Vladimir Putin held a meeting, via videoconference, with Government members.
March 23, 2022
16:55
Novo-Ogaryovo, Moscow Region
Taking part in the meeting were Prime Minister
Mikhail Mishustin, First Deputy Prime Minister
Andrei Belousov, First Deputy Chief of Staff of the Presidential Executive Office
Sergei Kiriyenko, deputy prime ministers
Viktoria Abramchenko,
Yury Borisov,
Tatyana Golikova,
Alexei Overchuk,
Marat Khusnullin and
Dmitry Chernyshenko, Deputy Prime Minister – Chief of the Government Staff
Dmitry Grigorenko, Deputy Prime Minister – Presidential Plenipotentiary Envoy to the Far Eastern Federal District
Yury Trutnev, Presidential Aide
Maxim Oreshkin, Minister of Economic Development
Maxim Reshetnikov and Minister of Finance
Anton Siluanov. Minister of Trade and Industry
Denis Manturov, Minister of Healthcare
Mikhail Murashko, Minister of Agriculture
Dmitry Patrushev, Minister of Transport
Vitaly Savelyev, Minister of Construction, Housing and Utilities
Irek Fayzullin, Chairman of the Accounts Chamber
Alexei Kudrin and Head of the Executive Committee of the Russian Popular Front Mikhail Kuznetsov were also invited to attend the meeting.
* * *
President of Russia Vladimir Putin: Good afternoon, colleagues,
Today, we will discuss a number of urgent issues in great detail, and we will focus on the situation in the construction sector, considering its fundamental role in the economy and its significant social dimension.
Before we do this, I would like to speak about a subject that I consider important. We have discussed this matter with our colleagues in previous days.
As you know, a number of Western countries have made illegitimate decisions to freeze Russian assets in the past few weeks. And the “collective West” has virtually drawn a line under the reliability of its currencies. We have also discussed this aspect; and the West has compromised trust in these currencies. The United States of America and the EU have announced that they are, in principle, defaulting on their obligations with regard to Russia. Today, everyone in the world knows – they suspected it before, but now they know – that dollar and euro obligations may not be fulfilled.
I have already provided a definition for such actions, and I am not going to go into detail. It is absolutely clear, though, that given the circumstances, it makes no sense for us to supply our goods to the European Union or the United States and be paid in dollars, euros or certain other currencies.
So, I have decided to implement, in the shortest possible time, a package of measures to transfer payments, to begin with, for natural gas supplied to “unfriendly countries” to Russian rubles; that is, we will not accept any compromised currency to be used in these transactions.
At the same time, on a separate note, I would like to note that Russia will continue to supply natural gas in the agreed to volumes and for the agreed-on prices as indicated in the existing contracts. Unlike some of our colleagues, we value our business reputation as a reliable partner and supplier.
These changes will affect only the transaction currency, which will now be Russian rubles. I want the Government to direct Gazprom accordingly and to amend the existing contracts.
At the same time, all our foreign consumers should be given an opportunity to make the necessary transactions, and a clear and transparent procedure for making payments should be created for them, including the purchase of Russian rubles on our domestic foreign exchange market. I want the Bank of Russia, in conjunction with the Government, to determine the procedure for such transactions within one week.
I propose moving on to the agenda, and I turn it over to Mr Mishustin.
Mr Mishustin, please go ahead.
Prime Minister Mikhail Mishustin: Mr President, colleagues,
During the previous Government meeting, which you held, I reported in detail on the measures that have already been taken as well as our plans. These proposals are being worked out in full contact with you, Mr President, on a daily basis.
Now, I want to elaborate in more detail on the existing set of solutions to improve the sustainability of the economy.
The operational headquarters is working almost around the clock and remains constantly in touch with the regions, as new measures are being discussed. In addition to the 20 already adopted federal laws, six more laws will be submitted to the State Duma soon. About 30 draft laws and additional proposals are in the works.
To date, along with the measures already approved, about 200 initiatives have been selected, which are included in the priority action plan, and we expect that most of them will become operational by late March.
One of our key tasks is to help those who now have to pay more in interest on previously issued loans or who took out loans with floating rates. The volume of this loan portfolio is estimated at about 11 trillion rubles.
In an effort to support these companies, a special restructuring procedure has been proposed. Mr President, you and I discussed this in detail. In the months ahead, borrowers will not be required to pay the full amount of interest but can capitalise it instead and put it off towards the end of the year.
At the same time, we will analyse the financial circumstances of these businesses and adopt additional decisions to support them. To do this, the Government will draw up a list of criteria for the borrowing companies that are eligible to have these interest payments written off in full.
On a separate note, payments by individuals under mortgage loans issued before the key rate changes will remain as they were as of the end of February.
The most important thing now is to support people. A resolution was signed on the maximum amount of a loan that will allow citizens to apply to banks for a grace period. They will be able to do this through late September, provided that their income is down 30 percent from the previous year's average.
We paid special attention to the labour market. We will help those who want to find employment. Not only the unemployed, but also those who are at risk of being laid off can now use the employment centres’ services.
Many initiatives are designed to supply the domestic market with common goods. We have consulted with our colleagues in the Eurasian Economic Union (EAEU) and decided to increase the limit on duty-free e-commerce to 1,000 euros throughout the entire territory. Consumer goods, primarily food and medications will have priority during customs procedures at checkpoints.
One important area concerns the health of our people. Yesterday, we approved a proposal to support the sale of pharmaceuticals and medical goods by simplifying registration and purchase procedures, subsidising loan interest rates and further implementing the import substitution programme on critical medications and medical equipment.
Earlier, we simplified procedures for the purchase of medical equipment, introduced a temporary ban on the export of foreign medical goods, and created more opportunities for medical organisations to buy equipment at the expense of the Federal Compulsory Medical Insurance Fund. This will allow hospitals and outpatient clinics to buy medical equipment for surgeries and laboratory research in any situation, while people will be able to buy the medications they need.
Our airlines have faced major difficulties under the circumstances. Many airplanes with “foreign registration” instantly lost their airworthiness certificates without which they cannot be used. Parts supplies were discontinued and bans on insurance services were introduced. Foreign leasing companies are demanding that these aircraft be returned.
Based on the law on registering the rights to foreign aircraft you signed, we received an opportunity to use them inside the country.
The Government has helped carriers keep their fleets of foreign aircraft since the very first days. We are working to resume flights with these planes as soon as possible. Importantly, in taking these steps, we are strictly following the standards of aviation law, including the international regulations.
Obviously, our main goal is to ensure flight safety. This is above everything else.
We have transferred hundreds of aircraft – more than half the entire fleet – to the Russian Registry. To normalise the situation in this area, the Government took two resolutions. First, we made the registration procedure for listing Russian aircraft in the Russian State Registry as simple as possible and reduced the duration from 40 to five working days. Second, we adopted a document establishing a special mode for implementing aircraft leasing contracts with foreign companies. We have limited the return of these aircraft and aircraft engines to the owners. Russian carriers will be responsible for the technical maintenance and repairs in accordance with international standards.
The restrictions have also affected sea vessels flying the Russian flag – they are prohibited from entering foreign ports. We will definitely not leave such unfriendly steps towards our country unanswered. The Government will introduce proportionate counter restrictions. The respective resolution has been signed.
This is far from the whole list of measures that are currently being worked out.
A large package of measures has been proposed for the construction industry. Last year, construction in Russia showed record results, and we are preparing new support options. They will help Russian builders keep the rollout of civil and industrial premises at the same high level.
A third package of measures was considered yesterday. It includes shortening the investment and construction cycle and creating related infrastructure, as well as maintaining the procedure for changing the price of a state contract as the cost of resources increases.
A number of steps have been taken to support import substitution. Yesterday, the meeting of the operational headquarters board considered the possibility of adjusting the special programme to stimulate the development of design specifications by Russian enterprises. A draft of the relevant resolution has already been submitted to the Government.
A new online service, Import Substitution Exchange, has been launched. The platform should put together a broad supplier base and ensure the replacement of certain imported components with Russian ones, thereby creating demand for domestic products and speeding up the search for potential partners. This service will help develop supply chains and replace missing imported components.
A draft Government decision has also been prepared to facilitate the provision of state support for research projects to create priority industrial products.
The Special Investment Contract 1.0 format, revived in mid-March, has been adjusted, and a corresponding resolution has been signed. Such contracts can now be extended from 10 to 12 years, if restrictive measures by their foreign partners have affected the project’s implementation. Also, the mandatory requirements for the export of industrial products and the diversification of supplies will be removed.
Furthermore, we have supported contractors in public procurement – we have allowed them to write off their fines and penalties indefinitely if they violated their obligations under Government contracts due to the external sanctions.
This week, a resolution was signed to expedite payments for products or services delivered under state corporation contracts with small and medium-sized businesses, reducing the time to seven business days, so businesses can receive payments as soon as possible.
For smaller businesses, four programmes are now available to increase the availability of low-cost loans which include new investment loans for up to three years, an easy-term lending programme implemented as part of a targeted national project, and an increase in the maximum level of risk that the SME Corporation can assume for entrepreneurs under the so-called umbrella guarantee mechanism from the current 4.5 percent to 10 percent.
Another solution is now available for small businesses in a number of industries which will apply to manufacturing enterprises, as well as institutions of culture, sport and public health, as well as the beauty industry and travel agencies. It is proposed that we extend their deadline by six months for paying taxes under the simplified system for the last year and the first quarter of 2022 followed by instalment payments during six months. This will allow businesses to postpone these payments until autumn and free up about 37 billion rubles.
Mr President, under your instructions, ways to improve support for the regions was worked through in detail. To reduce the debt burden, a fundamental decision was made to delay the repayment of debt under budget loans to a later date; and, in order to create additional resources, to expand access to treasury loans to a total of 10 percent of their yield to generate additional resources (we discussed this during a meeting with the regions) for the implementation of ongoing projects.
I would like to note separately that many of the activities under the plan were prepared jointly with the constituent entities of the Russian Federation, with whom we maintain communication at all times, day and night. The heads of the regions approached this work responsibly, and I want to thank them as well. Everyone is constantly in touch.
Along with neutralizing the consequences of sanctions, the Government will continue to address the strategic issues that you, Mr President, have identified as part of the national development goals.
The bulk of the anti-sanctions measures focus on reducing administrative burden, namely, inspections, which should have a positive effect on the operation conditions for entrepreneurs and improve the business environment in the regions.
Our priority is to maximise the flexibility of the economy, to ensure uninterrupted operation of enterprises, and to keep employment intact.
My colleagues will get into more details about other measures.
Thank you.
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