The EaSaLive

4/22/2011 The EaSaLive
Welcome back, admin.
News
Aviation Community : Europe

admin
Poste d 10:26 AM
The United Aviation. European Aviators Blog, Disscussion Board, Technical Documents, Aviation Society, Pilots,
Engineers, Cabin Attendants & Safety Regulators.
Read more
[ Vie w all ]
Newest 10 Downloads
» There are no files for download yet
[ Add a ne w downloa d ]
There are no entries at this time
News
Aviation & Technology

admin
Poste d 10:14 AM
Vladimir Putin’s report:
Ladies and gentlemen, Mr Speaker,
This report on the government’s performance in 2010 is to be delivered in accordance with the Constitution of the Russian
Federation.
I think it is our common achievement that during the complicated period of the global economic crisis Russia successfully avoided serious shocks
and risks that could weaken the country, undermine its economic and human potential, and lead to a critical decline of social standards.
As you remember, the financial crisis began in 2008 and soon after that problems on the stock market and in the banking sector provoked a
structural setback in the global economy. This unbalanced public finances in several countries.
You have probably heard that two weeks ago Portugal asked the EU for emergency financial assistance. Such assistance was earlier requested
by other countries, for example Greece. Iceland is still trying to deal with its difficulties.
Some of our European neighbours had to raise the pension age or freeze social benefits and pensions. In France, the government adopted a law
on gradually raising the pension age from 60 to 62 years, for men and women alike. The Estonian government adopted a law on the gradual
increase of the pension age to 65. The law will become fully effective in several years, but the decision of principle has been taken. During the
acute stage of the crisis, some countries, in particular Greece, Poland and Latvia, were forced to freeze pensions.
The global economy is now gradually recovering; that is a fact. But the consequences of the crisis turned out to be so serious that they have
provoked social tensions in many countries and whole regions of the world. Furthermore, the situation is becoming unstable in entire regions,
which can lead to unpredictable consequences. You have probably heard that the outlook on the US government debt has been downgraded.
Professionals say this is most likely an election move, in this case, by Republicans. One way or another, it will have a negative effect on the
global economy.
The lesson all of us should learn is that economic and government weakness and susceptibility to external shocks inevitably threaten
sovereignty. We all know very well that – let’s admit it openly – if you are weak, there will always be someone who will be eager to advise you
on where to move, which policy to pursue and which development path to choose. These seemingly friendly and unobtrusive recommendations
may look good, but in point of fact they camouflage diktat and gross interference in the affairs of sovereign states. We are perfectly aware of
this.
I know that all our parliamentary parties have taken a consolidated stand on this issue. I truly appreciate this. (Applause)
I would like to reiterate that we must remain independent and strong. Most importantly, we must also pursue a policy in the interests of our
people, who will in this case support all our initiatives.
In the past few years I have toured nearly all Russian regions, visiting enterprises, schools, universities and hospitals and talking to workers,
servicemen, doctors, teachers, and residents of rural areas and single industry towns.
Naturally, the situation differs from region to region. People sometimes encountered serious problems, especially in 2009, and not everything was
put right in 2010. Incomes cannot be described as high. The numerous difficulties many people encountered during the crisis included layoffs and
problems with keeping one’s business afloat.
easalive.com/students/pg/…/index.php… 1/18
4/22/2011
problems with keeping one’s business afloat.
The EaSaLive
Everyone knows that the crisis came from abroad. While fighting it, we did not try to blame it on insurmountable objective circumstances,
although there were enough risks and uncertainty factors, including some we could not influence. We mentioned them, but did not shirk
responsibility for the situation in the country; in fact, we assumed responsibility for everything.
Russia is a social state by constitution, and we shall never ever go back on our social commitments, whatever happens, whatever the
circumstances; the government can guarantee that.
Now let us look at what we have actually accomplished over this very difficult period. Having come through severe economic shocks with a
budget deficit, over the past two years the country has nevertheless provided 250,000 apartments to military servicemen and WWII veterans
free of charge. It has met its targets in repairing dilapidated and hazardous housing and re-housing residents in better accommodation. You
know that we set these targets before the crisis hit, when the economy was experiencing peak growth. We did not abandon these plans, we
fulfilled them, despite it all: touching, in one way or another, the lives of as many as 10 million Russians.
As you know, work pensions were increased by 45% in 2010. We organised the construction of 38 perinatal centres and other high-tech medical
centres across Russia, and continued to pursue far-reaching demographic programmes. We have indexed all the benefits people received under
these programmes, including maternity capital – as we promised we would when we formulated this programme.
Government spending on education increased 50% compared with pre-crisis 2007, and federal allocations for civilian science and research more
than doubled. Economic growth resumed in July 2009; in 2010, the country's GDP grew 4%, showing the highest growth rate of any G8 country.
This year, we expect 4.2% growth. By way of background, I can say that we have already seen 4.4% growth in the first quarter. This means
that, by the start of 2012, the Russian economy should have compensated in full for the losses it suffered during the recession.
Earlier forecasts slated economic revival for 2013-2014. But we know we can do it sooner – this is not wishful thinking, but a well-founded
assessment of the situation. Now we need to look ahead, concentrate all our resources on economic and infrastructure modernisation, build on
each region's strengths and help each of them develop their assets.
The government will approve, before the end of this year, long-term strategies for each of the country's federal districts. These strategies
should lend a forward momentum to regional development.
We have established, jointly with Vnesheconombank, special development institutions for specific regions, for the North Caucasus for example.
Also, a direct investment fund to support socio-economic projects in Russia's Far East and the Baikal Territory will start operating this year.
We need to improve the quality of the economy and investment, reduce our dependence on commodities exports, and develop the banking
sector.
We must be effective in our support for businesses as we rein in corruption, which slows us down and erodes the moral fabric of society.
Russia needs to become a genuinely competitive country. This is a basic requirement for its government, businesses, and social institutions. If
we look at labour productivity, in Russia it is much lower than in leading economies. At the very least, we have to double it over the next
decade, perhaps even raising it threefold or fourfold in key industries. To increase the share of innovative production in total production from
today’s 12% to 25% or 35%. Incidentally, labor productivity in the previous year, after all this is a 2010 report, rose by 210%. That is a fairly
good showing.
Russia must become one of the world’s five leading economies in terms of GDP. And reach over USD 35,000 per person in per capita GDP. This is
higher than the indices for countries like France or Italy. To be clear: this concerns today’s indices, because they do not stand still.
We should strengthen the trend towards stabilising the population numbers in the country, ensure that all people have access to high quality
healthcare and education, guarantee a realistic pension, and form a massive middle class.
Now a large group of experts are putting the final touches on a strategy till 2020. It deals above all with the search for new growth reserves
and the appropriate priorities. Modernisation, or in other words progressive and qualitative development, is, in our view, an investment in human
resources, in their abilities and talents, in creating the conditions for self-fulfilment and initiative. It is investment in a quality of life for our
people. I am absolutely convinced that this will ensure both high growth rates and real technological breakthroughs.
This country requires decades of steady, uninterrupted development. Without sudden radical changes in course or ill thought through
experiments based so often in either unjustified economic liberalism, or, on the other hand, social demagogy. We need neither. Both will distract
us from the general path of developing the country.
And, of course, we should maintain civic and inter-ethnic peace, and put a stop to any attempt to cause our society to split and quarrel among
itself.
We are to find the kind of solutions that will give Russia the opportunity to go forward confidently and build a strong, innovative economy, and
each year of this development must bring real and palpable improvement in the life of people, for the absolute majority of Russian families. This is
the thrust of our policy.
Colleagues, when the year 2010 was just beginning, some predicted a heavy stagnation and even a second wave of crisis for us, and now there
is still much talk concerning this subject. These gloomy forecasts have not come about so far, thank God, nothing of the sort has happened.
And not because fate or business conditions were exceptionally favourable for us, although a nearly 30% growth in the prices for our basic
exports: oil, gas, metals, chemicals, power generating equipment and some other commodities helped us a good deal. It was above all because
the economy itself proved that it could develop under very rigid and sometimes extreme conditions.
Today I mentioned the annual GDP growth figures – 4%. Each percentage point of this growth was won by hard work and did not come for free.
I want to emphasise this. It was all the result of our combined and timely efforts in the economy and in the social sphere.
Please note that all enterprises will get government support – whether they are large complexes, farmers, small or medium-sized businesses in
rural areas.
On top of that, we have drafted a number of additional measures, and will ask deputies to support changes to this year’s federal budget in order
to plough another 13 billion roubles or so into developing and supporting rural communities. Since we plan to present you with our proposals
to plough another 13 billion roubles or so into developing and supporting rural communities. Since we plan to present you with our proposals
before long, I shall avail myself of this opportunity to explain, briefly, what is at issue.
First, in April Rosagroleasing (the State Agro-Industrial Leasing Company) began selling agricultural equipment and farming vehicles at a 50%
discount, thereby allowing farmers to acquire about 6,000 pieces of equipment. Yesterday I met with the head of Rosagroleasing. He said that
they had 6,150 items of equipment on their books, and although some items are indeed currently unaccounted for, we will locate them. Or we
will locate the funds, or find those who are responsible for mis-recording these missing items. In any case, we will ensure that agricultural
producers receive their allotted equipment.
If need be, we would ask you to support earmarking additional funds so that we can deliver on our promise to these agricultural producers.
Judging by the available figures, Rosagroleasing and other the agencies currently have a total outlay of 3.7 billion roubles.
Second, we shall use federal and regional budget resources to help farmers formalise land ownership. We are not talking big money here, but it is
a significant issue that means a lot to farmers. It will require about 120 million roubles. We have ring-fenced these funds.
Third, a decision has been taken to inject up to 9 billion roubles of extra funds into the development of pig and poultry farms in 2011.
I would ask State Duma deputies to approve all the above amendments.
Today, our food producers supply three-quarters of meat products on the domestic market. Poultry farming, as you know, has shown the most
dynamic growth. This phenomenon is without parallel anywhere in the global economy – production increased several times over. Five years ago
we imported 1.3 million tonnes of poultry meat. Last year we said we would import 600 tonnes, however, the actual figure was just 300. We will
scale it down further, as our domestic production is on the rise.
We are building effective modern complexes and implementing family farm programmes. Our task is to ensure that Russian farmers become the
masters of their own food market. Unfortunately, food products currently account for a very large proportion of our price index: about 38%.
Crop failure and rising global food prices have spurred inflation and people immediately felt this spike in prices. Incidentally, as for our neighbours,
food products account for approximately 20% of their price pattern.
As you know, in order to provide the country with bread and also check prices, we have imposed a temporary ban on grain exports. At the same
time, we have also cut or altogether scrapped import duties on some popular food products. We have used the Intervention Fund’s stocks and
subsidised the rail transportation of grain from areas that had good harvests to those which were hit by drought.
In March and April this year inflation began to slow down and we expect that in 2011 the inflation rate will not exceed 6.5 to 7.5%. Much here
will depend on the effectiveness of our measures to support the domestic agribusiness sector.
Incidentally, talking of inflation, which always bodes ill, just by way of background: in 2009 and 2010 inflation was running at 8.8%, which is
Russia’s historical low.
Apart from the set of instruments to support agribusiness available today: loan rate subsidies, leasing, tax benefits, fuel and lubricant discounts,
subsidies for fertilisers and so on, and I would like to remind you that in 2010 and 2011, as I have already said, a total of 320 billion roubles was
allocated to these ends, we deem it feasible to detail one more measure – the scrappage of agricultural machinery. We are currently
investigating this possibility and waiting for the Agricultural Ministry to supply us with appropriate instruments to translate this measure into
practice, starting in 2012. We will continue with this work, we are determined to see this through and are ready to allocate funds. We have the
necessary funds, we only lack mechanisms: competent and practicable proposals. Regretfully, we do not have such mechanisms as yet.
Specialists are expected to put their proposals to us. We also plan to launch a project to support young farmers next year. We will be providing
special grants for setting up farms using loan and leasing mechanisms, and will be helping farmers build durable and comfortable homes.
Moreover, we will lift the ban on building housing on agricultural lands for farmers so that people can build themselves homes where they live and
work.
I would like to outline our concerns for you. We must make sure that we do not allow just anyone to build what they want on agricultural lands.
I was only referring to farmers and this needs to be clearly spelled out to so that ineligible persons do not get this right and no unlawful
residential developments are built on farmland.
That is why we will need to carefully consider this mechanism together. For example, if we give farmers the right to build homes on agricultural
land, perhaps this should only apply to the farmers who are listed in corresponding registers. There may be some other protection mechanisms,
so let’s think about it.
Russia currently has more than 200,000 farm holdings and small agricultural businesses, and individual farmers account for up to 50% of Russia’s
agricultural production. And we will continue supporting them and working to improve living standards in rural areas, to provide central gas
supply, build homes, roads and infrastructure, and create conditions to attract young people.
Over the past five years more than 67,000 young professionals and families in rural areas received housing. We intend to provide new housing
for further 23,000 families in the period from 2011 until 2013 so that they can work, live, have children and forge a successful future for Russia’s
rural communities.
Ladies and gentlemen, looking at key performance indicators for 2010 one can see that the crisis retreated almost in all sectors, including
industry, banking, real estate and the labour market. Profits of Russian companies surged by more than 40% in 2010 and investment in fixed
capital rose 6%. Russian stock markets have become world growth leaders and their capitalisation reached USD 1 trillion by the beginning of
2011 and increased by an additional USD 100 billion by April 1, 2011. Our stock markets showed the best yearly performance among all BRICS
countries. The best yearly performance.
Banks are again stepping up loans for the real sector. Russia’s loan portfolio grew by 13% in 2010, which is a better performance than in most
G20 states. Certainly, the growth in 2006 and 2007 was significantly higher. At the same time, the threats were also more serious, including the
so-called bubbles. So, 13% is a fairly good performance, particularly in current conditions. In February 2010, the average interest rate for a
commercial borrower with a good credit rating stood at 12.7% and fell to 8.7% by February 2011. There are different interest rates for different
purposes, for different borrowers but I’m referring to the average rate.
This all is the best evidence that we were absolutely right to provide massive support for banks during the crisis.
I would like to emphasise once again that back then the government was protecting Russia’s fiscal and financial system rather than certain
bankers or individuals so that the 1998 situation did not happen again. Back in 1998 the system collapsed and regular people, the bank account
bankers or individuals so that the 1998 situation did not happen again. Back in 1998 the system collapsed and regular people, the bank account
holders, had to pay for the government’s failed financial policy.
We believe that our decisions to support Russia’s fiscal and financial system were effective and timely. As a result, the government not only
earned 200 billion roubles from this – I would like to emphasise that it earned the money – but also managed to carry out its anti-crisis
measures, and with a profit of 200 billion roubles. Most of the funds provided have been paid back except for those that were issued as loans.
This is supported by documents and these funds are now working in our economy. A major part of the funds received, 50 billion roubles, was
spent on the support for mortgages. Thus, these funds enabled Vnesheconombank to set aside 50 billion roubles for mortgages, as I just said.
Russia’s industrial production grew by 8.2% in 2010 and processing industries experienced an even higher growth of almost 12%. Machine
engineering sector took the lead with a 25% increase. Nearly half of the GDP growth in 2010 was due to the good performance of
manufacturing, which is a high value-added industry. Labour productivity went up 3.1% last year, as I said citing available data, but the
adjusted figure I received this morning is 3.4%. This means the structure of the economy is gradually changing, becoming more effective, and
this process should be strengthened, of course.
It should be said that the current favourable situation in the commodities market, meaning hydrocarbons, does not mean we can relax. The oil
boom we are now witnessing has only highlighted the need for accelerating the transition to a new model of economic development.
I’d like to remind you that before the crisis we could increase the export of commodities and attract affordable loans abroad. These sources
once played a considerable role in our economic growth, but they have become considerably constrained now. Not that they have disappeared,
although some say they have. No, they have not disappeared, but they have decreased; that is a fact. Therefore, we should now rely on the
domestic market, the dynamic development of the non-commodity sectors, quality investment and high business activity. We should employ the
momentum of recovery growth to ensure an innovative direction and to boost structural changes in the real economy and in the employment
market.
At the height of the crisis we launched large-scale employment programmes, which included a total of 4 million people, no, even more than that,
4.8 million. Most of them retained their jobs or found new employment, and many upgraded their skills or opened their own small businesses.
As many as 326,000 people have started their own businesses in the past two years thanks to employment programmes and government
assistance. When we created these programmes, they did not immediately look attractive, as you know because you visit regions. They included
social work jobs, which are not highly paid, and skilled workers were not eager to take them. But at least we offered them subsistence.
Furthermore, we offered advanced training and other courses. As for helping those who lost their jobs start their own businesses, I did not think
the idea would succeed. But 326,000 people have started their own businesses, which is a good indicator.
At the peak of the crisis, in February 2009, the number of unemployed reached 7.1 million people. In March 2011, the figure was 5.3 million. This
is still too many of course, but the change points to positive momentum.
In 2011 we will allocate another 105 billion roubles in social support for the jobless and for employment programmes, which will not focus on
providing jobs but on upgrading worker skills and creating conditions in which people will be able to receive new, higher paid jobs that are in
demand.
The priority right to participation in these programmes is given to the people who objectively have problems with finding jobs, especially disabled
people and the parents of children with disabilities. Young mothers who are on child-care leave until their kids turn three and women employed
at hazardous enterprises will be able to train for a new profession under these programmes.
I’d like to say that this is the first time we are doing this. In point of fact, these are not anti-recession measures, but I think they are crucial for
protecting women’s health and for encouraging them to resume work after giving birth. This measure can be seen as part of our demographic
programme.
We are drafting comprehensive investment programmes for single industry towns. Overall, we plan to create at least 200,000 jobs in these
towns and villages by 2015, to seriously improve their infrastructure and to launch general redevelopment.
Our employment policy is focused on creating modern, efficient and highly paid jobs, on stimulating new technology and through this reducing
the percent of hazardous and dangerous jobs. We have reached serious conclusions after the tragic events at the Raspadskaya mine in
Kuzbass. We have adopted a law on insuring dangerous facilities – thank you for working so rapidly on it – and also a law for the coal industry
that introduces clear safety standards for mines. These standards will be approved by the government.
We will have at our disposal a set of administrative and economic tools for obliging employers to strictly comply with labour safety standards and
to invest in the safety of their workers. We must raise the competitiveness and professional status of our workers and the prestige of the
vocational trades.
We often criticise our media. I am not going to do so now, but still, I’d like to say it is not often that our national channels show honest,
efficient, or even heroic workers, who bear the brunt of society.
And, of course, the economy should encourage demand for skilled workers and engineers. This brings up the question of the nature of our
economic growth. I am confident that we should initiate a new wave of Russian industrial technological development and create an environment
for attracting long-term “smart” investment and innovative technology to the country. This is the only option, the only alternative, if we want
to ensure the competitiveness of our human resource potential and bolster the demand for it.
You must remember that the effects of the economic downturn were most visible at auto plants, which were halting their conveyors. That was
really troubling because Russian automakers employ about 600,000 people, and another 3 million people work for related companies. Along with
their families, you can imagine how many people that could affect. We certainly could not leave them without support.
During the recession, when automobile production in Russia slumped by 60%, the government provided unprecedented support to the industry.
Throughout 2009 and 2010, the industry received a total of 170 billion roubles of federal funds under various programmes. As a result, the
production of cars more than doubled in 2010; the production of trucks surged 74.5% and buses by 23.6%.
In the past twelve months – since April 2010 – Russia’s auto industry grew by a double-digit figure every month. Vehicles assembled in Russia
accounted for 70% of all automobile sales on the domestic market.
I remember how I had to fight a host of protests and complaints against supporting Russian automakers. But who else should we support?
I remember how I had to fight a host of protests and complaints against supporting Russian automakers. But who else should we support?
Foreign producers? The industry is up and running now, introducing new technologies, and all international brands are here.
We have implemented a car-scrapping programme. It was introduced just in time to promote a faster revival of domestic demand, while half a
million Russians were able to buy new cars with a discount. This was an anti-crisis policy, which supported the auto industry, as well as an
important social programme.
I can tell you that we are allocating another 5 billion roubles for the car-scrapping programme this year. We will support Russian companies
which have far-reaching development plans, and also help people buy new cars.
There is something else. Some dealerships inflate the prices of cars offered under this programme. I mean, the same model can be acquired at a
cheaper price for cash. Clever people, these dealers. Yes, you get this one. The “scrapping” discount is eaten up by the price mark-up. This
practice has to be eliminated. Law enforcement agencies will be monitoring the process. But I am also asking you, when you travel to the
regions, please look out for these things and take some action as soon as possible.
We also need to set up a system to remove old, rusted cars from the streets and courtyards or areas outside the city boundaries.
As I said, nearly all the leading international automakers now have plants in Russia. They have become an integral part of the Russian auto
industry. We have issued new requirements for their production and for the percentage of components that need to be produced locally.
Although these negotiations aren’t always easy, our partners generally agree with these requirements; they understand our needs and agree to
compromise. Locally produced parts now have to account for 60% or more of the total, and annual output should be around 300,000 vehicles,
not 25,000 as it was before.
Why so many? This is not just about the number of cars. The idea is that, with high volumes of production, it becomes more efficient to
manufacture whole units locally, such as engines and other major components.
Let me emphasise that a high percentage of locally produced parts is our policy in building investment and promoting technological cooperation.
This does not apply only to the auto industry; the same is true for the energy sector, mechanical engineering, shipbuilding, pharmaceuticals and
other industries.
For example, we place billion-rouble orders for medical equipment with foreign companies. I will talk about it in more detail later. I think it would
be only natural for our partners to gradually relocate their production facilities to Russia.
The government will also channel over 120 billion roubles to modernise the national pharmaceutical and medical equipment industries and to build
up technology reserves, under a new federal programme until 2020. The plan is to establish 17 research centres to develop new drugs and
design medical equipment. In 2010 alone, Russian and foreign companies invested over 40 billion roubles to develop the production of
pharmaceuticals and medical equipment.
In shipbuilding, we are establishing partnerships with leading European and South-East Asian manufacturers. We plan to open more shipyards
and implement lucrative projects such as building icebreakers, high-tech vessels for various uses and drilling rigs. In 2010, Russia’s shipbuilding
sector grew 8%.
Let me repeat, it is our goal to set up full production cycles inside the country, from R&D to manufacturing components and commercial
production. This is a mater of principle, because it is the only way to create well-paid jobs, and maintain local technology, engineering, design
and production at a high level.
Our experiences over the past few years have shown that we are capable of modernising and giving momentum to whole sectors. I think we
have worked out an effective and flexible model that includes targeted state support, financing through Vnesheconombank, support of other
development institutions, and setting up technological alliances with leading international manufacturers, if necessary.
As you know, a special fund to attract foreign investment into the Russian economy and form major joint ventures will be established. Sixty two
billion roubles from additional budget revenues will be allocated to these ends and, since this area is an absolute priority, we propose to make it
an exception and allocate it an additional 10 billion roubles from oil and gas revenues.
I will tackle this issue a little later, it must be treated very carefully, but since this fund is an absolute priority in restructuring the Russian
economy, we propose to allocate 10 billion roubles from oil and gas revenues to it.
We anticipate that, apart from measures to improve the investment climate and remove the barriers to investment in strategic sectors, this will
enable capital inflow into Russia to increase significantly.
In the near future, we have set ourselves the goal of reaching USD 60-70 billion a year in direct foreign investment, and of course, we will keep
raising this bar. The inflow of direct investment into Russia was USD 40.5 billion in 2010.
We plan to improve and refine our customs policy so as to promote the development of high-tech production in Russia on the one hand, and, on
the other, so as to avoid creating barriers to the import of unique equipment, which is not and will not be produced in Russia in the near future.
We need to correctly identify where our priorities lie. In some cases it may be more efficient to buy available licences and goods abroad: this
could yield rapid results. If we have accumulated good ideas and can create our own breakthrough products, we need to invest in their
development.
I know that members of parliament have been making similar proposals. Colleagues, we will be sure to take them into account as we continue
our work.
The government will support our producers in all their innovative activity, co-finance the research and development costs that companies incur
and subsidise the interest rates on loans towards production modernisation. Over 70 billion roubles were allocated for these purposes from the
federal budget last year.
The public-private partnership model could also offer an effective solution, providing technological platforms pool the efforts of the government,
scientific community and business in creating new technology and production. And of course we are counting on an increased return from
special economic zones and technology parks. The government has already invested about 60 billion roubles in them. We will allocate another 17
billion this year.
Let me remind you that there are 24 special economic zones currently in operation in Russia. High technology parks are being developed in 12
regions. About 670 resident companies have already been registered in these innovative industrial clusters. The range of projects underway is
vast – from molecular medicine to household appliances, from nanotechnology to construction materials. The planned volume of investment
stands at about 300 billion roubles. I just wanted to draw your attention to this. We are not just focused on what is happening in Moscow. We
are talking about the entire country.
And another thing, we need to move from one-off breakthroughs, individual successful projects or transactions to systemic support, en masse,
for our high-tech companies, which want to be present on foreign markets. That’s why the Russian Export Credit and Investment Insurance
Agency is being established.
Our new structure will shoulder part of the financial risk, and will help our exporters become more competitive. This year the agency will be able
to guarantee export loans worth USD 1 billion, and by 2013 insurance support will be provided to 15% of all exported Russian cars, equipment
and other forms of transport, worth a total of USD 14 billion.
We will exploit all the benefits of integration as we pursue our goal of furthering Russian industrial and economic development. Esteemed
colleagues, 2010 was the year that saw the “birth” of the Customs Union of Russia, Belarus and Kazakhstan. The unified customs tariff and the
joint Customs Code have both come into force. Incidentally, the business community has already assessed the new opportunities afforded it:
mutual trade between Customs Union countries has grown 28%. And, overall, I consider this to be an historic event. This is the first time that a
truly integrative union has been established anywhere in the post-Soviet space.
In 2012 the Customs Union will formulate a unified technical regulation system, which is to become the crucial element of industrial policy. By
renewing these technical regulations, we will nudge business towards modernising production. We will take current best global practice and apply
it broadly in developing these regulations; this includes the experience of our EU partners. The Customs Union will be our stepping stone to a
common economic space. The common market, with harmonised legislation, free movement of capital, products, services and people will come
into operation from January 1, 2012. And in the near future we will see economic policy coordination continue in key fields. This will indeed be an
integration breakthrough, which will fundamentally change the economic and, perhaps even the geopolitical configuration of the entire Eurasian
space.
I would like to stress that the Customs Union and the Common Economic Space are open to all of our partners in the CIS. I am also convinced
that the idea we propose to our European partners of creating a harmonised economic community stretching from Lisbon to the Pacific Ocean
will eventually be supported. I already know that the response has been mostly positive.
We propose negotiating close partnerships in technology and the economy, facilitating dialogue between the Common Economic Space and the
European Union, creating free trade zones at some point, as well as introducing more advanced forms of economic integration. We have a lot to
strive for because we can eventually end up with a common continental market worth trillions of euros. To start, we are calling on our European
colleagues to implement projects that will help remove obstacles to our cooperation and to realise the idea of establishing a joint energy industry
of a greater Europe.
The introduction of visa-free travel could serve as a starting point for the launch of real integration processes between Russia and the EU. We
are actively discussing this, and we are ready for this.
Esteemed colleagues,
I would like to reflect on the situation in the defence sector and the national aircraft industry. First of all, I’ll discuss the latter, all the more so
as I have received detailed inquiries from some members of parliament.
We did not refuse to support the aircraft industry during the difficult crisis period. Over the period from 2009 to 2011, we will have invested over
270 billion roubles in the sector. Consequently, all projects defining the future of Russia’s civil and military aviation have already been launched.
Work has been completed to consolidate the sector. This process was very complicated due to confusing legislation and numerous petty,
mercenary and corporate interests. Unfortunately, we moved ahead very slowly.
All plants currently affiliated with integrated companies now have clear development prospects.
Serial production of the new Yakovlev Yak-130 combat trainer has been launched. The Voronezh Aircraft Plant has started manufacturing the
Antonov An-148 airliner and specialised versions of it. We are studying the possibility of resuming production of the world’s largest strategic
airlifter, the Antonov An-124. The Sukhoi Superjet 100 airliner has been certified, and its production is being launched. In all, orders have been
received for 150 of these jet airliners to date. Aeroflot will lease ten such aircraft in 2011. The first Sukhoi Superjet 100 will be delivered to
Aeroflot in mid-May.
You know, I was very happy to oversee this work. There was such a good international team. I came to the Far East and visited the plant.
There, on one side I heard people speaking Italian, on the other side French, and further on it was Russian. All the members of that good, close-
knit team were working together to achieve a common goal. This is the first Russian airliner to feature exclusively digital technology. This is a
new step and a good event.
As you know, the first Sukhoi Superjet 100 landed successfully in Yerevan yesterday, and will now start flying with the Armenian civilian air
fleet. It is symbolic that the airliner is named after national hero Yury Gagarin, honoured this year as part of the world’s 50th anniversary
celebrations of his space flight.
Work is proceeding apace on the breakthrough MS-21 medium-haul airliner, featuring a new engine and new wings, made of composite materials.
Two fifth-generation fighters are currently going through flight tests.
We are establishing the National Aircraft Engineering Centre in Zhukovsky as the Russian aircraft industry’s main innovation centre. A sound
basis for R&D potential was developed there in previous decades, primarily during the Soviet period.
The Titanium Valley Project is being implemented in the Sverdlovsk Region. Unique aircraft materials, alloys, composite materials and components
for new-generation planes will be manufactured there.
I believe that a rather substantial production base is being created for the national aircraft industry, that we will implement all these projects,
no matter what, and that we will encourage national demand for civilian and military aircraft.
The re-equipment of the Russian Air Force and air defence systems will become a priority aspect of the Armed Forces’ short-term development.
Air-defence brigades are already receiving new S-400 surface-to-air missile systems. Production of the S-500 surface-to-air missile system will
Air-defence brigades are already receiving new S-400 surface-to-air missile systems. Production of the S-500 surface-to-air missile system will
begin in the future. This system can support air defence, missile defence and destroy targets in near-Earth space.
New strategic and short-range missile systems, including the Yars, the Bulava, and the Iskander-M, will be adopted. Production of strike missile
systems is expected to double starting in 2013.
We will also upgrade our civilian launch vehicles. There are plans to conduct initial flight tests of light-weight and heavy-lift Angara rockets in
2013. The Rus-M launch vehicle, due to be developed by 2015, will lift off from the new Vostochny space centre. It will orbit manned spacecraft
and cargo spacecraft. Large-scale construction work at the site of the space centre will begin as soon as this year. Incidentally, this will enable
us to become completely self-sufficient in the field of space exploration. The only remaining national space centre in Plesetsk was converted for
civilian programmes. We will build a space centre for our own civilian programmes, which is currently lacking.
Speaking of defence-related issues once again, I would like to note that a large funding of about five trillion roubles is being allocated for
restoring and expanding the Navy for the first time in contemporary Russian history. This is the amount set out in the state arms procurement
programme, which has now been adopted. In all, we plan to spend a staggering 20 trillion roubles on its implementation.
As compared to the previous programme, funding amounts are three times higher. As you know, this is not linked with our desire to formulate
some military budget for the next few years. On the contrary, this is linked with the fact that numerous weapons systems are ageing and have
to be replaced. Of course, new systems must feature advanced technology. Simultaneously, we drew up plans to modernise the defence
industry, as new weapons systems can only be produced using new equipment. We are planning to allocate over three trillion roubles for these
purposes over ten years. We intend to provide about 200 billion roubles annually for prospective research and development projects in the
defence industry and develop dual-use technology based on these projects. In this respect, the increasing state defence order will serve as a
major driving force for the modernisation of the defence industry and the economy as a whole.
Orders under the state rearmament programme should be placed promptly and, of course, on time, which also applies to the transfer of funds to
defence industry companies. We are experiencing certain problems in this area, which have been rightfully mentioned by deputies.
I have read the questions you submitted prior to my address. We will monitor these areas thoroughly, and I urge you, too, to keep them under
control.
Nevertheless, a great deal has already been accomplished. Output in the defence industry has increased by almost 50% compared to the pre-
crisis level in 2007.
Here is another remarkable figure. In 2010, up to 75% of total investment in the defence industry was used to purchase new equipment. Just
take notice of this figure: 75% of the total amount of investment was spent on new equipment. In other words, we are rapidly creating a basis
for the production of next generation equipment.
Young people have been returning to the defence industry and we have managed to reverse the ageing trend in the industry. The average age
of workers at defence industry companies, design bureaus and research centres is gradually decreasing. Currently, the average age in
manufacturing is 45.6 years, and 48.1 years in science.
In 2011, we will have the first targeted intake of students for education in professions that are in demand in the defence industry. We have
already started paying bonuses to the best performing young workers, engineers, and designers at defence companies. They have been paid
bonuses since January 1, 2010, in addition to the salary of about 20,000 roubles per month.
I would like to emphasise a very important point here. In the coming decade, we will need to almost completely rearm and re-equip our armed
forces. There has been a lot of speculation recently as to who is going to receive the state contracts worth trillions of roubles. I am absolutely
convinced the modern weaponry for our army and navy can and must be supplied by the Russian defence industry.
Obviously, certain technology and weapons types can and probably should be purchased abroad. But we need to understand that nobody will
sell us the most advanced and latest generation technology, just as we by no means export everything we have. This is standard international
practice.
Secondly, we need to make every effort to achieve the leading positions in key areas of defence technology in major weapons systems.
And finally, the third, and probably the most important point is that the budget funds earmarked for defence projects should not go abroad. The
bulk of these resources should be spent in Russia and fuel our industry and science to create new high-tech and high quality jobs. That is the
way we intend to act, let there be no doubt about it.
I would like to emphasise once again that a strong defence industry, nuclear industry, rocket industry – these are our competitive advantages
inherited from previous generations, for which we are very grateful to them. And we are determined to strengthen and further develop these
sectors.
Ladies and gentlemen!
We need to depoliticise these issues. We inherited this from the Soviet Union and we are proud of it. A low bow to those who designed these
systems. We will work on their further development.
Deputies,
I am convinced that in forging a new image of Russia’s army and navy, in reforming other security and law enforcement agencies, we need to
focus on people and basic issues like the professional improvement of service members as well as providing stronger social security and decent
pay.
We have been gradually moving to resolve these issues. If you remember, in 2007 we began creating an incentive payment system for service
personnel in charge of particularly important missions and who serve in critical areas for Russia’s defence.
We are now about to take another step towards this goal and it will be a follow up on everything done so far. In January 2012, we will start
introducing a new payment system for service personnel and law enforcement officers.
When one speaks with service people, let’s say in the air force, pilots say they are already receiving these significant bonuses while technicians
don’t. And there has been some tension over this among service members. But starting in January 2012 all service members will see a significant
don’t. And there has been some tension over this among service members. But starting in January 2012 all service members will see a significant
pay increase. The amounts have been cited repeatedly.
For example, in the Interior Ministry system the base payment for a police lieutenant will be 33,000 roubles, and with all the incentives the
salary will reach 40,000 roubles. In the Armed Forces, the base salary will be 50,000 roubles and will further be adjusted depending on the place
of service, potential risks and other factors. So, a lieutenant’s salary could be even higher. Military pensions will be increased at least by a half
starting this January.
Let’s now turn to housing issues.
The Ministry of Defence has provided about 100,000 flats for service personnel over the past two years alone. This is the largest number in
years. In 2009, 45,600 flats were provided, and a further 51,900 flats were provided in 2010. But this did not completely resolve the housing
issue for service personnel.
We intend to purchase about 77,000 additional flats for service members through 2013. In fact, this will eliminate housing waiting lists in Russia’s
Armed Forces. After we deliver on all our promises as regards the provision of housing for servicemen, that is, pay all our previous debts, flats
for military personnel will be provided in a routine manner. Hopefully, people will no longer have to wait for years to receive a flat they qualify
for.
The accumulative mortgage system for the military is expected to come into full swing. It has already proved its worth for many young
commissioned officers in purchasing homes. About 5,000 service members managed to buy a home using this system.
We will also correct the injustice done to those service people who retired from the Armed Forces in the mid 1990s when the government could
not provide housing for them. They were simply put on municipal housing waiting lists which were pretty long. In fact, many of these service
members did not receive anything and are still waiting. Retired service members who are on municipal waiting lists must and will receive housing.
We have set aside 36 billion roubles for this purpose.
The year 2011 should become a year of major construction projects and of the completion of large-scale transport and energy projects. In fact,
we will have to lay the foundation for Russia’s new infrastructure in the next decade. We need to ensure a breakthrough in the fuel and energy
sector, and it should be a quality breakthrough based on greater efficiency and the deep processing of raw materials.
The fuel and energy sector, infrastructure and transport industries will become key customers for cutting-edge technology and innovation. I will
cite some quite impressive figures. For example, Russian energy, oil and natural gas producing companies intend to invest 8.5 trillion roubles in
their own development, including 3.2 trillion roubles in new equipment, over the next three years alone. This is the source for innovation. And we
will do our best to ensure that these orders land at Russian industries.
Naturally, Russian enterprises will have to prove themselves competitive. We cannot force the consumers of such products and services to
purchase obsolete equipment. We will be building new energy production facilities and gradually decommissioning the old inefficient ones.
Last year the capacity of commissioned facilities reached 3.2GW. I would like to point out that this was the largest increase in power generating
capacity in a decade. And this year we will more than double this figure to 6.5GW.
We need to bear in mind lessons of last winter and make sure that the massive blackouts affecting strategic facilities in cities, towns and
villages are not repeated.
I would also like to emphasise that infrastructure upgrades should not be carried out at the expense of consumers – our economy and regular
people. It is unacceptable to carry out development programmes at the expense of uncontrollably raising consumer tariffs. This is equally
relevant for the housing and public utilities sector.
Reforms in this area require daily consistent and meticulous work. I would like to point out for regional and local authorities that this work should
be carried out in a way that people can receive high-quality services at an adequate and economically justified price.
Let me now say a few words about our oil and natural gas sector. This sector is always in the spotlight and it is clear why – it is laying golden
eggs for all of us. We have been accumulating profits from oil and natural gas for several years and when the crisis struck we took the money
from those reserves to increase pensions.
New natural gas fields are being developed, including the Bovanenkovo, Chayandinskoye and Zapolarnoye fields. LNG projects are proceeding,
including on the sea shelf. The production of natural gas rose by almost 12%. As for oil, for the first time in history we reached a production
volume of 505 million tonnes per year.
This is first in the world in terms of production, a position we should hold on to for a fairly long time and which covers our domestic and export
needs.
Please make a note of it: most of the increase in oil production was achieved due to the introduction of new major fields in Eastern Siberia, such
as Vankorskoye, Talakanskoye and Verkhnechonskoye. Production has also started at the Korchagin field in the Caspian Sea, and, significantly,
it is based on absolutely new technologies. I’ve been there and looked at it and almost everything I saw was a pleasure to observe. They use
really advanced technologies involving satellite systems, etc.
You know one of the things that surprised and pleased me: One of our companies works round the clock because its operations cover a large
area, the whole country in fact. They set up an engineering centre in Moscow which controls the drilling work in real time. A group of experts
sits in Moscow and tells the drill workers via satellite in what direction to drill and how. And the guy at the other end just sits there and carries
our orders from Moscow. It’s great, a unique technology. It’s interesting and pleasant.
It is also worth noting that the amount of domestic oil refining increased in 2010. We will continue to encourage the output of high-quality
petroleum products that meet the highest environmental standards.
I should remind you that beginning in 2011 all our oil refineries switched over to the production of Euro-3 petrol. Russian energy companies are
opening up new export routes and consolidating their positions in the foreign markets, especially in the Asia-Pacific region, an area which has a
promising future. Thanks to the launch of the first section of the Eastern Siberia-Pacific Pipeline, we increased oil exports to Asian-Pacific
countries by a whopping 45% in 2010.
countries by a whopping 45% in 2010.
The second stage of construction of the Eastern Siberia – Pacific Pipeline is to be completed in 2014. A total of 700 billion roubles will be
invested in regions in the Far East as part of the ESPP project. We all understand that it is not only about the pipeline system. The 700 billion
roubles invested in the territory means new jobs, new townships, new kindergartens and so on. This is real development. This is not the only
area of growth in our eastern territories. But still we are talking about a lot of real money.
You remember how much talk, and how much doubt, there was about other strategic infrastructure projects. I can say without exaggeration
there have even been international scandals, for example, over the most important and most publicized Nord Stream project. A year ago,
speaking before the State Duma from this very podium, dear colleagues, I announced that the building of the offshore part of the Nord Stream
had begun. Today I am reporting that it will be completed in July, service gas will be pumped in July and the supply of gas to consumers in
Europe will begin in October-November.
The work is almost finished. I am sure that we will succeed in other areas as well. That would further strengthen the country’s energy security.
Peter I cut out a “window to Europe” in his time. What was his aim? Above all to promote economic activity and trade. In terms of access to
external markets, they have closed the vents on us. It has become difficult to pass through transit countries. It is vital for us to have direct
access to the market for our traditional goods. This is our strategic choice and we will move forward. We are not going to infringe on the
interests of the transit states.
However, considering what is happening in Europe in the wake of the Fukushima-1 disaster, the need for energy will keep growing.
You may have heard that the German government, for example, has decided to phase out nuclear power plants. Similar trends are evident in
other European countries. The demand for energy and energy resources will grow. I am sure there will be a need for infrastructure projects, too.
We will pursue them. There are many options, but I won’t take your time to spell each one out, but there are many options. We will use the
maximum number of options in order to diversify our opportunities.
Colleagues,
Last year I had a chance to drive along the Amur Highway. I am sure you have seen and heard about it. The road of course needs to be further
developed and modernised. But the main thing has been accomplished – a transport corridor to the Far East has been built. That means a
significant change in the quality of life there, different horizons for the development of various parts of the Far East.
I would like you to note that for the first time in the history of Russia, all of its vast territory from the western borders to the Pacific has been
linked by highways. That is a milestone in the country’s history.
There was a time before the war with Japan, in 1903, I think, when they built the Trans-Siberian Railway. And that was all. The BAM (Baikal –
Amur Mainline) was built in Soviet times, but its performance was middling. By the way, it is time to develop it. We have been proved right. Up
until now there had been no connecting roads. It is mind-boggling, but the Russian territories were not linked by roads. This happened for the
first time in our history.
Before the end of 2011, the Ministry of Communications and mass media and cell phone operators must provide the Chita-Khabarovsk Highway
with mobile communications. That will help form a complete infrastructure around the road, including emergency response to road accidents.
Beginning in 2008 we introduced a series of measures that reduced deaths on the roads by 12%. That work must continue, including in the
framework of the National Health Programme, we will improve the emergency medical assistance system on all federal roads.
I would like to say that in the coming years we intend to increase the scale of road construction dramatically, we will move on from major
individual projects such as the Chita-Khabarovsk Highway to the widespread development of roads throughout the Russian Federation.
Expenditures on road construction in 2011 will exceed 700 billion roubles, an increase of 40% on 2010.
Over the next five years we plan to build about 10,000 kilometres of new federal and regional roads and to modernise all the federal highways by
2020. The creation of regional road funds – and that was the decision we made – will make substantial resources available for the improvement
of urban and rural roads.
We also decided to finance directly out of the federal budget the capital repair of roads and the landscaping of neighbourhood courtyards in all
the centres of the republics, territories and regions of Russia. We have allocated 50 billion roubles for these purposes.
I’d like to emphasize to the regional leaders that we have adopted the legal documents to implement these projects and have transferred the
funds. You need to be sure this work is done to the highest standards and in good weather conditions – from May to October. The cost of the
project must not be inflated, and its quality should meet the most rigid standards. Our roads should serve people for a long time. I’d like to ask
State Duma deputies and your colleagues in the regional assemblies to ensure control over the implementation of this vital project. The
government will permanently keep an eye on this as well.
National airports are also a priority issue because our country is huge. We will channel more than 300 billion roubles into the airport system
before 2015. These funds will be used, among other things, to upgrade 121 runways and put in perfect order our backbone airport network that
includes 117 airports.
We will build large hubs, such as the Moscow air terminal. There are proposals from Siberia to integrate them with other modes of transportation,
such as motorways and high-speed rail. The government will also provide support for regional and local air flights, primarily in the Far East, the
Far North and other arctic regions. Regrettably, all these achievements were wasted in Soviet times and now we’ll have to restore everything on
a new administrative and technological basis.
Railway access to our most dynamically developing Baltic port – Ust-Luga – was completed in 2010. This year investment in the national railway
infrastructure will be about 350 billion roubles. The construction of the new Kuznetsovsky tunnel will continue in the Far East; the elimination of
bottlenecks on the Trans-Siberian Railway and on the Baikal-Amur Mainline will make it possible to lift restrictions on cargo transport to the
terminals of Vanino, Sovetskaya Gavan (Soviet Harbour), Kozmino and other national Far Eastern ports. The freight volume has already exceeded
even Soviet volumes.
We will develop high-speed rail transport. We have fast trains on three routes – Moscow-St. Petersburg, Moscow-Nizhny Novgorod and St.
Petersburg-Helsinki. I think we must consider what else needs to be done with the construction of fast trains, especially in preparation for the
World Cup in 2018.
4/22/2011
World Cup in 2018.
The EaSaLive
Incidentally, we won the right to host the FIFA World Cup in a difficult and honest struggle. This was a real victory for this country that can
achieve the most ambitious goals.
We will start designing and building the infrastructure for the cup now, without any delays. A lot of work lies ahead; the construction sector will
be busy. It will do a huge amount of work.
In the next few months we will also open key facilities for the upcoming APEC (Asia-Pacific Economic Cooperation) summit in Vladivostok.
Speaking of APEC, we want everything to look beautiful but we have to build a lot – a new university campus, a huge bridge, new roads, and a
brand new airport that we will have “to grow into.” The plan provides for substantial development in the region. I won’t even mention the
Student Games in Kazan or the Olympics in Sochi. The amount of work can be seen in both cities. Last February Sochi hosted the first test
competition – the Alpine Ski European Cup.
Preparations for the Olympics, the Kazan Student Games and the World Football Cup are powerful motivation for the construction of new training
grounds, stadiums, hotels, tourist centres and service facilities.
It goes without saying that we must use major sports forums to promote the values of a healthy life style and to develop sports all through
Russia.
The number of people who regularly play sports has increased by more than two million compared with 2008. Now over 26 million people regularly
visit gyms and stadiums in this country. This is a lot but not yet enough. We are planning to exceed 42 million people by 2015 and we’ll achieve
this goal if we continue to develop sports related programmes at the current pace. Eventually, we should try to match many European countries
where about 70% of the entire population goes in for sports.
In 2010 almost 300 new sport facilities were commissioned with federal budget funds alone and I’d like to emphasize this. These facilities include
football fields, physical training and health-improvement grounds, and a training centre for our national teams.
Needless to say, we still have a lot to do and this is an absolute priority for us. Let me mention in this context that this year sports related
expenses have become a separate budget item for the first time. All in all, we are planning to channel about 100 billion roubles into sports in the
next three years.
In the last two years we have invested about one trillion roubles in the construction industry and housing programmes – one trillion roubles
because the construction sector as well as our automakers found themselves in a very difficult position during the crisis. This investment helped
us resolve many housing problems for the people and prevented a critical drop in the construction industry. There is still a decline there. When
this industry was at its peak we built 63 million square metres and now we do 59 million, but we are still going up.
Now we are in a position to increase the rate of housing construction again. This year we must commission the same 63 million square metres,
which is a gain of about five million over last year. By 2016 we must almost double housing construction and produce 100 million square metres
per year. As I said, we have the right conditions for this.
There is a general revival of the demand in the housing market. The number of mortgages grew 2.5 times last year. The average interest rate is
dropping. In 2009 it was 14.3% in roubles, and last year it dropped to 13.1%. Today you can get a loan at 12.5%. The rate depends on the
creditor and the various terms and sometimes it is lower but the average is still 12.5%, which is still too high. It is still an expensive loan for the
time being. This is why we have decided to make a mortgage more accessible.
In 2010, we made the decision to allocate 250 billion roubles to support mortgage lending. Vnesheconombank joined with partner banks to launch
a mortgage refinancing programme, which will allow banks to issue loans at a rate of 11% per annum for the purchase of housing in new
buildings. The programme will reach its peak in 2011-2012. All necessary funding for its implementation has been set aside in Vnesheconombank.
According to our estimates, about 540-580 billion roubles in mortgages will be issued in 2011, and we will be able to exceed the pre-crisis level
of 650 billion roubles in 2012. To be sure, in order to change the price of mortgages, we will also have to continue to combat inflation and to
create favourable macroeconomic conditions. It is hard to achieve this goal by some special means. We must continue our work to bring
mortgage interest rates down to 5-6% per annum.
It should be noted that many Russian regions have been implementing programmes to provide social support for public sector employees,
doctors, teachers, and other categories of people. We will certainly support such programmes. By 2015, no less than one third of Russian
families – it is currently at about 12% – are expected to have the opportunity to buy housing using either their own funds or borrowed funds,
received as mortgages or social subsidies, or maternity capital.
Let me remind you that in 2011, the amount of maternity capital was re-indexed, this time up to 365,700 roubles. As of early April, about 2.7
billion maternity capital certificates were issued. Thanks to this maternity capital, about 381,000 families paid off their mortgages partially or in
full – a total of 117 billion roubles. Another 1.647 million people took advantage of the opportunity to receive a lump sum of 12,000 roubles in
financial assistance to cover their current needs.
We will continue to support young families and to work with the regions to provide them with subsidies so they can participate in mortgage
programmes. We expect over 170,000 young families to upgrade to better housing with the help of the state in the next five years. And, of
course, we will solve the housing problems of veterans and other categories of people to whom the government has commitments. These
categories of people include residents of the Far North, forced migrants and Chernobyl survivors.
By May 2010, all veterans of the Great Patriotic War who had signed up on the housing waiting list before March 1, 2005, received housing –
28,500 veterans in total. Let me remind you that we cancelled all restrictions on participation in the programme. We had 28,500 veterans apply
for housing upgrades, and another 180,000 veterans have submitted applications since. This is six times greater than the number of applicants
on the waiting list as of March 1, 2005. Again, six times. Over 125,000 of the newly registered veterans have already received housing. So,
about 55,000 are still on the waiting list. Around 10 billion roubles were earmarked in the 2010 budget to resolve their housing problems. To
speed up this work, and in view of the more ambitious targets we are attempting to achieve, we will provide an additional 13.7 billion roubles for
this purpose. We will do this as part of the upcoming budget corrections. I ask you to support this proposal.
I'd like to say a few more things on this point. As soon as we started working on the issue of housing for veterans, we realised the extent of the
challenge we were facing. Initially it was difficult to even calculate what needed to be done. We encountered the same situation with housing
for military personnel, major renovation work on blocks of flats and many other issues.
I would like to add that we will continue to create incentives for the regional authorities to address the problems of defrauded real estate
I would like to add that we will continue to create incentives for the regional authorities to address the problems of defrauded real estate
investors and will do everything to resolve this issue by the end of next year.
Ladies and gentlemen,
Let me now say a few words about issues that traditionally concern everyone – about finances and the budget, about how much we expect to
spend and on what particular goals, as well as how much we plan to save, and above all what new social projects we intend to implement.
I would like to remind you that we were accumulating reserves in the years before the global crisis – I already mentioned this. Sometimes we
heard criticism over withholding these funds instead of spending them on current needs. But our approach has been proved right over time.
Russia faced the global crisis with a significant margin of safety, a so-called safety net.
Moreover, we did not have any serious problems stemming from a burdensome government debt as some countries did. Currently, even after the
difficult crisis, our overall government debt is slightly over 10% of GDP, with domestic debt accounting for a large share of it. This is a fairly
acceptable and safe amount and one of the lowest ones in the world. For example, in Italy the government debt reaches 110% of its GDP, in
Japan – 225% of GDP, other G8 states have it between 60% and 80%.
Russia's national currency exchange rate is predictable. We have a solid and positive trade balance. Russia closed 2010 with a trade surplus of
USD 151 billion. Foreign reserves began increasing in April 2010 and rose by USD 55 billion to surpass the USD 500 billion point. Economic
recovery and favourable conditions enable us to speed up the resolution of the budget deficit issue. This is very important, colleagues. A budget
deficit poses a serious risk for an economy that still depends on global commodity prices. Moreover, taking care of the deficit requires funds and
borrowings, which diverts resources from a number of other challenges and development goals. We intend to bring the deficit down to between
1% and 1.5% of GDP this year. Next year we will be pursuing a deficit-free budget.
According to our estimates, the increase in prices on hydrocarbons will bring an additional 1,138 billion roubles to the federal treasury. I believe
it would be unwise to waste these funds brought in by favourable conditions by spending them on current needs. Such spending can boost
inflation, undermine the incentives for government bodies to work and spend budget funds more efficiently and result in a price surge. And this
will have a direct impact on our people's welfare and real incomes.
At the same time, using extra oil and gas revenues wisely will help us efficiently attain two goals. First, we will be able to cut down foreign
loans, replacing these funds with those of our own. And second, I believe it's time we started building up and reinforcing our reserves once
again.
This is why I suggest putting most of our extra oil and gas revenues into the reserve fund, increasing it to about 1,430 billion roubles by the end
of the year. This will demonstrate the strength of our economy and create favourable conditions for development.
As for the National Welfare Fund, it more than tripled over the past two and a half years and currently stands at 2,609 billion roubles. I would
like to point out that this fund is the main source for making up for the Pension Fund deficit. This is very important. It will ensure stability while
the pension system undergoes reforms.
This policy will create some room for us to manoeuvre, give us financial independence, serious leverage to respond to various risks and many
other good things. Naturally, it will also help us deliver on all of our obligations to Russian citizens.
Colleagues, we will soon be devising a new budget. And the temptation is there for all of us. We have been working together for many years.
Energy prices are high and Russia is taking in huge extra revenues, I have just cited the figures. By no means should we increase spending
based on these extra revenues raining down on us. Otherwise, what will we be doing and how will we be delivering on all our social commitments
when hydrocarbon prices go down? This is a very dangerous path. I ask you to be very careful.
I have mentioned already that non-oil and gas sectors of Russia's economy are actively recovering. This is a very positive sign for our economy.
Industries not related to oil and natural gas production will bring an additional 320 billion roubles to the Russian budget. This is very good; these
are so-called non-oil and gas revenues.
Budget efficiency will help us save almost 55 billion roubles, including decreased spending on servicing government debt, which I already
mentioned. We will be using these funds to address top-priority tasks and development goals.
I have already cited additional support measures for the automotive industry, agriculture and housing programmes. These all will be funded with
the increasing non-oil and gas budget revenues.
In addition, we plan to carry out a number of crucial programmes which I will speak about in detail. It is worth mentioning that real wages in
Russia increased by 4.6% in 2010 despite inflation. People's real incomes rose by 4.1%, largely thanks to the pension increase and adjustments
of social benefits, including those for children.
But let's be honest. Not all social development programmes were carried out the way and to the extent we wanted them to be, and the way
they should have been done. Now, as our economy recovers we need to revisit these issues and support our people where we can.
We have increased labour pensions by 8.8% from February 1, 2011. They grew 45% last year. And let me remind you about one of last year's
major achievements: we valorised pension rights that citizens accrued in the Soviet era. And as I said, we have raised labour pensions by 8.8%
from February 1, 2011.
We have also made provision for the indexation of social pensions: this was to be phased, taking place in April and June this year. We decided to
accelerate the process and this indexation took place at once, in April. From April 1, social pensions were given a 10.3% increase. This measure
meant that the pensions of about four million individuals increased.
As has already been mentioned, if inflation exceeds 6% in the first six months of 2011, then we will further raise pensions from August 1, 2011.
We will need 75 billion roubles for this, esteemed deputies, and we propose that this sum is set aside and drawn from additional budget
revenues.
In most cases pensions are senior citizens' primary source of funds. We did not let their incomes fall during the economic downturn, and,
moreover, we must not let that happen now.
We provide support for Russian students: this is the next issue. The student stipend fund will be increased by 20% from September 1 this year,
and student stipends will be indexed by no less than 9% rather than earlier planned 6.5%. This decision will enable universities to offer greater
and student stipends will be indexed by no less than 9% rather than earlier planned 6.5%. This decision will enable universities to offer greater
support to students in need, and it will also incentivise our educational high-achievers.
Now I would like to tackle quite an acute issue: public sector employees. The sharp, 30% increase in their wage fund in late 2008 helped get
through 2009 quite smoothly, but in 2010 there was barely any tangible effect from previous rounds of indexation. We need to address this issue
now.
The year 2010 was very difficult in terms of overcoming the effects of the crisis. But we need to resolve this issue now. From June 1, 2011, we
will adjust public sector employees' wages for inflation by 6.5%, and the minimum wage will also be increased by 6.5% from June 1. However, we
understand that this will not be enough. That is why we are considering additional measures, weighing the potential scenarios for the budget
and the economy and we will definitely return to the issue in early autumn.
I would like to remind you that a law changing the mechanism for financing publicly funded institutions has already been adopted. There will be a
transition period from January 1, 2011 to July 1, 2012 to cushion the move to this new model.
I would like to reiterate that these reforms of publicly funded institutions have nothing to do with the various myths circulating about the
privatisation of the public sector, dismissal of excess staff or the overall introduction of paid services. I would like to stress once again that the
government will finance educational, healthcare and cultural institutions in precise accordance with the state order governing the provision of
these services, with its clear description as to the extent and quality of services to be rendered, detailed requirements and terms.
We must put an end to the situation whereby free services are guaranteed on paper, but in reality people have to pay, be it at schools,
hospitals or social institutions. Citizens must have free access to these guaranteed services, and the government should of course duly
reimburse the publicly funded institutions for the high-quality services they provide. And then we will be able to make the institutions shoulder
responsibility for the quality of their work.
At the same time the institutions themselves will be more independent in deciding how to allocate the resources they receive, they will also be
able to allocate additional funds to incentivise their finest professionals. Where this is being trialled, this is exactly what it taking place.
Millions of people work in the public sector. The work they do benefits the entire population, and of course, we must support them and we will
certainly continue to do so. About 5.3 million children were born in Russia over the last three years. And the annual rise in the number of births
was 35,000 children, on average.
The growth in life expectancy is a very important indicator. In fact, it is perhaps the best telling indicator there is. Life expectancy today is 69
years on average. This figure was 65 years in 2005, thus from 2005 to 2010 it has increased by four years. This is a very good indicator. At the
same time, the results of the population census showed how unstable and fragile our demographic balance is, how many problems we still face in
this sphere. But it is quite apparent to us that we need to keep pursuing an active demographic policy: to maintain the Russian population. We
will definitely continue it, whatever it takes. We will use every opportunity we get to strengthen these positive demographic trends and to
support families with children. All aspects are important here: creating new jobs, having a flexible tax policy, resolving housing problems, and
further developing the healthcare and education systems. For instance, the government has introduced a proposal on increasing tax rebates for
large families. We are working on the issue of providing land plots to families with three and more children.
I would like to touch on the president's 2010 state of the nation address. It is hardly surprising that the address prioritised family, childhood,
motherhood and demographic issues. In effect, this is an extension of our common policy to support demographic processes and to preserve the
peoples of the Russian Federation.
We have started implementing the second stage of the 2011-2015 demographic policy concept. Our preliminary estimates show that
approximately 1.5 trillion roubles will be invested in demographic projects during this period.
What key results do we expect to achieve by 2015?
First, average life expectancy, an important indicator, is to reach 71 years.
Second, birth rates are to increase by 25-30% from 2006 levels, and mortality rates are also expected to decline.
Judging by current trends, these results are attainable. Most importantly, we must not lose momentum. In essence, demographic issues are a
reflection of quality of life, the moral climate in a society and the state of vital social sectors.
Last week, the National Congress of Doctors discussed plans to develop the national healthcare system in great detail. This involves regional
modernisation programmes, first and foremost, which are due to receive 460 billion roubles over two years. The healthcare system will receive an
additional 500 billion roubles or so before 2013 under the priority national project "Healthcare." In all, the sector is to get a trillion roubles, not to
mention current funding.
I can tell you today that agreements on implementing regional programmes have been signed with most regions. As of April 19, 19 programmes
remain to be signed. I will not mention those regions which have still failed to do this. But I want to warn them that we will redistribute these
allocations to other regions which are ready to implement such programmes, if this situation persists.
Thank you, esteemed colleagues, for passing amendments to the legislation in a timely manner. These amendments are intended to create a
clear and understandable mechanism for purchasing medical equipment, including equipment for state needs. I would like to add here that we will
continue to improve mechanisms for awarding state contracts. Notably, we will improve the federal contract system in a way that takes into
account the specifics of awarding contracts for innovation products, as well as R&D contracts. The relevant bill has already been submitted this
year.
We have a lot of work to do in the sphere of regional healthcare programmes. Suffice it to say that the healthcare system will receive over
100,000 pieces of modern medical equipment. Over 40% of state and municipal hospitals and clinics require repairs. All facilities near the end of
the construction cycle must be completed.
I would like to emphasise the fact that raising the wages and salaries of medical personnel is a key objective of regional healthcare
modernisation programmes. The relevant wage fund will grow by 30-35% in the next two years. All repairs will be completed and new equipment
installed by 2013. After that, all deductions to the Mandatory Medical Insurance Fund will be spent entirely on funding medical treatment,
including the wages and salaries of medical personnel. This should result in an increase in their wages and salaries.
Stipends received by interns and resident physicians was raised as a serious issue during my April 13 meeting with medical specialists. These
Stipends received by interns and resident physicians was raised as a serious issue during my April 13 meeting with medical specialists. These
stipends total 2,700 and 2,900 roubles, respectively. It would probably be unfair to equate these people with students. These are adults who
have completed their education and have been working hard to become specialists.
The modernisation programme will address their concerns. But, considering the acute nature of this problem, I propose that we more than double
their stipends beginning on June 1, 2011, raising them to meet the average nationwide subsistence minimum. This will bring stipends to about
6,367 roubles. Although this sum is not very impressive either, the stipends will be doubled in one go.
I would like to remind you that we unveiled the regional medical programmes project at the State Duma exactly a year ago. You actively
supported it at the time. I would like to thank you for this once again.
That decision was not easy, especially for the business community, which was only starting to recover from the crisis. We have essentially
removed 460 billion roubles from the economy for these programmes.
I agree that enterprises and companies should be able to keep additional resources for expansion. Increasing the tax burden on the economy is
not at all the best solution. But money for social programmes must come from somewhere. We will seek out way to reduce the fiscal burden of
insurance premiums. At the same time, we should avoid simple linear decisions. Nor should we shift the burden from the business community onto
ordinary Russians. We must not and will not deviate from social standards. And we cannot follow the lead of some nations which have done this
only to create extremely difficult problems for themselves.
The modernisation of healthcare cannot be postponed. We have discussed certain accomplishments today. But look how short the average life
expectancy is, unfortunately. We were saying an upward trend is a good result – indeed we raised it from 65 to 69 in four years. I know that's
good; but it's not much. It is still 8-10 years below developed countries. The death toll for vascular diseases is four to five times greater than in
Western Europe, and the infant mortality rate is 50%-100% higher.
Over 30% of Russian hospitals do not have hot water. Thirty percent! Over 8% have no running water at all, and 9% have no sewage system. A
quarter of all medical centres require an overhaul, not to mention their obsolete equipment.
Given the importance of these challenges, I would like to ask you to help supervise these programmes. They involve substantial funds; we must
be certain that the money will be used effectively and for the intended purposes. We should make every effort to ensure the efficient use of our
healthcare allocations, as well as the tangible improvement of the quality and accessibility of services. We must boost the prestige of medical
professions. This is our common task, and you could certainly influence the implementation of this programme in the regions.
Ladies and gentlemen, we are planning a pay rise for the armed forces, the Ministry of the Interior, and higher salaries in the healthcare sector.
And there is someone else who should not be forgotten. I am referring to people working in education.
We discussed in 2009 the need to implement a major pension reform; I have already mentioned valorisation, which means recalculating pensions
earned during Soviet times. Last year we discussed a programme to modernise national healthcare. Now I would like to talk about the problems
in schools and discuss some proposals for improvement.
At the end of this year, the average monthly salary in Russia will reach 23,500 roubles, up from the current 21,010 roubles, I think. I hope it will
grow as planned. Next year, it is expected to rise to 26,500 roubles. But teachers' incomes have remained the same as in 2009 standing at the
13,500-14,000 rouble level. This is the average salary, including in Moscow and St Petersburg where salaries are higher than elsewhere in
Russia. The estimated average salary across other regions, excluding Moscow and St Petersburg, does not exceed 8,500-10,000 roubles.
Something has to be done about this. What?
This year, we must start a far-reaching project to support Russian schools. The federal government is going to spend 120 billion roubles for this
purpose over the next two academic years, and the regions are expected to contribute 60 billion roubles as co-financing. The federal money is
to be spent on purchasing equipment and other improvements of physical conditions at schools. This is important, especially in rural schools,
which serve small numbers of students.
The money will also go to buy school buses, to develop new educational technologies, distance learning opportunities, equipment for school
gyms, school desks, as well as retraining and professional development for teachers.
But the key goal of this project is to raise teachers' incomes. The additional funds supplied by the regions, and other funds that are freed up will
be spent on that.
An agreement will be signed with each Russian region, no later than August 1, 2011, stipulating the criteria for evaluating their modernisation
programmes – how effective they are. We did the same with healthcare. It will take time to work this out. But I think, if we start right now,
we're in mid-April, right, it gives us May, June, July and August. The draft agreements will have to be ready by then. The key criterion would be
a 30% pay rise for teachers starting from September 1, 2011. Then, within two years we need to ensure that the average teacher's salary is
equal to the average salary in the respective region's economy. Of course, there should be no across-the-board leveling of wages. A teacher's
qualifications, professionalism and attitude to work should be taken into account when increasing the salary. We should support the best
professionals. The regions should include education among their priority areas.
We expect that the implementation of these programmes will result in the modernisation and strengthening of the national educational standard.
What exactly is being offered? Let me take a minute to explain it in my own words.
We will allocate 60 billion roubles per year for repairs, equipment, and off-site management systems. The resources saved by the regions as a
result will be spent on salary increases.
As a result, we will help strengthen and modernise the national educational system and create basic educational facilities with their affiliate
institutions.
At the same time, we will maintain, where possible, small schools, as the regions will not need to fund them at the same level due to savings on
overhead expenses; increase the quality of education by introducing modern teaching methodologies provided by the base institution; and
consequently strengthen and modernise all of education in the country.
We will directly influence the increase of teachers' salaries. However, we will not do it mechanically, but by involving trade unions and through
raising teachers' qualifications. This way, we will try to improve the quality of education in our schools. Since it is such a multifaceted issue, we
will need to stipulate it in the agreements with the regions, which I mentioned earlier.
We are currently investing significant federal resources to modernise all levels of education. This year, we have increased spending for these
purposes by 100 billion roubles, raising it to about 500 billion roubles. In February of this year, we approved the targeted federal programme The
Development of Education for 2011 through 2015. We have allocated a total of 140 billion roubles for building the technical and material capacity
of educational institutions.
In addition, we are forming the nucleus of our system of higher education, which includes eight federal universities and 29 national research
universities. We have approved the development programmes for Moscow and St Petersburg universities. A total of 70 billion roubles have been
allocated to support the country's leading universities in 2010-2012.
We are planning to invite world-renowned specialists to Russian universities. To this end, we have launched a grants programme. The first 40
recipients have already been identified. Some of them are Russian citizens working in our country and abroad, as well as foreign specialists and
instructors. The second phase of the programme, in which an additional 40 grants will be awarded, is currently underway.
We have also allocated 19 billion roubles for high-tech projects to be implemented jointly by business and academic communities. This seems to
be a promising project, and I believe it will produce good results.
Russian companies will benefit from the research and development projects and will have an opportunity to market new products and
technology. We will provide funds to private companies so that they can place orders with universities and create joint products. And the
companies will be required to market the products.
Naturally, the companies involved will need to co-finance this work. The project will allow the universities to upgrade their research base and
provide their students, faculty, and staff with interesting and promising work.
Our science and education centres have been granted the right to set up small and medium-sized innovative companies. We took this decision
together with you, and I'm sure you remember that this issue, whether to allow them to engage in commercial activity at all, caused much
debate. But I believe we made the right decision. So far, over 800 such businesses have been started in Russia.
I would also like to touch on several related issues of major importance, first of all, the adoption of a new generation of federal education
standards. This is a very complex and exacting process. As time goes by, it is becoming increasingly clear that education, as well as other
institutions, needs to be overhauled and reformed. New ideas and solutions are needed. Clearly, this challenge must be approached with utmost
caution.
We must preserve the unquestioned traditional advantages of Russian education, notably its fundamentality, and a very meticulous approach to
teaching, which makes it possible to instill broad views and encyclopedic knowledge in students.
So far, we have developed and adopted a set of standards for primary and secondary general schools, as well as for all professional
qualifications, on which we cooperated with the academic and research community, employers, and business. Currently, we are completing the
development of standards for higher education.
And finally, in February we released education standards for high schools, which prompted fierce debates in parliament and in society in general.
They were met with a very mixed and critical response from the public, teachers, and parents, whose opinion we certainly should heed.
I believe that the proposed regulations need to be improved, and I am asking you to thoroughly discuss all proposals and complaints received
from the public, and incorporate the most sound ideas and suggestions in the final draft.
Again, education is of critical importance for our nation, since it sets the stage for the future of each person and, consequently, of the state as
a whole. Each decision on education must be thoroughly worked out, absolutely clear and supported by the general public.
I believe that we need to pay special attention to vocational education. It should be geared towards the current needs of manufacturing
industries and the economy in general. This year we are going to extensively adopt the best practices developed through the pilot project for
bachelor degrees in vocational education, which suggests that a student does a two-year general course and then a one or two-year course for
a particular profession.
Another promising initiative is affiliating vocational schools and colleges with universities so that they can share infrastructure and teaching
staff. This will certainly enhance the reputation of these education centres.
We would like the regions to get involved and address the challenges of vocational colleges, and to budget adequate funds for them.
There is one more issue of great importance I need to highlight. Currently, some 1.7 million children are on the kindergarten waiting list. We keep
returning to this issue, since this problem is really acute and important. Clearly, it falls under the purview of regional authorities, but we are
eager to provide the necessary support, especially to those regions that make the greatest effort on this issue. I suggest increasing the federal
allocations to the regions for preschool education by 100%, to one billion roubles.
We will introduce pertinent amendments to the budget, which, hopefully, you will support.
Ladies and gentlemen,
While drafting this report, I held consultations with the leaders of almost all State Duma parties, with whom I raised the questions that we have
tried to answer today. By us I mean the government of the Russian Federation.
There is one issue I would like to discuss with you separately. I'm sure it cannot leave anyone indifferent. We have discussed various support
measures for culture on more than one occasion. And I think we should revisit this issue today. We cannot procrastinate with it too long. This
would be unfair to the people employed in this important sector, and negligent towards our cultural and spiritual heritage, our historical legacy,
and consequently, the future of our nation. The wages of the staff of libraries and museums are lower than anywhere else in the public sector.
Their collections are stored in poor conditions and are rarely expanded. Only 16% of libraries have access to the internet. Thank God, more
children are being born now, but at the same time, unfortunately, the number of children's libraries is declining. This was also the case with
kindergartens, which I have just mentioned. Many buildings of libraries are leased to unrelated companies.
kindergartens, which I have just mentioned. Many buildings of libraries are leased to unrelated companies.
Our libraries must become modern information, consulting, educational, and entertainment centres, and children's libraries should give students
every opportunity to expand their knowledge of the subjects they study at school.
I believe we should increase funding for the repair and maintenance of museums and libraries starting in 2012, and naturally, we should do our
best to strengthen Russian culture in general. I have no doubt we will find the required funds and develop an effective plan for the industry
together with you. Overall, I suggest that we develop and adopt a comprehensive state programme called Russian Culture.
Naturally, we expect that this project will be joined by regional authorities, municipalities, public organisations, Russian business, and our
countrymen living abroad – everyone who feels that they are apart of our common cultural landscape.
As you know, on June 1 we will index the wages in the public sector by 6.5%. I suggest increasing the wages of the lowest-paid personnel, the
staff of libraries and museums, even higher, at least to the average wage in the sector.
Many have criticised Russian bureaucrats, and I believe that this criticism is often justified. We must substantially improve the quality of public
administration and orient the state apparatus to the interests of the people. Needless to say, we must counter corruption, increase the
responsibility of officials, and eradicate the very conditions for illegal conduct and bribery.
It goes without saying that we must remove the grounds for corruption by ridding our legislative and administrative procedures of loopholes and
vague wording. Thus, the adoption of a new law on licensing will cut the number of licensed activities almost in half, and their duration will
become indefinite.
Starting in 2012, a considerable part of licensed procedures will be converted to an electronic format. For businesses, this will eliminate the need
for tiresome visits to all kinds of offices.
Now I'd like to say a few words about certifications. This is also a very important issue. It seems to be routine, but this is the root of all evil.
Quite recently, up to 78% of commodities and services had to be certified, whereas now the figure has dropped to a mere 46%. We will continue
to lower it.
In all other cases, the producers themselves will have to declare that their goods meet requirements of safety and quality. In this context, it is
very important to enhance their responsibility in order to guarantee the interests of consumers.
I'd like to note that more than 600,000 small and medium businesses have launched operations in Russia in the last two years. This is quite an
impressive growth rate for a crisis period.
I think that the assessment of the support of business by regional and municipal authorities should be left open. This is why we have suggested
compiling public ratings of investment appeal in the regions every year.
Despite the budget deficit and post-crisis problems, we have envisaged benefits for small companies in the real economy, high technology and
information, the agricultural sector, and social services.
We are actively using the potential of developmental institutions. Thus, VEB's (Vnesheconombank) support for small companies has already
reached 130 billion roubles. We will continue working in this direction.
In the near future we must complete the conversion to an electronic format of government and municipal services – a uniform portal for
government services, information and service sites, and integrated communication channels of departmental and regional databases.
Starting on July 1, 2011, government bodies will have to carry out all the necessary accommodations and inquiries themselves without dragging
people through the process of collecting documents, as was the case before.
I'd like to mention that those who prefer to receive government services in the traditional format can still do so, but this procedure must be
convenient and not burdensome. This is why we are expanding the programme on establishing multi-functional centres operating under the one-
stop principle. The first such centres were set up in 2007. There are 170 such centres now, and there will be 800 in the next two years. These
centres are very convenient for the public; and, on a smaller scale, every municipality should have one.
In addition, before July 1, 2012, we will complete the delineation of clear-cut and comprehensible administrative procedures for government and
municipal services. The Tax Code and the government-endorsed list of paid services will be the only documents used for levying payments and
fees. The demands of any additional money from businesses and people will be illegal.
As the author of the majority of the legislative initiatives, the government intends to propose a new format for the drafting of legal codes in the
near future. We want our citizens to participate directly in the process, and I'd like to consult you on this issue.
We consider it important to envisage mechanisms of public discussion for all socially important government draft laws. The procedure of public
discussion should involve a broad range of experts and citizens. It is possible to achieve this by using modern information technology.
I've just spoken about our plans for healthcare. It seems to me that we've been talking a lot about them, but when I met with medical workers,
it turned out that they haven't heard much. They don't know about our initiatives and often raise concerns that have already been addressed in
a draft law. This is why we suggest not only putting draft laws on the Internet but also creating the opportunity to select the most meaningful
and realistic proposals through electronic voting. Let participants in the discussion decide themselves which proposals are the best.
Incidentally, industrialised nations are increasingly using the concept of an "open government" based on the involvement of people in the work of
government institutions. We must follow this example and encourage active civil work by considering the proposals, advice, and
recommendations of so-called independent grass-roots experts. It will be more difficult to work in this manner, and we'll lose the pace in some
cases, but the quality of our efforts may be improved.
Dear colleagues,
In conclusion I'd like to say the following. We presented the programme of the new government to you in this hall practically three years ago.
We had a more difficult time than we had expected. We had to promote development and fight against the crisis at the same time by protecting
the economy and the welfare of our people. We had to uphold everything that had been done in the social sphere, education, and healthcare
and restore and strengthen the potential for growth step by step.
and restore and strengthen the potential for growth step by step.
Now we have every reason to say that the national economy has made a post-crisis breakthrough. This is the foundation on which we have
formed our modernisation agenda and drafted large-scale plans for economic and social progress.
The government will do everything in its power to allow the economy to continue its steady upsurge and will likewise continue to work for the
growth of the prosperity of Russian families. In doing so, we have been invariably guided by a fundamental principle: to listen to the people and
work in their interests. And we will not forego it.
Our steadfast support for the people has always helped us adopt the most complicated and responsible decisions. We will do everything we can
to justify their trust in us.
I'm grateful for your patience and attention.
Thank you.
Tags: rouble s, not, billion, ye a r, pe ople , rsquo, russia n, should, gove rnm e nt, support, russia, ndash, m ust, work , ye a rs, ove r
Read more (0 comments)
[ Vie w a ll · Add ne ws ]
News from: Top Stories - Google News
Japan faces lengthy recovery from Fukushima accident - CNN Internat…

Poste d 10:02 AM. In Top Storie s.
Japan faces lengthy recovery from Fukushima accident

CNN International
Tokyo (CNN) -- The worst may have passed in the worst nuclear accident since Chernobyl, but cleaning up when it's finally over is likely to take
decades and cost Japan an untold fortune. A six- to nine-month horizon for winding down ...
USA Today
Japan braces for quake, typhoon risks amid ongoing nuclear crisisXinhua
Chernobyl and Fukushima share wounds of disasterSeattle Post Intelligencer
In Fukushima and Chornobyl, homeless dogs and empty streets are reminders of ...The Canadian Press
New York Times -Voice of America -Wall Street Journal
all 2,377 news articles »
View
Search begins for Phylicia Barnes' killer - Atlanta Journal Constit…

Search begins for Phylicia Barnes' killer

Atlanta Journal Constitution
The search for Phylicia Barnes, a missing teenager with metro Atlanta ties, came to a tragic conclusion Thursday when her body was found in a
Maryland River. The discovery ends the search phase of the case and begins the ...
USA Today
Missing Teen Phylicia Barnes' Body FoundABC News
Body found of missing NC teen found in Md. riverThe Associated Press
BREAKING NEWS Sources: Body found in river is missing BarnesBaltimore Sun
Top Buzz News -msnbc.com -CBS News
all 545 news articles »
View
IPhone, Android Phones Transmit Location Data to Apple, Google, WSJ…

IPhone, Android Phones Transm it Location Data to Apple, Google, WSJ Says
Bloomberg
Apple Inc. (AAPL)'s iPhone and Google Inc. (GOOG)'s Android smartphones transmit location data from the handsets back to the companies, the
Wall Street Journal reported, citing documents seen by the ...
Siliconrepublic.com
How police have obtained iPhone, iPad tracking logsCNET
Tell us what you think: iPhone secretly tracking your location?CNN (blog)
Inquiries Grow Over Apple's Data Collection PracticesNew York Times
Reuters -PC Magazine -BusinessWeek
View
5 Dead in Latest Thai-Cambodian Border Clash - Voice of America

5 Dead in Latest Thai-Cambodian Border Clash

Voice of America
Photo: AP Thai and Cambodian officials say their troops exchanged fire for several hours at a disputed stretch of their border early Friday, in the
latest flare-up of a feud over temples claimed by both countries. A Cambodian military spokesman said ...
CBC.ca
Cambodian, Thai armed clashes cost lives, damage templesXinhua
Thai, Cambodia Border Fight Kills 4 Soldiers, Stoking TensionsBloomberg
Thai, Cambodian forces clash at templeCBC.ca
Newsday (subscription) -RTT News -Financial Times
View
President wants Justice Department to look into possible oil compan…

President w ants Justice Departm ent to look into possible oil com pany fraud
WNCT
WASHINGTON, DC -- If you are tired of emptying out your wallet to fill your gas tank you aren't alone. President Barack Obama wants to get to the
bottom of the nation's high gas prices. "We're going to make sure that nobody's taking ...
Moneycontrol.com
Instant view: Obama team to probe oil market manipulationReuters
Oil-Price Fraud Targeted in CrackdownWall Street Journal
US to investigate energy markets for possible gas price manipulationLos Angeles Times
San Francisco Chronicle -Politico -msnbc.com
View
No major traffic tie-ups during Obama visit to LA - San Jose Mercur…

No m ajor traffic tie-ups during Obam a visit to LA

San Jose Mercury News
LOS ANGELES?Commuters are keeping a close eye on morning rush hour traffic when President Barack Obama is expected to leave town after
one-day visit to raise cash for his re-election campaign. Obama was scheduled to head from the ...
The Atlantic
Obama makes his case in CaliforniaLos Angeles Times
Why LA Hates Presidential VisitsThe Atlantic
Hundreds of protesters greet President ObamaSan Francisco Chronicle
Patch.com -TheWrap -Los Angeles Independent
View
Nine killed in NATO attack on Sirte - Libyan TV - Reuters

Nine killed in NATO attack on Sirte - Libyan TV

Reuters
RABAT, April 22 (Reuters) - Nine people were killed overnight in NATO bombardment of the Libyan city of Sirte, Muammar Gaddafi's home town,
Libyan state television said on Friday. The news bulletin of al-Jamahiriya said some of those killed were ...
msnbc.com
Where is Libya's way out of crisis?Xinhua
US Launches Drone Strikes in LibyaWall Street Journal
Tripoli witness: Tales of defiance and a mystery manBBC News
Los Angeles Times -Voice of America -CNN
View
U.S. sends drones to Libya as battle rages for Misrata - Reuters

U.S. sends drones to Libya as battle rages for Misrata

Reuters
Medics wheel a Libyan man, who was wounded in Misrata, out of Greek ferry ''Ionian Spirit'' upon its arrival in the port of Benghazi April 21, 2011.The
United States on Thursday launched armed drones against Muammar Gaddafi's troops, who pounded the ...
Globe and Mail
France confirms Libya deploymentBBC News
Libyan rebels pay a heavy price for resisting Gaddafi in MisrataThe Guardian
Libyan Rebels Advance; US Will Deploy DronesNew York Times
Voice of America -The Associated Press -CNN International
View
Nevada GOP Sen. John Ensign steps down amid probe - San Francisco C…
Nevada GOP Sen. John Ensign steps dow n am id probe

San Francisco Chronicle
Sen. John Ensign says the naming of a special counsel to his ethics probe shook him up. Nevada Sen. John Ensign announced Thursday he will
resign amid an ethics investigation, insisting he's done nothing wrong but saying he could no ...
Fox News
Nevada welcomes Sen. John Ensign's decision to resignLos Angeles Times
Senator John Ensign ResignsNew York Magazine
Sen. John Ensign Announces ResignationABC News
Politico -Wall Street Journal -Reuters
View
The Queen hands out the traditional Maundy money - BBC News
Poste d Ye ste rda y, 10:04 AM. In Top Storie s.
The Queen hands out the traditional Maundy m oney

BBC News
The Queen has celebrated her 85th birthday by handing out Maundy money in a traditional royal service at Westminster Abbey. The monarch
handed out specially minted coins to deserving recipients in a ceremony dating from the Middle Ages. ...
BBC News
Queen Elizabeth II celebrates her birthday ? but not the official oneWashington Post
Queen Elizabeth celebrates 85th birthdayTimes of India
Queen Elizabeth Celebrates Birthday as Oldest British Monarch to RuleABC News
hellomagazine.com -USA Today -NPR
View
©2011 Google
Newest 10 Frequently Asked Questions
» There are no entries at this time
[ Add a Fre que ntly Ask e d Q ue stions e ntry ]
Top 10 Downloads
» There are no files for download yet
[ Add a ne w downloa d ]
Random quote
"I'm not afraid of dying; I just don't want to be there when it happens", Woody Allen
[ Edit ]

The EaSaLive

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

The EaSaLive

Hochgeladen von

Copyright:

Verfügbare Formate

4/22/2011 The EaSaLive

Welcome back, admin.

Aviation Community : Europe

» There are no files for download yet

There are no entries at this time

Aviation & Technology

Vladimir Putin’s report:

Ladies and gentlemen, Mr Speaker,

Ladies and gentlemen!

Let’s now turn to housing issues.

Ladies and gentlemen,

What key results do we expect to achieve by 2015?

First, average life expectancy, an important indicator, is to reach 71 years.

Something has to be done about this. What?

Ladies and gentlemen,

I'm grateful for your patience and attention.

Read more (0 comments)

News from: Top Stories - Google News

Japan faces lengthy recovery from Fukushima accident - CNN Internat…

Japan faces lengthy recovery from Fukushima accident

Search begins for Phylicia Barnes' killer - Atlanta Journal Constit…

Search begins for Phylicia Barnes' killer

IPhone, Android Phones Transmit Location Data to Apple, Google, WSJ…

5 Dead in Latest Thai-Cambodian Border Clash - Voice of America

5 Dead in Latest Thai-Cambodian Border Clash

President wants Justice Department to look into possible oil compan…

No major traffic tie-ups during Obama visit to LA - San Jose Mercur…

No m ajor traffic tie-ups during Obam a visit to LA

Nine killed in NATO attack on Sirte - Libyan TV - Reuters

Nine killed in NATO attack on Sirte - Libyan TV

U.S. sends drones to Libya as battle rages for Misrata - Reuters

U.S. sends drones to Libya as battle rages for Misrata

Nevada GOP Sen. John Ensign steps dow n am id probe

The Queen hands out the traditional Maundy m oney

Newest 10 Frequently Asked Questions

» There are no entries at this time

[ Add a Fre que ntly Ask e d Q ue stions e ntry ]

» There are no files for download yet

Das könnte Ihnen auch gefallen