver and Anna the Prophetess was built in 1734 on the order of Empress Anna Ioannovna in the style of St Petersburg Baroque with elements of old Russian architecture on the site of the 1714 wooden church dedicated to Saint Michael the Archangel. The church is an architectural monument and one of the city’s oldest Orthodox churches.




The source of information - http://en.kremlin.ru/events/president/news/56626
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Where should they dig the Very Deep Pit?
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Telephone conversation with President of Turkey Recep Tayyip Erdogan



Vladimir Putin had a telephone conversation with President of the Republic of Turkey Recep Tayyip Erdogan at the latter’s initiative.



January 11, 2018 - 19:00



In discussing bilateral cooperation issues, the two presidents expressed satisfaction with the positive dynamics in trade and economic relations, and confirmed their mutual commitment to provide all necessary assistance for the further implementation of large-scale projects, primarily in the energy sector.

They also continued their ongoing discussion of various aspects of the situation in Syria and emphasised the importance of the consistent implementation of the Astana agreements reached through the mediation of Russia, Turkey and Iran, in particular concerning the conditions of the cessation of hostilities and the creation of de-escalation zones.

The President of Russia drew attention to the recent attacks by illegal armed groups on Russia’s Khmeimim air base using modern unmanned aerial vehicles. Greater coordination of efforts by the military and special services of the two countries is envisioned to effectively combat terrorist groups in Syria.

Tasks related to the political settlement of the conflict in the Syrian Arab Republic were identified as a priority. The forthcoming Syrian National Dialogue Congress in Sochi is expected to make a significant contribution to this work.

It was agreed to continue regular personal contacts.




The source of information - http://en.kremlin.ru/events/president/news/56640
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Meeting with RusHydro General Director Nikolai Shulginov



Vladimir Putin held a working meeting with Chairman of the Management Board and General Director of RusHydro Nikolai Shulginov. They discussed the performance of RusHydro in 2017 and its current activities.



January 9, 2018 - 19:30 - Novo-Ogaryovo, Moscow Region








President of Russia Vladimir Putin:

Mr Shulginov, let us begin with the results of the company’s performance in the past year.



RusHydro Head Nikolai Shulginov:

Thank you, Mr President, for giving me this opportunity to review the company’s performance as a whole, the entire RusHydro Group, including some detailed issues of the operation and development of the power industry in the Far East.

For now, I have the tentative results for 2017, those that do not arouse any doubts. All of our electric power stations generated about 140 billion kilowatt-hours. This is a new record. We have surpassed 2016’s record by about one billion kilowatt-hours. I cannot say that this is due to higher water inflows, because they were registered only at the Volga-Kama cascade and, incidentally, its water reserves are quite large. This also includes a large amount of work on preparing the equipment and on enhancing its efficiency.

In 2017, we commissioned 236 megawatts of capacity.



Vladimir Putin:

How did you achieve this?



Nikolai Shulginov:

Some 42 megawatts were gained by changing the installed capacity of the modernized hydro turbines at the hydroelectric power stations. And we put into operation the second facility from your Executive Order 1564 – the Yakutsk GRES-2 power station with an electric capacity of 193 megawatts and a thermal capacity of 469 megawatts.

In addition, last year we completed the project for the comprehensive restoration of the Sayano-Shusheskaya Power Station. Those units were brought online but some work continued. Eventually we signed off on all the paperwork on this project.

In December, we commissioned the facilities and are completing this 40-year construction of the Boguchanskaya HPP. We have completed the bridge overpass, surfaced the road and connected both banks of the Angara river. Right bank residents can now easily reach their district centre. It is an important project for both for the Kezhemsky District and the Krasnoyarsk Territory.

RusHydro group revenues were around 396 billion rubles, an increase of 5 billion which is 1.2 percent.

RusHydro group has attained stable financial results by cutting operating costs as well as by streamlining its debt load after we refinanced the Far East companies’ debts following your instruction.



Vladimir Putin:

I would also like to ask you about your assessment of the company’s current economic status, keeping in mind the very high load. A number of decisions were taken, how are they proceeding?



Nikolai Shulginov:

We can say that today, if we look at the financial indicators, the debt to EBITDA ratio of 1.2 is a good indicator.

At the same time, we have to correctly and fairly consider in a balanced way where we can spend, because RusHydro is a public company, its shares are traded on the stock market, including foreign markets.

The RAO Energy Systems of the East group are regulated companies which are financed only through rate sources, and this is the reason practically all the Far East companies are in the red except for the Far East Distribution Grid Company. All the loans they take out to purchase fuel and pay for repairs, are either under a RusHydro guarantee or are part of the intra-group loan we provide. We have to make a final decision on how thermal generation should be modernized in the Far East as we will not be able to modernise it just like that, with RusHydro loans alone.



Vladimir Putin:

As far as I know and as you have told me recently, it would be unwise to base our [energy] policy in the Far East exclusively on prices in the absence of a developed market. Overall, the Government is trying to create good and even privileged conditions for business there, of course, but as I see it, this is having a negative effect on the energy sector.







Nikolai Shulginov:

We have not made a pivot to the energy sector yet. For business to develop, the energy sector should grow at a priority pace. As of now, the heat generation sector in the Far East is in a lamentable state; it is worse off than in the European part of Russia. You have issued instructions on modernising the heat generation sector by using the funds that remain following the implementation of capacity supply agreements in Siberia and European Russia. We believe that this programme should also be applied in the Far East, which was not included in the programme at its adoption. Some 30 GW of new capacities have been created in European Russia. There is none of this in the Far East.

We believe that the region must certainly be included in the programme. We have outlined several projects. They are not numerous, and they do not provide for increasing capacities but for replacing 1,300 MW of obsolete capacities. In our opinion, we should not modernise two of these facilities, the Khabarovskaya Thermal Power Plant No. 4 and the Artemovskaya Thermal Power Plant No. 2, which were built in the 1930s, but build new buildings for them. We already have project designs for them. I will insist on the discussion of this programme, so that these two facilities are launched in the Far East, even if as pilot projects.



Vladimir Putin:

Please, prepare your proposals. We need a solution that would satisfy you and also the energy sector as a whole, and which would create conditions for development rather than just for maintaining the existing capacities. It is possible that enough electricity is produced there, which we have discussed with you, but some districts do not receive enough energy. Therefore, we need to develop a flexible programme that will promote the development of the energy sector in the Far East without affecting consumers.



Nikolai Shulginov:

Ok, we will do this.

I would like to say a few words about our performance last year. We have streamlined our procurement activities by creating a procurement subsidiary, which has already produced a serious economic effect: over 30 billion rubles over the past two years. Moreover, 14 billion rubles have been redirected into the existing contracts, which we have renewed.



Vladimir Putin:

Have you benefitted from this?



Nikolai Shulginov:

Of course. We did not have to invest 14 billion rubles into equipment and assembly.

Next year, we plan to launch around 1,000 MW hydropower capacity. I am referring to Nizhne-Bureiskaya Hydroelectric Power Plant. Let me briefly describe the situation.

On August 24, a pivoted bearing was damaged and the floodgate fell. After the incident, we continued the work to launch hydropower units. The fourth one has yet to be launched, but it has been completed and has undergone the required tests.

As for the floodgate and the pivoted bearing, we recovered part of the bearing from the water and analysed it.



Vladimir Putin:

You have analysed it?



Nikolai Shulginov:

Yes, we sent it to Moscow State University to analyse the loads it was exposed to.



Vladimir Putin:

Did you run tests on the metal?



Nikolai Shulginov:

We tested the loads to make sure that they were not excessive, and the metal itself. Several institutions were involved in testing the metal, but the final independent assessment report was prepared by the National University of Science and Technology MISIS. There are no other reports on the matter. The main conclusion was that the forging technology was not properly used. The metal was overheated and became more fragile. In addition, non-metallic inclusions were detected, as stated in the report. Our current goal is to restore the first floodgate that fell.



Vladimir Putin:

Who supplied the metal?



Nikolai Shulginov:

The manufacturers of the floodgates, hydro-mechanical equipment in general and the axis of the bearing are Ukrainian companies. There is the Novokakhovsky Plant Ukrhydromech that makes floodgates, while the axis was supplied by Dnepropress from Dnepropetrovsk. We decided not to work with these manufacturers any more given the quality of their products. Not only will we restore the first bearing and floodgate, but we will also replace the axis on the other four gates with Russian-made equipment and under supervision of the same institute that will be in charge of monitoring the technology during manufacturing.



Vladimir Putin:

However, this has nothing to do with the complex relations we have with our Ukrainian partners.



Nikolai Shulginov:

Not at all. This equipment was made back in 2013–2014. We were unable to oversee the manufacturing technology at the time. We will now adopt a different approach by shifting production to Russian plants.

Apart from the Nizhne-Bureiskaya HPP, the 120-MW Sakhalin GRES-2 power plant, the third station under your Executive Order, [will be launched] by the end of the year. The Zaramagskaya HPP-1 in Northern Ossetia-Alania is for 342 MW. The Vostochnaya TPP is for 140 MW.







Vladimir Putin:

Are they on rivers?



Nikolai Shulginov:

Yes, this will be a unique plant with a very long tunnel and the most powerful pressure in Russia. But not the most powerful in the world, because the plant has been under construction for a long time. It is also a costly project, but we will complete it – must complete it – later this year.



Vladimir Putin:

Mountain rivers?



Nikolai Shulginov:

Yes. What are mountain rivers known for? There is a lot of water in summer but slightly less so in winter, when power is most needed. But we still need this station.

We will also engage in modernisation. We will increase power at the modernised hydropower plants and modernised turbines. Perhaps we will manage to build several smaller hydropower plants that we are building under the power supply contracts programme.

This year, we also plan to decide on centralising the internal audit with regard to the key subsidiaries, because it is scattered and inefficient. We will centralise maintenance at the thermal power plants in the East. Several maintenance subsidiaries have been inefficient and we need to centralise them. After the disaster that hit the Sayano-Shushenskaya HPP, we also centralised maintenance at hydropower plants. Now we will do the same for the thermal power plants.

We would also like to fulfil the plans we are outlining to reduce company loss ratio, particularly at the generating companies in the Russian Far East. Last year, losses amounted to about 5 billion [rubles]; in 2018, we are planning to come down to 3.5 billion. But over there this is linked to the price of fuel – coal – which is not regulated. Coal prices have grown by 22 percent on average and tariffs by 2 percent. This means that the debt is building up.

There are other issues as well. A separate request I would like to make to you is that you give comprehensive consideration to provision of gas supply, I mean issues of gas infrastructure development in Kamchatka and energy issues in Kamchatka.



Vladimir Putin:

You mean, in the short run?



Nikolai Shulginov:

Yes.

In Sakhalin, the contract will expire in 2025, but already now we should prepare for the Sakhalin-1 project. And with regard to Primorye Territory, too. All of this should be linked. There is also the Power of Siberia [pipeline]. This is a major export direction, but we still need to consider everything definitively.



Vladimir Putin:

Please, submit these proposals, because this region needs a separate programme; it must be coordinated between agencies and with our major raw materials producers.



Nikolai Shulginov:

I will do that.




The source of information - http://en.kremlin.ru/events/president/news/56629






Meeting with Vladimir Puchkov and Anton Siluanov



January 9, 2018 - 19:45 - Novo-Ogaryovo, Moscow Region







The President spoke with Minister for Civil Defence, Emergencies and Disaster Relief Vladimir Puchkov and Finance Minister Anton Siluanov about creating a state armament programme for the Emergencies Ministry

Mr Puchkov briefed the head of state on the performance of the Emergencies Ministry and the Uniform State System for Disaster Warning and Prevention in 2017 and priority areas of their further development.




The source of information - http://en.kremlin.ru/events/president/news/56628






Vladimir Putin congratulates current and former workers of prosecutor’s offices



Vladimir Putin congratulated current and former workers of prosecutor’s offices on their professional holiday, Prosecutor’s Office Workers Day, and the 296th anniversary of the establishment of the prosecution service in Russia.



January 12, 2018 - 12:00



The message reads in part:

“Throughout its entire history, prosecution service has been rightfully considered a key institution of the national law enforcement system. The best representatives of prosecutor’s offices are renowned for their competence, civil courage, honesty and integrity as well as a readiness to firmly uphold law and justice.

It is important that the current generation of prosecution service workers realise the significance of their work, and address their tasks in a responsible manner. Their priority objectives include the fight against crime and corruption, protecting the rights and legitimate interests of citizens and guaranteeing the country’s integral legal infrastructure.”




The source of information - http://en.kremlin.ru/events/president/news/56645






Meeting with Presidential Plenipotentiary Envoy to the Northwestern Federal District Alexander Beglov



Vladimir Putin held a meeting with Presidential Plenipotentiary Envoy to the Northwestern Federal District Alexander Beglov to discuss the socioeconomic situation in the region.



January 12, 2018 - 16:10 - The Kremlin, Moscow








President of Russia Vladimir Putin:

Mr Beglov, when it comes to the Northwestern Federal District or St Petersburg, you probably know everything. St Petersburg can almost be called your hometown.

You know the situation in the region very well, and you have a lot of experience: you worked in St Petersburg, in the Central Federal District, in the Government, and in the Presidential Executive Office.

Nevertheless, I would like to hear your perspective on the current situation in Russia’s Northwest and in one of Russia’s largest cities, St Petersburg. In your opinion, what are the key short-term objectives for the regional authorities and the federal government in order to support the Northwest in general and, specifically, St Petersburg?



Presidential Plenipotentiary Envoy to the Northwestern Federal District Alexander Beglov:

Mr President, first of all I would like to thank you for the trust you have placed in me. Being appointed to the Northwestern Federal District is a special honour for me.

It is true that have I worked in St Petersburg and in Russia’s Northwest for quite a while as First Deputy Plenipotentiary Envoy, so I am well aware of the situation in the region.

I would like to start by reporting to you that the New Year holidays went smoothly without any major emergencies. There were occasional power outages in Karelia and a number of other regions, but the repair teams were on duty, and were able to restore power supply in due time. That said, there are some challenges in this area. We will work on this issue and I will report to you on the progress we make.

I would like to report that we prepared an inventory regarding the implementation of May 2012 executive orders, meaning the presidential initiatives. Primarily, this has to do with raising salaries for teachers, doctors and dealing with wage arrears in the private sector.

As for government agencies and local government entities, as well as the military, salaries are paid out strictly on time, so there are no violations in this area. There are, however, wage arrears in the private sector. For this reason, at your instructions, and working together with the Prosecutor’s Office, we keep a close eye on this situation. There is some progress in this respect, but we will continue working on it. I will keep you updated.

A second issue concerns the creation of places for our children at kindergartens. Overall, your instructions regarding kindergarten places for children aged three to seven have been implemented in the Northwestern District. There are minor shortcomings, but we are working on them. I think we will resolve this problem within six months.

As for second shifts at schools, I think that we will resolve this problem as well in 2018.







Vladimir Putin:

Where is this problem worst?



Alexander Beglov:

The problem is really big in Karelia. It also exists in the Arkhangelsk Region and in the Murmansk Region. But efforts are being made to deal with it, and I believe that we have the capability to fully resolve this problem within the agreed timeframe.

The next issue from your instructions which we are working on concerns perinatal centres. We have four perinatal centres in the Northwestern District. We are behind schedule in some places. I am monitoring the implementation of this task as per your request.

Next, we are working to relocate people from dilapidated housing. There is much to do here, Mr President, and there have been some delays as well. We must spur this project on, accelerate its implementation and create conditions for executive and municipal authorities to deal with this problem.

We will be working on this. I will hold a meeting with each governor on the relocation programme soon. This is really a big problem in the Northwestern District.

Overall, we are working to implement the May executive orders. I mean that we have accomplished a great deal.







Vladimir Putin:

What we need to do is ensure that all regional teams, as I have said before, work efficiently to resolve the problems you have mentioned. In fact, you have more problems, but I hope very much that you will take a critical look at the situation at the local level and that you will encourage the municipal and regional authorities to resolve these problems.




The source of information - http://en.kremlin.ru/events/president/news/56644
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Old January 13th, 2018 #736
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Visit to Tver Carriage Works



During his working trip to the Tver Region, Vladimir Putin visited Tver Carriage Works, where he was informed about the plant’s operation and shown its finished products.



January 10, 2018 - 15:50 - Tver







The plant’s General Director Andrei Solovei informed the President about its performance indicators and the efficiency of the government support measures.

Vladimir Putin visited a number of shops and viewed some finished products: the Ivolga urban electric train and a low-floor tram. The President was also shown the plant’s double decker passenger carriages.

In addition, Mr Putin met with the plant’s employees and answered their questions.








President of Russia Vladimir Putin:

Good afternoon. How are you faring here at the plant?



Remarks:

Very well, thank you.



Vladimir Putin:

Much has changed here since I visited the works in 2009 during my previous trip. True, you had a difficult period starting with late 2014 and during 2015 and 2016. But we have seen growth across the board starting last year – production and salaries and, as I understand, the number of workers.

Probably, 2016 was the most difficult year. Your enterprise ended the year with a loss of almost 200 million rubles. Meanwhile, last year net profit already exceeded half a billion: 546 million rubles, right?



General Director of the Tver Carriage Works Andrei Solovei:

547 million rubles.







Vladimir Putin:

547 million. This is a very good figure and the current pace is also very good.

We will have to talk – I have promised to talk to the Governor [Tver Region Governor Igor Rudenya], directors of the Works and your major shareholders about ways of loading your works and other similar plants in the future.

This may be a bit far away from you but you have probably heard that starting from January 1, we cancelled the main tax – VAT – on long distance shipments. This immediately allowed the shipping company to make additional purchases because they have extra money to spare.

They have bought over 300 carriages: 307 carriages last year, and next year they will buy more than 500 and up to 600 carriages.

I looked at your new products – they are super, really first-rate. No doubt, they are at the world level and even better than other world models. This is very good and I am sure you are pleased, and our passengers will be pleased.

You have developed one more competitive product – the Ivolga electric train that competes with the Lastochka train. But as we have already mentioned, it will be necessary to discuss this with the Ministry and Russian Railways.

We should not forget that Lastochka trains are also produced by our people, Ural workers, and it is necessary to ensure work load for them too. It is important to look at the advantages of these trains and where they may be used. At any rate, we will think about the work load to make sure the number of workers goes up rather than down and salaries are increased.

Salaries have already increased compared to last year. I do not know, you should have noticed this yourselves. In any event they are much higher than the average for the Tver Region, which is good in itself. We will continue building on this work in all areas. So I would like to wish you success.



Oleg Zakharov:

Oleg Zakharov, head of the training centre.

Mr President, I attended the meeting with you in 2009 and I would like to…



Vladimir Putin:

This was a sad meeting.



Oleg Zakharov:

Yes, absolutely. And that is exactly why I would like to thank you for the decisions that were made when money was allocated for the purchase of rolling stock in the short term – about three billion…







Vladimir Putin:

We contributed money to the Russian Railways equity capital and they used it for purchases.



Oleg Zakharov:

Yes.

We appreciate the decision to eliminate VAT for long distance transportation services in the mid-term perspective. We feel how it helps us in our work. We feel your support and hope that with hard work and your support in 2019 and 2020 our enterprise will work to capacity and, therefore, do good work.



Vladimir Putin:

We adopted this measure to last through January 1, 2030. And so, the funds that are thus saved for the carrier should be spent (and the Government will strictly monitor this) on the purchase of rolling stock and its modernisation.

Incidentally, there is no shortage now but next year (I may be just slightly off) about 1,800 carriages, in 2019, and then in 2020 about 2,000 carriages will have to be replaced. There is no shortage for the time being but this should be done on a permanent basis nonetheless.



Oleg Zakharov:

I see. But I would still like to note that the Works did not mark time all these years. We did not just wait for support but worked hard to expand the range of products. I am sure Mr Solovei told you about this. I would like to ask your opinion on our new products – electric trains on which we are pinning big hopes – but actually you have already expressed it. We are glad you like them.



Vladimir Putin:

Ivolga trains are beautiful, powerful and modern. I also saw the tram. The tram is absolutely wonderful. Probably it is really one of the best models in the world. So please accept my congratulations. I hope that you will continue in the same vein. What is particularly gratifying is that you developed these models yourselves.



Oleg Zakharov:

Absolutely so.



Vladimir Putin:

Practically nothing foreign is left, just some details. As they said, they will be replaced with domestic products in the near future.



Andrei Sokolov:

Andrei Sokolov, resistance welding specialist.

Does our enterprise have opportunities to increase production? And what are our planning horizons?



Vladimir Putin:

We have just mentioned this. While the passenger company bought 307 carriages this year, next year it will purchase over 600 carriages. We extended this measure of support – VAT relief for long-distance passenger transport – until 2030.

But what shall we do in addition to this? We have just discussed with your main shareholder opportunities to export rolling stock abroad – both trams and carriages. If such contracts are on the horizon, we will be ready to issue loans to your purchasers abroad.







Mikhail Yevseyev:

Head of the frame and body shop Mikhail Yevseyev.

Mr President, in terms of orders, our enterprise is growing well. But there is a question related to secondary vocational education. As of 2017, only 16 electric welders were trained in Tver. And the demand was about 500. Is there any programme that will boost the development of secondary vocational education?



Vladimir Putin:

We have many such programmes developed both by the Ministry of Education and the Ministry of Industry. These are interdepartmental programmes. A lot of manufacturers are directly involved in this work.

You probably heard and saw how much attention we now pay to the training of highly skilled modern workers, and we hold competitions. Our young workers win first places in international competitions. In Abu Dhabi, they essentially placed first as a team. We already hold national competitions on a regular basis. There are many programmes.

Unfortunately, Tver has not participated in these programmes yet. You have such an energetic and young governor. I think that he will be up on the general trend. Without a doubt, we will continue this. And of course, we will involve Tver.



Olga Pylayeva:

Mr President, I am Olga Pylayeva, electric welder. I wanted to ask a question about education in higher educational institutions, that children do not know what they should know, and I would like our children to study for free in the future. And do you plan to change anything?







Vladimir Putin:

No, there will be no fundamental changes. Paid education will continue to exist, but free education will certainly be preserved.



Olga Pylayeva:

The National Final School Exam (EGE) – that is the question.



Vladimir Putin:

As for the EGE, it is probably better for us not to go into details now, not to get into this discussion. There are pros and cons, I will not talk about downsides now, though they exist, but the advantages are that the number of children, applicants from outside metropolitan areas increased sharply after the introduction of the National Final School Exam.

In fact, there are many talented people in all parts of Russia. The EGE in a certain sense balances the chances of all applicants. Again, there are downsides, but this system works. It needs to be improved. As for free education, it will certainly be preserved.



Maxim Yelshin:

Mr President, I am Maxim Yelshin, frame and body shop. This is my question: today, the minimum wage is below the subsistence level. Are there plans to raise the minimum wage to that level?







Vladimir Putin:

I don’t think this affects you personally, however, it affects a great number of people, about 4 million people, and not just those who get this minimum wage. Today this figure is only 9,489 rubles in our country.

We have been talking, and keep talking, about the need to bring the minimum wage up to the so-called subsistence level. The subsistence level is calculated on the second quarter of the previous year and currently stands at 11,163 rubles. So, on the one hand we have a minimum wage of 9,489 while on the other, the subsistence level is 11,163.

This means that those who get minimum wage have an income below the subsistence level. We have discussed the need to make the minimum wage at least equal to the subsistence level quite a bit. This has always come down to one thing – lack of budget capacity.

This is obviously unfair; it skews the labour market which should be civilized, a person should get at least the minimum to be able to live on, and if he cannot, the situation is abnormal.

Last July we raised the minimum wage to 70 percent of the subsistence level, and to 80 percent as of January 1, 2018. We were planning to finally make them equal starting January 1, 2019.

A short while ago I met with Mikhail Shmakov, head of the leading trade union, and he raised the issue of moving forward the balancing of the minimum wage and the subsistence level. He suggested it should be done by May 1 on the labour holiday. I told him then that we would look into the feasibility of this based on the Russian economy’s performance.

At this point, I can say (I just met with the Finance Minister yesterday), that the positive trend in the Russian economy remains. We have a budget deficit below expectations; our gold and currency reserves are growing. This means the Russian economy is on the upswing, and the trend is continuing.

We can balance the minimum wage and the subsistence level as of May 1 this year. We will do that. It will impact approximately 4 million people. They are not just government and municipal employees, they also work in small business and a percent of working retirees. In addition, the minimum wage is a baseline for calculating pregnancy and childbirth allowances and temporary disability allowance.

There is one point that can bring up questions from self-employed individuals because they pay, or rather have always paid into the social funds, and a sharp increase in the minimum wage affects them, as they are basically people whose incomes are not high.

To avoid this problem, we added a cut-off, and as of January 1, we separated contributions by self-employed people from the minimum wage. So this will not really affect them.

We will do this starting May 1. And it is crucial that it is always adjusted, of course. And from that day on, the minimum wage should not drop below the subsistence level.



Alexander Zaitsev:

Mr President, a question, please. Everything is getting better with us in Russia…



Vladimir Putin:

Everything cannot be always good.



Alexander Zaitsev:

Not everything, yet things are getting better. Last time you came here there was talk about building another bridge across the Volga river. As the first survey went on, followed by a second survey, things just settled down quietly. I am afraid they will do another survey and everything will just get quiet again. Can you somehow assist in that?







Vladimir Putin:

Such issues are decided jointly by a respective Government commission, I can tell you about the developments.

I was here in 2009, and last April, in reference to what you are talking about, we spoke; the situation is not changing, and in terms of the number of vehicles, it is deteriorating. It deteriorates in the sense that the number of vehicles is growing, the traffic load on the bridge and the roads in general is increasing. For that reason I gave instructions to the Ministry of Transport, and the Government, and under these instructions they should offer proposals on design documentation this February. Then we will see how much it costs and how long the construction will take.

I can tell you in advance that it will cost over 10 billion rubles. I will tell you privately what the commission is saying about this, but we will work with the commission.



Alexander Zaitsev:

Because Tver is doing a lot in terms of tourism, and the traffic congestion on weekdays is too much.



Vladimir Putin:

Yes, I understand. There must be another bridge across the Volga.



Alexander Zaitsev:

Actually, the old bridge was to be converted into a pedestrian bridge so people could walk freely and have a great view. And then we will see.



Vladimir Putin:

I will not be cryptic. The commission is showing some hesitation about where these 10 billion rubles can be found. We will look further into this; I think they will find them.



Alexander Zaitsev:

Little by little, I hope this will start moving.







Vladimir Putin:

It should not be little by little. There must be a schedule, and it must be complied with, otherwise it will be little by little – the way they used to build in the Soviet Union with 200 bridges unfinished by 2000. They were started in 1985, even in the early 1980s, and 200 bridges were abandoned and unfinished. This will not do.

There must be labour discipline here, similar to what you have. You make four carriages [per day], is that right? And the bridge should be built in the same way – high quality, on schedule and at minimal cost. We will work on this by all means, and I completely agree with you, there should be another bridge across the Volga.



Andrei Solovei:

Mr President, let me take this opportunity. You are running for President of the Russian Federation, will take part in the election. If it is not too late, I would like to offer my help, and since I have always voted for you…



Vladimir Putin:

Thank you.



Andrei Solovei:

…can you consider me a trusted person in the Tver Region? I am ready to be helpful to you here.







Vladimir Putin:

Will your colleagues support you? This is a surprise to me. Thank you very much. I appreciate it.

As head of such a successful enterprise, and not just successful, it is an enterprise that has overcome hardships and trials in its development in 2009, in 2015, and 2016, you got everything rolling again, and look what beautiful products you manufacture, they are in demand domestically, and I am confident we will get them out to foreign markets. So, thank you very much.



Andrei Solovei:

We have already signed a contract with Cuba for 68 carriages.



Vladimir Putin:

I know.



Andrei Solovei:

And now we are working with other countries.



Vladimir Putin:

Because Cuba needs support down there. But it is ultimately support for companies like yours. Thank you very much.



Andrei Solovei:

Mr President, can we have a group photo?



Vladimir Putin:

Of course, we can. With pleasure.




The source of information - http://en.kremlin.ru/events/president/news/56635






Meeting with winners of the best composition contest titled Russia Focused on the Future



Vladimir Putin met with school students who won the National Competition for the Best Composition titled Russia Focused on the Future.



January 11, 2018 - 17:45 - Moscow







The President invited school students to write a composition on how they see their country’s future at the threshold of the 2040s-2050s on Knowledge Day, September 1, 2017, during the National Open Lesson.




Ilya Demakov:

Mr President, we invite you to join our conversation. We are talking about history and Russian culture, and I would like to give you a brief account of the competition the winners of which have gathered here today, if I may.



President of Russia Vladimir Putin:

If I may, I would like to say a few words first.

Please accept my congratulations on your results in the competition for the best composition.

As you said, it was a large competition with 437,000 participants. How many reached the final round: 33 or 35? Thirty-five. Imagine 437,000 participants and 35 finalists. This is a very good, powerful selection. Congratulations!

Needless to say, I was unable to read everything – not only the 437,000 but also all of yours. But I still looked at the write-ups on your compositions and at excerpts. What I saw was beautifully written and interesting.

I was especially pleased to read what you wrote about your own role in the country’s future, which is only natural, without forgetting the environment or your small motherland (which is extremely important), that you see it as beautiful, interesting and making progress, as well as your thoughts on what can be done for people both from where you stand today and in the future.

All this struck me as very important and interesting, and beautifully expressed.

So, I congratulate you and wish you continued success.



Ilya Demakov:

Thank you, Mr President.

We are ready to make a presentation of our competition. Almost 2 million young people responded to your proposal announced on Knowledge Day and wrote their compositions. Of the almost 400,000 that were selected by the jury, 100 made it to the final list. There are 35 students here and they want to share their views not only in writing but also in person. They have their own opinions on some key issues they raised in their compositions.

The top questions are really about a small motherland, the destiny of the cities and villages from which these young people arrived, and the environment. This one is related not only with the Year of the Environment but also with the needs of these people from the regions.

Importantly, they did not simply send in challenges and problems but they also suggested solutions. Today they would like to suggest these solutions to you and ask for your opinion about them. These young people describe the qualities they would like to acquire and convey to others, such as a creative attitude towards labour, care for families and friends, and of course, concern about natural and cultural heritage.

Indicatively, regarding work, they considered two professions to be the most popular – teachers and journalists. Their rationale for this was interesting: these two professions allow their bearers to be always where the action is, among people and, most importantly, they imply much responsibility and integrity.

Two other subjects – about a small motherland, a native city or village, and environmental protection – were presented. Today we would like to show you a number of animated cartoon clips on these and discuss them.

One more subject that is important to youth is family values and relationships. It was most interesting to read the compositions of those who study in military academies. We have representatives from the Defence Ministry’s boarding school and the Cadet Corps.

For these young people the family squares with the issue of security and a careful attitude towards people and further on to peace and security for all. They suggest dealing with the challenges and threats they described in their compositions through understanding and cooperation, primarily within their own families.

So, writing these compositions (on your proposal about the threshold of the 2040s—2050s) they wrote generally about themselves, about what kind of world they can create around themselves when they become adults and more serious. They picture it as safe and fair. Most importantly, they would like to become educated and creative.

These are the kinds of young people that have gathered here today and are ready to suggest their own ways of countering these challenges and threats.



Vladimir Putin:

Let us hear from someone.



Ilya Demakov:

Yes, of course. I think we shall begin right after one of the videos.



Vladimir Putin:

Yes, please, go ahead.



Ilya Demakov:

This is a video from Dmitry who represents the city of Volgodonsk, Rostov Region.


(The video plays.)


Dmitry is here today. The voiceover was done by him. Dmitry would like to share his opinion on the issue.







Dmitry Pavlov:

Hello, in this video, as well as in my composition, actually, I tried to express my opinion in the simplest and most understandable way on something you often hear from young people and older people: “Oh, it’s so bad here.” I tried to show that we are entitled to change the situation, and if we work together, then it is actually in our power.



Vladimir Putin:

This is true. However, the biggest disappointments stem from huge, utterly unrealistic expectations. We have to be realistic, always. So when you set a challenge for yourself, you should think about how feasible it is. You must look for the means to achieve the challenge you set for yourself.

What we saw in the video are the simplest, really attainable things: fixing up a stadium, or a playground of some sort. Indeed, you have to find those who are willing to help, work together, who unite around a common idea. It is not enough to pick up a shovel, as you will not dig the whole pitch yourself anyway – you have to find people to be by your side.

It is an exceptionally important task in the modern world, it is important in itself. Considering modern technology, it is crucial to be able to work in a group, to find one’s place in a group, to get along well with other members, to be effective and to unite like-minded people around you. This is one of the competitive advantages of the future. I hope you will remember that.

Thank you.



Ilya Demakov:

Many children have written about competitive advantages – cooperation as an advantage for the future. Will anyone say more on this? Yulia from Murom, Vladimir Region.



Yulia Vlasova:

Good afternoon, Mr President.

The topic of my composition was Developing Education and Culture in the Russian Federation.

We think school is the most important place for learning how to work in a group, and teachers and instructors often unite us around a shared idea. In the video we saw a real example, a real-life situation where enthusiastic people got together and did a good thing for themselves and other people.

I think our education system will be more effective, and there will more people excited by one common idea. If we address real-life examples in class, if we have more real-life experience instead of dry theory, then what we have learned will be more effective and useful for us, for our country’s future.



Vladimir Putin:

I completely agree. Yet, I would not wipe dry theory off the board as this is the foundation for all other applied areas of knowledge and disciplines.

The task is to try to see how today's dry theory can be translated into life in the near future. Dividing the sciences into applied and fundamental theory is conventional. As our outstanding scientists, academics, those who made great achievements in their areas, say, fundamental and applied sciences are only conventionally divided into the former and the latter: the fundamental is something that can be turned into the applied, a few years later.

Our scientist Zhores Alferov once made his discoveries in the area of corresponding structures, but 30 years, or if I am not mistaken, 37 years passed before he finally became a Nobel prize laureate. Why? Because it took more than 30 years for people to begin putting it into practice, to become aware of what it means.

All modern mobile phone communications are based on his invention. And this is the difference between fundamental and applied research. Of course, applied research is more interesting. Fundamental science is usually contemplative, abstract, but it is significant as well. All one needs is to try to get a taste for this.

Certainly, everyone wants to achieve concrete, tangible results, which, strictly speaking, is eventually our common goal. But we should try to realise ourselves both here and there.



Ilya Demakov:

We have one more video about the connection between school and life. Shall we watch it now?



Vladimir Putin:

Yes, of course.



Ilya Demakov:

A clip by Oksana Sukhova from the Ivanovo Region.


(The video is played.)


Ilya Demakov:

Oksana is here today. Let us give her the floor.



Oksana Sukhova:

I would like to say that my composition is a dream, a dream about a wonderful, friendly and large family, about excellent education for my own children, about my career as a teacher of Russian language and literature and about a prospering family business, I mean, it is just an ordinary thing.

Mr President, do you think it is possible to create a large, united family, if we are uncertain about our own future and the future of Russia?



Vladimir Putin:

How would you answer this question?



Oksana Sukhova:

I believe in my future and the future of Russia.







Vladimir Putin:

This is a wonderful answer.

You are very young and hardly any of you seriously studied the classics of Marxism-Leninism as we used to do in Soviet schools. Socialists, such as Marx and Engels, had many debates on the future of the family. Initially they assumed – not even initially because they were convinced that the family will cease to exist.

In the first years of the Soviet government, this idea was actively supported by the Bolshevik Party. In fact, the Bolsheviks announced that the institution of the family was a thing of the past. They said it was disappearing and had no future.

This idea was rooted in what was then considered fundamental studies by Marx and Engels, the founders of Marxism-Leninism, as they were called in Soviet time. They believed and dreamt that as society developed it would be able to provide as much free time as possible for people’s self-realisation and deal with children’s upbringing practically without parents.

Society was supposed to create sort of communes, children’s homes, what they believed to be the most advanced structures, where children would be raised and receive various kinds of education in the arts, natural science and so on. This is how new society was supposed to be created – a society of new, free people.

Practice showed that the absence of a loved one, the absence of mother and father did not make a child, and later on a young man and an adult, a wholesome person. The idea formulated by Engels and Marx might have sounded beautiful. It was shared by Lenin and actively supported in this country.

The authors of this phrase-mongering statement forgot about the main thing, love, which underlies the upbringing of a fully-developed person. When a child misses the care of family members, he or she will not grow self-assured and confident whereas confidence rather than conceit is one of the fundamental qualities required for fully-fledged development.

This is why your attention to family values is important. I believe they play a major role along with other factors. It was good of you to write about this in your composition. I noted in the clip that the elder son studies at Moscow University, I think, but remotely.

I must say that we largely see the future today. Remote education is being introduced in Russia on an increasingly broad scale. This is vital for a country with an enormous territory like ours. We must make this kind of education accessible and develop modern technology.

Only yesterday, I met with the Head of the Centre of Child Oncology and Hematology, who told me that together with the Education and Science Ministry they had established a system of remote education for children who are recovering from cancer and who are undergoing rehabilitation. They begin to study during this rehabilitation period, including under remote education programmes.

And when they return home, some of them find that compared with the education they received here with the use of modern technologies, the education standards at home, at their local schools, are not quite up to the mark, so to say, that they do not meet their expectations with regard to education.

As healthy people who have returned home to their families, they continue to study online using their clinic’s system. In effect, this was quite unexpected, and prompts unexpected decisions to be made.

The same concerns healthcare in general, including long-distance services and online consultations by the leading experts at top medical centres for their colleagues in other regions. All this will certainly develop just like the family business you have just mentioned. This is an interesting subject.

Thank you.



Ilya Demakov:

Would you like to add anything? Nastya represents Trans-Baikal Territory.



Anastasia Ivanova:

I would like to say a few more words about the family, on my own behalf. In my case, if it were not for my family, I would not be sitting here. I believe that many of us would not be here without the support of their families.

To be honest, no matter how strong you are, no matter how many GTO (Ready for Labour and Defence) badges jingle in your pocket, and no matter what impressive achievements you have made in your career, you always need someone nearby, a person you can rely on and on whose shoulder you can cry.

You need a helping hand and someone’s loving heart. And you will not accomplish anything without your family and friends, no matter how impressive your achievements are.

I believe that Russia and the rest of the world would have no future if the family was destroyed.

Come on guys, let’s live in harmony, let’s not get upset with our parents when they make us wear warm jeans on a cold autumn day, let’s cherish and love them because, if it had not been for them, we would have failed to accomplish all this, and I would not be talking to the President of Russia here.

Thank you.



Vladimir Putin:

That’s right. But please take your GTO badges out of your pockets and wear them on your chests. This is what you can and must be proud of.



Ilya Demakov:

Let me introduce Liza representing the most remote region. She is from Komsomolsk-on-Amur in the Khabarovsk Territory.



Yelizaveta Shelekhova:

Good afternoon, my name is Yelizaveta. Continuing the topic of family and love, I will perhaps deviate a little bit. Love does not only exist in a family. There is also a love for our nation, culture and, above all, our mother tongue because our native language is a link connecting all of us, the entire country as well as our multiethnic people. The language must, of course, be beautiful for the people to love it and enjoy hearing it.

My school devotes a lot of attention to literature and culture of speech. By the way, Mr President, you are very often presented as an example of the most eloquent person in the country with impeccable speech.

I think if we did not love our culture, if we did not use our language and could not use it as well as everybody in this room, perhaps there would not be a contest like Russia Focused on the Future. There cannot be a future-focused country if its population does not love its culture and language.

Thank you.







Vladimir Putin:

Thank you to your teachers for the compliment. I must say that I myself often turn to Russian language experts to clarify something. There have been cases when right before a public appearance, I would call some expert from my plane and ask about the stress in a word. There are people who are like walking encyclopedias, they know everything. We should look up to them.

The fact that a mother tongue (you specifically mentioned the Russian language) is extremely important both to Russians and other ethnicities living in our country is absolutely true because Russian naturally plays a unique role when it comes to inter-ethnic communication. This language is what unites us.

For any people, including Russians, native language is one of the components that form a nation. These components include a common territory, a common economy, a common state authority and, of course, a common language. There is no nation without a language.

Shrinking geography – in this case of the Russian language – and its curtailed geographical distribution is a blow on the statehood and its representatives, speakers of this language. When this happens there will be negative consequences. Not right away, but they will emerge eventually.

Therefore, all of us, both representatives of Russia’s low-numbered ethnicities and Russians must definitely do their best to support and develop their traditional cultures, their languages and the Russian language, in particular. It is perfectly obvious.



Ilya Demakov:

Kostya represents the Kaluga Region.



Konstantin Kozlyayev:

Thank you for the opportunity to say what I have to say.

When we talk about love, about one's own family and language, we should keep in mind what Academician Dmitry Likhachyov said. In his “Letters about the Kind and Beautiful,” he wrote that love for the whole of humanity begins with small things: with one’s home, school, village. Therefore, we should not forget that we must pass on to our descendants not just memories of our culture and our ancestors, but also our nature, the nature of our native land as it also bears our imprint. The way we take care of it shows exactly what kind of people we are, what we want to pass on to our descendants: devastation and disunity, or the beauty of this wonderful world.

Thank you.



Vladimir Putin:

Are you talking about the environment, about nature?



Konstantin Kozlyayev:

Yes. I am talking about this not just because this was the theme of my composition, but also because it is very important. Every one of us must preserve the land where he or she lives. We can walk by, paying no attention: oh, here are maples, how nice, let me go home and have a cup of tea. No, we must be aware that all this grows not just for us, but also for our ancestors. That is why my composition is in the form of a letter to our ancestors.



Vladimir Putin:

Nothing is growing for our ancestors. (Laughter.) It now grows for us and future generations, for our descendants, right?



Konstantin Kozlyayev:

Yes.







Vladimir Putin:

It was a slip of the tongue. These things happen.

Of course, you are right. It is necessary to take care of the environment, of all that surrounds us. This is especially important in today’s world, because modern technologies are so powerful and only growing stronger, making it is very easy to do damage to nature, irreparable damage, and sometimes it can not be restored. So we must be very careful.

But, you know, it used to be like that a long time ago, actually always, and it is particularly pressing now – there is a kind of confrontation going on between two beginnings: the beginning of development, the introduction of technologies or the exploration of some territories, and the conservation of nature. Sometimes in order to build a road, people have to cut through a forest, otherwise there will be no road, and if there is no road, there will be no development. You know, when there is a road, there immediately spring up enterprises, businesses, something you wrote about in your compositions. No road – no enterprises, no enterprises – no jobs, no jobs – no wages, no taxes, and so on. There always was and will always be this contradiction between development and conservation. This challenge is becoming more pressing then ever.

But there is one rule that we can and must introduce in our country. If we took something from nature for our development needs, we must by all means restore this somewhere nearby or not far away, in full, or better yet even add something. For instance, you cut a clearing through a forest, removed a certain number of trees, so plant as many or even more trees nearby, and, ultimately, there will be no harm. If we follow this golden rule, then the contradiction that I mentioned, between development and conservation, will be reduced to zero.



Ilya Demakov:

Ilya, the Omsk Region.



Ilya Chekashev:

Good afternoon.

I would also like to say that some of the recent topics that have been raised about the significance of one's native language, native environment, native land, are inextricably intertwined. In order to preserve all that was dear to our ancestors, is dear to us and will be dear to our descendants, we need to remember how it was in the past, what happened before we were born.

And then there emerges an interlink between our native language and where and how we live, the environment. Because if, for example, we forget the language of our native land, we will not be able to recall any of our ancestors, not even their thoughts on the things we think about now, nor what they dreamt of. We will not be able to learn what steps they took to preserve their native environment and, perhaps, improve their native land. So what I want to say is that all this is intertwined and that nothing should be lost. Both the development of modern technologies and the past must be preserved.

And what is your opinion?







Vladimir Putin:

Yes, I agree. Actually, that is how the world is – indivisible. Only in theory can we single something out, or start using something or research something separately, while, in fact, everything in the world is intertwined, everything is interconnected. Therefore, it is desirable, of course, to perceive it as a whole, holistically. This is true.

And it should be understood that if someone did something somewhere or caused some damage or had some kind of effect, the impact will be felt elsewhere. And it is desirable that people should know what the potential consequences might be like and, knowing that, should act very carefully, of course.



Ilya Demakov:

And we also have an opinion from Ivan, the Republic of Crimea.



Ivan Oleynik:

Good afternoon, Mr President.

Crimea was always Russian. Sometimes it drifted away but always returned to its harbour. On March 18, 2014, it came back again. As a result, a huge project for Crimea was launched – a bridge across the Kerch Strait. It opens up enormous opportunities. This project came into being because we are in Russia. If we were not part of Russia, maybe I would not be here now. Thank you.



Vladimir Putin:

You definitely would not be here now. That is for sure.

You were correct, of course, about Crimea's destiny. So far, we do not know it well enough. It would be interesting if both Crimeans and people in other Russian regions took a look at how Crimea's destiny was shaped.

Say, the Slavs were present there in pre-historic times, and later all kinds of people lived there: the Genoese; Islamic peoples, those who profess Islam; members of the Jewish faith also inhabited part of that territory, it was their homeland. Crimea boasts a very complicated and interesting history. And the fact that all this is part of our country is very important because it shows how deep and interesting the history of Russia as a whole is, the same with regard to Crimea or other territories of the Russian Federation.

But what we must treasure absolutely is that we are together today. We are together, and this creates significant – as I already said at the start of our talk – competitive advantages. Because an integral, united, well-centralised and democratically organised state is the basis on which every person and every family can develop, feel safe, feel protected. This is extremely important. But in order to understand this, the close study of our history is needed. Ivan, you chose a very good theme. I believe that we should support this and take a more careful look at both Crimea and other regions of the Russian Federation.







Ilya Demakov:

Can we watch one more video?



Vladimir Putin:

Yes.



Ilya Demakov:

This is a video by Olga Yevseyeva from the Belgorod Region.


(The video plays.)


Ilya Demakov:

We could hear Olga’s voice. She is present here today.



Olga Yevseyeva:

Good afternoon.

First of all, my main message is that we ​​must improve over the course of our lives. Using the example of this builder – this is a real person – my task was to write an article for a school newspaper about a working profession. I went to this construction site, asked to talk to the youngest, most handsome and broad-shouldered builder. It was 19-year-old Slava. Using his example, I wanted to show that we must improve and that we are also builders, we are also building our future – the future of our country, the future of our Motherland. Throughout our history, we have destroyed a lot. Now it is our time to build.

Thank you.



Vladimir Putin:

We are not surprised that you went and asked to interview a broad-shouldered, interesting young man. This is very good, well done. And it is very good that such a Slava was there, and you could talk to him, get acquainted and tell his story.

I would like to say that you expressed a very good idea about working professions. Today, the lines dividing various levels of training for specialists have practically been erased. We just do not have enough …



Olga Yevseyeva:

Working hands.



Vladimir Putin:

No, not just working hands, but well-trained specialists in working professions. This is a separate topic. The former system of training specialists in working professions is absolutely obsolete and cannot be used today. It needs to be updated, which is what we are trying to do. And jointly with the relevant ministries and departments, with the regions of Russia, with our large companies, we are now organising a large training system.

Not long ago – in 2015, I think – we started national contests for people of various blue collar professions and began to take part in international competitions. Our teams have achieved great results. I think about a year and a half or two years ago, some research was carried out; by the way, tasks were set during various contests, and as I have already said, we discussed what might be interesting for you with teachers who won the teachers’ contest. The tasks were almost identical for high-school pupils, for university students and young specialists working at defence enterprises (the most advanced ones, with high technology and so on). High-school pupils were the best in handling the tasks, including the task of assembling small satellites.

It may surprise you, but it is a fact. This is a really objective indicator. But there is also an explanation, because high-school pupils use modern devices more. Even computer games help them with problem solving, because solving problems using modern technology is easier for someone who spends more time and, it may seem, wastes time on this. This is the first thing I wanted to say. Labour is a vital topic today.

And second, another very important thing that we often talk about but seldom do, although we should at least be thinking about: training, I mean professional training, should be constant. Today new skills appear very quickly, and if we do not want to fall behind, if we want to be ahead of the competition, training and study should always be ongoing. This must be a regular thing, normal for every person. It is not the case of receiving a paper with your grades – excellent, satisfactory, or good – and that’s it; you are satisfied and put it on a shelf and forget about it; and now you are sitting and thinking about what you expect to get. No, if you want to be a good specialist, you need to practice and to improve, and only then will you always be at the peak of your capabilities, riding the crest of success. This is what I hope for you.

In addition, probably many of you already have offers and vouchers from our leading recreation centres, such as Orlyonok, Ocean or Artek. These are not just recreation centres; they are education centres. There is also, and I hope you have heard about it, the Sirius Educational Centre in Sochi for gifted young people. We hold literature seminars and courses there regularly. I also invite you there. I hope I will have time to see you there.

Unfortunately, it is already time for me to go to my next event.

Let’s have one last question to conclude the meeting.







Darya Svitaylo:

It is in fact about Sirius. I would like to thank you for creating such a centre, because I personally heard about it last March. I am currently taking the Literary Creation course for the second time. I see how significant the opportunities are for talented children and that we are really valued and a lot has been done for us. Thank you very much for this.



Vladimir Putin:

When were you at Sirius?



Darya Svitaylo:

In June and now.



Vladimir Putin:

You like it there?



Darya Svitaylo:

Very much.



Vladimir Putin:

The conditions are good there, as well as the creative atmosphere in various areas.



Darya Svitaylo:

It gives you enthusiasm and inspiration to continue working.



Vladimir Putin:

I wish you success and all the best in the New Year! Thank you very much. Good luck. Goodbye.



Ilya Demakov:

Mr President, we have a proposal, a little request, to be exact, from Yekaterina.



Yekaterina Ivanova:

Mr President, it would be a great honour if you agreed to take a picture with us.




The source of information - http://en.kremlin.ru/events/president/news/56638






Meeting with heads of Russian print media and news agencies



Ahead of Russian Press Day marked on January 13, Vladimir Putin met with heads of Russian print media and news agencies in the editorial office of the Komsomolskaya Pravda newspaper. The discussion focused on current professional issues. The President congratulated media representatives on their professional holiday.



January 11, 2018 - 19:45 - Moscow







In December 2017, during Vladimir Putin’s annual news conference, Komsomolskaya Pravda correspondent Alexander Gamov invited the President to visit the newspaper’s editorial office. Before meeting with heads of Russian print media and news agencies, Vladimir Putin toured an exhibition devoted to the newspaper’s history, learned about the work of its editorial office and wished the listeners of KP radio station a happy New Year in a live broadcast.




President of Russia Vladimir Putin:

Good afternoon. I congratulate you all on your professional holiday. Press Day, right?



Editor-in-chief of the Komsomolskaya Pravda newspaper Vladimir Sungorkin:

Russian Press Day.



Vladimir Putin:

My congratulations to all those involved in this wonderful profession, an interesting, very important, difficult and, sadly, occasionally a dangerous one, but very important. I congratulate you and wish all the best to you, to all your colleagues, to everyone who works at both print and electronic media outlets, in internet media.

People in your trade are interesting, unconventional, creative, and often very talented. I would like to express my hope that all those qualities, all the talent and efforts will serve the good of society and Russian citizens.



Remark:

Thank you.



Vladimir Putin:

I will conclude my short speech, my introductory remarks, on that note. Let us just have a talk, as we oftentimes do at meetings like this.



Vladimir Sungorkin:

Mr President, thank you for coming to Komsomolskaya Pravda.

I have a question for you not as the President, but as a presidential candidate. This year, we will have, I think, a record number of those who wish to lead our dear mother Russia. What are your thoughts on the large number of potential candidates? Do they motivate you, or just the opposite? What are your feelings on going up against 15 rivals, I believe?



Vladimir Putin:

I think it is normal and good. To some degree, the pre-election period always strains society, because, unfortunately, there is also a lot of “foam” bubbling up, but still it is good because it gives people a chance and a reason to speak out, to discuss how different people approach these problems.

In general, I think it’s useful. It keeps the discussion fresh and sharpens it. The main thing is to do everything according to the law, as well as certain ethical and moral values. This is the most important element; and on the whole these campaigns I have just mentioned, while they have downsides, they still benefit society. This is why I welcome it. I will be glad to see and to hear interesting, elegant and useful proposals for the country’s development.







Editor-in-chief of the Kommersant newspaper Sergei Yakovlev:

Mr President, I would like to continue with the topic of the election.

Alexei Navalny was not allowed to participate in the election. We immediately heard criticism from Washington and a number of European capitals. I would like to know what you think about this and how you see the situation?



Vladimir Putin:

First, I would like to say that no one likes when others interfere with their internal political affairs. Our American friends particularly do not like it. We can see their reaction even to unreliable information on our interference, we can see how sharp the reaction has been, aggressive even, I would say. The experience of American election campaigns shows that they hardly allow anyone in.

The situation with our media which were promptly labelled foreign agents and their performance impeded, in a pretty aggressive and spiteful way, I would say this speaks exactly to how they react if someone influences the domestic political situation somehow, especially during the pre-election period.

The fact that they do that themselves, at least make these attempts, is regarded by them as normal, which is absolutely wrong in my view. And if they poke their nose in everything, they should be ready to respond to certain challenges which they actually encourage themselves.

I would ask you not to take this as if we are interfering with something. We are not going to interfere. I am just stating the fact that nobody likes it when someone interferes with their business yet they are happy to intrude into others’ affairs. This is the first thing that comes to my mind regarding some reactions by the US Congress followed by the Department of State on the fact that someone was not allowed. This is the first instance.

The second instance. The character you mentioned is not the only one who was banned. For some reason others were not announced. This seems to reveal the US administration and other nations’ preferences regarding who they would like to promote in Russia’s politics and who they would like to see among the country’s leadership, if not the leader. And apparently, these are the people they count on, they rely on. And in this case, they gave themselves away, they would have done better if they had kept silent.

The key is not who was allowed to run and who was not, because this is standard practice. The key is to understand and to follow the spirit of the law for us inside the country. To understand that any violation of the law, no matter who it is committed by, is intolerable. And that’s it. Including during the election campaign.



Rossiya Segodnya Director General Dmitry Kiselev:

We have just celebrated the New Year. I understand you rang it in amid freezing temperatures in Russia. Meanwhile, as many Ukrainian media resources reported, Poroshenko, the President of neighbouring Ukraine, rang in the New Year in the Maldives where he rented a whole island. Apparently, it was there that he shouted “Glory to Ukraine!”

Meanwhile, Donbass exists. It is home to millions of people who did not recognise the coup d’etat in Kiev, and on the whole their fate is not to be envied. There is little good news out of there. True, recently a prisoner exchange took place there but it was incomplete. Otherwise, there is shooting and people get killed almost every day. Does Donbass have a future? Is it a frozen conflict? It seems Europe is ready to forget about it. Or am I mistaken? Russia’s maneuvering is probably also limited to an extent, is it not?



Vladimir Putin:

First, I always spend the New Year and all other holidays in Russia. This is simply a tradition. To be honest, I do not even want to go anywhere. I spent the New Year holiday at home and then went to Siberia for a couple of days. The temperatures were really freezing there – minus 33 C – but I like it this way.

As for the President of Ukraine, I do not know where he spent his New Year holiday but I do not think there is any shame in the President going abroad and spending some time with his family there.



Dmitry Kiselev:

But he is saying that the country is at war and yet he goes to the Maldives. How come?







Vladimir Putin:

I do not know anything about this. I do not know anything for sure and so it is difficult for me to comment. At any rate, he is a wealthy man and can afford to go with his family abroad, to the Maldives or whatever other islands.

As for settlement prospects in Donbass, it seems to be turning into a frozen conflict. Nobody, including Russia, has any interest in this. We would like this situation to be resolved. But a settlement should not cause concern among those who live on this territory. I do not want to predetermine anything now. I have said this many times. I would like to repeat: Russia would be fairly content if the Minsk Agreements were carried out in full. I am referring to their implementation on a full scale – not just selectively as some prefer. All those who live in Donbass should find such a settlement suitable, and it should include a law on the special status of Donbass. This is the second point.

Third. Regarding our relations with Ukraine in general. It is totally abnormal that instead of constructively advancing relations between the two close, brotherly nations and between what are essentially parts of the same people, we see what is unfolding today. I expect that after the Donbass issues are solved, and this will happen sooner or later, there are no doubts about it – inter-state relations between Russia and Ukraine will begin to normalise in general.

As you know, even in 2014, we began the transfer of military property and equipment. Several trainloads were sent from Crimea to Ukraine. The Ukrainian side repeatedly raised the issue of returning military equipment from Crimea. I would like to use the opportunity, as they say, and I want to say that we are ready to continue the process. We are ready to hand over naval ships to Ukraine that are still in Crimea, we are ready to hand over air force and armoured equipment. To be honest, it is in miserable shape but that is none of our business, it is in the same condition as when we got it, and it certainly has not been serviced in all these years. However, it concerns dozens of ships, dozens of warplanes.

As to the ships, I think it will be better if Ukrainian service personnel arrive and take them, we are ready to help them move the ships to Odessa.

There is also a considerable store of ammunition, but according to our military experts, the ammunition may not be transported; it is dangerous, so it must be disposed of on site. We are ready to invite the Ukrainian military for the ammunition disposal. But these are just the most necessary external steps.

Despite all the complexities and problems, trade between Russia and Ukraine increased last year, and the increase was significant. It is a good sign that we have fundamental resources to restore relations in general.



Editor-in-Chief of Nezavisimaya Gazeta Konstantin Remchukov:

Mr President, I would like to touch on two interconnected topics – they are staffing for management processes in the country at all levels, in all industries…



Vladimir Putin:

What kind of staffing?



Konstantin Remchukov:

Staffing for management processes. And connected to that is the problem of social lifts for the young. I am a member of the Supervisory Council of the Leaders of Russia contest initiated by you. I remember when we gathered for the first meeting in the autumn, we expected seven to eight thousand people to take part in the contest. Mr Kiriyenko, a thrifty person, said, “Let us assume that the contest’s organisational structure should be designed for 10,000 participants. The number of applicants was 200,000. This is phenomenal. The last semi-final started yesterday. The 300 finalists will get a million rubles each toward business training.

Question: Is this project opportunistic? Can the topic of social mobility for young people be considered from the perspective of the election campaign?

Second. If you continue to serve as President, will you continue searching for administrative staff via this contest?

And third. Do you personally follow these selection competitions across the country? Thank you.



Vladimir Putin:

I will pick up where you left off. I follow them personally. I think the organisation and the specifics of this work, as well as the results of this big event, are positive. For me, it was a bit unexpected that such a big, even huge, amount of applications were submitted. It means that there is major interest.

This does not have anything to do with the current political environment. You know that for a long time, during almost the entire last six years, we have been discussing and taking consistent steps to train new specialists, in various areas.

One of the most important areas is the training of highly-qualified workers. Since 2015, we have been holding national contests and competitions, taking part in international competitions and even winning them. We won in Abu Dhabi, in the team score, as they call it. We are constantly working with businesses. Companies pitch us their programmes. We reach agreements with them on the work they will do together with the Ministry of Industry and Trade, the Ministry of Education and with regional teams. We are organising the opening of educational centres and support for them at the level of our large corporations.

You know, yesterday I visited a rail car manufacturing plant in Tver. They are also currently taking over a large regional centre where they will train specialists. It happens everywhere. Naturally, we should search for young and promising people at the federal level, too. We have established an entire training system for talented young people across the country, starting with Sirius. We are building technical parks and youth and child venues for technological creativity. This is our large, significant, multi-disciplinary programme. And the Leaders of Russia contest is one of its elements. Of course, we will continue working on this scale.

And speaking about the contest, we can really find very interesting and talented young people that way. They are of various ages, but mostly young. And our goal is not only to find them a job somewhere, but to help them to develop. The money you are talking about, it is not for employment, but for professional growth and development, for them to improve their skills. However, I can tell you that during this major work, our large companies, ministries and agencies are watching them more closely, too. Of course, we will also use them to form our federal staff reserve.







Chairman of the Russian Union of Journalists Vladimir Solovyov:

The Russian Union of Journalists will mark its 100th anniversary this year. We want to celebrate this event properly, but there is one thing missing for this: an honorary title for our professionals. When good journalists are rewarded, they receive the title of a Merited Worker of Culture or even a Merited Communications Worker, which does not describe what journalists do.

I hope my colleagues will support me. I appeal to you on behalf of the journalistic community to support our initiative to establish the honorary title of a Merited Journalist of Russia. This is very important for our veterans.



Vladimir Putin:

I think your request is completely justified. Why not, indeed? As I said in my opening remarks, journalism is occasionally a dangerous profession, so it is a justified request. Let us do this. I will issue the corresponding instruction to the Presidential Executive Office, and we will do this.



Vladimir Solovyov:

Thank you very much.



Director General of the Interfax news agency Mikhail Komissar:

Mr President, according to reports from Syria several days ago, the terrorists used drones to attack our air force base there.

Our Defence Ministry has reported that these drones were launched from an area in Idlib, which is controlled by Turkey. Here comes my question. It seemed that our relations with Turkey, at least our military and political relations, have normalised. How can you comment on this situation then?



Vladimir Putin:

I spoke with the President of Turkey from an office next door right before this meeting. We discussed this situation among other issues. I am sure that neither the Turkish military, nor the Turkish authorities, nor the Turkish state has anything to do with this incident. However, it is true that Turkey should control this part of the Idlib zone. It should be said, though, that we do not always manage to have complete control over what we should control there.

Our Turkish partners are sometimes unable to do so either. The situation is complicated there. Under our agreements, they [the Turkish partners] should set up observation posts there, but they have not done this so far. And it is difficult to do it.

You probably remember that when we set up the checkpoints operated by Russian military police, the militants launched an offensive. As a result, Russian service personnel were surrounded. Through well-coordinated, professional and courageous actions by our military on the ground, in the air and by special units, we were able to create a corridor in order to move everyone out of this area without any losses.

In Syria, I met with the commander of this unit. By the way, he is from Dagestan, if I am not mistaken. Anyway, he said that the air force delivered a strike unmatched by its effectiveness. So I asked him: What did you do? I raised the Russian flag, he said, and took this corridor, while a convoy of the special forces moved towards them from the opposite direction.

This does not mean, however, that this was provoked in any way. I am now referring to our Turkish partners. There were provocateurs there, but they were not from Turkey. And we know them and who they are. We know how much and whom they paid for this provocation.

As for these incidents, there is nothing good about them. These are also provocations designed to derail the agreements that have been reached. This is my first point.

My second point has to do with relations with our partners, Turkey and Iran. Someone is also trying to destroy these relations. We understand this all too well, and for this reason, we will show solidarity towards one another.

As for these attacks, we have every reason to believe that they were carefully planned, and we know when and where the drones were delivered, and how many. These aerial vehicles were camouflaged as improvised devices. Let me emphasise, that this is only camouflage. In fact, they clearly include high-technology components. This is related to radio location systems and satellite targeting, as well as high-precision weapon separation systems. What this all means is that the explosives were dropped from the UAVs automatically, and the route was calculated so as to enable the drones to return to the launch site.

This proves that high-technology elements were used. I fully agree with experts from our General Staff that there was no way these elements were hand-built. This is the reality, we see this, and additional measures were taken to secure our locations. I hope that they are effective.

We are committed to further strengthening our partnership with Turkey, and we are engaged in talks to prepare a meeting in Sochi between the Syrian government and the opposition. The Russian inter-agency group is currently in Damascus for talks with the Syrian government and President Assad. I hope that all these complex and challenging issues will be resolved so that we can move forward.



Argumenty i Fakty Editor-in-Chief Igor Chernyak:

This year our relations with our American friends have continued to deteriorate. There have been many provocations, numerous conflicts and incidents of all kinds. Recently, during an attack on the Russian base in Syria, a US reconnaissance aircraft was spotted near the base, according to the Defence Ministry.



Vladimir Putin:

There was a drone hovering nearby.



Igor Chernyak:

Yes, a drone.

Do you think Russia and the US have hit the rock bottom in their relations? Is there hope for improvement and what can we expect this year relationship-wise?



Vladimir Putin:

This does not depend on us. We have been ready for improvement for quite some time. But the domestic political situation in the US will not settle down. We all see and understand that the Russian card is being played in the US domestic politics. The US President is being constantly threatened with impeachment and this intimidation is based on Russia’s alleged meddling. I would like to stress once again that this is nonsense. It is absolutely ridiculous. There was no collusion and no interference on our part.

Stressing this again, I hope that sooner or later this political bustle comes to an end and there will be proper conditions for improving our relations.

Unfortunately, we know that US Congress has voted on some additional restrictions. We will of course analyse those and see how all that is put into practice and whether anything will, in fact, be done. We will respond accordingly. But any steps towards any restrictions and, obviously, any unlawful sanctions will damage rather than improve our relations with the United States. This is not a good idea and it has never been one. We will see. As I said, this does not depend on us. This depends on our US counterparts.

If they show goodwill, muster up courage and common sense and finally realise that the United States itself is interested in improving the Russia-US relations, that it meets their national interests, then the situation will normalise and our relations will develop further. But until they realise this they will probably keep playing the Russian card in their political infighting and this will further damage our bilateral relations, which will continue to deteriorate. We will see what happens this year. It is not up to us.



Editor-in-Chief of the Rossiyskaya Gazeta newspaper Vladislav Fronin:

Mr President, I have a question about the Korean Peninsula. The new year has brought good news about contacts, trends and possible meetings. At the same time, there is alarming news about nuclear buttons and whose is bigger. What do you think about the developments concerning the Korean Peninsula in the first days of the new year?



Vladimir Putin:

I think that Kim Jong Un has obviously won this round. He has achieved his strategic goal. He has a nuclear warhead, and now he also has a missile with a global range of up to 13,000 kilometres, which can reach almost any part of the globe, at least in the territory of his potential adversary. And now he wants to clear up, smooth over or calm down the situation.

He is a shrewd and mature politician. However, we should be realistic, and based on what we have to go on we must act extremely carefully. If we want to achieve the difficult goal of denuclearising the Korean Peninsula, we should do this through dialogue and talks.

I believe that, however difficult this may seem, we can accomplish this mission if all parties to this process, including the North Koreans, become convinced that their security can be also guaranteed without nuclear weapons.

This is how I want to reply in conclusion. It is closely connected with your question and the previous question as well. We are discussing the New START Treaty with our American partners. They have suddenly stated, although their intention fits the letter of the treaty, that they want to convert some of their delivery vehicles – aircraft and submarines – together with silos to prevent their use for launching nuclear weapons.

In principle, this possibility is stipulated in the treaty. But the treaty also says that this is only possible if the other party, in this case Russia, verifies the conversion and is convinced that there is no breakout potential in this, that these silos or aircraft equipment will not be converted back for the use of nuclear weapons.

We have no proof of this so far. And we are therefore concerned about this. But our dialogue is ongoing. I hope it will be positive.







Editor-in-Chief of the Lenta.Ru online media outlet Vladimir Todorov:

Mr President, I would like to discuss the important issue of digital economy.

Last July, the Council for Strategic Development discussed digital economy at its regular meeting. An interesting argument was made that excessive regulation of this high-tech industry may result in a phenomenon of crypto-anarchism that is, the use of technology for unlawful purposes. This includes anonymous technology. I can give you an off-hand example, which is coordinating terrorist attacks via the Telegram messenger or drug trafficking on the dark web that brings billions and involves hundreds of Russian cities.

How can we maintain this important balance between regulations, whether excessive or insufficient (as in the case with cryptocurrencies), and the technological progress that could advance the Russian economy?



Vladimir Putin:

What do you mean “as in the case with cryptocurrencies”?



Vladimir Todorov:

There is no well-defined legal framework on cryptocurrencies at present.



Vladimir Putin:

That is correct. Do you think there should be one?



Vladimir Todorov:

I think it is necessary.



Vladimir Putin:

You know, currently it is to a large extent the Central Bank’s prerogative. The Central Bank has sufficient power to regulate this matter right now. But generally, yes, statutory regulation will probably become necessary in the future.

The Central Bank has repeatedly expressed its view of the matter as has the Government. The Central Bank is being conservative about cryptocurrencies. But in my opinion, this conservatism is so far justified. It is a fact that there is nothing behind a cryptocurrency; it cannot be used as a savings instrument, it does not represent any material value plus it is not secured in any way. A cryptocurrency may be used for payment to a certain extent and in certain cases. It is fast and efficient. You can pay for something with it but you cannot use it as a savings instrument. It is not backed by anything.

Therefore, the Central Bank is treating the matter with a great deal of caution. Fluctuations are tremendous. Cryptocurrency values are jumping up and down, constantly fluctuating. Today you wake up rich or invest everything you had – and tomorrow you lose it.

Just as in the case of the hoodwinked housing equity holders, we cannot permit this to happen to cryptocurrency. If we do not regulate this issue sufficiently well, the state will be held accountable for the problems people may encounter. At present, it is the individual responsibility of every person. But if the state issues regulations on what is admissible or inadmissible, and if we do this badly, we will have to deal with the problems that arise.

We warned people more than once not to take out mortgages in foreign currencies. Only those who receive their salaries in foreign currencies can do this. Otherwise, they will face all the exchange rate differences and risks. But when the problem arose, everyone forgot about our warnings.



Vladimir Todorov:

This is true.



Vladimir Putin:

Of course, it is true. Everyone forgot, as if we had never warned them. But we did; we issued the warnings. But nobody listens. When you look at what is going on, you feel sorry for the people and want to help them.

It has always been like this, and it always will be. And the state will always be held accountable. This is why we need to act extremely carefully. How can I tell you now what kind of a law we need to regulate the use of digital technologies? I cannot answer this question right now, at this table. We need experts to seriously consider this matter.

Any excessive regulation limits the freedom of enterprise. It contains enterprise. But we sometimes need it, because some things should be contained before it is too late. A law becomes obsolete even before it is adopted. It has always been like this throughout history. But it is especially so in the super-modern sector of digital technology.

So, we do need to ponder this question. We must not allow the creation of a Procrustean bed. But if we decide to regulate this matter, we must take into account all the necessary elements.



Vladimir Todorov:

Are there any additional government support measures for those who would like to take part in this business?



Vladimir Putin:

We have many areas. What is digital economy? It is so diverse that each field requires special attention. But the core value is the use of digital technology, say, in industry.

I am getting immersed in this but not as experts do. This is what they say: after some time any commodity will be digitised and occupy its place on such information digital platforms that it will be impossible to produce or upgrade anything without using information from these platforms. Those who own these platforms will rule the world.

Suppose you made a car and you want to upgrade it. In any event, its modernisation will be digital and done on a platform where all this is stored. Suppose we want to replace some socket or screw. Then we have to go to the platform to do this. Whoever owns the platform is the master of the situation. If we miss this moment we will be desperately lagging behind. This did not happen and I hope will not happen in the future. Meanwhile, these platforms are being established in the United States and Europe –unified European platforms.

In principle, we are working to create a unified platform in the Eurasian Economic Union. We can do this. Moreover, we can do this on a fair basis, sharing risks and areas between all the participants. We should not be slaves of the already existing platforms but should create our own and we can do this.

Sberbank has moved far enough in this respect. The Executive Office and the Government are working on this. This is being actively used in trade that is also business. Take such large companies as Alibaba. E-trade is continuously expanding. This is not limited to trade only. This is turning into a broader platform on rendering services, shipping freight plus doing many other things as well. There is a host of components.

No less important is the use of digital technology in transport, movement of goods and integrated auto, railway and air shipments. Digital technology makes this dozens, hundreds and maybe thousands of times more efficient. This leads to a sharp reduction in the end price of goods. On a par with modern gene engineering technology and nanotechnology, digital technology is becoming a cross-cutting issue. They will create the future of humankind.

Is it necessary to regulate this legally? Of course, it is. It is important to understand what should be regulated and within what framework. This is a separate huge sector of work, a whole layer of work for experts, for professionals. We know what it is and we know how to act as well as where to go. But this is a separate story.







TASS Director General Sergei Mikhailov:

Mr President, the elections in Italy are scheduled to be held in March, that is, one week ahead of the Russian elections. And statements are already being made that Russia is meddling in the Italian political process. What do you think of this?



Vladimir Putin:

Yes, I have heard about this, and we can see what is happening in some European countries, including Italy and Germany, in the run-up to parliamentary elections. And now, this is taking place in Italy. There is only one goal.

First, Russia and Italy maintain very good relations. By the way, we have diverse relations with different political forces. I have repeatedly said that I enjoy excellent relations with Mr Berlusconi and Mr Prodi, who have been voicing and continue to voice diametrically opposing political views, and they compete with one another on the political scene. But I maintain good relations with each of them. What does this mean?

This means that Russia and Italy have reached the so-called nationwide consensus regarding our bilateral ties and the development of bilateral contacts at interstate level. We highly value this. We have absolutely no intention of meddling in any national elections, including those in Italy. This is absolutely out of the question.

You see, we perceive our relations with Italy as a state to be much more important, and we consider this to be pointless. We know that, regardless of which political force gains power in Italy, the country has a nationwide political consensus prioritising expanded relations with Russia. On the whole, we are confident that Russian-Italian relations will develop positively.

Why should we work on this? These provocations only aim to wreck this nationwide consensus on the development of interstate ties. This is being purposefully done to damage the level of relations that has already been reached. This is being done from the outside, rather than in Italy itself. We can see this, we heed this factor in our work and in dealing with our Italian partners.

We are in contact with many of them, including political parties and security services. We have suggested long ago that a working group on cybersecurity should be established so as to ensure joint efforts in this area that are as transparent as possible, and we have now repeated this suggestion. To be precise, this implies specific threats, rather than activities, in this area.



Ogoniok magazine Editor-in-Chief Sergei Agafonov:

Mr President, it would be a shame not to use this opportunity. I have been entrusted by my whole team to ask you this question. We are going through a difficult time and, although it seems that we are recovering from the crisis, the economic situation is still far from thriving and prosperous. And our industry…



Vladimir Putin:

I am sorry for butting in. You see, we do need to maintain the gained momentum in the economy. However, the GDP growth rate is 1.6 percent and the agricultural industry is growing at the rate of 2.5 percent. We ended last year with a budget deficit of just1.5 percent while in 2016 it was more than double that. The inflation rate is 2.5 percent, a historic low. This has never been the case before.

All this indicates that we are standing on a quite strong foundation. The direct investment has grown by 4.2 percent. With a GDP growth of 1.6 percent, it means that the investment increase is ahead of the GDP increase. Therefore, we already have a capacity for future growth. This growth has been already funded. All these developments in general inspire optimism.

The unemployment rate is also at a very low rate of 5.1 percent. Generally, we should be very optimistic. It is better not to relax yet though, we must realise that there is still a lot to be done and these growth rates cannot make us happy just yet. You are absolutely right about this.



Sergei Agafonov:

Yes, we would really like to support your optimistic outlook. But what are we talking about here? Everybody understands that in any industry companies are protecting their own interests; nobody will speak about so called benefits and that’s quiet an understandable thing. But what do I want to ask? We need an opportunity to slightly expand the profit-making horizon. This topic is raised every now and then at meetings such as this one. I would like to raise it again.

I am talking about advertising opportunities. Advertising is very much in demand. There is a whole grazing field. If only the regulation was relaxed a bit, everybody would take a break, both print and online media, and radio.

What am I referring to here? We are preparing for a major event, the FIFA World Cup. Many people will come to Russia for it. The idea is to ease off regulations on alcohol advertising. I know that you have a negative attitude toward smoking. I do not know why, because smokers are ordinary people who have equal rights with everyone else in the country. I am not speaking about smoking, but alcohol is quite another matter. Especially considering the need to promote Crimean wines.



Vladimir Putin:

Even good quality alcohol is still alcohol.



Sergei Agafonov:

This is true. Grape juice is fermented in our blessed land, which gives grape juice the necessary force, and as you said, we should be optimistic…



Vladimir Putin:

It only adds strength for a short period of time, and then…



Sergei Agafonov:

As [satirist] Mikhail Zhvanetsky used to say, “Alcohol in small doses is harmless in any amount.” We were raised on this. Please, this is a collective request.



Vladimir Putin:

I was raised on my mother’s milk.



Sergei Agafonov:

You said a wonderful thing there. I have written it down: “You feel sorry for the people and want to help them.” Please, Mr President, help us with this matter.



Vladimir Putin:

Look here, Mr Agafonov. First of all, we have given you a break. We have permitted the advertising of beer and wines made in Russia from Russian ingredients, such as grapes.

By the way, we did this after one of the meetings – I do not recall if it was an extended meeting or not – with the heads of media outlets, including print media. It was you who advanced the initiative.

I have done what you asked. I have asked the Government, and we have done it. We have permitted the advertising of Russian wines made out of Russian ingredients.

I cannot understand what else you want. You spoke about good products. What other good products did you mean? Whiskey?







Sergei Agafonov:

No, I just wanted to say that we should move beyond. Of course, there is also whiskey…



Vladimir Putin:

Maybe it is better to stop while we can?



Sergei Agafonov:

No, really, we are not talking about tax relief, easy loans or something else, although the media need this as well. The idea is that we could make money from advertising.



Vladimir Putin:

I see. There is reason in what you say, because the revenue from advertising has plunged by half. I know about this. This is really true.

The advertising market is shrinking rapidly, and advertising revenue has decreased by nearly 50 percent. But we also tried to preserve some of your exemptions and to give you additional ones, such as the newsprint exemption, as you know.

It concerns customs duties on five types of newsprint, as far as I remember. We have halved import customs duties from 10 to 5 percent, if my memory serves me correctly. There are also other benefits too. We are trying to take this into account. As for alcohol, what else do you want to advertise? Vodka?



Sergei Agafonov:

Vodka, whiskey and brandy.



Vladimir Putin:

Whiskey? No, this is too bad. However, let’s think about this, alright?. Do you want us to use big sports events to egg people on to swig vodka?



Sergei Agafonov:

Why swig? It is the advertising of a symbol of our national pride. Who makes the best vodka? We do.



Vladimir Putin:

What pride are you talking about?



Sergei Agafonov:

Of course, it is our achievement and part of our culture, Mr President.



Vladimir Putin:

It is not a culture. At the very best, it is a subculture. Alright, we will think about it.



Sergei Agafonov:

Thank you.




The source of information - http://en.kremlin.ru/events/president/news/56639
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Old January 16th, 2018 #737
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Let us return to the past:



Previous texts about the past - https://vnnforum.com/showpost.php?p=...&postcount=694 - and so on.






Opening Remarks at a Meeting with Cabinet Members



March 4, 2003 - 00:00 - The Kremlin, Moscow




President Vladimir Putin:

Good afternoon, dear colleagues. We have several questions, but I would like to begin with the decision that was discussed at the Cabinet meeting only recently.

And I would like that the Chairman would explain this decision, which concerns compensation to citizens living in Chechnya for lost housing. How this problem has ultimately been formulated by the Government of the Russian Federation and what prospects are there in this regard.

It is clear that this is work requiring time and system. We have both the negative and positive experiences accumulated as a result of the work on the overcoming of natural disasters. I think that they can be applied here too and I count on the Government coping with this task.

Last week one more important decision was made. We had long been debating how to develop health insurance and in the end I know that the debate is over. The Pension Fund will also be enlisted in this work.

I consider that the realization of these proposals and of these Government decisions can and should become one of the priorities for the current and coming years. Special attention ought to be paid to making medical assistance really free. First of all, for the most unprotected categories, and since the Pension Fund will also join in this work, then, it goes without saying, the number of pensioners served and the quality of services provided have to be improved and placed in direct dependence on the money which will additionally be allocated for these purposes. It is important that the funds for payment for medical assistance should be channelled in a targeted manner in equal and sufficient amounts, equally and regardless of the pensioners' places of residence. This is very big work. Very important work.

I know that many Government departments had long been studying the experience of foreign countries. In the end they have adopted just this decision; I think it is well substantiated. It is only important it should be effectively and energetically implemented.

The next question to which I would like to draw attention is the situation evolving in agriculture. From the last year we know: certain financial difficulties arose. The Government took a number of steps with a view to farm support. I cannot say that they encompassed all agricultural enterprises, and the Chairman of the Government and I discussed this question – many farm enterprises are in a sufficiently difficult financial position. The Agriculture Ministry jointly with the Finance Ministry must most energetically respond to this situation. I know a billion and three hundred million are set aside for the ensuring of spring field operations. This money has to be allocated in time, though. The start of financing must this month occur within the specified time, but I think that this is not enough. It will be necessary to see what else has to be done to ensure the normal condition of agriculture – lest we have a decline in comparison with the previous years. I would like to draw attention also to the growing wage arrears, now up 8 percent. This is assuming a systemic character, last year the picture was the same.

And I think the economic block of the Government knows why – this is owing to the Budget Code, owing to the fact that funds get accumulated at the end of the year and an endeavour is made to spend them, with a deficit following at the beginning of the year. I draw your attention, and it is necessary to think of how to rectify the situation, because it cannot be called normal. Finally, though slightly less than last year, but at a sufficient rapid pace inflation has been growing, and this should also be taken note of. Our tasks in curbing inflation are more challenging than last year. Therefore I draw your attention and count on the Government approaching this problem systemically and very neatly so as not to harm the real sector of the economy.

Well now international themes. We have all been constantly watching what is happening around Iraq. I think the most important development of the past week was the decision of the Turkish parliament, which has blocked the possibility of the use of its military bases for the conduct of an operation by the US armed forces against Iraq. Maybe, for somebody it came as a surprise, but not for Russia.

To us it was understandable what the Turkish parliament guided itself by, I think proceeding from the international situation developing around Iraq, proceeding from the situation which is developing in the entire Islamic world. And proceeding from internal political situations, it was difficult to expect from the Islamic Welfare Party, which recently gained a majority in the parliament, a different decision.

I will inform you also about the results of my visit to Bulgaria. In my opinion, it was very successful: we managed to agree on a number of key questions of our cooperation. And I have formed the confidence that relations between Bulgaria and Russia not only can be restored to the previous level of the late 1980s, but that it is also possible to change qualitatively and elevate the level of our cooperation in the immediate future.

That's all I want to say at the beginning.




The source of information - http://en.kremlin.ru/events/president/transcripts/21930






Extracts from the Transcript of a Talk with Women of Tobolsk



March 6, 2003 - 00:00 - Tobolsk, Tyumen Region




Vladimir Putin:

First of all, I would like to congratulate you on the approaching holiday of March 8 and to wish all the best to you and to all the women of Tobolsk, Siberia and Russia.

On such days, as a rule, they say all the kind words to women. I think you will be told such words at home many times. I join all the best wishes to you.

It is also customary to speak about the role and importance of women. I subscribe to all that too.

At the same time I would like to note that the role women occupy in society is an important indicator and characteristic of its development. We talk about it a great deal. Indeed, women perform a very important, a key function not only in the family, but in the country. I am sure there are many teachers and health workers among you. These are traditional spheres in which the majority of women work.

More than 50% of the civil service are women. But there the problems begin. Although there are so many women in the civil service, only a little over seven percent of them are at an executive level. This means that women mostly work at the lower and medium levels of management. In the opinion of many authoritative experts, including foreign ones, legislatures begin working effectively and addressing issues of social protection, healthcare, medicine and so on when they contain at least 20% women. As a rule they pay attention to social issues. 7.3% of the State Duma are women. And in the upper house of parliament you can count all the women on the fingers of your hand. One third of the legislative assemblies in the Russian regions have no women at all.

We speak a lot about Russia becoming integrated into the economic space of Europe and the world. We will not be able to effectively function within the world economy unless we become part of the European humanitarian space. And that means that women’s self-awareness will approach that of Europe. And that is right. That will automatically make the women aware of their role in society and will change their position. I am convinced of this and I think that it is right.

I congratulate you again and wish you all the best. And now we can have an informal exchange of opinions on the issues that you consider to be fundamental and urgent.

Vladimir Putin on the problems of small business:

I think we must say frankly that an attempt has been made to cut down on bureaucracy in the sphere of taxation and to reduce taxes. But in spite of the noble intention, not much has been accomplished. We are moving in the right direction, but so far we cannot report that the Government has solved all the problems set before it. Speaking about the single social tax, the amount of paperwork involved in paying it, far from diminishing, has in fact increased. Number one.

Number two. The overall tax burden has been eased a little bit, but not much. So, the first thing that has to be done is to continue work to improve the single social tax and reduce red tape in the tax system. The tax system must be simpler and more understandable.

Small and medium businesses are unable to deal with such a huge amount of accounting. It involves a lot of additional spending for enterprises, which cripples business. And that of course is one of the tasks. The Government is thinking about it. Because the task is more or less clear I would like to express the hope that more decisions in this area will be taken.

As regards tax breaks for importers, that is a sensitive topic. It should be approached very carefully. I have spoken about it many times. The more benefits are enjoyed by importers of equipment the less chance there is that our domestic industry will ever produce all this. It is enough to offer a privilege to the importers of a single item of equipment to set the corresponding domestic industry back many years. It is always a double-edged sword and one should proceed carefully. However, something can be done in this area.

Vladimir Putin on the media:

The media are constantly the subject of discussion. This is a fairly complicated theme because the media are no worse and no better than we are: there are viewers and listeners so there is an information product that suits them. We can only influence the government-owned media outlets. With all the other outlets we should build a certain attitude in society to violence and other negative phenomena that we see in the media. This is the first thing.

Secondly, we should work out civilised standards that would enable the media to exercise a measure of self-restraint.

I must say that media executives have such awareness. The process began, unfortunately, with the hostage-taking tragedy at the Theatre Centre at Dubrovka in Moscow, but there is awareness of the need to exercise self-restraint, including in the moral sphere. If society itself works out these standards, they will undoubtedly be adopted by the media.

And the third thing. What can we do, with the support of regional leaders, to replace vulgar, inferior products with quality products for the mass audience? This calls for financial outlays. And that depends on us. That is not all that can be done, but these I think are the main areas. This must have government support, just like the problems of housing.




The source of information - http://en.kremlin.ru/events/president/transcripts/21933






Opening Remarks at a Meeting on the Social and Economic Development of the Urals Federal District



March 6, 2003 - 00:02 - Tyumen




Vladimir Putin:

The Urals Federal District has seen many industry conferences, some of which have been devoted to gas production and the metallurgical industry. But of course the problems of individual industries cannot be effectively solved without having an overall picture of economic life. And the social situation in the district presents challenges which must be met by all the levels of government together.

That is particularly important because the regions that form the Urals Federal District differ among themselves in terms of their level of development. There are huge gaps in the incomes in various parts of the district. Consumer spending in the economically weak regions, oddly enough, has been growing much faster than people’s incomes.

The Urals District is the energy powerhouse of Russia, accounting for more than 90% of national gas production and more than 65% of oil production. Let us face it, the country’s economic growth owes much to the fuel and energy industry of the Tyumen Region. One can argue whether being dependent on oil and gas is good or bad. But in the event it is an abstract argument that does not make much sense. At present our main task is to learn to make effective use of the exploitation of natural resources in order to develop other industries. For the Urals it would mean an upsurge of such sectors as engineering and metalworking.

Last year some very positive changes have been achieved in the district in terms of entering the markets of science-intensive and competitive products. Industrial output in the district has grown faster than in Russia as a whole. Average Russian growth has been just 5.2% and in the Urals District, 6%. With a continuing shortage of internal investments in the district ways are being found to ensure domestic capital investment in the manufacturing industries. The increase of internal investments has been accompanied by the growth of foreign investments, a 41% growth during the past year.

However, corresponding conditions must be created for further successful integration of the industries and economic interaction between different regions within the district. Above all a modern infrastructure for the development of the inter-regional market must be put in place. That task has several components. I will mention some of them.

First, of course, comes the development of the transport system which determines the growth of industry and in the longer term of the whole oil and gas complex. The second important condition for the development of the district is market adaptation and competent operation of many engineering enterprises in this new context.

The issue of rehabilitation of the environment, of bringing back into the economy spoiled and polluted lands and water is still relevant. Lands polluted not only today but in previous years. Action is needed on these matters.

Moving on to another topic that is just as important today. In connection with social problems I will say a few words about the housing and utilities sphere. The utilities situation in the Urals District is as critical as in other regions. The wear and tear of the utilities is more than 60%. About a quarter of the basic assets have outlived their lifespan. They are being replaced slowly, substantially behind schedule. As a result, in the last 10 years the number of accidents has grown five fold, and 30% of heat is lost. Obviously, the fact that there are both areas that are short of energy resources and areas with an excess of such resources in the same district again points to the need for a single market for energy resources. The overall situation in the district is such that its infrastructure is capable of ensuring the supply of energy to households regardless of the weather and other factors.

That is all I wanted to say in the beginning. Various opinions on the issues I have touched upon will apparently be expressed. I am ready to react to the complex questions that arise. In short, I look forward to a businesslike conversation.




The source of information - http://en.kremlin.ru/events/president/transcripts/21931






Speech at a Coordinating Meeting with the Heads of the Federal Law Enforcement Agencies



March 12, 2003 - 00:00 - The Kremlin, Moscow




Vladimir Putin:

Good afternoon,

This coordinating conference of the law enforcement agencies is to discuss the state of law and order. We agreed with the Prosecutor General on it long ago and I would like to thank him for organising this event.

I must say from the start that the analysis of the situation last year gives no grounds for optimism. Of course the overall number of registered crimes dropped by almost 15%, but being professionals you know that statistics by no means always give a full and accurate picture of real life. It leaves out latent crime and some other phenomena connected with the organisation of the work that cannot but worry us. According to experts, an estimated 40% of crimes go unregistered.

Analysing the law and order situation, we must bear in mind that the number of solved crimes has diminished. That means that many of them have not only been unsolved, we understand the implications, but that the criminals are still at large.

I know that many of you link the declining rate of solved crimes with the introduction of the revised Criminal Procedural Code. But the renewal of the legal framework has highlighted the problems and weaknesses in the organisation of investigation work. And of course we should learn to work in the context of a civilised criminal process. There is no way back.

All this has to be borne in mind if we want to know the real scale of crime in the country and take it into account in both the work of individual agencies and in coordinating our actions.

As you know, I signed a number of decrees yesterday regarding the organisational and personnel components of the country’s security-related agencies. The structural changes have been prompted, not least, by the need for better coordination of the work of the security agencies and eliminating overlap in their activities. The period of reorganisation will of course take some time. But it need not disrupt the work of the law enforcement agencies in any way.

In connection with this, I would like to identify the areas that demand particular attention today.

The key task is to reduce the number of crimes against individuals; mainly attempts on the life and threats to the health of citizens. Last year more than 1.8 million citizens became victims of such crimes. Serious and very serious crimes, including homicide, still dominate the criminal sphere. Street crime shows no sign of declining. Protection of property rights is in a poor state, especially the protection of private property.

All these alarming facts make “triumphant” reports irrelevant. The reasons for this situation must be thoroughly analysed.

Another priority is the fight against terrorism. Of course the largest number of terrorist attacks has been registered in the Southern Federal District, mainly in the Chechen Republic. However, the terrorists have left their footprints in some other regions of Russia. Currently, terrorism-related criminal cases have been opened in 16 Russian regions. The courts have already passed their verdicts on some of these cases.

I think I should mention the role of the prosecutors who monitor law and order in the regions, including the Chechen Republic. We have already spoken about it: the office coordinating these activities has taken the relevant decisions. I would like to stress again that not a single element of the counter-terrorist operation in Chechnya should be implemented without the involvement of the prosecutor. It would help reduce the number of human rights violations in the republic and foster confidence in the authorities.

The fight against drug trafficking remains a key task. Unfortunately, performance in this field leaves much to be desired. Despite upgrading of the status of the corresponding Government commission and some other measures, coordination between the agencies is still not sufficient and the results of their work are few and far between.

Statistics claim that the number of such crimes has dropped. But there are grounds for believing that in this case too the figures are far removed from real life. For example, not a single drug related crime has been uncovered in the Republics of Altai, Karelia, Kalmykia and Karachayevo-Circassia. We are aware of the true scale of the phenomenon and knowing that scale, it is hard to imagine that these republics have no problems connected with drug trafficking. It is impossible.

We all understand that the situation in this sphere requires urgent measures. So a decision was taken yesterday to create an independent federal body – a State Committee on Drug Control. Viktor Cherkesov who is present here, has been appointed the head of that agency. I would like to introduce him to all of you again. He is a well-known person; everybody knows that he has vast professional and political experience. I very much hope that under his leadership the new agency will become an effective instrument in the fight against drug trafficking. And I hope that all of us, the society and the country, will feel the difference.

I would also like to draw your attention to the legality of election campaigns. This year will see many elections, including elections of the heads of regions and State Duma deputies. The experience of past campaigns has shown that various offenses connected with elections tend to spike during such periods. It is the task of the law enforcement bodies to enable the citizens to make an impartial choice and to help organise truly democratic and fair elections. For the law enforcement bodies, the election campaign is another serious test of their capacity to ensure law and order in the country.

In conclusion I would like to say that draft amendments to the Criminal Code of Russia were introduced at the State Duma yesterday. They soften punishment for minor crimes, but the punishment for crimes against individuals remains unchanged.

I believe that the proposals on softening punitive measures are timely and absolutely justified and not only because our country has the largest prison population in the world. Not only because of that, but because if we want the criminal policy to be effective it must be selective, well-grounded and fair. You cannot treat everybody in the same way and tar everybody with the same brush. It cannot be done even if it creates some conveniences in our work.

I think we are doing the right thing.

I believe that all these measures will have a positive impact on the law and order situation. I would like to thank all of you for your work last year because we have not yet had a meeting in such a format. And I would like to wish you success in your activities.




The source of information - http://en.kremlin.ru/events/president/transcripts/21937






Address to the Residents of the Chechen Republic



March 16, 2003 - 00:00 - The Kremlin, Moscow




President Vladimir Putin:

Hello,

Today I address those who live in Chechnya and to whom the destiny of the Chechen Republic is precious. This is associated with the event which will take place in just a few days. In the republic a referendum on the Draft Constitution, as well as on the laws on presidential and parliamentary elections will be held.

For the people of Chechnya this is without exaggeration a historic moment, for this is the first nationwide referendum. And a Constitution prepared by the Chechens themselves has for the first time been submitted for discussion and to an all-people's vote.

Today it is necessary to recall that the constitutional process which had begun in 1991 was forcibly interrupted, and this became the starting point of the Chechen tragedy. Then, after the dissolution of the Supreme Soviet of Checheno-Ingushetia, the situation arose in the republic that in essence led to a civil war. And subsequently to years of armed conflict.

The referendum is a major step in the struggle against devastation. And a stride towards order. I am convinced: a Constitution adopted by the people is the basis for political settlement in Chechnya. Its adoption will make it possible to elect a truly democratic authority relying upon the people's trust.

You know: there were many attempts to prevent the referendum from being held and they continue to be made. Provocations and terrorist acts are still continuing in Chechnya. There are attempts to intimidate people. But it is only the people themselves who are entitled to decide their future, who have the right to adopt their Constitution.

And this right the Chechen people will be able to exercise on March 23.

I understand that it is very difficult for people in Chechnya at present. It is difficult to cope with the consequences of the tragedy, which has not bypassed a single family. And we will have together to do heaps of work yet until these consequences are definitively overcome.

However, by joint efforts – and I want to draw attention to this – it has been possible to reverse the situation after all. And the present difficulties are entirely different than what they were only two or even a year ago – when open hostilities were going on in the republic.

In Chechnya a peaceful life is gaining hold, even if not so fast as we would like. In many areas new power transmission lines have been built, and the gas supply system is being restored. Hospitals and schools are functioning, students are studying. Grain is being harvested.

And only he does not see those changes who does not want to see them.

Yes, life in Chechnya so far looks more like a life after a natural disaster. For the many-year period of clan struggle, of the struggle for power and for money it was no other than the ordinary Chechen people who paid with their sufferings. And paid not for the first time already.

Your fathers and grandfathers had encountered injustice and lived through the tragedy of the Stalinist deportation. On the shoulders of the people fell all the hardships of the forced resettlement. A resettlement that cost many human lives. And it is the ordinary Chechens who have today to restore the destroyed economy and to revive their national culture.

The Constitution will enable the people of Chechnya to organize their life independently. And to realize the very same broad autonomy within Russia, of which there is so much talk now. For this purpose also a special treaty between the Federation and the Republic will jointly be prepared and concluded.

And we must get it ensured that the citizens of Russia – inhabitants of Chechnya – cease to live in fear. Cease to fear a knock at the door in the night and to hide themselves from so-called mopping-up operations. The people of Chechnya must have a worthy human life.

You know: the reduction of roadblocks has begun. And where they still remain – they must engage not in extortions from the civilian population, but perform their completely different function – the function of combating crime.

You also know: the withdrawal is continuing from Chechnya of the surplus part of the Defense Ministry and Ministry of Internal Affairs units. With time only units to be permanently stationed are to remain here, the principal task of which must be support of local law enforcement agencies, the organs of internal affairs of the Chechen Republic itself.

Restoration of the economy remains our special concern. We do understand: for the speediest possible way out of devastation the republic needs to be lent maximum assistance and support.

Chechnya is indeed in special conditions – the conditions of reconstruction. And it is therefore important to revive vital industries for people here as soon as possible. For this purpose it is necessary to help the enterprises which are directly producing foodstuffs, essential goods and building materials. Enterprises need to be supported that build housing, schools, hospitals and cultural facilities.

I would like to say that for assistance to the republic the federal government has already allocated considerable funds. And today it is our common task to see to it that they are effectively put to use.

I know that in this connection there are serious questions to be asked of both the federal government and the republic's administration. Many problems in the course of the reconstruction work arise because of red tape in bureaucracy and corruption. I have already said that the referendum will open the way to the formation of new bodies of power. And one major task is control over the spending of the money allocated out of the budget.

However I would like to add here: without active participation in the reconstruction by the Chechens themselves, without their disposition towards real work there will be no appreciable results.

We also need to organize the efficient use of the rich natural resources of Chechnya and especially of the unique Chechen oil. The first steps have been taken in the revival of the petrochemical sector of Chechnya. This wealth must become a powerful resource for dealing with social and economic problems.

The government of Russia is now occupied making preparations for the payment of compensations for destroyed housing. By approximate estimates, about 280,000 citizens have lost a roof over the head. And now we need, with the participation of the district administrations, to verify the lists of all who lost housing. And already this year it is necessary to start paying the compensations.

Once again I shall stress: the everyday life of people is today the main concern of authority. People in Chechnya – just as throughout Russia – must have the possibility to live normally, to have rest and leisure and medical treatment and to raise and educate their children.

I must say that the children of Chechnya are our special anguish. For, trials by no means childish fell to their lot. Over the past years a whole generation of young people has grown up in the republic who had no facilities to get a normal education. They were deprived of the most elementary, the most essential things.

But the Chechen children, just as the children of all Russia, are our future. And we can – and we shall do that – we shall give them a good education, a good knowledge; we shall set them on their feet.

The adoption of the Constitution is truly a serious landmark. This is the very moment when the people of Chechnya are taking their own destiny into their hands.

And now in your hands is the future of your children and grandchildren. The future of the Chechen land itself.

And therefore I call upon you to take part in the referendum and to make the right choice.

Thank you.




The source of information - http://en.kremlin.ru/events/president/transcripts/21939






Opening Remarks at a Meeting with Religious Leaders of the Chechen Republic



March 17, 2003 - 00:02 - The Kremlin, Moscow




President Vladimir Putin:

Esteemed friends,

You know I am regularly meeting with religious leaders, the representatives of various denominations: Christian, Muslim and others. Therefore I am especially pleased to see in the Kremlin the spiritual leaders of Chechnya and to be able to exchange with you opinions on the problems which today especially worry not only Chechnya, but also the whole North Caucasus region.

In Russia, and in the Caucasus in particular, the authority of spiritual leaders has in all times been very high. Their opinion is carefully heeded, their word is trusted.

We highly appreciate your role in the establishment of mutual understanding between the followers of the various religions, and in the promotion of stability and interethnic harmony in the North Caucasus in particular, and in Russia as a whole. And understand – it was largely thanks to your position that there failed the extremists' and radicals' large-scale ideological expansion in the North Caucasus. They were never able to consolidate their hold.

Today, when terrorists are trying to use religious values for the achievement of far from moral aims, your firm position is of the utmost importance.

Obviously the problem is particularly acute in Chechnya. Here active preparations are under way for the constitutional referendum and we highly appreciate your support. It was in Chechnya that fundamentalists tried with particular vigour to organize the propaganda of their ideas. And tens of thousands of ordinary citizens – both Christians and Muslims – became the bandits' victims in the process.

The referendum – I am firmly convinced of this and said this in my address to the Chechen people – is the sole possible way to normalizing the situation in the republic. It is the most democratic way to creating a legal basis for the activity of the bodies of power.

The adoption of a Constitution and of laws on presidential and parliamentary elections will make the work on the reconstruction of the republic effective and responsible. And what is extremely important – will open the way for a cultural and spiritual revival of the people of Chechnya. I want to stress that the adoption of a Constitution is not going to predetermine the results of parliamentary elections or of presidential elections. This only gives the legitimate possibility to do that in a worthy manner.

One major theme is the possibility of concluding a special treaty between the Federation and the Chechen Republic. A treaty which will have to concretize the ways of achieving broad autonomy for Chechnya as part of Russia.

You are carrying out big work on the explanation of the commandments of traditional Islam, and helping bring up children and young people on the values of humanism and morality. I believe that that work is strengthening peace and harmony in society.

In many regions of Russia they understand this, find a field for joint work with religious organizations, and support religious centres and educational institutions. We shall yet be able to speak about this today, I hope.

Another key question is the organization in the republic of a judicial system. Unfortunately, the commonly adopted attitude to a court judgment as one final and binding is currently lacking in Chechnya. Judicial practice encounters here both the contradictions in law sources and, let us say frankly, the unsatisfactory organization of the work of the courts themselves. Although, it has to be admitted, the very fact of their existence is already an achievement. The judicial system is being strengthened.

Without exaggeration, your word here is extremely significant. And we must together look for a solution ensuring a worthy level of protection of civil rights in Chechnya.


* * *


I did not want to speak of the problem of Iraq today, but once you have recalled this. I know that only recently a communal prayer was held practically in all the mosques of the country over the developments in Iraq with the wish to resolve all the problems around that country by peaceful means.

You know the stand of the Russian leadership – we favour resolving all the problems around Iraq solely by diplomatic means. And our position remains invariable. I am convinced that any other development of events would be a mistake which could entail not only human casualties, which is, in itself, inadmissible – there has been a lot of suffering already – but it would destabilize considerably the international situation as a whole.

In Russia there live, as we know from the last population census, almost 20 million Muslims. This is a serious factor in our life. We cannot but take into consideration the sentiments of the Muslims, including the Muslims of Chechnya. Therefore I want to reassure you that our position remains clear, understandable and invariable.

As to the principal theme for which we have today gathered – of course, in the last decade very many mistakes have been made, including those on the part of the federal centre. In these conditions, of course, it is very hard for the ordinary citizen to make out what is happening; it is very difficult to make the right choice, to determine one's own position. And sometimes also terrifying, because when there is no power, the state cannot protect its ordinary citizen. We have no right to forget about this, and so I take very seriously your appeal that it is necessary to give an opportunity to all, including those who have not yet laid down arms, to return to a peaceful life.

I think that if the referendum passes successfully and if the results are positive, then this gives considerable grounds for the leadership of Chechnya, indeed greater moral grounds to raise before the parliament of Russia the question of solving these problems in just this way. For my part I will be ready to support that.




The source of information - http://en.kremlin.ru/events/president/transcripts/21941
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President Vladimir Putin spoke by telephone with US President George W. Bush



March 18, 2003 - 18:55



Mr Bush spoke about the Iraqi conflict in relation to his recent speech to the American nation.

Mr Putin, in turn, said he regretted the ultimative decisions taken by Washington and the fact that the two sides had failed to reach a compromise. He stressed that in any situation, the United Nations and its Security Council were to play a central role in providing international peace and stability.

The two leaders noted that despite differences in their points of view, they would pay special attention to maintaining bilateral contacts.

The conversation took place on America’s initiative.




The source of information - http://en.kremlin.ru/events/president/news/28333






President Vladimir Putin is regularly briefed on the situation in Iraq



March 20, 2003 - 09:05



On the evening of March 19, US and British forces launched a military operation against Iraq. During the first hours of the armed conflict, the US Air Force and the Royal Air Force conducted several air strikes against Baghdad and a number of populated locations in southern Iraq and also hit some elements of the national air-defence system.




The source of information - http://en.kremlin.ru/events/president/news/28340






President Vladimir Putin discussed the situation in Iraq with senior Government and Presidential Executive Office officials and security-agency chiefs



March 20, 2003 - 14:00 - The Kremlin, Moscow







At the meeting the current situation in the Middle East, national-security measures and measures to minimise economic losses incurred by the Second Gulf War were discussed.

Vladimir Putin made a statement in connection with the latest events in Iraq.

The President stressed that the US-British coalition’s military operations ran counter to global public opinion, the principles and norms of international law and the UN Charter.

Mr Putin said the military operations against Iraq were a major political mistake, which had humanitarian implications, and that he was also concerned about the possible disintegration of the existing international-security system.







President Putin said the hostilities must be stopped as soon as possible and that the UN must play a pivotal role in settling international crises, including in Iraq. The President said Moscow would advocate a peace settlement and genuine solution of the Iraqi problem on the basis of UN Security Council resolutions and with due respect for the Iraqi nation’s legitimate interests, sovereignty and territorial integrity.

The Russian President’s statement on Iraq was circulated as an official document in six languages at the UN headquarters in New York.




The source of information - http://en.kremlin.ru/events/president/news/28342






Statement on Iraq at a Kremlin Meeting



March 20, 2003 - 00:00 - The Kremlin, Moscow




President Vladimir Putin:

Today the United States started a military action against Iraq. Already there are human victims and destruction. A whole region is under a threat of a large-scale humanitarian and environmental disaster.

Let me stress from the beginning that military actions are taking place contrary to the world public opinion, contrary to the principles and norms of international law and the Charter of the UN.

Nothing can justify this military action – neither accusations of Iraq of supporting international terrorism (we have never had and do not have information of this kind) nor the desire to change the political regime in that country which is in direct contradiction to international law and should be determined only by the citizens of this or that state.

And finally, there was no need to launch military action in order to answer the key question that was put by the international community, namely, does or does not Iraq have mass destruction weapons and if it does, what should be done and within what timeframe in order to liquidate them?

Furthermore, by the start of the operation Iraq posed no threat to the neighbouring states or to other countries and regions of the world because especially after a ten-year blockade it was a weak country both militarily and economically. It was still less of a danger because international inspectors were working there. On the contrary, of late their activities had produced serious positive results.

I would like to note that joint work at the UN Security Council, including joint work with the United States, the unanimous adoption of Resolution 1441 that does not authorize the use of force but that has made it possible to resume the activities of international inspectors as well as the set of other measures to influence the Iraqi leadership marked the start of practical activities to disarm Iraq by peaceful means.

In this connection, regardless of how the situation around Iraq will shape up, on behalf of Russia as a permanent member of the UN Security Council I would like to appeal to the UN Secretary General and to international inspectors. I want to say words of thanks and appreciation to them. They have honestly performed their duty in a responsible manner and in the process they have displayed a high level of professionalism and courage. I am sure that the institution of international inspectors will yet be invoked by the international community.

The military action against Iraq is a big political mistake. I have already referred to the humanitarian aspect. But the threat of the disintegration of the established system of international security causes at least as much concern.

If we allow international law to be replaced by ”the law of the fist“ whereby the strong is always right and has the right to do anything and in choosing methods to achieve his goals is not constrained by anything, then one of the basic principles of international law will be put into question, and that is the principle of immutable sovereignty of a state. And then no one, not a single country in the world will feel secure. And the vast area of instability that has arisen will grow and cause negative consequences in other regions of the world.

It is for these reasons that Russia insists on early termination of military actions. And we are still confident that the central role in resolving the crisis situations in the world, including the situation around Iraq, must belong to the UN Security Council.

I would like to stress that Russia is committed to trying to bring this situation back to a peaceful course and to achieve genuine solution of the issue of Iraq on the basis of UN Security Council resolutions, a solution that would take into account the legitimate interests of the Iraqi people, respect of the sovereignty and territorial integrity of that country.




The source of information - http://en.kremlin.ru/events/president/transcripts/21942






President Vladimir Putin met with Sergei Shoigu, Minister for Civil Defence, Emergency Situations and Disaster Relief



March 21, 2003 - 13:35 - The Kremlin, Moscow







The President asked Mr Shoigu about preparations for providing humanitarian assistance to refugees in connection with the situation in Iraq.

Mr Shoigu reported that the first stage of the humanitarian operation to help people who will arrive via the Kermanshah-Baghdad highway has begun. A hospital with complete logistical support for 5,000 people will be opened in a five-kilometre zone on the Iraqi side of the border. The equipment for the second and third stages of the operation will be placed there. Refugee camps are being constructed on the Turkish side.

During the second stage, two hospitals and one camp for 5,000 people will be opened on the Kermanshah-Baghdad highway. More than 100 Russian specialists will take part in the humanitarian operation.




The source of information - http://en.kremlin.ru/events/president/news/28349
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Opening Remarks at a Meeting with Security Council Secretaries of the Collective Security Treaty Organisation Member States



March 21, 2003 - 00:00 - The Kremlin, Moscow




President Vladimir Putin:

Good afternoon, dear colleagues.

I am very glad to see you. Vladimir Borisovich [Rushailo, Russian Security Council Secretary] said that you have already completed your work. I hope that it was a very useful one.

You know that your session is being held in the dramatic days. For the second day now US military actions against Iraq have been going on.

Russia has already stated its position with regard to the military action. I just want to stress: the crisis, in our view, has gone beyond the framework of a local conflict, and it is now a potential source of instability for other regions of the world, including the CIS space.

I reckon that, in this situation, it is the task of regional security organizations, including the Collective Security Treaty Organisation, to minimize the adverse consequences of the military action, to preserve stability in the region and assure the security of our citizens. And what is of the utmost importance – to uphold the unity of the world community in countering terrorism. For the Collective Security Treaty Organisation this struggle is an absolute priority. One of the basic priorities at any rate.

I know that you have already analyzed in detail the situation that has evolved. And as far as the real danger of international terrorism is concerned, the CSTO partners are better aware than many other countries of the true dimensions of this menace.

I think I will express the common opinion: our countries are ready to cooperate substantively with other states and international organizations in the struggle against terrorism.

The military action against Iraq is a decision fraught with hardly predictable consequences, the growth of extremism among them. And we, the participants of the Collective Security Treaty Organisation, are duty-bound to take this into account in order to ensure the national interests of our countries and to fight international terrorism effectively.


* * *


Allow me to say a few words on other issues of your agenda.

I know that taking part in the work of your Committee are not only the CST members, but also as observers – the representatives of practically all the CIS nations.

The past year was a landmark one for the development of the CIS as an influential regional organization. We did some serious stocktaking of the Commonwealth's mechanisms, and now in our joint work there's ever more pragmatism, more quite concrete actions.

I consider not only correct, but absolutely called-for the decision to transform the CST into a full-scale regional organization. An organization capable of effectively countering the new security threats. We must now promptly establish effective mechanisms and clearly outline the areas for practical work.

The issue is, specifically, about coordination with the CIS Antiterrorist Centre, as well as a possible use of the Collective Rapid Deployment Forces in antiterrorist operations. It seems to me that the very existence of that centre and the existence of those forces are an essential factor in stabilizing the situation in the region. Also, it is about the proposal of our Kazakhstan colleagues regarding the creation in the Central Asian region of an Anti-drugs Centre.

In Russia, as you certainly know, the Committee for Control of Illicit Drug Trafficking has just been created. One of its objectives is to actively develop international cooperation in the fight against drug trafficking. And, of course, in the first place – with our CIS and CSTO partners.

You have also to discuss the draft agreement on the creation of a unified system for assuring the security of the railways of the CSTO member states. I think that this is a very important question.

It is necessary to give thought to solving other problems which arouse concern and present a common interest. I shall name but some of them.

It is necessary to carry out a comprehensive analysis of the antiterrorist laws of our countries. And it wouldn't be bad if we could formulate our proposals for their unification and harmonization. This is particularly important with regard to the themes of the upcoming meeting of presidents of the CSTO member countries in Dushanbe.

In addition, we need to do the stocktaking of the present-day problems in cross-border cooperation. And the staffs of the security councils could assume special control of these themes, for concentrated here are the questions of equipping border facilities and developing the legislation and countering the drug traffic and illegal migration.

And, of course, especially pressing are the problems of fighting transfrontier crime and terrorism. Problems which in these crisis days arouse special concern and anxiety.

Once again I shall stress: effective integration is only good for the interests of our countries. And it can noticeably strengthen both the security of the national states and the space which is the zone of responsibility of the Collective Security Treaty Organisation.

I am absolutely confident that your activity, the activity of the structures which practically in each of the countries are concerned with coordination of the work of the law enforcement and security sphere will in this sense be extremely important and very called-for.

Thank you for your attention.




The source of information - http://en.kremlin.ru/events/president/transcripts/21944






Opening Remarks at a Meeting with the Cabinet Members



March 24, 2003 - 00:00 - The Kremlin, Moscow




President Vladimir Putin:

Good afternoon. The past week saw several events very important for our country. Notable and important. The first of them is, of course, the referendum in the Chechen Republic. I must say that the results of this referendum are positive and by its indicators have surpassed our most optimistic expectations. This points to the fact that the people of Chechnya have made a choice in favour of peace, in favour of positive development together with Russia. This is the first conclusion.

The second conclusion flowing from this is that all who still have not laid down their arms, from this moment on, are fighting not only for false ideals, but directly against their own people. Their actions run directly counter to the interests and the will, clearly and explicitly expressed at the referendum – the will of the Chechen people to live in peace. But for all of Russia too, serious consequences exist, which are that we have closed the last serious problem involved in the restoration of the territorial integrity of the Russian Federation. In their referendum on March 23 the people of Chechnya did that straightforwardly and in the most democratic fashion.

In this regard, I want to ask senior members of the Government to urgently do everything within the shortest possible time in order to complete work on the plans for the reconstruction of Chechnya. Each ministry that has a relationship to this – above all, I call on the heads of the social-block ministries and those of health and education and other ministries – must have their own work programs in Chechnya. Of course, a particularly large load falls on those who will be engaged in the reconstruction of the Chechen Republic, in the reconstruction of Grozny and in paying compensation for lost housing. This will require considerable exertion and quite a lot of funds, for it is costly. And, of course, it will require strict control over the spending of these resources. The Chairman of the Government must assume control of all this work, this whole complicated set of questions.

In the international arena the major sore spot remains, of course, Iraq. The number of casualties is increasing on both sides. This cannot but arouse regret. There are the first prisoners of war on either side. It is known to us in what conditions Iraqi POWs are being held by the American side. And I express the hope that the Iraqi side will also fulfil all the requirements of international law concerning the holding of prisoners of war. I instruct the Minister of Foreign Affairs on behalf of the Russian leadership to approach Iraq with the urgent request that they specifically observe these rules. The Emergency Situations Ministry has been instructed to establish a camp on the territory of Iran near the Iraqi border for the possible reception of refugees from Iraq. The first steps in this direction were taken last week. Please report what recent progress has been made on this task.




The source of information - http://en.kremlin.ru/events/president/transcripts/21945






President Vladimir Putin spoke by telephone with US President George W. Bush



March 24, 2003 - 20:30



When exchanging opinions on the Iraqi conflict, Mr Putin emphasised the possible humanitarian consequences of military action. The Russian President again spoke for a peaceful settlement of the conflict and stressed the need to prevent a humanitarian catastrophe in the region.

On his initiative, Mr Putin mentioned statements by the US Department of State about Russian military supplies to Iraq in violation of the UN sanctions. Mr Putin said that Russia, which was mindful of such concerns, had more than once proved that there were no such supplies. The President also noted that those public statements were baseless and they only could harm Russian-American relations. Moreover, the American party had been asked similar questions to which it has not yet answered. Russia takes UN sanctions and international law seriously and abides by them, Mr Putin said.

The two leaders also discussed current issues of bilateral relations.




The source of information - http://en.kremlin.ru/events/president/news/28363






Opening Remarks at a Meeting with the Leaders of the United Russia Party



March 26, 2003 - 00:00 - The Kremlin, Moscow




Vladimir Putin:

The occasion for our meeting is very serious, coming as it does on the eve of the second congress of United Russia. Although the process of your organisation has not been completed, considerable positive experience has been accumulated in party building and in social and political work.

But problems still remain. The creation of political parties is not a simple task. Clearly, any party that is being formed always sets itself the pragmatic task of winning the upcoming elections. But I think you will agree with me that the influence of a political party on the country’s life does not end there. In fact, it only begins with electoral victory. The best thing is if the party is directly involved in working out the strategic foundations for the development of the country and then actively influences the implementation of these goals and controls that process.

Therefore I think that considering the composition of United Russia in terms of organisation and intellectual potential, it could make a tangible contribution to laying the foundations of the political system and developing the Russian economy. And I repeat, it could go on to monitor how all this is put into practice.

So far, to be honest, party work in our country comes to a standstill the day after the elections. I would like to stress that in my opinion this is absolutely wrong and inadmissible. If a non-governmental organisation wants to be viable and to influence the real process and its citizens, if it wants to have supporters among its constituency, then of course it must work on a more solid basis.

You have often declared that United Russia was not created only for the purpose of the upcoming election campaign. I hope that you will put your work on a permanent and systematic basis and will become the nucleus of political life not only in the capitals, but in the Russian regions and in the municipalities.

In fact, all that has recently been done to modernise Russia’s political structure was aimed to create major political parties, federal parties that rely above all on the regions and municipalities. That is how the party’s vertical structure should be built from top to bottom.

I very much hope that as a result Russia’s national interests will be better ensured in the regions and that through the influence of the party structured in this way the federal centre will feel the pulse of the development of the country and the needs of ordinary citizens.

The party now has an incentive and a clearly defined interest to gain a foothold at the regional level. United Russia also has experience of direct participation in regional election campaigns. An example is the Sverdlovsk Region, which has been operating a proportional system of elections for nearly ten years.

I am also aware that you have come up with many initiatives that meet the needs of society. I am thinking about your party’s position in connection with the reform of the system of salaries of public sector employees. I think that United Russia made some timely comments on certain weaknesses in the Government’s proposals and stepped into this process just in time.

But I would like to note that the forms of implementing such initiatives have yet to be worked out.

As regards the system of payments to public sector employees, that is a positive example, a very practical example that has a direct impact on the material well-being of the population. There should be more such initiatives.

Contributing to the strategy of the country’s development, as I have said, is the key task of any political party. For now most party programmes are far removed from the real practice of development of the state and management. But I must say that we have had a lot of discussions with practically all those present on political issues, on state development and on economic priorities and development strategy of Russia. We have had discussions with Yury Luzhkov, one to one, and in a wider format, with Mintimer Shaimiyev (on his initiative we have created working groups at the Presidential Executive Office which are collaborating with the Government). We meet with other colleagues often to discuss key topics.

I would like similar discussions to be prepared in the framework of United Russia and introduced to the Government or the head of state as party initiatives.

For example, we have discussed the power industry many times, but that was the opinion of Mr Luzhkov. We have often met with Mintimer Shaimiyev to discuss state development, but that was the opinion of the President of Tatarstan. We have discussed the development of the multi-party system with some colleagues, but I only heard the opinions of [Oleg] Morozov and some other people. I think it would be right if such a powerful party structure as United Russia held discussions of certain issues and that its opinion were presented to the nation as the opinion of United Russia.

In general, I very much hope that United Russia will continue to evolve and acquit itself as a structurally complete organisation with a good intellectual base that will influence the strategy of the development of the Russian state.

I would like to end my opening remarks there. I suggest that we open the debates.




The source of information - http://en.kremlin.ru/events/president/transcripts/21946






Opening Remarks at a Meeting with Akhmat Kadyrov, Head of the Chechen Administration



March 27, 2003 - 00:00 - The Kremlin, Moscow




President Vladimir Putin:

Good afternoon. First of all, I want to congratulate you on the results of the referendum in the Chechen Republic on the Constitution and the laws on elections of new President of Chechnya and on elections to the republic's parliament.

I think all will agree that always, everywhere, in all times there have been many of those wishing to act on behalf of the people, purportedly to defend the people’s interests. So it always was with Chechnya too. But never before in Chechnya had the people been approached directly, never before had the people of Chechnya been asked just what it was they wanted themselves. We did that for the first time, and the people of Chechnya have given a clear answer to all the questions put to them.

This is not only a clear assertion that the Chechen people want to live in peace and friendship with all the other peoples of the Russian Federation, but also great confidence in the authorities of the republic and in the federal authorities. I think that this is also your great personal success. You have managed to establish positive, constructive and business-like contacts with the representatives of the federal authorities, despite the fact that that was very difficult. And no matter how difficult it was, you have also managed to establish relations with the main groups in the republic itself.

I repeat, this is great confidence on the part of all those who live in the land of Chechnya, and it gives us the opportunity to start a new stage in joint work on resolving the situation in the republic and developing Chechnya.

I think that we must concentrate our attention on three main areas. The first is further political settlement. I think that there are several important tasks here.

The first task: it is necessary to start joint work on the preparation of a treaty on the delimitation of powers between the federal centre and the Chechen Republic. To make a treaty that would enable the republic to develop in a full-blooded and effective manner, would make it possible to ensure the interests of the Chechen people by granting to Chechnya autonomy in the broadest sense of the word. The Constitution of the Russian Federation allows us to do this.

A second, very important component, work on which has already begun, and needs to be completed jointly with the deputies of the State Duma – we have already discussed this many times – is to arrive at an amnesty in Chechnya.

One more very important component – it is necessary, without any haste, to start preparations for the elections of President of Chechnya on the basis of the constitution that has been adopted by the people. In the law enforcement sphere we now have the possibility to start the transfer of the whole law enforcement sphere of the republic, of its major components, from the Federal Security Service to the Ministry of Internal Affairs(MVD). I mean that a considerable share of responsibility for the situation in Chechnya must be in the hands of the MVD of Chechnya. Let us start this work right now, let us complete it steadily, without haste and to the extent that law and order bodies are strengthened in the republic. I think that by the autumn we will have completed this work.

And, finally, the third component of political settlement is joint economic work. These are common, large-scale tasks. It is necessary to restore the economy of Chechnya and to create jobs. But there are also more immediate tasks. It is our duty to do some things as a matter of urgency. It is necessary to reconstruct villages, destroyed population centres, and first of all it is necessary to start clearing Grozny and rebuilding the capital of the Chechen Republic.

The second urgent task is to pay compensation to citizens who have lost housing. Preliminary lists already exist – about two hundred and eighty thousand people. There is also the program in the 2003 federal budget for the payment of compensation. But if we work in this fashion, then we shall drag out these payments for ten years or more. In principle, that cautious approach up until now has been justified. In the federal centre it was not clear what would happen to these buildings, whether they would be destroyed again, and so forth. We have already had such negative experiences.

The results of the elections have shown that the people have defined themselves conclusively and have made a choice in favour of peace. It is therefore quite justified to change the procedure of compensation payments. I think that this needs to be done at an accelerated pace, we must rapidly help people reconstruct their lost housing. We must do that in two tranches, in two stages. The first tranche, this year, comprises half the necessary payments, and the next – in 2004 – the second half. It will be correct if, in large part, you, the republic's leadership, choose the form of payments.

I consider that there should be no lists of first priority, second, third priority. It is necessary to make it possible for all to get the first half of the money at once, and the second half – also for all at once. Here there are many particulars and variables. But one certainty is this: we must ensure that it is impossible to corrupt this sphere. And a second point, however sad it is say, is that the responsibility will lie on the MVD of the republic to ensure that bandits do not take away this money from ordinary and little protected citizens.

If we ensure all this, then it can be said that the trust put in us by the Chechens in the referendum will be justified.


* * *


With regard to the lists. Here I will once again repeat the theses which I have just articulated. I have heard certain comments, remarks from the most ordinary people who live in Chechnya. One woman said: ”Well, it'll never be my turn.“ People fear that very much. They are afraid of swindlers, both local and in Moscow. That's why it is necessary to divide the payments into two parts, into two tranches: paying the first half to all this year, and paying to all the second part in 2004.




The source of information - http://en.kremlin.ru/events/president/transcripts/21948






Opening Remarks at a Meeting with Representatives of State Duma Factions and Groups



March 28, 2003 - 00:00 - The Kremlin, Moscow




President Vladimir Putin:

Good afternoon. We have gathered to discuss current domestic and foreign policy issues. And, of course, the most important theme of our meeting will be developments around Iraq. Without exaggeration, the world’s attention is now riveted on this problem.

And assuredly, the course of the military campaign and its likely consequences are being widely discussed in Russian society as well.

In this connection I want first of all to thank you, all those gathered here and the Federal Assembly as a whole, for the constructive support of our position on Iraq. I reckon that in the future we will also need to act as concertedly, pragmatically and without unnecessary emotions.

You know that until the very last moment Russia strove for a political solution to the problem. Practically daily we were in contact with leaders of the world's major countries and worked actively in the UN Security Council.

In this case I want to especially stress that while we do have our own economic interests in Iraq, we have never placed our stand on Iraq in direct, immediate relation to economic factors or to economic advantage. Because – and I think you will agree – economic advantages are, of course, an important component of our policy, but if we commit serious blunders and mistakes in a political assessment of the situation, if we miss the mark here, then in the end this will turn into economic losses for us, too.

Regrettably, international efforts for a peaceful solution of the problem are now frustrated. Having begun 9 days ago, the military operation is assuming a fierce and protracted character. Human casualties and destruction are increasing with each passing hour, and civilians are being killed – children, old men, women. American and British soldiers, Iraqi servicemen are being killed.

As we foresaw, the consequences of the war in Iraq go beyond the framework of a local conflict. This is perhaps the first time since the end of the Cold War that the world community has encountered such a grave crisis. In essence – the danger of an undermining of the foundations of global stability and international law.

It is now necessary to look for a way out of the situation together. As before, we are convinced that the only correct solution would be an immediate cessation of hostilities and the resumption of the process of political settlement through the UN Security Council.

In seeking a solution, we are open to constructive cooperation with the international community and with all the parties involved in the conflict, including, of course, the United States of America. I shall stress: the level and character of relations we have achieved with our US colleagues in the last few years give us every reason to continue an open dialogue.

And, of course, it is a major task of the world community to prevent the impending humanitarian catastrophe in Iraq. As you know, Russia has already launched preparations for providing relief to likely Iraqi refugees on the border between Iraq and Iran, with the cooperation of the Iranian side.

This is what I would like to say at the beginning. Thank your for your attention. We can now move on to a discussion of this situation and of the other questions you deem possible and necessary to discuss.




The source of information - http://en.kremlin.ru/events/president/transcripts/21949
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Excerpts from an Interview with the Media in the Central Black Soil Region



April 2, 2003 - 00:00 - Tambov




Question:

Tambov, where we are meeting today, which has just been the venue of a State Council Presidium meeting devoted to medical insurance. How do you assess its results? To be honest, although many medical institutions have already adopted the insurance scheme, hospitals have not been very welcoming towards their patients, especially pensioners. In response to all their complaints they say: “We are short of money, you have to pay for your treatment”. Where do we go from here?



Vladimir Putin:

We have met with the governors who are members of the Presidium of the State Council to discuss that particular issue. It is a very pressing problem that affects millions of people. The reason is clear: the healthcare system is the least reformed system. Although, as we have mentioned today, some positive changes are taking place, there are also many outstanding problems.

We must provide large sections of the population, especially the low-income strata, with free but high-quality service. This was the purpose for which the system of free medical insurance was created ten years ago. I agree with you that it is not effective enough. This is mainly due to the lack of funds in the system. Today we had a working meeting in the full sense of that word. We discussed the decisions on medical care of pensioners proposed by the Government. But the conversation covered the whole healthcare system and the prospects of reforming it.

At present we are ahead of the European Union in terms of the number of hospital beds. But we are far behind in terms of the quality of medical care. We have discussed what needs to be done to change the situation. First of all, the system must be able to pay its way. Of course, the government should give thought above all to people in the low-income bracket, and pensioners are in the front ranks of such people. They had given the best years of their lives to serving this country and they have no one to look to for help except the state. They are the most vulnerable social group.

So the first step in that respect will be to improve the medical care of pensioners. How do we go about it? It has been decided that the Pension Fund would disburse 1.5 billion roubles this year to improve the medical care of pensioners. But that is not the main thing. The main thing is that personal registration is better organized in the Pension Fund today than in any other organization. It will enable us to build up a system of personal registration of the medical services rendered. The idea is that in the future we could abandon budget financing of hospital beds or financing according to the size of the medical staff, but finance medical institutions on the basis of the quality and amount of medical services rendered.

To do that we will, on a trial basis, work together with the Pension Fund to improve medical services rendered to pensioners. The money will be transferred to this or that medical institution against information on the quantity and quality of services rendered to pensioners. The pilot scheme will be introduced in 10 regions of the Russian Federation, including the Black Soil area. Subsequently these principles will be introduced in the entire medical insurance, which will be jointly financed by the federal and regional budgets.


* * *


Question:

A particular concern is not only the wages, but also the growing prices, in particular energy prices. I work in Belgorod, but I was born in the Voronezh Region. Unfortunately, the capital of the Central Black Soil Region is providing a bad example. You can judge for yourself. In the Voronezh Region the cost of one kilowatt per hour of electricity is the highest in the Central Black Soil Region. But that is not all. The regional energy commission raised the tariffs again on March 1. Let me cite the figures. Electricity tariffs have grown by 13%. But the other figure is even more distressing: Gas rates have grown by 29%, almost a third. And this despite the fact that the Russian Government has put a cap of 20% on tariffs. So we see that regional commissions do not obey the Government. Tomorrow they may jack up prices in other regions, including Belgorod. Can the federal center do something to protect us from this plague, and restore order in the pricing of gas and electricity?



Vladimir Putin:

It is true that the Regional Energy Commission does not directly report to the Federal Energy Commission. However, there is some connection, as I will tell you later.

As for rising tariffs, that is indeed an acute problem. I agree with the people who are angry about unjustified or untimely increases of these tariffs. They failed to raise tariffs in time, and then they had to raise them by 40, 60, or even 70%. The increases should have been made gradually over regular intervals to keep pace with the growing incomes of the population. The Government has decided that the price of electricity should not go up by more than 14% a year and of gas by more than 20%. As far as I know, the Voronezh Region is within the Government’s recommendations as regards electricity.

As for gas, we need to look into it. At the same time, you are probably aware that Gazprom sells gas inside the country below cost. It costs about 770 roubles to produce 1000 cubic meters, and Gazprom sells it at an average 550 roubles. So, if we want to develop the gas supply network, if we want to gasify our towns and villages, and people to be able to purchase gas at fairly low prices, there must be some shift towards export. Gazprom survives due to exports. I have said that gas inside the country is sold below cost, at 550 roubles per 1000 square meters, compared with $120 for export. As you see, there is a huge gap. It enables Gazprom to stay afloat. If we want to expand gasification we must, of course, adjust the prices. But without any doubt it should take place gradually, smoothly in proportion to the growing incomes. There is no other way.

But can the Government establish some sort of order in this matter? It is hard to say, under the current legislation. Not everyone knows that consumers have the right to appeal to the Federal Energy Commission (FEC). No such complaints have been filed. People stage demonstrations, but they don’t know their rights. Evidently, the Government should have some leverage, the possibility to influence the Regional Energy Commissions if they make wrong decisions.

The United Russia party has come up with such an initiative, and I think in Stavropol they managed to bring tariffs down to a reasonable level. That is another issue we may consider.



Question:

Pensions is still an acute issue. What will happen next? What is the difference between government pensions and contributory pensions? To put it simply, is it possible that pension money will be used to make illegal profits?



Vladimir Putin:

The law tells you what will happen to pensions. Pensions will rise. Most recently, as you know, the insured part has been raised by 10.2% and the total pensions have been raised by 12.2%. Under the law the next adjustment for inflation, by about 6–7%, is to take place on August 1. This will apply to the whole pension, rather than its base part. I do not rule out that additional decisions will be made. But the August one is sure to take place.

So, pensions will grow by an average 265 roubles during the current year. As for the contributory system and concerns about possible abuses, people have a lot of fears about it, and they are not ungrounded. I am thinking of the negative experience of various financial pyramids and all sorts of machinations in the financial sphere. We have a lot of people who have suffered from fraud. Such fears are justified. As for the funded part of the pensions, the law and its application are quite satisfactory. This guarantees that people’s money will not be lost during the formation of the funded part. The Government guarantees that. It is another question that every concrete individual can deposit the funded part either into government or into private funds. Private funds will offer better terms. They are of course more risky, but the risk does not include losing the savings. The risk is in actually getting the effect from investing in a private insurance fund that the fund promises. The choice of every concrete citizen will determine whether or not he or she will get the promised interest. But, I repeat, only the profits are at risk, but not the actual savings.


* * *


Question:

People living in Central Russia have faced the rise of drug-related crime. Perhaps amendments should be introduced in the Criminal Code to introduce tougher punishments for drug dealers?



Vladimir Putin:

Whenever we think about crime control, the first thing that comes to mind is, of course, to toughen punishment. But that is effective only up to a point. There comes a point beyond which harsher punishment does not produce the results we need. But in this area, I agree, we may consider tougher punishment. A draft law has been prepared which increases prison sentences for drug dealers from 15 to 20 years. At the same time, the victims of these drug dealers, that is, the drug addicts, need treatment, and they will be the targets of other measures.

You may know that a decision has been made to create a separate federal body to combat illegal spread of drugs and psychotropic substances. We are planning to concentrate financial and administrative resources there in order to make the government’s activities in this area more effective. We hope we will succeed.



Question:

So far we have discussed social problems, but we should not forget about the war in Iraq, which is into its third week. We have closely followed the Russian position and especially your speech on the first day of the war. The Russian position was tough and it has since been vindicated. You only have to look at the harrowing pictures broadcast in the past two days showing civilians killed in air raids. It looks as if America is suffering not only a moral and political, but also a military defeat. What next?



Vladimir Putin:

You have touched upon a very important problem, which is at the focus of world attention and undoubtedly affects the majority of countries, including our country. Russia has always consistently supported a peaceful solution of the problem of Iraq. I agree with you that the events of recent days and recent weeks, especially human deaths, confirm that Russia has taken the right stand.

At the same time I must say that for political and economic reasons Russia is not interested in the United States being defeated. We want the problem to be transferred to the UN. This is what we seek. The sooner that happens the better for all the parties involved in the conflict. I have spoken about it repeatedly and I haven’t said anything new just now. But events are indeed developing dramatically. The Russian Foreign Ministry will exert further efforts to bring the solution of the issue back to the UN Security Council.



Question:

Forgive me my curiosity, but I can’t help asking you a personal question. At the end of the first year of your presidency you were asked how you felt and you replied that you had become a kinder man. It was recently three years since you became President. How do you feel today?



Vladimir Putin:

I am accumulating useful information. I arrange it properly. I am more certain about the priorities of state development and the economic priorities. I think not only I, but all of us are becoming more pragmatic in choosing our goals and working towards achieving them. But, to paraphrase a famous adage, the more you do, the more you realize that you have still a lot to do. Overall, I cannot say that I am fully satisfied. But the primary tasks that I set for myself are being achieved. That gives me a sense of inner stability. But I repeat, there is a feeling that a great deal still needs to be done.




The source of information - http://en.kremlin.ru/events/president/transcripts/21952






Press Statement on Iraq



April 3, 2003 - 00:00 - Novo-Ogaryovo




Question:

Speaking in Tambov you said that for a number of political and economic reasons Russia is interested not in a political and moral defeat of the US, but in bringing the problem of Iraq settlement back to the UN. Could you elaborate on these reasons?



Vladimir Putin:

As for the Russian approach to the crisis in Iraq, I set it forth in the Statement two weeks ago. Since then, nothing has changed in our position on Iraq. Moreover, the recent developments confirm the validity of the position we have taken on the issue. We come out for strengthening the foundations and principles of international law and for solving such kind of situations through the United Nations.

As for emotions, I understand the people who are unable to contain them. I understand and to some extent share the opinion of these people, especially after you watch television reports from the combat area.

But I don't think that emotions are a good counsel in preparing and passing any decisions.

In recent times Russia — and there have been many crises recently — has not once permitted itself the luxury of being drawn directly in any of these crises. And this time around, I will do everything within my power to prevent Russia being dragged into the Iraq crisis in any form.

As regards political considerations, in approaching any problems, including those of a global character, we of course have always cooperated and will cooperate with the United States.

Politically, the United States and Russia are the biggest nuclear powers in the world and we bear a special responsibility for the maintenance of international peace. We have signed a strategic offensive reductions treaty. The US Senate recently ratified it and we in Russia intend to do the same, we will work together with the deputies of the Federal Assembly.

This is the first thing.

Secondly — and I am absolutely convinced of this — we must jointly tackle the problem of non-proliferation of mass destruction weapons and means of their delivery. This is one of the most acute problems of the 21st century and, undoubtedly, that problem cannot be solved without positive cooperation and interaction between the United States and Russia.

Finally, the fight against terrorism. It remains highly relevant. Russia knows about it not by hearsay. To give you an example: in spite of the new stage of settlement in Chechnya terrorist acts in the Caucasus continue. This is an international problem. Here, within the anti-terrorist coalition, a stable partnership has been established with the United States and we intend to develop it in the future.

We constantly speak about the need to strengthen the institutions of the United Nations. We often speak of the need to create new world security architecture in the 21st century. That problem, obviously, cannot be effectively solved without a positive cooperation between the United States and Russia.

As for the economic sphere, everything is fairly simple and, in my view, is understandable even for ordinary Russian citizens.

First, the US is our major trade and economic partner. Our trade reached 9.2 billion dollars in 2002 and this year it is moving steadily toward the 10 billion dollar mark.

The American economy and the American national currency are an economy and a currency of a global character and the state of the European and Russian economies depends to a large extent on how they develop. If we imagine that the rate of the US dollar starts falling relative to other key national currencies in the world, this would directly affect Russia because today the gold and currency reserves of the Central Bank of the Russian Federation have reached a record 55.5 billion US dollars (as of the beginning of April). The Central Bank keeps three-quarters of its currency reserves in US dollars. If we imagine that the rate will change in a way that is unfavorable for the dollar then the Central Bank of the Russian Federation will suffer direct losses. The same would apply to the savings of Russian citizens who, as we know, keep part of their savings in US dollars.

Finally, we are interested in cooperation in international organizations. We face the challenge of integrating the Russian economy into the world economy. And on this we actively cooperate with our American colleagues.

A highly relevant task for us is to change the proportions between different sectors of the Russian economy. We are interested in developing high technology sectors and that would be difficult to accomplish without bringing in modern American technologies and investments. This whole range of issues takes our interaction to a substantially higher level. At the same time — and I would like to make a note of it — in our bilateral relations we will proceed from the general principles of building the foreign policy of the Russian Federation, proceeding from the need to strengthen the foundations of international law, and the system of international security with the UN at its center.

If, in respect of the Iraq crisis, the first and the second considerations appear to contradict each other, I am sure that in the final analysis principled work in this direction — on a bilateral and multilateral basis — has a good prospect. Because not only Russia but an overwhelming majority of countries are interested in such a structure of foreign policy. In the final analysis it would benefit the United States.




The source of information - http://en.kremlin.ru/events/president/transcripts/21954






Replies to Journalists' Questions When Visiting Space Forces Headquarters



April 5, 2003 - 00:00 - Moscow




Question:

Vladimir Vladimirovich, what is your opinion as to the state of the Russian Space Forces and the prospects for their development?



President Putin:

We are called upon to tackle tasks in this sphere. The decision on their unification was correct — the practice of today shows this. It was justified and is yielding positive results. There is the plan to develop this armed service and it is being carried out as contemplated two years ago. Our activity in this field will be directed towards moving to a new generation of space equipment, a generation with a longer craft service life. We will be working on the reduction of prices, on a switchover to new systems of information support — more effective, but lower-cost ones — more acceptable to us from the economic viewpoint, and more effective in military terms. And, lastly, one more priority line of activity in this domain is the renewal of the missile and nuclear attack warning system. Now all these lines are considered to be priority ones and quite effectively developing.



Question:

How further do you think strategic offensive arms reduction will proceed, considering the US actions in Iraq?



President Putin:

You know that our position and the position of the United States on the Iraq question do not coincide. Ours are different approaches, and this, of course, creates a certain unfavorable background for further work on the ratification of this agreement, but the Russian Federation is interested in this document being ratified. I have already said and want to stress it once again: we shall be working with the deputies of the Federal Assembly, and I hope we shall arrive at ratification.



Question:

Weapons of mass destruction, in the first place nuclear, are increasingly proliferating in the world. Are leading world powers capable of halting this process?



President Putin:

They undoubtedly are, if we bolster the system of international law and the system of nonproliferation. And this will be the more effective, the more concertedly we shall act in this sphere, which, to my mind, in the 21st century is the most important one.




The source of information - http://en.kremlin.ru/events/president/transcripts/21955






President Vladimir Putin was informed about an attack on Russian diplomats in Iraq



April 6, 2003 - 14:10



President Putin instructed the Russian Foreign Ministry to take all possible measures to give assistance to the victims of the attack and evacuate the team of Russian diplomats from Iraq.

On April 6, while moving towards the Iraqi-Syrian border, a motorcade of vehicles carrying officials of the Russian Embassy in Iraq, including the Russian Ambassador, was attacked. Several people were wounded.




The source of information - http://en.kremlin.ru/events/president/news/28430






President Vladimir Putin chaired a brief meeting with Condoleezza Rice, the National Security Advisor of the US President



April 7, 2003 - 19:30 - Moscow



Condoleezza Rice gave George W. Bush’s letter to Mr Putin which said that the United States supported the further development of the Russian-US relations.

Ms Rice also met with Chief of Staff of the Presidential Executive Office Alexander Voloshin, Security Council Secretary Vladimir Rushailo, Foreign Minister Igor Ivanov and Defence Minister Sergei Ivanov.

The discussions focused on different aspects of Russian-American relations, and prospects for their development, the non-proliferation of weapons of mass destruction and the fight against international terrorism.

They also discussed the situation in Iraq. Russia confirmed its position regarding the Iraq war, which is to bring the issue to the UN negotiating table.

Russia also expressed its concern over the attack on its diplomatic convoy, during which some diplomats and embassy officials were wounded, as well as the actions of the United States military to impede the convoy movement.




The source of information - http://en.kremlin.ru/events/president/news/28422
__________________
Where should they dig the Very Deep Pit?
Piglet said that the best place would be somewhere where a Heffalump was, just before he fell into it, only about a foot farther on.
(c) Alan Alexander Miln
 
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