On the Farm: Putin Meets Agro-Industrial Complex Representatives

At Stavropol Krai, Solnechnodolsk Village

What better place to meet than a rural village in the farmland to talk about what Russia calls the Agro-Industrial Complex. The meeting topped Putin’s day in the region and ran for 1:20, so the usual type of discussion seen over the last several years. Putin opens with his remarks and stats recitation then the chat begins:

Vladimir Putin: Good afternoon, dear friends! Colleagues!

In the old days, the problems of the industry were discussed more often. But it seems that there is nothing to discuss: the industry is developing at such a good pace that it cannot but rejoice.

Nevertheless, there are always certain questions, so we agreed with our colleagues and ministers that here, in the Stavropol territory, which is one of the centers of agro-industrial production in our country, we will talk about how the work is going and what we all need together – including the Government and regional authorities. to do this in order to support you.

A lot has changed in the agro-industrial sector in recent years. As you know, in 2000 we were dependent on almost all the main components and directions for providing the country with food products. Now this dependence practically does not exist.

Last year, export revenues totaled $43.5 billion. You know, but nevertheless, since the cameras are working, I will say for our citizens: the increase was 30 times – not by any percentage, but by a 30-fold increase in export revenues. Until recently, this seemed completely unrealistic. If we had said in 2000 that there would be $ 43.5 billion in export revenues, no one would have believed it. This is a fantasy, it would seem, some kind – no, this is the reality today.

157 million tons of grain in the year before last, and 147 million tons in the past year. No one has ever seen such harvests either. We have become the fourth largest meat producing country in the world, which is also incredible. We remember all these jokes from the Soviet period: "Long, green, it smells like sausage. What is it?" - "An electric train from Moscow", because everyone is carrying sausage; "A group of drug addicts was caught in Saratov. What were they doing?" "Sniffing smoked sausage." All this, thank God, is a thing of the past, and now the situation has changed dramatically.

But we still have a lot to work on. The products of our agricultural enterprises are sent to about 150 countries of the world, despite all the external difficulties created for us. And the market is expanding, including, perhaps even primarily, not only because of the quantity of products produced, but also because of their quality. After all, the quality of Russian food products remains very high – and not because our chemistry is poorly developed, no.

Just now, we were present at the opening of another fertilizer production facility. Our fertilizers are also high-purity from an ecological point of view. There are practically no such fertilizers in the world.

Here's it all together. Plus, of course, and above all, it is the talent of the organizers of agricultural production, it is the labor achievements of our work collectives, the enthusiasm of our agricultural producers, their pride in what they do.

Today we were at one of the enterprises that produces tomatoes, of course, I met with people. They are proud of what they do and how they do it-you can see it in their faces, in what they say and how they say it. And this applies to a large extent to those who work in the industry as a whole.

I repeat, there are probably still enough questions and a lot of problems. Over the past year, we have significantly increased our support for agriculture and the industry as a whole. We probably need to pay special attention to something, focus it on something, improve the mechanisms that we have proposed and used in recent years, and maybe add something. Actually, the purpose of our meeting is precisely to listen to you.

Here I am, the Minister [of Agriculture Dmitry Patrushev] here-he is so modestly arranged in the back. But nevertheless, both he and I hear and will try to respond to what you say. And the heads of the regions in the country will also, of course, hear and see us.

Based on the results, as we usually do in such cases, we will issue appropriate instructions – so that nothing is forgotten, something does not lie deep in the mud, but on the contrary, it would be implemented for the benefit of the development of the industry, which, of course, is one of the key ones in the country's economy today.

Please go ahead. Who will start?

Alexander Belov: Dear Vladimir Vladimirovich,

Thank you very much for such flattering words about the agro-industrial complex.

Indeed, the industry has made a fantastic leap forward in recent years. And, as you absolutely correctly said, we have gone from being a country that has largely imported a huge amount of food from abroad to becoming a country that has not only solved the problems of domestic food security, but is now actively involved in solving the problems of global food security, providing high-quality food products to demand not only within the country, but also on the global market.

You said: who would have thought 20 years ago that we would export so much? I can say that today we have many colleagues who discussed export with us six years ago when we launched the Export international cooperation project. When we fantasized about the volume of 40-45 billion dollars, I remember how much skepticism there was both on the part of business and on the part of the executive authorities. And now, when we have this result and look to the future, assessing our capabilities, we understand how unlimited opportunities are opening up for us and how huge our potential is.

Why did this happen? What were the key success factors for such a dynamic agricultural development? I think there are two most important things here. The first is, of course, people. These are people who work in agriculture, these are entrepreneurs, these are ordinary employees of farms and processing companies who put their heart and soul into the industry.

But state support measures played an equally important role. Here I would like to mention the measures that were formulated 10-15 years ago, first of all, measures related to concessional lending: it is very important for entrepreneurs and investors to have affordable lending in order to develop the sector. I can say that agriculture is probably one of the few industries… I would even say that there are no industries that can boast of such lending conditions as agriculture.

And for all of us, one of the key tasks for the future – what we are currently discussing, especially the situation of the key rate increase – is, of course, to preserve available loans. This is a key story that will allow sustainable development of all sub-sectors of agriculture. Although it is clear that each sector has its own opportunities.

People and state support are probably two key, fundamental factors that made it possible to create the agriculture in which it is now. This is a modern and innovative branch of the economy, which is really one of its drivers.

This doesn't mean that we don't have challenges. The last few years have really been quite difficult. We had challenges related to Covid, and now the geopolitical situation is changing. Of course, everyone is well aware that we have a lot of challenges related to personnel and staffing. Inflation affects the key interest rate and the availability of financing. There are challenges related to logistics, disruption of supply chains, infrastructure challenges, and so on.

But I would suggest that these challenges should be treated not just as challenges, but as tasks that need to be solved. There are tasks that can be solved in the short term, and there are tasks that require a little more time. For example, now very actively and as a priority we are building tasks related to breeding and genetics, but these are always long-running stories, the result of which is very difficult to get in a short period of time. We'll probably talk about this today, too. But in general, by understanding challenges as challenges, we can probably solve these problems through joint efforts of business and the state.

What is the potential for agriculture? I think that we have a huge potential both in terms of developing the domestic consumption market and in terms of solving, as I have already said, the problems of global food security.

The last two years have shown that the growth of household incomes creates a very serious additional demand for agricultural products. As it turned out, the growth that we provided in a number of industries of two to three percent is not enough to meet the growth in demand in the domestic market. In this regard, there were some imbalances, including in price parameters.

But in general, the domestic market and the development of export potential are two cornerstones that will probably allow sustainable development of agriculture in the near, medium and long term.

Our task, the task of the industry, is to maximize the potential that we have, primarily in terms of resources. We have absolutely fantastic resources: we have excellent human potential, land resources, water resources-this is what is needed for the development of the industry, and we should use it.

However, Mr President, I would probably like to draw your attention here to a very important story that I think has a serious impact on agriculture. This is a story related to the green agenda, carbon neutrality, and so on. For a very long time, we followed the path of, let's say, ideology that came to us from outside.

On the one hand, we understand that carbon neutrality is an extremely important task. On the other hand, we must develop our own approaches that would allow us to create and ensure competitiveness and competitive advantages for our agriculture. There should be a very rational, reasonable approach that would allow us to solve the problems of carbon neutrality, and, on the other hand, the competitiveness of our products, and the economic availability of these food products for the population.

Today we will discuss their agenda with colleagues from different industries. I have outlined the general theses and would like to move on to specific sub-sectors and start with the sector that, in my opinion, most clearly shows the path that Russian agriculture has taken in recent decades.

20 years ago, this industry was perceived as an industry with which "Bush legs" were associated, and over the past 20 years, we have come from "Bush legs" to a situation where we not only provide ourselves with meat production in Russia, as you correctly said, we are not only among the four largest producers of this product in the world Not only do we actually consume twice as much of this product as the world average, but this is a sector that has very good potential for further development.

It is with great pleasure that I would like to give the floor to Sergey Yushin, the head of the National Meat Association.

Sergey, what are the challenges facing the industry and what are the prospects for it? You are welcome.

Sergey Yushin: Thank you, Artem.

Good afternoon, Vladimir Vladimirovich!

I am very pleased that you know and remember that the Russian meat industry has achieved such a high result – fourth place in the world, I can only confirm.

Indeed, in 20 years we have created a modern competitive industry from scratch, from 5 million tons in 2004 to 12 million tons – a record result-last year, which is an increase of 140 percent. For comparison, the world's meat production has grown by only 50 percent over the same period. In other words, we grew at a rate almost three times higher than the global average.

Of course, this would not have been possible without the huge investments that have been made in the industry, which is almost one and a half trillion rubles. And how could we expect such investments if it wasn't for what Artyom was talking about? Preferential investment loans, availability of revolving credit, and many other support mechanisms and tools. I repeat: without this, we would not have achieved these high results.

Consumption in Russia. Consumption in Russia that year really set a record again: we exceeded the bar of 80 kilograms per person, in the world-42-43 on average. We are at the level of the richest countries, that is, we have an affordable meat product.

And, importantly, we understand that domestic consumption will actually grow. By the way, we were a little afraid whether we should produce more, which is already a high level. Now we see, reading your Message to the Federal Assembly, and those huge projects in the field of economy to support citizens, that they will definitely eat more meat.

Therefore, we have a very serious task – to give a new wave of investment in our industry, and in general in the production of other food products. Of course, it will also be necessary to introduce a new million hectares into agricultural turnover, create cultural pastures, work very seriously in genetics – by the way, Russia already exports genetic material-to engage in seed production, in general seed production, and in product processing.

That is, we need new huge multibillion-dollar investments, and therefore the first question from business is the following. Given that you have already set very ambitious goals, including the budget, will the level of support for agriculture continue and will it be adjusted if the tasks themselves are even more ambitious?

And the second topic that Artyom mentioned is the topic of export. Indeed, it is very gratifying to know that Russia has been a net exporter of meat for the third consecutive year. I remember how in 2009 we discussed the future export of meat at one of our meetings, and then we imported three million tons from all over the world, and some people thought that this was some kind of cap-throwing. Meanwhile, everything worked out.

We sat down and counted, because we export not only meat and meat products – canned food, sausages, but also live cattle, including genetic material, breeding material. We export non-food products – technical fats, including for the production of, for example, biofuels, biodiesel, in Europe they are produced from our technical fat. So: the total volume of exports of meat and meat products from all that animal husbandry provides, last year exceeded one million tons worth more than two billion dollars. These are the numbers.

But is this the end? No. According to forecasts of the UN Food Organization, in the next ten years it is necessary to increase production by another 40 million tons in the world. Today there are 360 million, and we will need 400. There are very few countries that can actually participate in solving these problems – Russia is one of the few. But, of course, to do this, we need to have the same opportunities to promote our agricultural exports that we have had so far.

It is no secret that the federal project "Export of agricultural products" was and still is a very important tool. It's coming to an end this year, and I don't know yet if it will continue. I know what some people say: "They'll buy everything from you anyway, and you'll need more food on the planet." But this is a serious simplification of the situation, because already today we see how our competitors, roughly speaking, put sticks in our agricultural exports. In particular, we can mention the recently adopted by the US Congress law on countering Russian agricultural exports-No Russia Agricultural Act, that is, a completely direct counteraction. In this regard, of course, the continuation of the export project is a very, very important signal for us that we can significantly increase production volumes.

At the end of my short speech, I would like to thank you for opening the Chinese pork market. I know that not only the Government, not only the Ministry of Agriculture, not only the Rosselkhoznadzor carried out the work, but you personally participated in it and promoted it. Journalists ask if we will export all the pork to China. If we don't take it out, we will produce much more, in new volumes, than we planned.

Thank you very much.

Vladimir Putin: Look at what I would like to say on this issue. I will start with the conclusion of your speech, when you said that competitors oppose our development – this is happening in all areas, not only in the field of agriculture.

Look: as soon as we start to grow, they immediately come up with some kind of deterrent tools. Potatoes were sent to us in due time as humanitarian aid, and thank God. Some food products were thrown to us in the form of humanitarian aid, our producers were omitted here. I remember these conversations about humanitarian aid. It seems like a good thing – humanitarian aid, but it came – our producers died inside, because they can't sell their products. The reverse side seems to be good intentions. I'm not talking now about other tools to support ourselves and attempts to limit our development.

A colleague talked about carbon neutrality. Those who work in the field of ecology – not just those who work on foreign grants, but on the basis of national interests-and those who work in the field of energy are well aware that everything, very much, at least, from what has been invented in the same Europe In the European Union, it was connected not only with attempts to preserve nature, but also with attempts to de-energize our competitive advantages in the field of energy – cheap energy carrier.

And they came up with a "barrel of prisoners": what and how to do in order to force us to level our advantages, to pay them, consumers, for the fact that we supply cheap goods to their markets. Gas is cheap, aha, you produce this and that from it, the fifth or tenth, which means that all this will be subject to an additional duty when imported to the EU market. They thought up God knows what, but when it hit them, they've all started up their coal-fired power plants again and are already thinking about how to get back to nuclear power. They do not forget their loved ones under any circumstances.

But, of course, we need to proceed from the realities and, of course, these attempts to somehow stifle our export potential are there, they will be – they will always be in any areas where Russia is firmly on its feet. And we, for our part, of course, must support producers of agricultural products, as we have done so far.

In previous years, our support volume was somewhere around 250 billion-something, right, Dmitry Nikolaevich? And now 450 billion, and we, of course, will increase it, of course. We will not leave the industry with only good wishes and thoughts that everything is already good.

Yes, we started it, in fact, in 2015, after the well-known events in Crimea, and imposed restrictions on the import of agricultural products from abroad, from countries that began to impose sanctions against us in connection with the events in Crimea. We deliberately assumed that prices would rise, but by pouring state resources into the industry, we hoped that thanks to the competitive advantages that we have – people, personnel, a talented business community, land, water resources, and the growing opportunities of the latest technologies and their use – all this would give us the best results. the effect. And it happened. What we wanted, what we aspired to-all this has taken place.

Of course, nothing stands still, everything develops, and as we grow, additional problems arise. One of them – you have just mentioned this, and I will repeat it again-at the beginning of the road, a few years ago, 258 billion was supported, and now it is already 450-460. And we will certainly increase it.

There are also problems that have arisen today, they are new, related to logistics, related to distribution, distribution – there are many of them. We understand all this and will try to work with you on all these lines.

I hope that the Ministry is in contact with you, hears you, is active at the government level, and tries to get the appropriate resources in a timely manner. We will definitely work.

And what you have done in the field of meat production, of course, is also incredible. Here they talked about" Bush legs " – we know what it is, I won't say what to say about it now. And we also drank "Royal", or as it is called, imported in unlimited quantities from Poland and other countries, and now we have our own wine-making industry developing. That's a different story altogether.

So it gives the result visible-first. Second, it is extremely important for ensuring stability in the country. This is one of the key industries. We will work hard and will definitely help in all these areas that I have mentioned.

Alexander Belov: Mr President, thank you very much for such a detailed answer.

I think that Sergey Yevgenyevich will probably support all industries, both from the point of view of state support and from the point of view of the Export project. This is a really important story, because even what I said was that we are gradually moving to such an export-oriented paradigm of agricultural development, without in any way forgetting to provide the domestic market with high-quality affordable food. This is really a long-term, backbone development of our industry as a whole.

Vladimir Putin: The population is growing, so…

Replica: And incomes are growing.

Vladimir Putin: You were referring, in principle, to the export potential and its demand. This will happen, of course: the number of people on the planet is growing, but there are not so many countries with such natural opportunities, with such land, with such water resources in the world. Therefore, it is quite obvious, this is a very large and colossal prospect.

Alexander Belov: Yes, Mr President, thank you very much.

We'll probably continue then. And now I would like us to talk about one more very important, one of the fundamental sectors, subsectors of agriculture – this is, of course, cereals. This is a sector that develops crop production, cereals, a sector that is developing very dynamically indeed. We have been fully self-supporting for a long time.

Moreover, Russia has long been one of the key exporters, we are number one on the world wheat market, and other crops are actively developing. I think that here we have the widest opportunities.

I would like Eduard Zernin, the head of the National Union of Grain Exporters, to briefly talk about these opportunities and the risks and challenges faced by producers today.

Eduard, please have the floor.

E. Zernin: Good afternoon, Vladimir Vladimirovich!

First, let me thank you for your trust. We all listened to your Message to the Federal Assembly and remembered the target figure for the growth of agricultural exports – one and a half times by 2030. I can assure you that grain exporters are ready to fulfill this task and even help their colleagues, because we really have a lot of groundwork, we have a huge internal resource, and we have excellent positioning in foreign markets.

What happened in the last two years-that attempt to cancel Russian grain on the world market failed miserably. Because yes, we were disconnected from some international institutions, financial and brokerage companies, but during this time we have built direct connections. In fact, we have not only quickly filled the gap caused by these global institutions, but even increased our export volumes. And if last season we delivered and our share in the world market was 20 percent, this season we are already approaching the mark of 25 percent, that is, every fourth ton of grain on the world market will be of Russian origin.

My questions are related to the fierce competition in our field, because, of course, being the flagship product of Russian agricultural exports, we have to deal with very sophisticated attempts to counteract it. Yes, since we all experience some obstacles, hidden barriers, in our case they are really aggravated. Let's say that one of the main problems of the current season for us is a fierce, just aggressive short game on the stock exchanges.

That is, stock speculators-these are not grain traders, these are financial institutions, hedge funds – aggressively sell grain futures. As a result, the exchange price goes down, followed by the price of real deliveries. And these speculators are not interested in the real cost of grain production, which is growing all over the world – this is a process that affects all countries of the world and key grain producers. They are not interested in reducing the remaining grain in many countries, which are forced to buy, buy more intensively, precisely because of the fact that consumption is growing on national markets. All the same, the price of grain is paradoxically declining on the stock exchanges.

In the absence of other price indicators, the entire market is guided by the prices set by Chicago or Paris, that is, two exchanges, the key grain exchanges that exist today.

We think this is fundamentally wrong, because neither we, as the largest manufacturer, nor our colleagues in the shop, nor consumers are really interested in being dependent on third countries. And it is also important for the consumer, because just as the price is falling today, so we remember how a year and a half ago the price was growing at a furious pace. This was also a problem for our consumers.

We are interested in the stable development of the market, in a stable increase in supplies, and, in fact, we believe that we need to organize ourselves and offer some constructive solution of our own for a new round of development of the global grain market.

Another problem that we have been facing for just a few months is a new problem with mutual settlements. That is, if earlier we understood that there are problems with the banks of unfriendly countries, today the banks of friendly countries stop payments. This is a very dangerous trend.

We understand that they are under pressure from third countries, that this is not their own initiative, because no one in their right mind will refuse a profitable business with us, and a business that is officially recognized everywhere as being excluded from sanctions. At the same time, we experience the same problems as any other exporters. Yes, they are probably smaller in some places, but in general it is quite difficult for us to conduct long-term forecasting of our operations.

In this regard, we have initiated the Ministry of Agriculture of Russia and the Government to create a grain exchange within the BRICS member countries. This is a new international exchange that could unite first of all those countries that are part of the BRICS political association.

Why? Because today this association includes both the largest producers and exporters of agricultural products – I'm talking about Russia, India, China, Brazil – and at the same time the largest importers of these products – China, Egypt, and Saudi Arabia. In other words, we complement each other with these countries, and in many key crops, such as wheat, corn, and rice, we are self-sufficient within the framework of the association. Moreover, we can feed other countries, we can sell to them through a similar exchange mechanism. This is an exchange that will be controlled specifically by producers and consumers, and not by stock speculators.

We kindly ask you to support this idea and give instructions to our Foreign Ministry and the Ministry of Agriculture in order to reach the official level and work with other member countries of the association.

We believe that this will be a strategic advantage, which will allow us to plan long-term supplies and confidently move towards the goal of increasing agricultural exports in terms of grain exports, I think, and other products, because all standard agricultural products that are traditionally traded on commodity exchanges can be traded on this exchange.

And the second issue, which is already related to our internal agenda – is the issue of supply logistics, because the key factor for the success of our export operations is the timely accumulation of cargo shipments in ports. In order for us to function rhythmically and be able to ship lots, we need their prompt delivery to ports.

Today there is quite a serious problem on the railway. The average turnover time of railcars has increased from 22 to 26 days, I am now talking about the direction of the port of Novorossiysk. As a result, an artificial shortage of railcars is created: turnover increases, the number of available railcars decreases, additional demand is generated, and in some cases, in some regions, there is a shortage. People rush to look for cars in other regions, creating a huge demand, someone is trying to buy.

As a result, what do we have? The producer price of hopper cars increased by 67 percent from January 2022 to November 2023, according to our estimates. Moreover, the process of raising prices for railcars is still underway. Some members of the Union [of Grain Exporters] are now receiving notification letters about price increases for already contracted volumes.

The second issue is that following the growth of prices for railcars and the growth of demand, rental rates for these cars are also growing. Today we have a situation: to bring grain from the center of Russia to the southern, Black Sea ports, the tariff is somewhere around 4 thousand rubles per ton. This is the tariff that is deducted from the purchase price of the exporter at the port, and accordingly, our farmers receive less. And if we talk about Siberia, and for them the most optimal route is to transport from Siberia to the Baltic ports, then there the tariff can reach 6 thousand rubles per ton without VAT. Accordingly, this is comparable to the price of the grain itself. That is, almost half of the price that the exporter is willing to pay to the farmer goes to transport costs.

We believe that this seriously reduces our competitiveness and, most importantly, kills the motivation of farmers to increase production, and the volume of exports directly depends on production volumes. We ask you to give instructions to all authorized departments and ministries in order to analyze the situation with railway transportation, because this is really a key development problem for us today.

Thank you very much.

Vladimir Putin: We exported grain, in my opinion, in the last season, 2022-2023, about 53.5 million tons, and here, 2023-2024, it will be up to 65 million tons, something like this. The volume is large, and, of course, logistics is extremely important here, I understand. Now on this question, I will linger on this question.

Of course, the railway is a basic condition for the movement of goods in general. 85% of our cargo traffic goes by rail, and now there is still a lot of rolling stock involved at the Eastern Landfill. This is understandable, everyone is well aware of it, and we will develop it. But of course, development in the southern direction is also equally important – this is the Black Sea, the Sea of Azov, and the Baltic too.

It's not just about rolling stock (although, of course, this is important), you just need to develop the railway network itself. There are such plans, they are just a long period of "production".

We have already talked to our colleagues, including from the Ministry of Transport, and there are also private ports that are quite efficient and large. Our departments are making plans for additional investments of public money. These are all questions that need to be studied by a painstaking researcher, as they say, because the question arises: is it necessary to invest public money when private ones have already been invested? I don't want to go into these details right now, but this is definitely something that needs to be done. I want to assure you that we all understand this, but I will once again draw the Government's attention to these issues.

And of course, we need to deal with the rolling stock, I marked it for myself. To be honest, this is the first time I've heard that there are some problems with rolling stock now, although it is clear that they always exist. We had problems with the ratio of the quality of the rolling stock itself and the time of its use, but it seems to have been resolved. I'll talk to the relevant agencies, okay? I don't have a direct answer right now, but it probably can't be. You can't solve such questions just by clicking, but I heard it. Thank you for noticing this.

As for the exchange, of course, you are absolutely right. All stock indexes are formed either in the United States, in Europe, or in Paris. I do not know how much grain the French produce? Smaller than us, I guess, right? By tradition, stock indexes are formed there. Of course, this is unfair, because it also affects pricing.

You have a very good idea. Since there are countries in our BRICS union that both produce and buy grain, I think our colleagues will be interested in this. Moreover, these speculative things ultimately affect consumers, and this is a problem. All governments are trying to solve these problems. I think that we will definitely-that is, not "I think", but exactly according to your suggestion, we will work this out with our partners.

As for speculators in general, it is the same in all industries. Take the energy sector-all one - on-one, all the same, so at one time OPEC was created to stabilize the situation on the market. We are not part of OPEC, but, as you know, now there is such an informal structure as OPEC-plus, which includes Russia and some other countries that are not part of OPEC. This allows you to adjust prices in the market. We are not going to raise prices indefinitely, because it reflects badly on producers and reflects badly on consumers, but we want to achieve stability. We are still managing to do this.

Once again, you are right. In general, we need to take a deeper and broader look at the problem, not only, perhaps, at the creation of some other exchange within the BRICS. You know what I mean, right? We need to think about this as well. (Turning to D.Patrushev.) Yes, Dmitry Nikolaevich? You should definitely think about it. My colleague is absolutely right.

Thanks for the idea, we'll work on it.

You are welcome.

Alexander Belov: Mr President, thank you very much.

We will move on. As we said, we have quite strong positions in grain and wheat production, and what is really interesting is that we have the same situation in breeding, that is, wheat varieties are almost all Russian-made.

By the way, this is not the case in all sectors, including crop production. We all know that we have certain ambitious goals in terms of providing domestic breeding for such sub-sectors as oilseed production, sugar beet, and so on.

Therefore, this topic is actually very important. To a large extent, the solution of this ambitious task depends on the efficiency of production and the competitiveness of our products in global markets, on the other hand, the economic availability of these products in the domestic market.

What is happening in the breeding industry now? I would just like to give the floor to our colleague Mark Hecht. This is the CEO of the company "Rusid".

Mark, please have the floor.

M. Hecht: Hello, Vladimir Vladimirovich!

Thank you very much for showing interest in the role of breeding and seed production in the development of our domestic agro-industrial complex. Our colleagues talked a lot today about the fact that production is growing and exports are growing. But, in our opinion, in order to fulfill your last instructions in terms of increasing this production, it is extremely important now to pay attention to the production technology, so that it is also domestic, and this, of course, concerns breeding in the first place. As some colleagues have already pointed out today, not everyone is interested in increasing the production and export of our products. It is probably a bit risky to entrust our seed crop annually to the top-four foreign multinational companies, which for the most part are still residents of unfriendly countries.

In fact, all the risks associated with this are quite obvious. These are the risks of non-deliveries, the risks of reduced yields, the risks of introducing various diseases, that is, in one way or another, external control over our internal production.

At the same time, it is worth noting that the Government has already done a lot of work in terms of solving this problem. Thus, amendments were made to the Federal Law on Seed Production, which really stabilized, or rather systematized the work of domestic seed production on the territory of the Russian Federation. These are, of course, the Rules for localizing the production of foreign seeds on the territory of the Russian Federation. In other words, there are some rules for the operation of foreign companies in Russia. And of course, this is the Federal Scientific and Technical Program for the Development of Agriculture until 2030, which our company participates in together with our partners – the Vasily Stepanovich Pustovoit Research Institute of Oilseeds in Krasnodar, a state scientific breeding institution.

We have been working with them for the sixth year now. To be honest, when we first started on this path, we saw and set ourselves the task of fighting foreign companies, we were very surprised that Russian breeding institutions really have potential, there is something to work with, you just need to add, so to speak, world practice, marketing, somewhere a little work with quality, and in principle, everything will work out for us.

Together with our partners from VNIIMK, we invited key market players (both agricultural producers and processors) to participate in this program in order to create a correct, well-developed technical task for our scientists from the business side in order to create high-quality technological solutions that the market really needs in the shortest possible time.

We control and develop technical specifications at all stages of sunflower production in the country-from selection to oil processing and production. This also applies to the field characteristics of the seeds that we need to produce, and the chemical composition of the oil that will be obtained from them.

Nevertheless, special attention should be paid to the fact that today there is no widespread rush demand for Russian products on the part of our farmers, primarily, of course, due to the fact that for many years agronomists have become accustomed to sowing foreign seeds, all their technologies are based on foreign selection. This is a long, very painstaking effort to promote Russian breeding achievements, even in the domestic market, I'm not talking about the external one right now.

In fact, the work is underway, and the Ministry of Agriculture has helped us very well this year in terms of import substitution. Restrictions were imposed on the import of seeds from unfriendly countries, which really became a serious help for Russian producers.

We are seeing a revival in demand for Russian seeds and a growing interest in domestic production. Even now, we can accurately state that next year, perhaps, import of such crops as sunflower, corn, soybeans may not be necessary.

In this connection, Mr President, I would like to make a suggestion. In your opening speech, you said that the industry is really working correctly, maybe something needs to be "tweaked" somewhere. In this regard, the following suggestion: perhaps, in order to accelerate import substitution in seed production and breeding, we will tie state support, that is, we will give state support only to those enterprises that use Russian breeding and genetic achievements?

Thanks

Vladimir Putin: If I understand you correctly, we are talking, among other things (if I am mistaken, please correct me), about the law, the decision that was taken in 2016, in my opinion, when we stimulated the import of foreign genetic materials, breeding materials and provided certain VAT benefits there. That's what we're talking about, isn't it?

I'll give the floor to the Minister now. Here, this is a purely departmental task, so I will now ask Dmitry Nikolaevich to speak out.

Of course, I want and need to support you, there is no doubt. This is the Achilles ' heel of our agriculture – as long as there is no own base, then, of course, dependence remains, and this is one of the serious technological keys. Therefore, here, absolutely, we need to go out to ensure that we provide for ourselves.

But the question is simply relative: how much to allow to import, so that nothing falls when the required crop volumes are reached, and how to build this dynamic of supporting your own producers. The ratio must be the golden mean.

Yes, please, Dmitry Nikolaevich.

Dmitry Patrushev: Thank you.

Dear Mr Putin, you are absolutely right, we need to approach this issue very carefully here.

As part of solving the problems of our own breeding and genetics, we still need to ensure the volume of agricultural production. What we did now – we restricted the possibility of importing imported breeding, which was also taken quite hard by the market, and we said that we could lose quite a serious crop volume if we use only our breeding and prohibit, let's say, quotas for the import of imported breeding.

But at the same time, of course, we are generally determined to ensure that our breeding develops. In the future, it would be absolutely correct to give support only to those farmers who use our selection, but only if our selection goes through the path of development and shows not less, but already better results than imported selection. We are on this path and will continue to do so accordingly.

Vladimir Putin: Dima, we need a schedule. We need to understand how this will move over the years. Breeding is not only about crop production, but also about animal husbandry. We are gradually reducing this support. This exemption from VAT is valid, in my opinion, until 2025-the exemption of those who imported the relevant material here. We extended it twice, but we probably don't need to extend it a third time.

Dmitry Nikolaevich?

Dmitry Patrushev: Mr President, you are talking about genetics right now.

Vladimir Putin: About genetics, yes.

Dmitry Patrushev: Indeed, who imported them – we will end this tax benefit at the end of 2024.

Vladimir Putin: There is no need to extend it in 2025.

Dmitry Patrushev: We do not plan to extend it from 2025. And this is a question of plant breeding.

Vladimir Putin: Yes, but in principle the approach is the same.

Dmitry Patrushev: Absolutely.

Vladimir Putin: Of course. Look, our cows produce from 5.5 to nine tons of milk a year, and the Holstein breed – 11. We need to make sure that our cows produce 11-12 and more, give milk. The same applies to all other areas of agricultural production. But it is absolutely necessary, Dmitry Nikolaevich, to make sure that they understand how this will develop, and that our producers also understand that this will decrease from year to year, and they will gradually switch to purchasing our materials. Then our manufacturers of materials will increase the material base for their own production.

Dmitry Patrushev: We will continue to do so, Mr Putin. We will make a schedule and, accordingly, we will focus on it.

Vladimir Putin: Good. Thanks

Alexander Belov: Thank you, colleagues. In fact, a lively discussion ensued. I hope that we will also discuss the following issues in a very lively format.

We will move on. Another aspect related to crop production, which I would like to mention, is probably the deep processing of crop products. This is a story related, among other things, to the implementation of biotechnological projects. In general, biotech, new products, new materials are a global trend. I must say that Russia does not occupy the most recent positions here. We do have agricultural companies, large holdings that pay very serious attention to this area and invest very significant funds.

Today I would like to introduce my colleagues from the EFKO Group of companies. This is one of the largest agricultural holdings – a company that has a very serious research center in the Belgorod region, develops research centers in a number of foreign countries, works very seriously on alternative sugars and generally on projects in the field of biotechnology.

Now I would like to give the floor to Vladislav Romantsev, Director for Strategic Development of EFKO companies, just on the issue related to biotech: what are the prospects, what are the challenges, and what kind of targeted state support is needed here.

Vladislav, please have the floor.

Vladimir Romantsev: Mr President, good afternoon!

Indeed, as our colleagues correctly said, we have increased the production of basic types of products many times since 2014, but this was also done using foreign technologies. And now we need to make a breakthrough in the development of these areas, one of which is biotechnologies. Biotechnologies play an important role throughout food production, as we say, from the field to the counter practically.

Our company is currently implementing a project for the development and production of enzymes of one of the most popular biotechnological products in the agro-industrial complex. The project itself is quite complex, and it can be implemented effectively only in close cooperation between science, business and the state, and the key role here belongs to science.

We actively cooperate with many leading scientific institutions and universities. I will name just a few of them: These are the Kurchatov Institute, the Institute of Cytology and Genetics, Moscow and Novosibirsk Universities, and the Timiryazev Academy.

To attract young, promising scientists to the project, we have created a joint laboratory together with Novosibirsk State University and the Institute of Cytology and Genetics. We take part in pilot projects under Russian Science Foundation grants. We believe that this is a very good and important experience – an opportunity to involve leading scientists both in the implementation of projects and for objective acceptance of research results.

For our part, we are ready to put these results into production in a very short time. We have already completed the design and construction of a large plant in the Belgorod region, and next year we plan to start the production of enzymes. The first stage of the plant, according to our calculations, will cover more than 50 percent of the needs of the Russian Federation in feed enzymes.

The Ministry of Agriculture actively supports us in this project. We are actually implementing it together with the Ministry of Agriculture within the framework of the federal scientific and technical program. It is very important, of course, to get a product and develop a technology as a result, but, in our opinion, the most important thing is to form a team that will be able to solve such problems in the future.

We are not going to stop there. We have already started developing new innovative products, such as biological plant protection products and biofertilizers. We understand that this is the future, this is already a target for the global market. We understand that we must be competitive in the global market, that our products must meet the highest requirements. This is the level we set for ourselves today.

We have a sufficient number of state support measures in place in our country that allow businesses to develop sustainably. And for this, of course, I would like to express my gratitude to you and the Government of the Russian Federation. But for high-tech projects that have a rather long product development cycle, introduction to production and market, this may sometimes not be enough. Therefore, in order to make a breakthrough in biotech by 2030 and gain technological sovereignty in this area, we would like to ask you to consider the possibility of developing tax support measures for the emerging Russian biotechnological industry. This is very important, especially when you have to build an industry almost from scratch. We ask for your support in this matter.

Thanks

Vladimir Putin: Of course. There is no doubt about it: it is clear that you are at the very forefront of solving the problems of industry development, this is understandable.

At the beginning of our conversation, a colleague spoke about land, our competitive advantage, our talented and hardworking people, and water resources. But technology? Yes, of course, without modern technologies, we will not achieve the result we need on such a global scale, and we are now getting results of just such a class.

Of course, we will have to support them: the Minister listens, is present here, of course, we will think about it. The industry itself should consider, together with you, of course, what support measures, including fiscal and tax ones, can be offered to you.

In my Address, I spoke, for example, about doubling the parameters that would improve the solution of issues related to depreciation when our companies purchase high-tech Russian products. The same can be applied to these technologies. Of course, please.

Dmitry Nikolaevich, mark it. We can do this as a first step. It seems to me that this will be a good move in the right direction. And so, we need, of course, a set of measures, this is quite obvious, I agree with you. Let's work together.

Alexander Belov: Mr President, thank you very much. We will probably move on.

And the next sector that I would like to talk about is gardening, especially since we are present in the Stavropol Territory. The segment is developing very dynamically and has developed well over the past 10 years. By the way, this is largely due to the emergence of new mechanisms of state support. In this case, it is subsidizing the laying of perennial plantings. This is indeed an incentive for a huge number of regions, an incentive for the development of this sector in a large number of regions – both the Southern Federal District and the Central Federal District. Here we really see results, but at the same time there are, again, some specific issues that concern our colleagues.

I would now like to give the floor to Anzor Kumykov, the General director of Kabbalkrastenovodstvo.

Please have the floor: what's bothering you, what are the challenges?

Alexander Kumykov: Hello, Mr President!

I am the head of an enterprise that deals with one of the most important areas of agriculture in the Kabardino-Balkar Republic – industrial gardening.

First of all, let me thank you for your unprecedented support of our industry, as well as for your great attention to the development of the agro-industrial complex as a whole.

High rates of laying new plantings by gardeners of the republic allowed to multiply production volumes. The republic's achievements have been repeatedly celebrated at various industry platforms and events. If 10 years ago we collected about 60 thousand tons of fruits and berries, today we collect more than 500 thousand tons. We are one of the leaders in this industry…

Vladimir Putin: Almost 10 times?

A. Kumykov: Yes.

Vladimir Putin: Wow! Great.

Alexey Kumykov: We are one of the leaders in this industry, second only to the Krasnodar Territory. I hope we'll get ahead of him soon.

During these 10 years, thanks to support measures – which are about 400 million rubles in subsidies for planting orchards, caring for them, capex [capital expenditures], and soft loans - only my farm has significantly increased the area of plantings, increasing the volume of commercial apple production by a multiple. During this period, we have built eight modern fruit storage facilities, and last year we launched a fruit processing production complex with a capacity of 240 tons per day-the production of concentrated apple puree for baby food and the confectionery industry.

At the same time, Mr Putin, gardening, like all agriculture, is highly dependent on material and technical resources, their availability and prices. For example, last year in the southern regions of the country there was a situation when prices for diesel fuel soared very much, and there were problems with its supply to farmers. For example, the cost of a liter of diesel fuel was 80 rubles, sometimes reaching up to 100 rubles per liter.

There were times when we had to travel to other regions, buy diesel fuel there, in particular to the Volgograd and Voronezh regions. We managed it, and the agricultural work was completed in the optimal time frame. But because of this sharp jump in prices, the cost of our products increased from two to four percent.

I would like to ask you, Mr President, to instruct the relevant agencies to avoid such a situation next year for farmers with prices and availability of diesel fuel. I know that the Government supported the initiative to restrict gasoline…

Vladimir Putin: On the ban on exports from March 1.

A. Kumykov: Yes, it is banned, but diesel fuel is a higher priority for us, as we use it eight times more than gasoline. We ask you, dear Vladimir Vladimirovich, to give instructions to develop a mechanism to guarantee the satisfaction of the domestic demand of farmers for diesel fuel.

Thank you very much.

Vladimir Putin: You said it yourself about petrol, and I can confirm that there will be a ban on exports from March 1. But as for diesel cars, we always do the same thing every year: every year we do the same thing, including, first of all, providing agricultural work with fuel. We have already come up with various approaches, and the most effective ones are all sorts of contracts, contracts, and so on, bans and restrictions on export. As for diesel cars for this year, this decision is quite fresh. We increased the sales duty on the stock exchange from 12 to 16 percent, I don't remember exactly. In general, the volume of sales on the exchange should be increased. This decision has been made since March, in my opinion. But really, the Ministry should just tell me.

You can be sure that I will support any decision, and I emphasize this, and my colleagues from the oil and energy sectors know this-any decision that is designed to ensure the implementation of spring agricultural work. It should be balanced, of course, and it should not kill the hen that lays the golden eggs. One of these sectors is, of course, the energy sector, which goes without saying. But these decisions simply need to be made in a timely manner.

Last year, indeed, there was some kind of stupid situation, Dmitry Nikolaevich reported to me when you had to travel, as you have just said, from one region to another. It's a lot of nonsense, but still. But this was allegedly due to the fact that some regions did not do something with their suppliers in time, and so on.

I hope it won't happen this year. Dmitry Nikolaevich, please keep this under control. If you see that something out of the ordinary is happening there again and there are some failures, just respond in a timely manner. I spoke with the Prime Minister about this issue. The tools are clear, and what needs to be done is clear. It is only necessary to make timely decisions, and for this purpose it is necessary that the Ministry monitors the realities that occur in the market.

You can be sure that this is one of the key tasks of the country-to provide itself with a decent harvest, and not only for grain, but also for other types of agricultural products – forage and so on. Don't hesitate: any solution will be supported. The only question is that it should be initiated in time – that's all. And of course, it should be balanced, it should not kill another industry, this is understandable, because in the end, if we undermine one industry, it will also harm agricultural production. The main thing is to be timely.

There were several factors last year – I won't talk about it by this evening, but we will definitely support it. All the tools are clear, known in advance, and you know them all yourself. Just a ban on exports, it is the simplest – there is a market instrument and so on, but it doesn't matter. It is only important that the question is raised in a timely manner.

Dmitry Nikolaevich, are there any problems right now, and do you see them in the industry as a whole?

Dmitry Patrushev: Mr President, today the situation is quite stable, we are in contact with the Ministry of Energy, and we are also in contact with Novak. We have signed a plan according to which our farmers in different regions should receive the required amount of fuel at normal prices: both diesel and gasoline. Accordingly, so far there are no acute problems. If they do, I understand everything, so I will report on time to develop appropriate solutions. While the situation is stable, I repeat once again.

Vladimir Putin: Do you have the ability to monitor? I don't think there are any problems here.

Dmitry Patrushev: Yes, we have signed a supply plan with the Ministry of Energy to date. We will watch how it is executed. If there are deviations, we will signal them.

Vladimir Putin: If energy companies know in a timely manner what they need to do and how much they need to do, they react calmly, despite the external market conditions. They're used to it. The main thing is to clearly understand in advance who should do what, in what volumes, and that's all. We will try to do everything.

Alexander Belov: Mr President, thank you. You said that we have sectors – such hens that lay golden eggs. I really hope that agriculture is a chicken that will also lay golden eggs in the future. That's why we need a little support and encouragement now, and we will also lay golden eggs.

Vladimir Putin: So we will. I repeat once again: we will do everything possible to ensure next year's harvest. There can be no doubt about it.

Alexander Belov: Thank you.

We will continue. I would now like to give the floor to my colleagues. We in Russia are used to support measures: the national project was launched 20 years ago, the state program has been actively developing for 15 years, and this is not the first state program. But we have regions that have recently joined Russia, and the issues of, for example, a systematic approach to the development of agriculture there are at a slightly different level.

Right now, I would like to give the floor to my colleagues from the new regions. I would like to give the floor to Igor Gorbunov, founder of the Melitopol Cherry production company.

Igor, how is the situation in your regions, what concerns you, what is the situation, what are the prospects?

Vladimir Putin: When do cherries ripen?

Igor Gorbunov: We will expect the first sweet cherry in May.

Vladimir Putin: That is, not long left.

Igor Gorbunov: Dear Vladimir Vladimirovich,

I represent the agricultural company "Melitopol cherry", we are from the new territories. Our company processes 12 thousand sown lands in Zaporizhia and Kherson regions and more than 600 hectares of orchards.

Our company's products have already been recognized in the regions of Russia: this is "Melitopol sweet cherry", it has a demand, we have a desire to grow it in large volumes and supply it to Russia. Now we supply it to retail chains in Moscow, St. Petersburg, Rostov and the Republic of Belarus. We hope that we will deliver to other cities of Russia as well.

We managed to keep the team, which is more than 300 people. The support measures provided by the Russian Government and, in particular, the Ministry of Agriculture have greatly helped us in this regard.

The company plans to increase the volume of sown land by 30 percent, as well as produce horticultural products. We want to introduce even more regions of Russia to our product, our Melitopol sweet cherry.

Currently, we have a problem with lending – difficulties in obtaining loans. The Russian Ministry of Agriculture has developed good concessional lending programs, but they are not available to us, since banks refer to standard requirements and instructions when considering our applications.

Vladimir Putin: On collateral, on credit history, and so on.

Igor Gorbunov: Yes, absolutely, and at the same time on the credit history for two or three years. Our company, like other enterprises in the new territories, was registered only a year and a half ago, and we have not yet managed to develop this credit history.

And the deadline for reviewing applications is extremely long, and in agriculture, deadlines are also very important: neither the field nor the gardens will wait.

A big request to you: consider simplifying the requirements for issuing loans to companies from new territories, and we, for our part, will grow and feed Russia, we are ready for this.

Vladimir Putin: Yes, absolutely legitimate question. I understand what it's all about. We have now determined that there are no normal deposits, no prehistory – of course, there can't be any, but we need to work now – and there are opportunities, and people want to work. In fact, the question is very important, I agree with you.

We have a schedule for entering the economic and legal field of Russia, which requires several years, but we need to work now. True, now banks have also started to issue soft loans, but this, unfortunately, has not become widespread. And I honestly don't see anything else here yet. In my opinion, we haven't worked it out – we need to work it out.

The Central Bank and the Ministry of Finance, together with commercial banks, should work out this system, and I agree with you. Moreover, the agricultural products of these regions, quite obviously, are paid for, guaranteed by nature itself, the hard work of people and the sales market – all this is there.

In fact, there are not so many risks there. We need to work on this, expand the volume of concessional credit resources issued and think about guarantees.

Igor Gorbunov: Thank you.

Vladimir Putin: Thank you for your work. And it is very important now to establish a normal life in these territories, it cannot but be connected with work. The agricultural sector in these territories is one of the key ones, this is quite obvious.

Igor Gorbunov: He's the main one there.

Vladimir Putin: Of course. Therefore, I ask Dmitry Nikolaevich to think about it. Please work with the Ministry of Finance and the Central Bank, and I will also join you. Ok? In my opinion, soft loans are already being issued there in a small amount?

Dmitry Patrushev: Mr President, the volume is quite small.

Vladimir Putin: Yes, I know.

Dmitry Patrushev: About five loans were issued. In 2024, the process is underway, but it is necessary to change the approaches to the formation of the requirements that commercial banks currently have for issuing these loans, you are absolutely right. We will not be able to cope without appropriate recommendations for the Central Bank and the Ministry of Finance. First of all, they are, of course.

Vladimir Putin: You know, we can't think of anything else but state guarantees. And what will we come up with? If there are no collateral and no credit history, what should I invent? We need to assess these risks together with the banks and not overestimate them or bully them. Moreover, all the cherries that they will produce, one hundred percent, if no one interferes, everything will be sold.

Igor Gorbunov: That's right.

Vladimir Putin: Of course.

Igor Gorbunov: We have a demand for sweet cherries, and we are ready to grow them.

Vladimir Putin: One hundred percent, don't even go to your grandmother, everything will be sold. Yes, there are always risks: the hail has passed, or something else. But they are no bigger than in other territories. You should definitely think about it. Please talk to your colleagues. I will support any solutions here. We need to help them.

Dmitry Patrushev: Very well, Mr President.

Igor Gorbunov: Thank you very much.

Vladimir Putin: Thank you.

Alexander Belov: Mr President, thank you very much.

A very large number of issues that concern farmers are still related to energy issues in one form or another. Indeed, the energy resource is a very important component in the cost of almost all types of products.

Vladimir Putin: I'm sorry.

What is the approximate loan volume for your company? Specifically for your company, what loans would you apply for, expect?

Igor Gorbunov: We were counting on about 200 million rubles with the condition of expansion, especially since we still have a self – processing complex in our program: refrigerators, sorting. The better the package, the more product we will produce and ship. Not everything you grow can be prepared and shipped on what you have. Moreover, our sweet cherries are better than the ones that are brought to us.

Vladimir Putin: Yes, of course, one hundred percent. Well, thank you.

Alexander Belov: I will return to the topic of energy: a really important component – the energy resource-is the cost price of almost all types of agricultural products.

I would like to talk a little more about gasification. It is particularly important for a number of sectors, such as aquaculture and greenhouses. I would now like to give the floor to Anton Alekseyev, Chairman of the Akvaferma Agricultural Consumer Processing Cooperative.

Anton, please have the floor.

Alexey Alekseyev: Hello, Mr President!

First of all, I would like to thank you for the opportunity of my participation in such a wonderful event and the opportunity to directly ask a question that we are very concerned about.

As you have already correctly said, I am the chairman of an agricultural cooperative that unites fish farmers. In our native Leningrad region, we are engaged in the cultivation of fish – planting material-trout, sturgeon, and produce black caviar. We do all this through industrial fish farming – in swimming pools, on the ground. It is clear that the industry is very sensitive to energy prices.

In your Message, you said that it is necessary to increase production by 25 percent, plus increase exports by one and a half times. Therefore, the problem that I want to identify, I think, directly affects whether we can successfully achieve this.

We, for our part, we’re waiting for a reduction in electricity tariffs. In the Leningrad region, specifically in my farm, this is 14 rubles per kilowatt. This is really very expensive, unfortunately. Since we were a little tired of waiting, we decided to take matters into our own hands: we purchased a gas piston unit. Our regional agro-industrial complex helped us subsidize it, respectively, out of 10 million rubles, half of the amount was returned to us, for which many thanks to our agro-industrial complex. And instead of 14 rubles, a gas-piston installation allows you to have electricity for 4 rubles, plus a bonus to each 1 kilowatt of electric energy, we get 1 kilowatt of heat. It is easy to guess that this reduces costs very much. A 200-kilowatt gas-piston plant costs 10 million rubles.

Fortunately, there was a gas pipe on my site, so I went through the" quest " of gasification easier than my other colleagues-farmers do. Accordingly, I have examples where farmers wait several years to meet technical requirements. They would also very much like to use this method of optimizing energy costs, but, unfortunately, this is happening much more slowly than we would like.

Summing up the above, I ask you to consider the issue of preferential gasification of farms and the issue of speeding up this very gasification, because we are ready to optimize, we are ready to invest money, we are ready to increase the volume of products produced, but we ask you to help with gas.

Thanks

Vladimir Putin: I think Gazprom is negotiating with the Ministry of Agriculture here, right? We are nearing completion.

Dmitry Patrushev: We have signed an agreement…

Vladimir Putin: It has already been concluded.

Dmitry Patrushev: ... which will make it possible to purchase gas-piston installations, and pilot projects are being implemented. We suggest you also participate. This will reduce the cost of electricity, of course.

Vladimir Putin: The Minister said, and I also know this: they are holding such negotiations with Gazprom. I didn't know, they had already made an agreement. Do you need any help, support, or intervention here?

Dmitry Patrushev: Mr President, I understand. If I need it, I'll let you know right away.

Vladimir Putin: Yes.

You know about this, don't you?

Alexey Alekseyev: Yes, I had the opportunity to ask Dmitry Nikolaevich directly about federal support for the purchase of gas-piston installations. Just a month ago, there was a meeting at VDNH. Therefore, I have already received an answer to this question, was very happy and went further: once the GPU was given – well, we still need gas. So now to you with gas. (Laughter.) Just give it to us, we'll…

Vladimir Putin: Gazprom's headquarters are located in St. Petersburg, not far from you, so they will help you there.

Alexey Alekseyev: Thank you.

Vladimir Putin: And I will try to support you. Where is the company located?

A. Alekseev: Near Gatchina.

Vladimir Putin: Near Gatchina?

Alexey Alekseyev: We can say that it's right near Gatchina.

Vladimir Putin: Right next to you.

Alexey Alekseyev: Yes.

Vladimir Putin: A city, almost a city.

Alexey Alekseyev: The capital of the Leningrad region thanks to the efforts of our governor.

Vladimir Putin: Yes. How many kilometers are there, 30…

Alexey Alekseyev: 40 kilometers from the Ring Road to Gatchina turns out, and we are two kilometers from Gatchina at once.

Vladimir Putin: Right next to you. Everything is inexpensive there, and the networks are developed there.

Alexey Alekseyev: We were lucky, yes, we have this pipe running, so we showed it to Gazprom and did it. And my guys, farmers who are engaged in meat production in Kirishi, for example, have more problems. They are ready to invest money, but the gas companies are not in a hurry.

Vladimir Putin: All right, let's talk to them. We understand that this already depends on the networks and investments, and Gazprom should include them in its development plans. I'll talk to Alexey Borisovich Miller, we'll get together, the three of us will talk, okay, okay?

Alexey Alekseyev: Thank you.

Alexander Belov: Mr President, thank you. We have already been discussing agricultural issues for an hour and a half. I think that we can have indefinitely…

Vladimir Putin: Interesting.

A. Belov: So we are continuing?

Vladimir Putin: Come on, do you have any other questions? Please ask if anyone has anything to say.

Alexander Belov: Colleagues, please introduce yourself as briefly as possible. A few people were left to ask questions. Keep it as short and informative as possible. Thanks

Vladimir Putin: Please.

Vladimir Maslov: Mr President, my name is Vladimir Maslov. I represent the company AGROECO. We work in the Voronezh and Tula regions, we are engaged in pig breeding.

First of all, I would like to thank you for creating the foundation and creating all the conditions for the development of the modern agro-industrial complex in Russia many years ago. As already mentioned today, Russia has not only ensured food security, but also looks confidently at export markets.

Our company celebrates its 15th anniversary this year. We are also lucky to be at the center of this powerful development. Thanks to the created conditions, a large agro-industrial holding was built from scratch. We produce 300 thousand tons of pork a year, and if we calculate it in terms of average annual consumption, we provide pork to more than 10 million residents of our country. We are building a socially responsible business, and our goals are not only to increase production, but also to improve living conditions in rural areas, because this directly affects our employees – we employ seven thousand people.

Separately, I would like to note that we, in cooperation with local authorities, are engaged in repairing schools and kindergartens, building playgrounds, and promoting children's sports sections. In total, more than 600 million rubles were allocated for these purposes, as well as for social projects.

Vladimir Putin: From your income, from your profits?

Vladimir Maslov: Yes, from our own funds.

Separately, I would like to thank you for the federal program "Integrated Rural Development". We are an active participant and partner of this program.

In recent years, thanks to our participation in this program, we have built three apartment buildings, dormitories, and a sports and recreation complex. In the coming years, we plan to build five more apartment buildings, a kindergarten and another sports and recreation complex. In total, this will provide modern and comfortable housing for more than two thousand of our employees and their families, who will be able to buy this housing-under the terms of the program-in five years for ten percent of the cost.

We are also a member of the federal project "Professionalitet". Thanks to this, we see active changes in the field of secondary vocational education.

So, today about 60 students of Pavlovsk technical school work at our meat processing enterprise and at the same time are trained according to an individual program at the technical school.

I know that there is a federal program to overhaul schools. To be honest, today I planned to take the initiative to create the same program for major repairs of technical schools and dormitories. But you have already announced such a decision in your address to the Federal Assembly last week.

Vladimir Putin: 120 billion rubles are allocated from the federal budget.

Vladimir Maslov: Yes.

I can only confirm the importance and relevance of this decision and suggest expanding the activities – from major repairs to complete reconstruction, because on the example of the Pavlovsk Technical School, we were faced with the fact that individual buildings and structures had to be rebuilt almost from scratch in order to create modern educational spaces.

In your address, you also announced the decision to renovate higher education institutions, dormitories, and create modern campuses. I would like to suggest that, as part of these support measures, we reserve, so to speak, a priority for agricultural universities and their dormitories, because this is really important for the development of the agro-industrial complex.

In conclusion, I would like to note the confidence that the agro-industrial complex and rural areas will continue to develop. Our company will also continue to work in this direction in cooperation with the authorities.

Mr President, I would like to take this opportunity to invite you and the participants of today's meeting to visit us. Believe me, we have something to show you. This is the most modern robotic meat processing enterprise, which employs more than three thousand people. We completed its construction just last year. It is located in the city of Pavlovsk, Voronezh region. By the way, the city of Pavlovsk was founded by Peter I more than 300 years ago and is the birthplace of the Russian navy. Thank you very much.

Vladimir Putin: Thank you very much.

I do not know when we will all get together, but if the next time we hold such an event, then let's meet here. I will do it with pleasure and I think that my colleagues will agree. And so, I will ask other colleagues from the press to show your company. This is the first one.

Second. I want to congratulate you on your results. How much did you invest in the Voronezh enterprise you just mentioned?

Vladimir Maslov: In just 15 years, about 70 billion rubles have been invested. We work in cooperation with Rosselkhozbank. This is our main bank that provided financing. A significant part of the loans have already been repaid. In general, the economic situation is favorable in the industry, and we are fairly confident on our feet.

Vladimir Putin: That's great. I congratulate you. This is a real result. I am sure that both you and those who work next to you probably also have a higher sense of self-esteem. Look at yourself in the mirror: "Oh, well done!"

Vladimir Maslov: Mr President, this is all thanks to the conditions that have been created, thanks to the support of the Ministry of Agriculture and regional authorities. Of course, we are very enthusiastic and enjoy our work very much.

Vladimir Putin: Exactly. This is very cool, an element of self-realization, because piglets are piglets, but this is a solution to a large-scale, national, national task-ensuring food security. Of course, thanks to such enterprises and people like you and those who work with you, who surround you, who help you achieve these results, we have reached the fourth place in the world in meat production. This is extremely important for our country. Now we will no longer sing "Open the gate slowly", because there is something to open, meaning to put in borscht.

Vladimir Maslov: Thank you, Mr President. Now we invite you once again to see everything with your own eyes. Thanks

Vladimir Putin: Thank you very much.

The idea is correct. We have this program, and we will certainly continue to support it, the program of social development – rural areas in this case. It is wider. We are talking not only about rural areas, but also about agricultural enterprises, which are mainly located in rural areas.

When you pointed out the need to put schools, technical schools, and colleges in order – yes, I have already said that we have planned 120 billion rubles for the coming years, but you are proposing to do a deep reconstruction. In fact, this is what is happening, this is not just a major overhaul, this is a really deep reconstruction. There are new swimming pools, completely new classrooms, and modern equipment. This is a real reconstruction.

I was there in one place, the teachers themselves, the teachers say: "New school, new". We will try to do the same in technical schools. And for the repair of universities… You've probably heard about campuses, and there is another program to repair higher education institutions – we allocate 124 billion rubles there. I assume that the dormitories will also be built, it will be a deep reconstruction, not just the facades were repainted – that's all. Anyway, what I've seen so far, and what we've been aiming for, is exactly reconstruction. The same will apply to the relevant institutions of higher education.

Thank you.

O. Sirota: Vladimir Vladimirovich, Oleg Sirota-farmer, cheese maker, Chairman of the Council of the People's Farmer Association.

I would like to thank you for the counter-sanctions of 2014, which was an absolute decision. This year is our anniversary, we farmers always celebrate this event and believe that everything was done correctly. Remember what the "howl in the swamps" was, that nothing would work out, and on the Maidan they shouted that "you are eating up the last hedgehogs in Russia". And we did it, guys! Vladimir Vladimirovich, it turned out the same!

Vladimir Putin: It turned out exactly right.

O. Sirota: We feed not only ourselves, but also half the world. And now we will implement the Message and feed the whole world in general.

We have fantastic success in cheeses, we have replaced everything: semi-hard, hard, what not, with mold, burrats in Russia are more than in Italy, they are already eaten, they have received international awards at exhibitions. It's all good.

We found a farmer's niche on the berry. 90 percent are small businesses. We will produce everything, except bananas, there are still some difficulties there.

Vladimir Putin: You can also produce bananas, but it's expensive, and you need a lot of electricity. If we supply gas-piston engines, we may also produce bananas.

O. Sirota: Now Gazprom will run the gas pipeline, and we will grow bananas.

We have generally good conditions. Previously, we envied our German colleagues, but now they are "Maidan" in Berlin and envy us. We have a cheaper loan rate than they already have. We have less than the inflation rate in Russia.

The biggest achievement, of course, is our grain and its production. We've doubled in ten years. I talked to my father, and I said, "Dad, how was it before?" And he said, " The Soviet Union bought grain. Your grandfather and I didn't even think that anyone would export at all." And now we are world leaders, and two-thirds of the record harvest is ours, farmers, small businesses and farmers.

Our main means of production is land, and there is no way without it. And there are difficulties here. Last year, a law was passed on allocating land to farmers without bidding. Thank you, it's just easier.

Vladimir Putin: One more time. Land allocation?

O. Sirota: Allocation of land to farmers without bidding. Part of the land can really be bought without bidding.

But some of it still goes to auction. If I go to such auctions now, then, you know, "the mafia wakes up" will appear and start raising the auction bids, playing with me. And I will have to pay them back, give them money up to half the value of the land now. Speculators work all over the country, sometimes they win such auctions, then they store the land, do not use it. Even in grain, super-grain regions, there is such land. Then it is withdrawn, and the land is idle for a very long time.

There is a proposal to create criteria for such auctions, so that not everyone in a row, but recipients of state support or agricultural producers. Somehow limit speculators so that they don't go there, and then we will be able to enter more land.

Second question. It is probably the most painful, sick one, and it unites absolutely all of us sitting here – both me, a farmer, and my colleague, who has millions, billions invested and thousands of people working – it is personnel.

We have left the industry for a year 240 thousand people. Of course, we are happy for our industry, which is growing, very happy. But we have a problem-the outflow of people. Of course, we are actively implementing it: we set up milking robots, robotize ourselves, and use drones. But we can't replace that many people yet. We are trying to attract young people, and we really need help in popularizing the profession of an agro-industrialist, an agrarian, and a technologist. We need young people to go. This should be done immediately and urgently.

Then, you know, I tried for a long time to find out what the reason was. I found my children's social studies textbook (the sixth grade of our comprehensive school), and there is a picture of a city – such a beautiful metropolis, and the village is such a skewed "syroyuga" from a hundred years ago, some goat that is dying of hunger, and the children are like: "Dad, this is how you should live in the village, right?"I say,' Kids, it's not like that at all.' They say: "Something, Dad, you're starting to deceive us somehow. I think that's how they live."

And what kind of image is formed in children? Probably the wrong one. Maybe we can do something like this already, tell our schoolchildren and children that we already have unmanned harvesters in Russia, drones are being made, milking robots have been launched-all this is already there.

We have reached the point where we went to schools, and we are already beginning to "vacuum" schools. There are agricultural classes: somewhere it is a circle, somewhere a section, somewhere we take someone to work under the guise of an agricultural class. But the work is very unsystematic. I would like to ask you to adopt the standard of education - as there are math classes, natural sciences, make us agro-industrial classes, so that we can additionally teach children biology, chemistry, physics, maybe so that there is always practice. We would then accompany them to college, to university, and then they would be hired by us. This is very important to us. Now even the salary is not a decisive factor.

If we get rid of this problem, then we will definitely feed the whole world.

Vladimir Putin: I was just talking here at the company about where tomatoes are produced. One young man says: "Maybe we should rename the profession of an agronomist, call it something else?" I told him that I didn't think it was appropriate, although the people who are involved in this production should figure out for themselves if something more creative can be offered.

But in general, from the point of view of popularizing this type of activity, of course, we still need to work here. Although I think that, to be fair – as you probably should have noticed – we have a lot of talk about our achievements, about agriculture, about the people who work in rural areas. This is probably not enough, but it can also be done more creatively, intelligibly, and spectacularly in order to create an image of a person who works in rural areas that is attractive both for living and working. Although there is still a lot to be done in rural areas to make life and work in agriculture and life in rural areas worthy of today. Much more needs to be done. But this does not prevent us from showing the attractive aspects of living in rural areas and working in the agricultural sector, because there is really something to be proud of there. I don't want to go to the third round and talk about our achievements, but the prospects are interesting. This is becoming an increasingly high-tech field of activity. This is great, very interesting. This, of course, does not just need to be considered, but additional steps should be taken in this direction.

As for the first part of your question. You talked about acquiring land without a competition. It is necessary, of course, to think over the details, but I believe that this should be done. You're taking the land for five years now, aren't you?

O. Sirota: Yes, for rent, and then they raise the horse rental rate.

Vladimir Putin: For five years you take now without competition, right?

O. Sirota: Yes. You can do it without a competition, but part of the land goes to the competition, and this mafia appears there.

Vladimir Putin: Yes, I understand. The mafia is immortal, but you need to know how to fight it. This is understandable.

We certainly have such tools, but we just need to use them carefully. And since this mafia is inventive, you need to be at least half a step ahead of it. And to do this, you do not need to be afraid and you need to keep in mind that this mafia is a mafia why? Because it is often affiliated with those who make decisions about whether to give or not to give, in this case land, without competition. I think that it is necessary to give.

Dmitry Nikolaevich, at what level is this being resolved?

Dmitry Patrushev: This year we have adopted a law on the transfer of land to small businesses without bidding.

Vladimir Putin: A five-year lease, right?

Dmitry Patrushev: Yes. I think we should just see how it works. We don't have any data yet on how this all works. And then then…

Vladimir Putin: Look. Because what are the concerns here? That if this mafia gets into these tools and uses the tools that we are talking about now, then this is probably not the solution to the problem either. The minister is right, we need to see how it works, and we will expand it.

The idea itself is absolutely correct, and I support it.

O. Sirota: Thank you.

Vladimir Vladimirovich, can you give me instructions on agricultural classes?

Vladimir Putin: Yes, agricultural classes-this is especially true for schools in rural areas or in one way or another related to agricultural production, just need to be done, Dmitry Nikolaevich will remind us. You need to be very careful here, because our children are already overloaded, but career guidance is absolutely necessary, especially since we are now actively engaged in this – "Professionalism" and so on. And we talk about it at industrial enterprises, we talk about it with our colleagues from scientific institutions – so that children are invited to watch. I even mentioned this in my Message – that children should be invited to museums and large enterprises, and the same should be done in the field of agricultural production.

Of course, we will, I will definitely give such a signal. The idea is good and correct.

Thanks

Alexander Belov: Thank you.

Please, Andrey, then probably Irina.

Alexander Romanov: Mr President, good evening!

Vladimir Putin: Hello!

Alexey Romanov: Thank you very much for your attention to the industry and your immersion in the nuances that exist here. Of course, as a manager, I simply admire this. We still have to learn, learn and learn.

I will say a few words about the dairy industry. In general, the dairy industry is developing well and successfully. At the end of last year, the volume of commercial milk production increased by 4.3 percent. Everything seems to be going well: advanced farms have the most advanced technologies in maintenance, feeding, and treatment. But, as you said correctly, we need to move on.

The next stage is genetics. And today, a lot has already been said about genetics. We also need to do this, because, as I said, a few years ago we gave a privilege for genetic material, because there was no such thing in the country. At that time, the decision was absolutely correct: thanks to this, the productivity in dairy farming increased very much, we became competitive and were able to provide the Russian market, and now dairy products are exported after our leaders-butchers.

Vladimir Putin: I'm sorry.

I'll ask the cheese farmer. (Turning to Fr. Sirota.) Where did you get the cows for cheese production?

O. Sirota: We have all elite chicks: sometimes from Kaluga, sometimes from the Moscow region.

Vladimir Putin: Yes?

O. Sirota: Everything is ours, dear.

Vladimir Putin: Do they provide the fat content needed for cheese?

O. Sirota: We need more protein and, of course, seed. When you inseminate a good seed, there will also be good genetics. In two or three generations, fine cattle.

Vladimir Putin: So you're already working with our material?

O. Sirota: Yes, most of the farms are already working with us.

Vladimir Putin: Great, thank you. good luck to you.

Alexey Romanov: Last year, a subprogram for the development of genetics of dairy cattle was adopted as part of the federal scientific and technical program. This subprogram provides that we should create our own database of breeding stock in the country, develop an index of breeding value, and most importantly – remove dependence on foreign technologies and foreign databases. And this work is now actively underway, together with the Ministry of Agriculture, we are moving in this direction.

In the world, this technology has been developing for the last 20-25 years. Our goal is to complete this journey in just three to five years, which is much faster. But today there is already an enterprise in the country that produces genetic materials. This genetic material, as a colleague said, is also already competitive.

In November 2022, our Governor, Anton Andreevich Alikhanov, and I reported to you, dear Vladimir Vladimirovich, about the opening of such a facility in the Kaliningrad Region. And this enterprise is working, we are moving on.

We actively compete in the market with imported products, but today imported products are not subject to VAT – zero rate. We work at the rate of 20 percent. Theoretically, we can choose a preferential tax regime, but in this case, all the expenditure part that we have, where there is VAT, falls on the cost price and leads to an increase in the cost price.

We would like to ask you to consider introducing a single VAT rate – 10 percent-for everything: for both imported and domestic materials. This, firstly, will make the competition in the market more fair, and secondly, it will give us an additional impetus for further development as producers.

Thank you so much for your attention.

Vladimir Putin: It seems to me that VAT does not play a big role here. We'll definitely take a look. Here, the advantages that importers received were related to exactly what you said: we did not have our own materials, and so on. But now it is all leveled off, just these benefits will not be extended after January 1, 2025. So the basic parameters will be equalized. But if you look at the VAT rate – we'll see. As a rule, all exceptions are perceived with hostility by the Ministry of Finance, because they believe that this destroys the tax system itself. But nevertheless, we will definitely see.

Here you need to look at the overall relationship between importers and their producers. Of course, we have our own roads, first of all. Sorry for the bad manners, what do we care about importers if they can produce their own? Of course, you need priority.

The only problem here is that they didn't have their own way, and they had to tighten production volumes. That's all. The industry headquarters should simply orient us and tell us, and then we will work with the Ministry of Finance and other departments of the economic bloc.

Yes, please, Dmitry Nikolaevich.

Dmitry Patrushev: We will work with Anton Germanovich, the Ministry of Finance, and the deputies ' corps. Indeed, the benefit is coming to an end this year. In principle, we can equalize it and try to reduce it to 10 percent. You are absolutely right, it will not be easy to reach an agreement with the Ministry of Finance, but nevertheless we will try.

Vladimir Putin: Let's see, let's see. It's not even about the fiscal burden or getting these revenues, because they are not so big there. The fact is that they usually object to the distortion of the tax system itself, and all the time they strive to reduce the number of withdrawals, waste from the general rules. Nevertheless, we will definitely work, we must proceed from the realities of production, from what is developing in the market. Of course, first of all, we need to support you. So we will do it, there can be no doubt about it.

Why do we need importers? We only need importers to improve our situation, that's all. There can be no doubt about it. Let's work together.

Alexander Belov: Thank you.

Sergey Lyutarevich: Good afternoon, Vladimir Vladimirovich!

Fishing factory "Za Rodin", Kaliningrad region, Lyutarevich Sergey.

I can't help but ask a question, because fishermen won't forgive you, and you know what tough men they are.

Vladimir Putin: They are strong.

Sergey Lyutarevich: They are strong, yes.

In the Kaliningrad region, the development of the fishing industry is divided into two periods: before 2014 and after. Introduction of counter-sanctions on the import of imported fish, especially sprat, as well as restrictions on the import of canned fish from Lithuania, Latvia and Estonia…

Vladimir Putin: Sprats.

Sergey Lyutarevich: I'm just going to see them.

Vladimir Putin: That's how. (Laughter.) Over the years, you see, such abilities increase.

Sergey Lyutarevich: It was precisely the restriction on the import of canned fish from Lithuania, Latvia and Estonia to our Russian market that made it possible to revive the fishing industry, especially in the Kaliningrad Region.

Together with the Government of the Kaliningrad Region and the Ministry of Agriculture, we have worked out the program and built six factories in Kaliningrad for the production of canned fish, such as sprats, in the shortest possible time.

In 2021, our company implemented an investment project - the enterprise "For the Motherland". And we have built the largest, most modern fish processing complex and today we produce a huge volume, I believe: 45 million cans of sprat are made by us.

Vladimir Putin: And so he did (shows): "Oh, delicious sprats." Delicious sprats because.

S. Lyutarevich: On natural alder, fresh fish.

Therefore, in principle, we are developing, but nevertheless, for the development of factories, it is necessary to develop coastal fishing. And fishermen in the Baltic Sea, the Caspian Sea and the Sea of Azov, who bring chilled fish to the shore for processing, are in great need of fleet renewal. And we also work on these pools. I constantly communicate with fishermen and express a common interest in updating the small fleet that transports fresh, chilled fish to the shore.

Unfortunately, the large-scale support for the construction of the fishing fleet, which is being implemented in our country on your instructions as part of the investment quota program, has nothing to do with us, because the Baltic Sea and the Caspian Sea do not have such high-margin fish revenues, and we do not even have crabs. That's why we catch sprat-an inexpensive fish. Of course, we want everything to be built: today, both fishermen and ourselves have already developed shipbuilding projects, and Kaliningrad shipyards are ready to accept orders from us, but we will not be able to cope without state support.

The existing support measure for large vessels is not suitable for us, to put it mildly, and is ineffective for us. Therefore, we consider it appropriate that the Ministry of Industry, together with the Ministry of Agriculture, the fisheries agency, and us fishermen, as you said, carefully review the regulatory framework and make some adjustments: either expand the program, or look at us, coastal fishermen, from a slightly different angle within the framework of the same program and we're ready to build a fleet.

Today, one fisherman who works in coastal fisheries creates from five to ten jobs on the shore, and on sprats-15 jobs. Therefore, it is very important to develop it, because today the average age of a ship is 34 years. Therefore, we want to have vessels in the near future and are ready for this.

Vladimir Putin: You and I understand and know that these "keel quotas" were primarily made for the northern seas, for the Far East, because there is the main volume that is caught here.

But this does not mean that there is no need to update the fleet, you are right, in the Caspian basin, in the Baltic Sea, of course, in the Black Sea. Everything must be done, I agree. There are vessels of really small tonnage. How much are they?

Sergey Lyutarevich: On average, a ship will cost from 350 to 500 million, from 100 to 126 meters. But really, each vessel will catch two-three thousand tons and bring chilled fish. In other words, we want [to build] small but efficient vessels, because today, of course, they are already outdated.

Vladimir Putin: This keel quota system doesn't suit you, does it?

Sergey Lyutarevich: It doesn't fit. Our sprat is not a highly profitable business, it is not suitable. There is a slightly different program to do. We have a suggestion.

Vladimir Putin: What is it? Tell me at least in general terms.

Sergey Lyutarevich: In general terms, in order for us to get at least a preferential leasing loan, it is necessary that the cost of points is almost 90 percent, and the smaller the vessel, the more difficult it is, because the lion's share is the cost of the engine, the trawl complex.

Unfortunately, we don't have them made yet. Of course, as soon as they are released, we will immediately be happy to put them on. But the fleet is already needed today, so for small vessels, this table by points should be slightly revised.

Vladimir Putin: Let's see. And let the Ministry of Agriculture take a look, then Ilya Vasilyevich Shestakov will work, okay?

Dmitry Patrushev: Mr President, this is the Ministry of Industry and Trade's support measure…

Vladimir Putin: Yes, yes. We'll definitely talk to the Ministry of Industry and Trade, too. You should suggest what the colleague said, the parameters. What would you like? How do I log out on this page? But you have already mentioned what I wanted to ask you – whether the shipbuilding industry is ready to produce what you need.

Sergey Lyutarevich: The Kaliningrad region is definitely ready…

Vladimir Putin: Is this a "Star"?

Sergey Lyutarevich: No, in the Kaliningrad region it is Yantar, the Svetlovsky Ship Repair Plant. We are already starting to build slowly, but, of course, the pace that will be very long without support.

Vladimir Putin: Come on, make suggestions. I will definitely work through them.

Sergey Lyutarevich: Anton Andreevich, the governor, supports us, but of course it is difficult to do this within the framework of our regional program alone.

Vladimir Putin: Come on, prepare your proposals and please send them to the Ministry. Do it, give it back, and we'll work it out with everyone later. We need to calmly and without fuss look at the near future, we will put it in the program. We need to make it, this program, and we will lay it down for the next budget period, okay?

Alexander Belov: Thank you.

Colleagues, we have two more questions, we have pleasant questions-ice cream and wine. I'd like you to talk to Irina about ice cream. Irina, you have the floor, please.

Irina Garmayeva: Thank you.

Hello, Vladimir Vladimirovich!

My name is Irina. I come from Buryatia, but our production is located in the Moscow region, the city of Solnechnogorsk.

My partner and I started an ice cream company seven years ago. We have grown from 60 square meters of leased space to our own factory.

I'll tell you a little background. We met Ekaterina while on vacation, on the beach. We were friends for several years and then realized that we had strengths and talents: she was a sales manager, I was a product developer, plus I have a food education and a red diploma. We came up with an idea-to produce ice cream. She then sold the car, I borrowed from banks and relatives, and we organized a small shop for the production of ice cream. In 2015, we created protein ice cream without sugar, lactose-free ice cream, and ice cream without sugar at all-for diabetics.

Vladimir Putin: How about without lactose? What did you make it out of then?

I. Garmaeva: Oat milk, almond milk, rice milk, nuts, nut base.

Vladimir Putin: Don't offend milk producers – no milk at all. (Laughter.) Where will you lead the dairy industry?

Irina Garmayeva: On the other hand, we help those who are allergic to lactose, those who have insulin resistance, and those who have diabetes. They thank us very much, write letters of thanks to the post office almost daily, weekly.

During this time, we managed to reach all Russian networks. We now supply products to VkusVill, Azbuka Vkusa, Perekrestok, Pyaterochka-all major Russian chains. We have actively started participating in exhibitions with the Russian Export Center. Five years ago, we already went to China, despite the fact that we were a startup at that time. The Chinese side received us very well.

Vladimir Putin: I treated my friend President Xi Jinping to our ice cream, and sales of our ice cream even increased there.

A. Belov: This is true, Mr Putin. One of the key products that we supply to China is Russian ice cream. The Chinese are very fond of Russian ice cream.

Irina Garmayeva: Yes, this is absolutely true. Now they have taken on a healthy lifestyle. Since the Chinese love long-term friendship, they have been looking after us for all five years, and now we have a large Chinese client who is ready to ship our products to the Chinese market in all regions, he has his own retail network.

We have also started deliveries to the United Arab Emirates. This year, just recently, almost this week, I was at the Gulfood exhibition in the United Arab Emirates. There was just a question about the popularity of our products. The United Arab Emirates is a hub between Saudi Arabia, Indonesia, and Qatar. There are a lot of trade routes there, people want to see our ice cream there.

But we have a problem with product promotion. We would like you to help us promote our product. We will expand the plant and take out a subsidized investment loan. The government of the Moscow region gave us land – one hectare for one ruble. We will buy the equipment on lease, so we have planned everything.

When we went to the exhibition and worked directly on the stand, we realized that we needed to help promote our products in foreign markets, because everyone knows that Russian products are very tasty, natural, and healthy. We need to actively promote it, and we wanted to ask you to help with this issue.

Vladimir Putin: We also have a Russian export center that works quite efficiently. I will definitely talk to them so that they will support you. What exactly, advertising is needed, right? What should I do?

Irina Garmayeva: Yes. Because mostly large-scale commodity producers are represented at large stands: grain, meat, oil, fish, but niche products…

Vladimir Putin: Everything we have just discussed. (Laughter).

Irina Garmayeva: ... farm products are very much in need of active marketing.

Vladimir Putin: Good.

Irina Garmayeva: Because we, as manufacturers, are always faced with the question of where to invest: either in production, in equipment, or in product and brand promotion, and we would like, of course, to build not just one plant, but dozens of plants and have truly famous brands in Russia.

Vladimir Putin: I will definitely talk to my colleagues. No, no, it's true, because you're right, I know what you're talking about.

Of course, the Government is trying to support those who look solid in the market, who are trying to solve big, large-scale problems. But small producers, when they are all together, are also very valuable and make a huge contribution to solving food issues. This is quite obvious. I'll definitely talk to you, I promise, okay?

Irina Garmayeva: Thank you very much.

Alexander Belov: Thank you very much.

Ivan.

I. Lipko: Thank you.

Dear Vladimir Vladimirovich, good afternoon!

Thank you so much for the opportunity to speak out. My name is Ivan Lipko, I am the chief oenologist of the wine project Domaine Lipko, Sevastopol, near Balaklava.

I persevered a little bit, started to pull my hand, because I understand that in fact I ask first of all not for myself – for our region and in general for all small winemakers.

We are now rapidly developing small boutique wine production in the Sevastopol region and even in the Crimea as a whole, and a lot of enthusiastic enthusiasts are coming.

Vladimir Putin: Is it called a "garage winery" or is it something else?

I. Lipko: This is such a controversial issue. (Laughter). You can call it whatever you want.

Vladimir Putin: Let's have a discussion.

I. Lipko: Yes, let's do it. You can name it as convenient. You can say "garage winemaking", "small winemaking", "boutique winemaking".

Vladimir Putin:" Boutique "sounds better than "garage".

I. Lipko: Probably, yes. So what is our idea? This is generally the production of up to 100 thousand bottles, most often even up to 50 thousand, and this is primarily work for maximum varietal expression, maximum terroir.

Vladimir Putin: Maximum varietal and?..

I. Lipko: Terroirality. Terroir is a combination of natural and climatic conditions that affect the flavoring compounds that are formed in wine.

Vladimir Putin: You see how our host summed it up today: there is cheese, and now we are quietly approaching winemaking and ice cream.

I. Lipko: Ice cream and wine, yes. A lot of motivated people, a lot of cool specialists. We are actively developing, trying to develop our region according to the same principles that all the world's leading wine regions have developed. In other words, we really want to represent our region and country with pride.

But there is a small, small problem. The wine-making and wine-trading market in Russia and in general all over the world is based on the fact that most often the buyer makes purchases on autopilot so-called.

Vladimir Putin: What do you mean, "on autopilot"? (Laughter).

I. Lipko: That is, a buyer comes in, and he already knows for sure that he needs, for example, an Argentine Malbec. Everyone knows that a good wine is an Argentine malbec or a New Zealand Sauvignon Blanc. Unfortunately, a very, very narrow circle of consumers still knows about Russian small-scale winemaking.

In this regard, we have a proposal to turn to the world experience and start developing wine tourism. What is wine tourism? By the way, I want to say one more very important thing. People who come to our vineyards are often surprised and say: it can't be that we didn't know that there were vineyards in Russia. That is, people just don't know about it.

In order to introduce the maximum number of people to the fact that there is a high-class winemaking industry in Russia, it seems appropriate for us to be able to build tourist infrastructure facilities on the territory of agricultural lands, on the territory of vineyards. Moreover, I want to emphasize that these objects will be allocated scanty plots of land that will not affect the functionality of our farms in any way. Moreover, such facilities are absolutely unviable in isolation from the main agricultural production. That is, they have only one goal, a secondary, supporting goal for the main production.

Why is this important? Because according to world experience, it is very important for people to be at the place where agricultural products are created. It is very important for them to see how hard work takes place in the vineyard. It is elementary to have the opportunity to stay after the tasting and, say, meet the sunrise. It's all part and parcel of the complex, emotional experience of drinking wine. That is, this is not just an achievement of intoxication, it is much more, something completely different.

Due to the fact that today the Russian regulatory framework does not allow the construction of infrastructure tourist facilities on agricultural land, we would like to ask you to consider the possibility of somehow contributing to and facilitating this task.

Vladimir Putin: To be honest, I've never paid any attention to this. But, in my opinion, now the State Duma has a draft law allowing such tourist facilities to be built on agricultural land as an experiment. Initially, this ban was clearly connected with something: that there was no capital development on agricultural land. Because, as you know, wine-growing lands belong to the category of agricultural land. And in order not to destroy these agricultural lands, not to build them up with cottage settlements, extracting superprofits from this, especially in such regions as yours, which is why we have introduced such restrictions. In order not to squander agricultural land, that's why.

But since winemaking in our country has taken such a serious step in its development, I think that after the adoption of the law on winemaking, I don't remember what it is called. When we confirmed that the wine should have a geographical name and only this product is worthy of state support, we cut off, at least in part, your competitors within the country. Because it's a complex industry, I understand: first you need to prepare the land – spend the money, then you need to sow – spend the money, then you need to wait until the crop grows, and it needs to be processed, fertilized, or something else-this is also to spend money. At each of these stages, you need to pay wages to the people who work there. You need to pay-pay-pay, but there is no result yet.

I. Lipko: The product enters the market in about two or three years.

Vladimir Putin: Yes, that's what I'm talking about. Only then can you get a return. And if the consumer does not know this product yet, of course, this is difficult, it requires support from the state.

And the state is trying, the Ministry is trying to support you. Now that we have reached a certain level, we can probably think about making sure that this support is market-based. Of course, the development of specific wine tourism is one of the elements of support.

The Minister has already spoken in relation to another field of activity. It's the same for yours. (Turning to D.To Patrushev.) When should the law be adopted?

Dmitry Patrushev: We have now supported it, and we have sent a positive opinion.

Vladimir Putin: Isn't he in the State Duma yet?

Dmitry Patrushev: I think he is in the State Duma, Mr Putin.

We support it, despite the fact that there is a real risk that we will build up agricultural land. We understand the need to build a tourist infrastructure on the land where grapes are produced.

Vladimir Putin: We need everything to be interconnected, so that no one takes advantage of it.

Dmitry Patrushev: We need criteria that are being worked out very carefully.

Vladimir Putin: So that it is for wineries, so that they – you – build for their own needs, in order to promote their products, to create a certain atmosphere, which you have just described so vividly and beautifully.

I'm not joking, I'm not saying this ironically. Indeed, this would support the industry, and in general, for our people, for the citizens of the country, it is also an element of common culture, including nature, which you mentioned. Because all wineries are located in unique locations.

Therefore, yes, but there should only be criteria – criteria that do not allow squandering agricultural land, but help their development, in this case, the development of winemaking. We'll do it and see how it develops.

I. Lipko: Thank you very much.

Vladimir Putin: I wish you every success.

Alexander Belov: Mr President, thank you very much. We've actually almost exhausted your subpoena.

Vladimir Putin: We're not keeping you any longer, are we? (Laughter)

Alexander Belov: I would like to sincerely thank you for such serious and deep immersion in all these issues. I think that our colleagues, all those who wanted to ask a question today, have asked these questions and received more than exhaustive answers, which, I hope, will later be included in specific instructions, which is also, of course, important.

I want to thank you. Modern agriculture is really very high-tech and multi-layered, which is very important. This is not only a large business, but also small businesses, farms, and an export-oriented industry. And I hope that this is really the same chicken that will turn into the same chicken that will lay golden eggs in the very near future.

Thank you very much from me and from all my colleagues for being really deeply involved in the problems of this sector and for your comprehensive support. thank you very much.

Vladimir Putin: For my part, I want to thank you. Of course, not everyone involved in organizing work in this most important sector of the Russian economy is here. And many thanks to you and your colleagues who work for the national result. It is obvious, this result. Without any exaggeration, I can say that this is our pride today, we have something to be proud of: wonderful, hardworking, talented people who are determined to achieve the final result; production organizers; high-tech production; science related to agricultural production is developing. This is becoming a very interesting branch of human activity.

Thank you very much, and let me wish you every success.

For our part, the Minister and I, as well as our colleagues in the Government, will do everything possible to implement the plans that we have discussed, the plans that, if implemented, will help you move forward.

Good luck!

Thank you very much. [My Emphasis]

It’s hard not to be impressed by Russia’s progress in the agricultural sphere. As noted, however, Russia’s potential remains great to the point where solving the very longstanding problem Humanity’s faced throughout its existence—food security and Freedom from Want—can be envisioned as accomplished. I grew up in the farmland in Davis, California where the famous agricultural university UC Davis is located. My family’s history is connected to farming—citrus ranching and vineyards in the desert East of Los Angelas in Upland and Cucamonga. My dad was an agronomist at UCD, and being the eldest, I got to farm the extension service’s experimental plots from Redding to the Imperial Valley that were part of the Green Revolution. The retention of the younger generation in rural regions is a problem Russia shares with many nations. That there’s a “land mafia” confirms my suspicion that Russia is seeing the development of its own FIRE sector that needs to be throttled like an invasive weed before it grows beyond control.

Opportunities and potentials are abundant within Russia. IMO, Russia can easily double-triple its agricultural output as it has the natural resources but lacks the human capital such an expansion requires. Robotics and automation can only accomplish so much. Barely mentioned is Russia’s commitment to natural, ecological ag, which allows it to have an important competitive advantage thus the sanctions on its food exports. The potential for rural energy production is also very real. Russia has some excellent futurist thinkers who could build a model of a futuristic rural village every bit as “space-age” as some Russian cities are becoming. In many ways, Russia isn’t just important for Russians; it’s important for the world in a way that’s similar to Africa’s importance as they make it possible for Humanity to attain an equilibrium that’s both stable and predictable once their development matures. And that’s what the West’s Neoliberal Parasites want to prevent, which is why the opposite of development is happening in the nations under their control.

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