Pernicious frauds have tricked miseducated subjects into the absurd delusion that the whole Russian awakening and change of course has been the result Putin's takeover. But ask yourself, who chose him and made Yeltsin put him up as PM?
Russia may not have the deep state in the same way that the U.S. does, but influential and respected Russian elders had and continue to have a way to make themselves heard. Very obviously, a group of elder Russian statesmen got together - worried about Russia going to the dogs - and engineered a quiet changeover. However it happened, Putin did not make it to the top by himself, and most certainly he has not been alone in running things, as the West would like its most simple-minded subjects to believe.
So do not worry about Valodya's health and Russian leadership's succession. Everyone in Russia has learned the lesson from the 1990s. The support that Russians extend to Putin is not so much personal, it is instead support for his policies for making Russia strong, independent and proud.
The idea that the Russian people would fall
for Western "beads" again is ludicrous.
RG-RU.Translate.Goog | Vladimir Putin: Thank you very much! Dear Kassym-Jomart Kemelevich! Dear friends, colleagues!
I greet the participants and guests of the anniversary XXV St. Petersburg International Economic Forum.
It is taking place at a difficult time for the entire world community, when the economy, markets, and the very principles of the global economic system are under attack. Many trade, production, and logistics ties that were previously disrupted by the pandemic are now going through new tests. Moreover, such key concepts for business as business reputation, inviolability of property and trust in world currencies have been thoroughly undermined - undermined, unfortunately, by our partners in the West, and this was done intentionally, for the sake of ambition, in the name of preserving outdated geopolitical illusions.
Today ours - when I say "ours" I mean the Russian leadership - has its own view of the situation in which the global economy finds itself. I will dwell in detail on how Russia is acting in these conditions and how it is planning its development in a dynamically changing environment.
A year and a half ago, speaking at the Davos Forum, I once again emphasized that the era of the unipolar world order is over - I want to start with this, there is no getting away from it - it has ended despite all attempts to preserve it, to conserve it by any means. Changes are a natural course of history, since the civilizational diversity of the planet, the richness of cultures is difficult to combine with political, economic and other patterns, patterns do not work here, patterns that are rudely, without alternative, imposed from one center.
The flaw lies in the very idea, according to which there is one, albeit a strong power with a limited circle of approximate or, as they say, states admitted to it, and all the rules of business and international relations - when it becomes necessary - are interpreted exclusively in the interests of this power , as they say, work in one direction, the game goes in one direction. A world based on such "dogmas" is definitely unsustainable.
The United States, having declared victory in the Cold War, declared itself to be the messengers of the Lord on Earth, who have no obligations, but only interests, and these interests are declared sacred. They do not seem to notice that over the past decades, new powerful centers have been formed on the planet and are louder and louder. Each of them develops its own political systems and public institutions, implements its own models of economic growth and, of course, has the right to protect them, to ensure national sovereignty.
We are talking about objective processes, about truly revolutionary, tectonic changes in geopolitics, the global economy, in the technological sphere, in the entire system of international relations, where the role of dynamic, promising states and regions is significantly increasing, whose interests can no longer be ignored.
I repeat: these changes are fundamental, pivotal and inexorable. And it is a mistake to believe that the time of turbulent changes can, as they say, sit out, wait out, that, supposedly, everything will return to normal, everything will be as before. Will not.
However, it seems that the ruling elites of some Western states are just in this kind of illusion. They do not want to notice obvious things, but stubbornly cling to the shadows of the past. For example, they believe that the dominance of the West in global politics and economics is an unchanging, eternal value. Nothing is eternal.
Moreover, our colleagues do not simply deny reality. They are trying to counteract the course of history. They think in terms of the last century. They are captivated by their own delusions about countries outside the so-called "golden billion": they consider everything else to be the periphery, their backyard, they still treat them like a colony, and the peoples living there consider them second-class people, because consider themselves exceptional. If they are exceptional, then everyone else is second-class.
Hence - an irrepressible desire to punish, economically crush the one who stands out from the general ranks, does not want to blindly obey. Moreover, they rudely and shamelessly impose their own ethics, views on culture and ideas about history, and sometimes question the sovereignty and integrity of states, create a threat to their existence. Suffice it to recall the fate of Yugoslavia and Syria, Libya and Iraq.
If some "rebel" cannot be hounded, pacified, then they try to isolate him or, as they say now, "cancel". Everything is used, even sports, the Olympic movement, a ban on culture, masterpieces of art - for the sole reason that their authors are of the "wrong" origin.
This is the nature of the current attack of Russophobia in the West and insane sanctions against Russia. Crazy and, I would say, thoughtless. Their number, as well as the speed of stamping, knows no precedents.
The calculation was clear: impudently, with a swoop, crush the Russian economy, due to the destruction of business chains, the forced recall of Western companies from the Russian market, the freezing of domestic assets, to hit industry, finance, and the standard of living of people.
Did not work out. Obviously, it did not work out, did not take place. Russian entrepreneurs and authorities worked in a focused and professional manner, citizens showed solidarity and responsibility.
We are step by step normalizing the economic situation. First, we stabilized the financial markets, the banking system and the trading network. Then they began to saturate the economy with liquidity and working capital to maintain the stability of enterprises and companies, employment and jobs.
The gloomy forecasts regarding the prospects for the Russian economy, which sounded at the beginning of spring, did not come true. At the same time, it is clear why this propaganda campaign was inflated, where all these spells about a dollar for 200 rubles and about the collapse of our economy as a whole come from - all this was and remains an instrument of information warfare, a factor of psychological impact on Russian society, on domestic business circles.
By the way, some of our experts succumbed to such external pressure, in their forecasts they also proceeded from the inevitable collapse of the Russian economy and the critical weakening of the national currency - the ruble.
Life has refuted such predictions. However, I would like to emphasize and would like to note that in order to continue to achieve success, we must assess the situation as honestly and realistically as possible, at the same time be independent in our conclusions and, of course, believe in our own strength, this is very important. We are strong people and we can handle any challenge. Like our ancestors, we will solve any problem. This is evidenced by the entire thousand-year history of our country.
Literally three months after the massive package of sanctions, we suppressed the inflation surge. After peaking at 17.8 percent, as you know, inflation is now at 16.7 percent and continues to decline. Economic dynamics are stabilizing, public finances are stable. I will then make a comparison with other regions. Yes, it's too much for us, of course. 16.7 percent is a big inflation. We must work with this and we will do it, and I am sure we will achieve a positive result.
According to the results of the first five months of this year, the federal budget was executed with a surplus of 1.5 trillion rubles, and the consolidated budget - with a surplus of 3.3 trillion rubles. At the same time, the federal budget surplus in May alone amounted to almost half a trillion rubles, exceeding last year's May figure by more than four times.
Today, our task is to create conditions for increasing production, for increasing supply in the domestic market and, in a balanced way with the increase in supply, to restore final demand and bank lending to the economy.
Already said, we have taken special measures to replenish the working capital of companies. Including business in almost all industries received the right to deferral of insurance premiums for the second quarter of this year. At the same time, manufacturing enterprises have more opportunities - they will be able to take advantage of the delay in the third quarter. In fact, we are talking about an interest-free loan from the state.
In the future, deferred payments on insurance premiums will not need to be paid, as they say, at once. This can be done in equal installments within 12 months, starting in June next year.
Further. Since May, the rate on preferential mortgages has been reduced. Now it is nine percent. At the same time, the preferential mortgage program itself has been extended until the end of this year. As I have already said, the purpose of such a measure is to help citizens solve housing problems, support the construction and related industries, and there we employ millions of workers.
After a sharp rise in the spring, interest rates in the Russian economy are gradually declining, the Central Bank lowers the key rate. In this regard, I consider it possible to once again lower the rate on preferential mortgages, now to seven percent.
But what would you like to pay attention to? The duration of the program remains the same - until the end of this year. This means that those of our citizens who want to improve their living conditions with this benefit must use it before the end of this year.
The maximum loan amounts are also preserved: 12 million rubles for Moscow and St. Petersburg and six million rubles for other subjects of the Federation.
I would add that it is important for us in general to increase the availability of long-term financial resources and credit for the economy. In the near future, the emphasis in supporting business activity should shift from fiscal stimulus measures to market bank lending mechanisms.
This process should definitely be supported. Thus, to build up the capabilities of the VEB Project Financing Factory, we will allocate 120 billion rubles from the National Welfare Fund. Such a measure will provide additional lending to demanded initiatives and projects in the amount of about half a trillion rubles.
Dear colleagues!
I have already said that the economic blitzkrieg against Russia initially had no chance of success. At the same time, the sanctions weapon, it is known - and the practice of recent years shows this well - it is double-edged. It inflicts comparable, and even greater damage to the very same ideologists and designers of it.
And it's not just about the current obvious consequences. We know that among the leaders of European countries, at the level of informal conversations, as they say, very disturbing prospects are being furtively discussed, that sanctions can be applied not only against Russia, but also against any objectionable state, sooner or later they can affect everyone, including the EU members themselves and European companies.
So far, things have not come to this, but European politicians have already dealt a serious blow to their economy - they themselves did it with their own hands. We see how social and economic problems have become aggravated in Europe, and in the United States too, how the cost of goods, food, electricity and automobile fuel is growing, how the quality of life of Europeans is declining, and the competitiveness of enterprises is being lost.
According to experts, only direct, "countable" losses of the European Union from the sanctions fever over the coming year may exceed $400 billion. Such is the price of decisions divorced from reality and taken contrary to common sense.
These costs are directly borne by the population and companies of the European Union. Inflation growth in some eurozone countries has already exceeded 20 percent. I spoke about our inflation, but the countries of the eurozone do not conduct any special military operations, and inflation has risen there - some of them - up to 20 percent. The United States also has unacceptable inflation, the highest in 40 years.
Yes, of course, inflation in Russia is also still at double-digit levels. However, we have already carried out the indexation of social payments and pensions, raised the minimum wage and the living wage, thus protecting the least well-to-do citizens. And, in turn, high interest rates made it possible to keep people's savings in the Russian banking system.
Of course, for business representatives it is understandable: a high key rate is pressing the economy - understandably. For citizens, in most cases, this is still a plus: they returned a significant amount of money to banks at a high interest rate.
This is the main difference from the countries of the European Union, where the growth of inflation directly leads to a decrease in the real incomes of the population and eats up their savings, and the current crisis is a burden primarily on low-income citizens.
The rise in costs of European companies and their loss of the Russian market also have serious long-term consequences. The result here is obvious - the loss of global competitiveness and a systemic slowdown in the growth rate of the European economy, and for years to come.
All this leads to an aggravation of deep problems in Western societies. Yes, of course, we have enough problems of our own, but I have to talk about this now, because they point fingers at us all the time, but they themselves have enough problems. I also spoke about this in Davos. A direct consequence of the actions of European politicians and the events of this year will be a further aggravation of inequality in these countries, which, in turn, will further split their societies, and the issue is not only in the level of well-being, but also in the value orientations of various groups in this society.
Yes, now these contradictions are suppressed, swept under the rug. Democratic procedures, elections in the same Europe - to be honest, sometimes you look at what is happening there, what forces are coming to power - all this looks like a screen, because political parties similar to twins change each other in power. However, the essence of this does not change. The real interests of citizens and national business are pushed further and further to the backyard, to the periphery.
Such a separation from reality, from the demands of society will inevitably lead to a surge of populism and the growth of extreme, radical movements, to serious socio-economic changes, to degradation, and in the near future, to a change of elites. Traditional games, as you can see, lose all the time. Some new formations appear, but if they differ little from the traditional ones, they also have little chance of survival.
All attempts to put on a "good face on a bad game", all talk about allegedly acceptable costs in the name of pseudo-unity cannot hide the main thing: the European Union has finally lost its political sovereignty, and its bureaucratic elites are dancing to someone else's tune, accepting everything they are told from above, causing harm to their own population and their own economy, their own business.
What else is of fundamental importance here? The deterioration of the situation in the global economy is not a matter of recent months - now I will focus on things that I consider extremely important - what is happening is not the result of recent months, of course not. Moreover, it is not the result of a special military operation carried out by Russia in the Donbass. Such statements are frank and conscious distortion of facts.
A sharp increase in inflation in the commodity and raw materials markets became a fact long before the events of this year. The world has been consistently driven into such a situation by many years of irresponsible macroeconomic policies of the so-called G7 countries, including uncontrolled emission and accumulation of unsecured debts. Moreover, these processes only accelerated and intensified with the onset of the coronavirus pandemic back in 2020, when both supply and demand for goods and services drastically decreased globally.
The question is: what does our military operation in the Donbass have to do with it? It has nothing to do with it at all.
Without inventing or not wishing to use other recipes, the authorities of the leading Western economies simply launched the "printing press". In such a simple way they began to cover previously unprecedented budget deficits.
I have already mentioned this figure: over the past two years, the money supply in the United States has grown by more than 38 percent. Previously, there was such an increase for decades, but here in two years 38 percent is 5.9 trillion dollars. In comparison, only a few countries in the world have a larger gross domestic product.
The money supply of the European Union, in turn, also increased sharply during this period. Its volume increased by about 20 percent, or by 2.5 trillion euros.
Lately, I’ve been hearing more and more about the so-called – excuse me, I don’t like studying here, and I don’t even mention myself in any way, but I can’t help but say – we all hear about the so-called Putin’s inflation in the West. When I see this, I think all the time: who is this stupidity designed for - those who cannot read and write, that's all. People who can at least read understand what's really going on.
Russia, our actions to liberate Donbass have absolutely nothing to do with it. Today's rise in prices, inflation, problems with food and fuel, gasoline, in the energy sector as a whole are the result of systemic mistakes in the economic policy of the current US administration and the European bureaucracy. Here are the reasons, and only in this.
I will also say about our operation: yes, it had some significance, but the root of this is precisely in their erroneous economic policy. For them, the beginning of our operation in the Donbass is a lifeline that allows them to blame their own miscalculations on others, in this case, on Russia. But everyone who has at least a primary school education understands the true reasons for the current situation.
They printed money in huge quantities, and then what? Where did all these funds go? Obviously: including the purchase of goods and services outside Western countries - that's where they flowed, this money is printed. They literally began to "vacuum", rake out the global markets. Of course, no one thought about the interests of other states, including the poorest ones, and did not want to think about it. They were left only what is called, as our people say, lumps, and even at astronomical prices.
So, if at the end of 2019 imports, imports of goods to the United States amounted to about $250 billion a month, by now it has grown to $350 billion. It is noteworthy that the growth amounted to 40 percent - in proportion, this corresponds exactly to the unsecured pumping of the dollar money supply in recent years. They printed, distributed money, and for this money they raked out all the goods from the markets of third countries.
Let me add one more thing: the United States has long been a major supplier of food on the world market, deservedly, indeed, deservedly proud of - and there was something - of their agriculture, farming traditions, this is an example for many and for us, by the way, too. But today America's role has changed dramatically. From a net exporter of food, it has become a net importer. Roughly speaking, they print money and draw commodity flows over themselves, buying food all over the world.
Even higher rates of increasing imports of goods are observed in the European Union. It is clear that such a sharp increase in demand, unsupported by the supply of goods, launched a wave of shortages and global inflation. That's where it comes from, this global inflation. Over the past couple of years, almost everything in the world has risen in price: raw materials, consumer goods, and especially food.
Yes, of course, these countries, including the States, they continue to import, but the balance between exports and imports is already in the other direction: there are already, in my opinion, 17 billion more imports than exports. That's what it's all about.
According to the UN, back in February of this year, the global food cost index was 50 percent higher than in May 2020, and the composite commodity index doubled over the same period.
In the context of an inflationary storm, many developing countries have a reasonable question: why exchange goods for dollars and euros, which are losing weight before our eyes? The conclusion suggests itself: the economy of imaginary entities is inevitably replaced by the economy of real values and assets.
According to the IMF, there are now $7.1 trillion and €2.5 trillion in global foreign exchange reserves, and this money is depreciating at a rate of about eight percent per year. But besides, at any moment they can also be confiscated, stolen, if the United States does not like something in the policy of certain states. Well, this, in my opinion, has become absolutely real for very many countries that keep their gold and foreign exchange reserves in these currencies.
According to experts, in the coming years, this is an objective analysis, the process of converting global reserves will be launched - they simply have nowhere to go with such deficits - from currencies losing their value into real resources - other countries, of course, will do this, - such as food, energy, and other raw materials. Obviously, this process will further spur global dollar inflation.
As for Europe, the failed energy policy, the blind bet on renewable sources and spot supplies of natural gas, which led to a sharp increase in the cost of energy, which has been observed since the third quarter of last year, also made an additional negative contribution to the unwinding of prices - I repeat again, long before the start of our operation in the Donbass. We have absolutely nothing to do with it. They themselves did things there, prices skyrocketed, and they are looking for the guilty again.
The miscalculations of the West not only affected the growth in the cost of many goods and services, but also led to a decrease in the output of fertilizers, primarily nitrogen, produced from natural gas. In general, only from the middle of last year to February of this year, global prices for fertilizers increased by more than 70 percent.
Unfortunately, there are no prerequisites for changing such price trends today. On the contrary, against this background, the work of enterprises and the logistics of fertilizer supplies from Russia and Belarus are blocked. Thus, the situation is further driven into a deadlock.
It is not difficult to calculate the further development of events. The lack of fertilizers means a decrease in yields, which means that the risks of undersupply of food to the world market will increase, prices will go up even more, which threatens starvation primarily in the poorest countries, and this will be entirely on the conscience of the United States administration and the European bureaucracy.
Let me emphasize once again: this problem did not appear today, not in the last three or four months, and it absolutely certainly did not arise through Russia’s fault, as some demagogues are now saying, trying to shift the responsibility for everything that happens in the world economy onto our country.
Of course, we might be pleased to hear that we are so powerful and omnipotent: we are blowing inflation to the skies in the West, in the USA, in Europe, we are doing something else there that makes everyone in a fever. Maybe it would be nice for us to feel such power, but this is not true. The situation has matured over the years, spurred on by the short-sighted actions of those who are accustomed to solving their problems at someone else's expense, who relied and still rely on the mechanism of financial emission in order to outbid, pull over trade flows and thereby exacerbate deficits and provoke humanitarian catastrophes in certain regions peace. I would like to add: this is essentially the same predatory colonial policy, but, of course, in a new form, in a new edition, much more subtle and sophisticated. You won't understand right away what's going on.
Now the most important task for the entire world community is to increase the supply of food products to the global market, including meeting the needs of countries that are especially in need of food.
Russia, ensuring its internal food security, its internal market, is able to significantly increase the export of food and fertilizers. For example, the volume of our grain deliveries next season may increase to 50 million tons.
As a matter of priority, we will send our deliveries to those countries where the need for food is greatest and where there are risks of an increase in the number of hungry people. First of all, we are talking about African countries and the Middle East region.
However, there are difficulties here, also arising through no fault of ours. Yes, formally on Russian grain, food and fertilizers... By the way, the Americans imposed sanctions on our fertilizers, followed by the Europeans. Then the Americans took it and canceled it - they understood where they were. Europeans don't. Their bureaucracy simply works like millstones in an eighteenth-century mill. Therefore, everyone understands that they did something stupid, but somehow it is already difficult to unscrew it back for bureaucratic reasons.
So, I repeat, Russia is ready to make its contribution to balancing the world markets for agricultural products, and we, of course, welcome the openness to dialogue on this issue on the part of our colleagues from the UN, who understand the acuteness of the global food problem. The subject for such a conversation could be the creation of normal conditions - logistical, financial, transport - for increasing Russian exports of food products and fertilizers.
As for - I cannot but mention this too, there are, unfortunately, a lot of speculations on this matter - Ukrainian food supplies to world markets: we do not interfere. For God's sake. We did not mine the Black Sea ports of Ukraine. Let them mine and take them out. We will ensure the safety of the pilotage of these civilian vessels. There is no question at all.
But what is it about? USDA estimates that this is six million tons of wheat; according to our estimates, somewhere around five. And somewhere else seven million tons of corn. And that's it. And if we keep in mind that 800 million tons of wheat are produced in the world, then five million tons for the world market, as you understand, does not make any weather at all.
Nevertheless, there are export opportunities, and not only through the Black Sea ports. Please, export through Belarus - the cheapest way, by the way. Through Poland, Romania - as much as you like. There are five or six pickup options.
It's not about us, it's about the adequacy of the people who are in power in Kyiv. Let them decide what to do, and in this case at least they don't look to their masters from abroad, from abroad, from overseas.
But there is another danger that this grain will be used to pay for the supplied weapons. It will be really sad then.
Dear friends!
As I have already said, the modern world is going through an era of cardinal changes. International institutions break down and fail. Security guarantees are devalued. The West has fundamentally refused to fulfill its earlier obligations. It was simply impossible to reach any new agreements with him.
In the current situation, against the backdrop of growing risks and threats for us, Russia's decision to conduct a special military operation was forced. Difficult, certainly, but forced and necessary.
This is the decision of a sovereign country, which has an unconditional right, based, by the way, on the UN Charter, to defend its security. A decision aimed at protecting our citizens, residents of the people's republics of Donbass, who for eight years were subjected to genocide by the Kyiv regime and neo-Nazis who received the full protection of the West.
The West not only sought to implement the "anti-Russia" scenario, but also led an active military development of Ukrainian territory, literally pumping Ukraine with weapons and military advisers. It continues to do so even now. To be honest, no one pays any attention to the development of the economy, the well-being of the people living there, they just don’t give a damn about it, in any way, but there is no money to create a NATO foothold in the east, directed against Russia, to cultivate aggression, hatred and Russophobia sorry and sorry.
Today, our soldiers and officers, the Donbass militia are fighting to protect their people. They defend Russia's right to free and secure development as a large multinational country that makes decisions on its own, determines its own future, relies on its history, culture and traditions, and rejects all attempts to impose pseudo-values of dehumanization and moral degradation from outside.
All the tasks of the special military operation will certainly be solved. And the key to this is the courage and heroism of our soldiers, the consolidation of Russian society, whose support gives strength and confidence to the Russian army and navy, a deep understanding of the rightness and historical justice of our cause - the construction and strengthening of a strong sovereign power, Russia.
What do I want to emphasize? Sovereignty in the 21st century cannot be partial or fragmentary. All its elements are equally important, they reinforce and complement each other.
Therefore, it is important for us not only to defend our political sovereignty and national identity, but also to strengthen everything that determines the economic independence of the country, its financial, personnel, technological independence and independence.
The very construction of Western sanctions was built on the false thesis that Russia is not sovereign from the point of view of the economy, it is critically vulnerable. They were so carried away by the spread of myths about the backwardness of Russia, about the weakness of its position in the world economy and trade, that they themselves, apparently, believed it.
When planning their economic blitzkrieg, they did not notice, they simply ignored the real facts, how our country has changed in recent years.
And such changes are the result of our planned work to create a sustainable macroeconomic structure, to ensure food security, to implement import substitution programs, to form our own payment system, and so on.
Of course, the sanctions restrictions have posed many difficult tasks for the country. Some enterprises continue to experience problems with components. A number of technological solutions have become inaccessible to our companies. Logistics broken.
But, on the other hand, all this opens up new opportunities for us - we often talk about it, but it's true. All this is an incentive to build an economy with full, and not partial, technological, industrial, human, scientific potential and sovereignty.
Of course, such a complex problem cannot be solved, as they say, at one moment. We need to continue systematic work designed for the future. This is exactly how Russia is acting, implementing long-term plans for the development of economic sectors and strengthening the social sphere. And the current tests only make adjustments and refinements to these plans, but do not change their strategic focus.
And today I would like to dwell on the key principles on the basis of which our country and our economy will develop.
The first is openness. Truly sovereign states are always committed to equal partnership, to making their contribution to global development. And, on the contrary, those who are weak and dependent, as a rule, are busy looking for enemies, planting xenophobia, or completely losing their originality, independence, blindly following the overlord.
Russia - despite the fact that our Western, so to speak, friends literally dream about it - will never follow the path of self-isolation and autarky. Moreover, we are expanding and will continue to expand interaction with everyone who is interested in this, who wants to work with us. There are many, I won't list them. This is the vast majority of people on earth. Now I will not list all these countries, everyone knows about it.
I won’t say anything new if I remind you that everyone who wants to continue working and working with Russia is subjected to open pressure from the United States and Europe, sometimes even reaching direct threats. However, such blackmail means little when it comes to countries headed by real leaders who clearly understand where others are and where national, their own interests, the interests of their peoples.
Russia will build up economic cooperation with such states and promote joint projects. At the same time, of course, we will cooperate with Western companies that, despite the unprecedented "arm-twisting", continue to successfully operate on the Russian market, there are also such companies.
We see the development of a convenient and independent payment infrastructure in national currencies as a solid, predictable basis for deepening international cooperation. And in order to help companies in our countries establish logistics and cooperation ties, we are shaping the development of transport corridors, increasing the capacity of railways, transshipment capacities of ports in the Arctic, in the eastern, southern and other directions. Including in the Azov-Black Sea and Caspian basins, they will become the most important section of the North-South corridor, which will provide stable communication channels with the Middle East and South Asia. We expect that cargo traffic along this route will begin to grow steadily in the near future.
But international trade is not the only thing that matters. Russia intends to build up scientific, technological, cultural, humanitarian and sports cooperation on the principles of equality and respect for partners. At the same time, our country will strive for responsible leadership in all these areas.
The second principle of our long-term development is the reliance on entrepreneurial freedoms. Each private initiative aimed at the benefit of Russia should receive maximum support and space for implementation.
The pandemic and current events have confirmed the importance of flexibility and freedom in an economy. It is private business that, under harsh conditions, against the backdrop of attempts to restrain our development by any means, has proved that it is able to compete in global markets. Adaptation to rapidly changing external conditions also occurs at the expense of private business. It is necessary to ensure the dynamic development of the economy, of course, relying on private business.
We will continue to reduce the administrative burden. So, from 2016 to 2018, we had a moratorium on scheduled inspections of small businesses. Later it was extended, in total until the end of 2022. In 2020, this moratorium also covered medium-sized companies. In addition, the number of unscheduled inspections has decreased by almost four times.
But we went even further, and in March of this year, we abandoned scheduled inspections of all entrepreneurs, regardless of the size of the business, with one condition: if their activities are not associated with a high risk of harm to citizens and the environment. As a result, now the number of scheduled inspections has decreased by six times compared to last year.
Why am I talking about this in such detail now? The fact is that after the introduction of moratoriums on inspections, the number of violations by entrepreneurs - such a result - did not increase, but decreased, the number of violations decreased. This speaks of the maturity and responsibility of Russian business. He needs to be motivated, and, of course, not forced to comply with norms and requirements.
This means that there is every reason to take another, cardinal step forward: forever, on an ongoing basis, refuse to conduct most inspections of all Russian businesses, whose activities are not associated with high risks of harm. It has long been clear to everyone: there is no need to go and check everyone in a row. A risk-based approach should work. I ask the Government to determine the specific parameters of such a reform in the coming months.
And here is another very sensitive topic for business, and today it is also a matter of our national security and economic sustainability. In order to reduce and minimize all sorts of abuses, loopholes for putting pressure on entrepreneurs, we are consistently removing the vague norms of criminal law in terms of the so-called economic offenses.
In March, a law was signed according to which criminal cases against entrepreneurs on the basis of tax structures can be initiated only on the proposal of the tax service - and nothing else. In the near future, a bill should be adopted to reduce the statute of limitations for tax crimes, as well as to refuse to initiate criminal cases after the full repayment of tax arrears.
In general, it is necessary to carefully, but at the same time thoroughly approach the decriminalization of a number of so-called economic structures. For example, those related to work without a license or accreditation. Now this is a very delicate issue due to the illegitimate behavior of our Western partners, for example, who refuse to provide such licenses.
In such cases, our state bodies should not, as they say, bring Russian business under the article with their own hands, despite the fact that there is no real fault of our entrepreneurs. You understand what it's about. Those who work in small businesses also understand this very well. The license has expired, Western partners do not renew - well, what should they do? Shut down business, right? Whatever it is, the way is working. It is necessary, of course, to keep everything under control of the state, but not to interfere with their work.
You should also think about raising the threshold for liability for non-payment of customs and other obligatory payments. In addition, we have not changed the parameters for determining large and especially large damage for a long time, despite the accumulated inflation. Such a discrepancy between the norm of the law and realities of life, of course, needs to be corrected. From 2016 to today, inflation has accumulated at about 50 percent, and these parameters have not changed - they must be changed, of course.
Finally, it is necessary to reconsider the grounds for the detention of entrepreneurs and for the extension of the preliminary investigation. It is no secret that very often these norms are applied where there is no objective necessity.
As a result, even at the stage of investigation, enterprises are forced to suspend their activities or close down altogether. In this case, in addition to direct losses and the loss of market positions and jobs, the reputation of companies and their leaders is under attack.
I draw the attention of law enforcement structures: it is necessary to put an end to this practice. And I ask the Government, together with the Supreme Court, to prepare appropriate amendments to the law. I ask you to complete this work before October 1 of this year.
In addition, a special instruction has been given through the Security Council to analyze situations where criminal cases are initiated but not brought to trial. The number of such cases has increased significantly in recent years. What is behind this is clear to everyone. Often a case is opened without sufficient grounds or is used to put pressure on companies or specific individuals. In the fall, we will discuss this topic separately and make additional decisions regarding legislation and the organization of the work of law enforcement agencies.
Of course, regional management teams play a big role in creating a modern business environment. On the platform of the St. Petersburg Forum, I traditionally note those subjects of the Federation that have made significant progress in the National Investment Climate Rating, which is maintained by the Agency for Strategic Initiatives.
Here we have changes in the first three. Moscow and Tatarstan, which continue to lead, were joined this year by the Moscow Region. During the year, she rose from eighth place to the leaders, to the top three. The leaders of the rating are also Tula, Nizhny Novgorod, Tyumen, Novgorod, Sakhalin regions, St. Petersburg and Bashkortostan.
Separately, I would like to note the regions with the greatest progress: these are the Kurgan region - an increase of 36 positions, the Perm and Altai Territories - an increase of 26 positions, Ingushetia - by 24 positions, and the Ivanovo region, which rose by 17 positions.
I want to thank and congratulate our colleagues in the regions for this work.
And of course, the focus of the federal government, regional and municipal teams should be on supporting business initiatives of citizens in small towns and individual settlements and remote areas. We also have such examples of success. This includes the creation of popular software, the sale of environmentally friendly products, goods of own production throughout the country through domestic Internet sites.
It is important to create new opportunities here, to introduce modern trade formats, including electronic platforms, as I have already said, to reduce logistics, transport and other costs, including by using modernized branches of the Russian Post.
It is also necessary to help employees of small companies, self-employed citizens, start-up entrepreneurs with obtaining additional skills and competencies. Appropriate measures aimed specifically at small towns, rural areas, remote areas and territories, I ask you to include in a special line in the national project for the development of small and medium-sized businesses.
Today I would like to address our leaders, the owners of large companies - our major entrepreneurs and managers.
Dear colleagues, friends!
Real, lasting success, a sense of dignity and self-respect come only when you link your future, the future of your children with your homeland. Many of us have been in relationship for a long time, and I know the sentiments of many of our company executives and owners. I heard from you many times that business is much more than making a profit, the way it is, and changing the life around, contributing to the development of your hometown, region, country as a whole is an extremely important thing for self-realization, serving people and society is nothing you won't replace. This is the whole meaning of life, the whole meaning of work.
Recent events have only confirmed what I constantly said earlier: houses are safer. Those who did not want to hear this obvious message lost hundreds of millions, if not billions of dollars in the West - this was the supposedly quiet haven for capital.
Once again, I want to say to my colleagues, including those who are in the hall and those who are not here today: please do not step on the old rake. Our country has a gigantic potential, and there are no end to the tasks that require the application of forces. Invest here, invest in the creation of new businesses and jobs, in the development of tourism infrastructure, support schools, universities, health and social services, culture and sports. I know a lot of people do that, I know - I just want to re-emphasize it.
This is how the Bakhrushins and Morozovs, the Shchukins and Ryabushinskys, the Akchurins and Galeevs, the Apanaevs and Matsievs, Mamontovs, Tretyakovs, Arsanovs, Dadashevs, and Gadzhievs understood their mission. Many Russian, Tatar, Buryat, Chechen, Dagestan, Yakut, Ossetian, Jewish, Armenian and other merchant and business families, who did not offend their direct heirs, forever inscribed their name in the history of our country.
By the way, I would like to emphasize something else. For heirs, possible heirs of capital, it is still unknown what is more important: the money, property or good name they inherited and the merits of their ancestors to the country. This is definitely no one will squander it, sorry for the bad manners, no one will drink it.
And what will remain with future generations of heirs - a good name will forever remain with them. And this will definitely go with them through life, from generation to generation, will help them, support them through life, make them stronger than even the money that they can inherit or property.
Dear colleagues!
The third principle of our long-term development is a responsible and balanced macroeconomic policy. In many respects, it was this line that allowed us to withstand the unprecedented sanctions pressure. But I repeat, for us this policy is important not only to respond to current challenges, but also in the long term. We will not repeat the sad experience of our Western colleagues, who unleashed an inflationary spiral and unbalanced their finances.
Our goal is the steady development of the economy for years to come, reducing the inflationary burden on citizens and businesses, and achieving the target inflation rate of four percent in the medium and long term. I almost started with inflation and now I would like to say about it: four percent - we still have such a goal.
I have already instructed the Government to prepare proposals for new budget rules. They should ensure the predictability of the budget policy and create conditions for maximum use of the external economic situation. All this is necessary to strengthen the foundation of economic growth, solve infrastructure and technological problems, which is the basis for improving the well-being of citizens.
Yes, some of the world's reserve currencies are now suicidal, it is obvious, in any case, they have suicidal tendencies. Of course, it is pointless to "sterilize" our money supply with their help today. But the main principle - to spend, based on an understanding of how much you have earned, remains, and no one has canceled it. We understand this.
The fourth principle of our development is social justice. The growth of the economy and business initiative, industrial opportunities and scientific and technological potential of the country must have a powerful social embodiment. Such development should lead to a reduction in inequality, and not to its exacerbation, as is happening in some other countries. And, to be honest, we are not champions in solving these problems either, we still have many questions and problems here.
The reduction of poverty and inequality is the demand for domestic products, and throughout the country, and hence the reduction of the gap in the potential of the regions, the creation of new jobs exactly where they are most needed, in general, a determining condition for further economic development.
Let me emphasize that the positive dynamics of real incomes of citizens, the reduction of poverty is the main indicator of the effectiveness of the work of government bodies and the state as a whole. Moreover, tangible results here, despite all the objective difficulties, must be achieved already this year, and such a task has been set for the Government.
I repeat, we provide targeted support to the most vulnerable groups of citizens: pensioners, families with children, as well as those who are in a difficult life situation.
Pensions increase annually at a rate higher than inflation. This year they were raised twice, including from June 1 by an additional ten percent.
Simultaneously with pensions, the minimum wage has been increased by ten percent, as well as the living wage, which is tied to many other social benefits and payments, they, respectively, should also increase, which directly affects the incomes of about 15 million people.
In recent years, we have built an integrated system of support for needy families with children. Assistance from the state can be received by a woman from the early stages of pregnancy until the child reaches 17 years of age.
The well-being of people, their prosperity is the most important factor in demographic development, and here, taking into account the superimposed negative demographic waves, the situation is extremely difficult. In April, less than 100,000 children were born in Russia, which is almost 13 percent less than in April 2020.
I ask the Government to keep under control the development of additional measures to support families with children. They must be of a cardinal nature, commensurate with the scale of the extraordinary demographic challenge we face.
The future of Russia is a family with two, three and more children. Therefore, we should be talking not only about direct financial support - we need to target, adjust the healthcare system, education, all areas that determine the quality of people's lives, to the needs of families with children.
The national social initiative, which regional teams and ASI are implementing together, is aimed at solving this problem. In the fall, we will evaluate the results of this work and summarize the results of the quality of life rating in the regions in order to use the best experiences and practices as widely as possible throughout the country.
Another, fifth, principle on which Russia builds its economic policy is the priority development of infrastructure.
We have already increased direct budgetary spending on strengthening transport arteries. Next year, a large-scale plan for the construction and repair of the backbone network of federal and regional highways will start. In five years, at least 85 percent of its length must be brought to a standard state.
Such a new tool as infrastructural budget loans is actively used. They are issued for 15 years at a rate of three percent. I have already said that the demand for them turned out to be much higher than we originally planned. The regions have a lot of well-developed, promising projects - we cannot postpone their launch. We are still considering what to do with this measure of support. There was some discussion about this last night. In any case, now I can only state that this tool works reliably.
A separate issue is the modernization of housing and communal services. There are many problems here. The industry is chronically underinvested - by an estimated 4.5 trillion rubles. Over 40 percent of networks are to be replaced. Hence the low efficiency and high losses. At the same time, about three percent of networks deteriorate and become unusable every year, and no more than two percent are replaced by new ones, that is, the problem is getting worse from year to year.
I propose consolidating resources and launching a comprehensive program for the modernization of housing and communal services, synchronizing it with other infrastructure development plans, as well as capital repairs of the housing stock. The task is to radically change the situation, to consistently reduce the share of obsolete networks, just as we are doing by resettling emergency housing and repairing roads. We will discuss in detail the issues of housing and communal services and the development of the construction complex with the governors at a meeting of the Presidium of the State Council next week.
In addition, I separately propose to increase the amount of resources for projects to create a comfortable urban environment in small towns and historical settlements. This program works well for us. I propose to allocate another ten billion rubles annually for these purposes in 2023-2024.
We will allocate additional funds for the renewal of cities in the Far East. I ask the Government to provide special limits for these purposes within the framework of the programs of infrastructure budget loans and the modernization of housing and communal services, as well as other development programs.
An absolute priority for us is the comprehensive arrangement and development of rural areas. People who work in the countryside, feed the country, and, as it is now clear, a significant part of the world, must live in comfortable, decent conditions. In this regard, I ask the Government to allocate additional funds for the profile program. Export duties from the sale of agricultural products can become a financial source here. This is a permanent source. Of course, it can fluctuate, but it will be permanent.
At the same time, I separately propose to expand programs for the reconstruction and modernization of rural houses of culture, as well as regional and municipal theaters and museums, by allocating six billion rubles for these purposes in 2023 and 2024.
An exceptionally demanded and important task for people is what I just said in the field of culture. Let me give you a very recent example: during the awarding of Hero of Labor medals, one of the recipients from Yakutia, Vladimir Afrikanovich Mikhailov, in a closed part, directly asked for help with the construction of a cultural center in his native village. Of course, we will definitely do it. But the fact that people are talking about it at all levels shows that it is in high demand.
I will also make a small digression, which is appropriate now, with the beginning of summer - the traditional time for holidays here in Russia.
Every year more and more tourists seek to visit the most beautiful natural places of our country: national parks, wildlife sanctuaries, nature reserves. According to estimates, this year the tourist flow will exceed 12 million people. It is important that government agencies, business, and tourists know what is permissible and what cannot be done in these territories, where it is possible to build tourist facilities, and where it is strictly prohibited, where it creates risks for unique and vulnerable ecosystems.
The State Duma is already considering a bill that is designed to regulate the organization of tourism in specially protected areas, to create a civilized basis for such activities.
In this regard, I would like to draw attention to the following: all decisions made here must be calculated and balanced, and we must take this seriously.
I will especially note the task of saving and preserving Baikal. In particular, this is the aim of a unique project for the integrated development of the city of Baikalsk, which should become the standard of prudent, environmentally-oriented management.
The task is not only to eliminate the accumulated harm to nature from the activities of the Baikal Pulp and Paper Mill, but also to bring the city to a fundamentally different level of life, to make it the hallmark of Russian eco-tourism. The project should be implemented using the most advanced technologies, environmentally friendly energy sources.
In general, we will develop clean technologies in order to achieve the goals set for the environmental modernization of enterprises, to reduce harmful emissions into the atmosphere, especially in large industrial centers. We will also continue to work within the framework of circular economy projects, green projects and climate protection, which we discussed in detail here at the forum last year.
In this regard, the sixth, in my opinion, cross-cutting principle of development that unites our work is the achievement of true technological sovereignty, the creation of an integral system of economic development, which, in terms of critically important components, does not depend on foreign institutions. We need to build all spheres of life at a qualitatively new technological level and, at the same time, be not just users of other people's solutions, but have the technological keys to creating goods and services for the next generations.
In recent years, we have paid much attention to import substitution, and have achieved success in a number of areas: in the agro-industrial complex, in the production of medicines, medical equipment, in the military-industrial complex, and in a number of other areas.
But, and I would like to emphasize this, we have a lot of discussions in society on this matter, import substitution is not a panacea, not a cardinal solution. If we only repeat others, try to replace, even with the highest quality copies, other people's goods, then we run the risk of being in the position of constantly catching up, but we need to be one step ahead, create our own competitive technologies, products and services that can become new world standards.
Let me remind you in this regard that Sergei Pavlovich Korolev did not follow the path of copying and partially improving captured rocket technology, but looked to the future and proposed a unique batch scheme for creating the R-7 rocket, opened the way for humanity into space, and in fact set the standard for the whole world and for decades to come.
This is exactly how the founders of many Soviet scientific programs worked ahead of the curve, and now, relying on such groundwork, our designers are moving forward with dignity. Thanks to them, Russia has hypersonic weapons, which are still unparalleled in any country in the world. Rosatom holds a leading position in nuclear technology and develops a nuclear icebreaker fleet. Many Russian solutions for artificial intelligence and big data processing are the best in the world.
I repeat, technological development is a cross-cutting direction that will determine not only the current decade, but the entire 21st century. We will discuss in detail the topic of building a new technological economy - technoeconomics - at the next Strategic Development Council. There are many topics for discussion, and most importantly - for making managerial decisions. I mean the development of engineering education and the transfer of scientific developments to the real economy, the provision of financial resources for fast-growing, high-tech companies. We will also discuss the development of end-to-end technologies and the progress of digital transformation projects in individual industries.
I emphasize that it is, of course, impossible to produce everything and everything, and it is not necessary. However, we need to have all the critical technologies in order to, if necessary, quickly establish our own production of any product. This is exactly what we did when we quickly provided the production of vaccines against coronavirus, and now launched the production of many other types of products and services.
For example, after KamAZ's unscrupulous partners left the Russian market, their niche is now occupied by domestic companies. Moreover, we are talking about the supply of components not only for traditional models of the plant, but also for promising series - mainline, transport and heavy vehicles.
I would also like to mention the Mir card payment system, which has successfully replaced Visa and MasterCard in the domestic market, and is now expanding its geography, step by step gaining international recognition.
Another example is the Petersburg Tractor Plant. His former foreign partner refused to sell engines and carry out their warranty service. Who rescued? Engine builders of Yaroslavl and Tutaev: arranged the supply of their engines. As a result, the production of agricultural machinery at the St. Petersburg Tractor Plant in March-April of this year was a record for the enterprise - it did not decrease, but became a record, increased.
I am sure that there will be more and more such positive practices and success stories.
I repeat, Russia has the personnel, scientific and technological reserves to develop products that are now in high demand, including household and construction equipment, industrial and service equipment.
Today's task is to build up capacities and set up the necessary lines in a short time. And one of the key issues is comfortable conditions for the work of enterprises, as well as the availability of prepared production sites.
I ask the Government to present the key parameters of the new mode of operation of industrial clusters by autumn. What is important here?
The first is funding. Projects launched in such clusters must receive a long-term affordable loan resource for up to ten years and at a rate of no more than seven percent per annum in rubles. We discussed all these issues, including with our economic bloc. Everyone agrees, let's do it.
The second is taxation. In clusters, it is necessary to ensure a low level of conditionally constant taxes, including insurance premiums.
The third is support for production at the starting, early stage, the formation of a package of orders, including the provision of subsidies for the purchase of finished products of such enterprises. The question is not easy, but I think that subsidies will be required. They are needed in order to provide the market. You just need to work it out calmly.
Fourth - simplified administration, including a minimum or complete absence of inspections, as well as the operation of enterprises in a comfortable and easy tax and customs monitoring mode.
Fifth, and perhaps most important, it is necessary to create mechanisms for guaranteed long-term demand for new innovative products that are just entering the market. I would like to draw the attention of the Government: such preferential treatment and the corresponding industrial clusters should start working from January 1, 2023.
What I want to say in this regard. Both new and already operating points of industrial growth should attract small businesses, involve them in their orbit. At the same time, for an entrepreneur, for small organizations, it is important to see the horizon, to understand the prospects.
In this regard, of course, I ask the Government, together with the SME Corporation [Federal Corporation for the Development of Small and Medium Enterprises] and our largest companies, to launch an instrument of long-term agreements between companies with state participation and small and medium-sized businesses. Thus, demand for the products of such enterprises will be guaranteed for years to come, while suppliers will be able to confidently undertake the obligation to create a new or expand existing production for this order.
Let me add that we have already significantly reduced the construction time for industrial facilities and eliminated unnecessary cumbersome procedures, but there are still large reserves here, there is work to be done, there is room to move. Thus, the creation of production buildings from scratch still requires from one and a half to three years, while the acquisition of ready-made premises is constrained by the still high interest rates on loans.
In this regard, so that domestic business can quickly expand the production of the necessary products, I propose to launch a fundamentally new tool: industrial mortgage. We are talking about preferential long-term loans at a rate of five percent per annum. Enterprises that plan to buy ready-made areas for production will be eligible for such loans. I ask the Government to work out all the details with the Russian banking sector without delay, so that industrial mortgages will start working in full in the near future.
Dear friends!
The speed and scale of changes in the global economy, finance, and international relations is increasing. The shift from globalization to a multipolar growth model is becoming increasingly clear. Undoubtedly, the formation and birth of a new world order is a difficult process. We will still face many challenges, and risks, and factors that are even difficult to predict and predict today.
But it is obvious that it is the strong, sovereign states that will set the rules for the maintenance of the new world order - those who do not move along the trajectory already outlined by someone. Only strong states and sovereigns can have their say in this world order that is being born again, or are doomed to become or remain a disenfranchised colony.
It is necessary to strive to move forward, change, feel the breath of the times and show national will and determination for this. Russia is entering the coming era as a powerful sovereign country. We will definitely use the new colossal opportunities that time opens up for us, and we will become even stronger.
Thank you for your attention.
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