Plenary session of the Congress of the Russian Union of Industrialists and Entrepreneurs

Finally an opportunity to catch up on recent events elbowed aside. This important annual event occurred on 25 April. One of the primary differences between Russia and the Outlaw US Empire is the power structure of their societies. Some readers will have read or heard of the political-economist John Kenneth Galbraith and the seminal work he produced in 1952, American Capitalism: The Concept of Countervailing Power, which has yet to become part of the public domain so I’m unable to link to a downloadable source. There’s a very import reason why I mention his book as he posits the need for a third leg to the social aspect of the US political economy which then and now is dominated by the axis of Big Business and the national government leaving no voice for labor—the people—that without the balancing third leg of the stool, it would eventually capsize and society become polarized. The internal US War on Labor ought to be well known but actually isn’t thanks to the lack of objective media. This isn’t the case within Russian society primarily because of its history as it has a very healthy Trade Union Confederation that provides the third balancing leg of the political-economic stool along with the Russian Union of Industrialists and Entrepreneurs and Russia’s federal government. Putin has initiated the tradition of consulting both groups for policy ideas, revealing problems, and establishing a working relationship designed to empower and uplift all sides. One of the unique aspects of that arrangement is the almost continuous dialog occurring throughout the year between the three parties and others like the education and healthcare portions of the government. We don’t have anything like that here. Yes, the illegal sanctions war against Russia has helped Russian solidarity, but the societal arrangement was in place before their onslaught, which is why they were dealt with in a manner that boomeranged onto the lawbreakers and hurting them more. The overall result is Russians get many opportunities to participate in actual policy development and execution—participatory democracy. The event being reported today is one portion of the overall aspect of Russian governance.

The Congress of the Russian Union of Industrialists and Entrepreneurs is an annual event that features a plenary session which Putin and members of the government attend to give results and to make and listen to suggestions. You’ll see there’re many speakers as the talk lasts for just under three hours. Putin will further describe the aims as the transcript now begins:

Vladimir Putin: Good afternoon, dear colleagues and friends!

I am glad to have the opportunity to meet with the participants of the congress of the Russian Union of Industrialists and Entrepreneurs, following the established tradition. It unites the largest, leading companies and enterprises of the country and for many years has been a reliable partner of the state in strengthening the economy, finance, and expanding the freedom of entrepreneurship.

It is of fundamental importance that the Russian Union of Industrialists and Entrepreneurs always has its own clear, balanced position and specific proposals on how to make national development more sustainable and dynamic, how to make this process more sustainable and dynamic, so that this development leads not only to an increase in the competitiveness of our economy, but also to an improvement in the quality of life income of Russian families. I hope that today, during the planned discussion, we will definitely discuss the tasks that require joint efforts of the state, society and business.

What would you like to say first, before, so to speak, our conversation? Despite the unprecedented challenges that we have faced in recent years, positive trends are strengthening in the domestic economy. As you know, Russia's GDP grew by 3.6 percent last year. And the statistics of the first months of this year show that it continues to show good rates: in January of this year-4.6 percent in annual terms, in February-7.7 percent in annual terms, for the first two months [of this year] an average of six percent growth.

Industrial production is growing. In January-February – by 6.6 percent. It is supported by strong domestic demand, which is based on the growth of real wages and incomes of citizens. According to estimates, in the first two months of this year, retail trade turnover was 10.7 percent higher than a year earlier. The average monthly salary in real terms for January of this year increased by 8.5 percent, and the real disposable income of citizens in 2023 increased by 5.4 percent, as you know.

I will not dwell on the indicators of economic development in detail now, but I would like to emphasize once again: in general, we have gained good, strong dynamics, which is also noticeable in the state of the labor market.

Today, Russia has a record low unemployment rate of less than three percent. What is especially important, we have reduced its so-called structural component, i.e. youth unemployment and unemployment in those regions and localities where it was historically high have significantly decreased. It remains higher than the national average in these regions: for example, in the North Caucasus, it was high – how much we have there, in my opinion, 10 [percent]... Youth [unemployment] was 10.7, and now it is 6.7, but in the North Caucasus [unemployment] was 13.9 [percent], and decreased to 9.7-by almost four percentage points, which is decent. That is, there is more than the national average, but there is also a decline there.

I would like to emphasize that the growth in employment and the momentum of our economy are among other things the result of the efforts of businesses, companies – the entire business community, and your efforts, dear colleagues – who work not only for their own profit, but also together with the state to achieve national development goals.

Such a constructive partnership, our experience of joint actions in difficult and extraordinary conditions in recent years, allows us to successfully cope with external difficulties, and forms a solid foundation for the implementation of strategic plans, which were mentioned in the recent Message to the Federal Assembly. It is clear, we see all the difficulties that the economy as a whole and you all have to face, of course, we will talk about this again, everything is clear. But in general, the results, as I have just mentioned, and you know about them yourself, are there, despite all the difficulties.

We also see threats, we understand them perfectly and are aware of where they arise and where the greatest difficulties arise today. But we will work together with you, and I am sure that we will overcome all this.

I repeat: we are talking about a broad, frontal development of the economy and social sphere, the creation of virtually new industries and areas of industry, the service sector, and so on in Russia. It is also necessary to implement a large-scale infrastructure program, including the construction of roads and railways, bridges and tunnels, the expansion of seaports and airport networks, and the renovation of housing and communal services. We also have an extensive environmental agenda, in which business plays an important and largely decisive role.

Of course, this is not all of our plans. The main thing is that there are all opportunities for implementing these and other initiatives, for launching a new model of economic growth, including solid state resources and the potential of domestic business, which is actively manifesting itself in the manufacturing industry, in the consumer market, in the field of IT, tourism, and in other sectors both in the domestic market and in relations with foreign ones partners.

The state will continue to support businesses to launch promising projects, increase capital investments, create new jobs – in short, act in the business interests, and work to improve the well-being of citizens, to improve the well-being of Russian families.

What specific steps do I have in mind?

First – we will ensure that the business environment is as predictable as possible. I am sure that everyone has a lot of questions on this topic, but we will continue on this path, and I have already instructed to expand the horizon for planning public finances. It will cover not only the next three years, but also make it possible to outline the main government expenditures further, for the next six years.

Thus, the authorities at the federal, regional and local levels will be able to plan more large-scale, long-term projects, with greater investment, and therefore with a more comprehensive effect on the territories and sectors of the economy. And of course, contractors and performers of such projects will also be able to plan long-term modernization and expansion of their capacities, attract and train specialists.

An additional adjustment of the tax system should be another important step to improve the investment climate. Now the Government, as you know, together with business and public associations, the constituent entities of the Russian Federation and the Parliament are working on this crucial issue, discussing the parameters of changes and preparing relevant proposals.

I repeat: the updated tax conditions should be fixed for a long time. Modernization of the fiscal system should ensure a more equitable distribution of the tax burden, while stimulating businesses that develop and invest, including in infrastructure, in social and human resources projects. In short, it is necessary to provide stable and predictable conditions for reliable, confident business operation. Alexander Nikolaevich [Shokhin] and I, as well as many others present here, have repeatedly returned to discussing this key issue recently.

In this regard, I would like to focus on a very sensitive issue. I also raised it in March, at the Board of the Prosecutor General's Office. Recently, law enforcement agencies have initiated a number of cases on the return to state ownership of certain assets. I would like to emphasize that we are not talking about revising privatisation, as we discussed at our previous meeting, but rather about cases where the actions or omissions of owners of enterprises and property complexes cause direct damage to the country's security and national interests.

I would like to once again draw the attention of my colleagues in this hall and in the law enforcement agencies: the withdrawal of a business is justified only in the situation that I have just mentioned. And I will add: to explain the claims to the owners, no formal reasons and leads are allowed, for example, if the asset was privatized in the early 1990s in agreement only with the region, without the participation of the federal center. The Federal Government itself overlooked these deals at the time. Now I won't say whether this was done consciously or not, it doesn't matter. But the fact remains that the Government did not control, did not do what it should have done in accordance with the then regulatory framework, which means that claims against the current owners of assets are inappropriate. Especially to those who work normally and successfully, solve social issues, and help ensure national security.

Second – the Russian Union of Industrialists and Entrepreneurs, together with other business associations, does a lot to de-bureaucratize the business environment, helps simplify or translate administrative procedures and approvals into electronic form, and helps the Government improve legislation and control and supervision activities. Together, we have already made significant progress in this complex and painstaking work. And I want to thank everyone who contributes to this work.

Nevertheless, entrepreneurs and you, dear colleagues, still have a lot of gaps, bottlenecks, and problems, and we are well aware of this. And we will consistently solve these problems so that it is more convenient, profitable, and safe to work, build, and produce in Russia, so that our national jurisdiction is in the full sense of the word globally competitive.

In particular, the regulatory framework should be clear, understandable, sufficient, and not burdensome for businesses. At the same time, it should guarantee the protection of consumer interests and the rights of our citizens.

Here I will note the so-called regulatory guillotine. Instead of hundreds or even thousands of archaic, outdated regulations, a fairly compact list of documents with more modern, understandable requirements has already been adopted. They will definitely continue to be kept up to date. Moreover, the Government is now preparing to launch a modernized mechanism of the "regulatory guillotine", that is, in fact, there is another large-scale stage of clearing the regulatory framework.

I would like to add that over the past three years, based on business requests and recommendations, a regional investment standard has been introduced. Its task is to ensure uniform principles and mechanisms for attracting investors in all regions of the Russian Federation, and on the basis of best practices that have proven themselves in real work.

This year, we will assess the progress of the regions in implementing the investment standard. We will do this within the framework of the national rating of the state of the investment climate. Traditionally, its results will be presented at the St. Petersburg International Economic Forum. I would like to take this opportunity, of course, to invite all of you, dear colleagues, to this traditional event in St. Petersburg.

Third – in the next six years, we need to dramatically increase the volume of industrial production by tens of percent. Moreover, new enterprises, including high-tech ones, in critical areas, should appear literally everywhere.

Companies that implement individual projects, regardless of the region of their presence, can already use special support measures – the so-called "industrial menu", choose agreements on the protection and promotion of investments, special investment contracts, a cluster investment platform, and so on.

We will expand these business opportunities, including allocating additional resources to the development of industrial mortgages, and recapitalizing such a significant and popular mechanism as the Industrial Development Fund. Its capital will almost double – by 300 billion rubles. I know that some people in this Room think that this is not enough, but we will look at the situation as it develops. This resource will be aimed at supporting high-tech projects.

And of course, we need to monitor the effectiveness of these and other tools online, adjust them, make them more flexible and convenient based on feedback from businesses and regional leaders.

Dear colleagues!

Russia's strategic goal is to increase the production of goods and services primarily based on its own technological base. I have already said it many times, and I want to repeat it now: we are not going to produce absolutely everything here in Russia – it is pointless and unnecessary, we are not going to do it. But you need to create your own original solutions, services, and software, and apply them in practice, especially in critical technologies and areas.

This is the demand of the time, and to meet it, we need to ensure the influx of qualified personnel into our economy, ready to master new production and management technologies. We need to unleash this enormous potential of Russia, give our talented scientists, engineers, entrepreneurs, and workers the opportunity to fully express themselves.

In this regard, the fourth thing is that in order to increase the effectiveness of training both young people and already established specialists, we will strengthen all levels of education: from schools to universities, and, of course, in conjunction with business, as is already being done within the framework of the career guidance system, the federal program "Professionalism", and the Priority 2030 program. All of them will be further developed.

I want to thank you, because you are taking a very active part in this. Of course, this is a mutual interest of both the state and business. I know that there is a shortage of personnel, and of course we must work together in this area. (To A. Shokhin.) Alexander Nikolaevich, it seems to work out in general. We must move in this direction further and even more vigorously than we have done so far.

We will launch a program to repair and equip secondary vocational education institutions, put their educational base and infrastructure in order, including sports facilities, dormitories of technical schools and colleges. Everything is important, we need to attract young people to this field of activity, to interest them in improving their skills and getting the right professions.

As for higher education, in the next 10 years, 40 university campuses will appear in Russia with all the necessary conditions for students to study, work and live. These should be modern spaces not only for higher education institutions, but also for the surrounding territories and the people who live in these territories.

I repeat: the task of the professional education system is to train modern, in-demand specialists, to give them such skills and qualifications that guarantee an interesting, reliable, well-paid job. Of course, I count on the mutual interest of the state and the business community here.

At the same time, I would like to emphasize once again that experts estimate that Russia will experience an objective shortage of personnel and qualifications in the coming years, and this, of course, cannot be covered mechanically – due to labor migration and the import of low-skilled labor from abroad. This will not solve the problem, we need other approaches. Now I will not talk about the internal political, social and other components of the problem that I have just touched upon.

In all sectors of the economy and social sphere, it is necessary to significantly increase labor productivity, develop digital platforms, data-based management models, and carry out end-to-end modernization of industrial capacities based on broad automation. The goal has already been set – by 2030, for example, Russia should become one of the twenty-five leading countries in the world in terms of the number of industrial robots. It seems that this is not such an ambitious task, but it is really feasible, and this goal is achievable. We will move gradually. If we can do more, that's great.

I know that for many of my colleagues in this room, owners and managers of large companies, this task statement is not just a look into the distant future, but a concrete action plan that is already being implemented in practice.

As you know, I regularly visit enterprises in different regions, including new workshops, production lines, and factories. And, of course, I see with what enthusiasm their managers and employees talk about their renovated enterprises on a qualitatively different, modern basis. Implementation is even taking place, you know, in unsuitable premises – surprisingly simple, young people introduce such things, develop them themselves. Great!

Obviously, such investments are a contribution to improving the competitiveness of companies, to strengthening market positions and, most importantly, to improving the working conditions of specialists, to increasing their incomes.

In this regard, I want to say the following: regardless of the scale of the business, success is certainly associated with those-and you know this better than anyone else – who are able to correctly perceive dynamic market conditions and are ready to change under these conditions, invest in scientific developments and their own technological solutions.

Let me remind you of the goal set – by 2030, we need to increase the volume of domestic R & D expenditures to at least two percent of GDP. Moreover, the driving force here should be private business investments. Their volume should increase at least twice. Yesterday we discussed this topic in some detail with one of those present here.

And one more thing: only those businesses that take care of their employees and work collectives, help them improve their professionalism, pay decent wages, and provide a social package can guarantee success and development for years to come, because they understand that the well-being of citizens, their families, children, and the future of the country depends on this, and for specific individuals, they will be able to enterprises – returns and the so-called economic exhaust is positive in the end.

The responsibility of business and its strategic view also consists in working for the public good, when corporate policy includes projects in the field of education, healthcare, infrastructure, and charity. Programs of ecological well-being of cities and villages, regions and territories are also among the priorities.

Last year, at the congress of the Russian Union of Industrialists and Entrepreneurs, we proposed to establish a special award for such companies, as you may remember. It was called "Responsible Business Leaders". Today, as I know, its first laureates were awarded. I would like to congratulate the winners and thank the owners and managers of the respective companies. I am sure that their positive experience and social projects will become an example for all Russian businesses, which means that there will certainly be even more similar initiatives that people and the whole country need.

With that, let me conclude my statement. I want to thank you for your patience and attention.

Alexander Shokhin [President of the Russian Union of Industrialists and Entrepreneurs]: Mr President, your protocol says that I must speak from my seat, even though I always break through to the podium.

Vladimir Putin: Please. You're the boss here.

Alexander Shokhin: Dear Vladimir Vladimirovich,

I would like to thank you for your participation in the congress.

You said at the beginning of your speech that it has already become a tradition for you to participate in our congress. This, of course, allows us not only to discuss urgent problems, significant problems for business, but also to form answers, ways to solve these acute problems, and respond in a timely manner to the challenges that the country faces. Now, as you have noted, there are quite a lot of challenges, and there is no reason to believe that the pressure on Russia, sanctions pressure, various restrictions will weaken. Therefore, of course, effective interaction between business and government is one of the ways to respond to these challenges in a timely manner and overcome barriers and restrictions.

We understand that we are currently working hard to develop not only the agenda for the next six years, but also specific mechanisms and tools. You mentioned that too. In particular, the budget and tax policy is already becoming six years old. This is very important for a business, because it plans its activities just taking into account the investment cycle, which is five, seven or even more years.

That is why we are very interested in getting business involved in developing these solutions, first of all. Today, we discussed not only specific issues with the Government members, but also agreed on the mechanisms of interaction. We understand that the Government is currently in a difficult period, and they need to go through the crucible of reassignments in May, as they say. Nevertheless, we believe that in any case, continuity is also one of the features of your policy. That is why business so responsibly and warmly supported your election as President of the Russian Federation.

The RSPP Congress was preceded by the Russian Business Week. We held 14 forums where we developed consolidated positions and proposals. I would like to thank you for instructing the Government and the Presidential Administration to consider our draft resolution "100 steps to economic leadership", which I presented to you in mid-March.

This allowed us to take into account many of our colleagues ' comments. We have already resolved some issues, and we have adopted more precise forms of further work on some issues. In other words, the very format that we hold the Russian Business Week forums and the congress not within the framework of this week, but with a postponement – we got a postponement of two months – allowed us to really solve many problems, thanks, among other things, to the fact that you gave such an assignment.

All regions participated in the preparation of our proposals – 89 regions, we have our own employers ' associations and representatives of the heads of all working bodies of the Russian Union of Industrialists and Entrepreneurs, committees, commissions, and industry unions of employers everywhere.

I would like to name the most significant issues that were discussed both at the forums of the Russian Business Week and at the congress today. First of all, these are ways to reduce the personnel deficit, including for high-tech projects. You have discussed this priority in detail, and I think we will also talk about it today.

Of course, business does not just act as a host, but the professional training system must supply personnel. Within the framework of the Professionalitet project, advanced engineering schools, and the national qualifications framework, the development of professional standards and qualifications, we are working together very closely. Indeed, a seamless transition from the professional education system to the labor market will largely solve the problem of staff shortages. But, of course, without just productivity, lean production is also necessary here, as you correctly said in your Message to the Federal Assembly.

Social partnership and support for responsible business.

We believe that today we have completed the process of signing a new general agreement between the social partners: the Government, trade unions and employers. And indeed, we see that social partnership is not just a damper, but a way to avoid social conflicts and upheavals in this difficult time. Indeed, social partnership mechanisms worked well both during the covid crisis years and after 2022.

We see that we can not only negotiate, as they say, but also find ways to solve many complex problems. Indeed, we are moving towards an economy of both high salaries and high social responsibility, naturally, not at the expense of the economic, investment and production indicators of companies. We find this balance.

Of course, the regulatory environment, the stability of the supervisory and control sphere, and the supervisory sphere are very important. You also mentioned this as one of the policy priorities for the next six years. We believe that we have made good progress here. And while we have followed the path of moratoriums on inspections since the covid-19 years, we now believe that a balanced system of supervision and control activities has been developed, where a risk-oriented approach, risk management and preventive measures prevail.

This means that we can move from moratoriums to a soft, reasonable, balanced supervisory policy, supervision and control. All the same, we need to keep our finger on the pulse, of course, some mandatory requirements are being guillotined, others may appear, so the same working groups on the "guillotine", they will probably continue to work.

Protection of property and business rights and protection of investors ' rights.

To be honest, I was surprised that there wasn't a lot of applause, which turned into a standing ovation, because today you formulated it very clearly. We did ask you questions when we met in mid – November-the heads of large companies, and in other formats, including a year ago at the congress, about the need for a presumption of good faith of property purchasers. And if the responsibility for certain, say, inaccurate decisions is borne by the regional or federal authorities, then this principle of good faith and the presumption of business integrity should not be removed from the agenda.

Vladimir Putin: Alexander Nikolaevich, I can tell you why there was no applause, because the actions of law enforcement agencies, despite our conversations, continue, and there is no applause.

I hope that we will really work out the approach I just mentioned and normalize this situation.

Alexey Shokhin: The strategic direction of our cooperation with the government is the fiscal and tax system. We have previously agreed that starting in mid-May we will start working closely with both the Government and the State Duma.

It seems that even today it was recorded that there will be a public discussion on the site of the State Duma. We hope that the Government will also use these public platforms, because we are not doctrinaires, we do not say that nothing can be changed in the tax system – and, thus, stability.

We need more predictability, and we believe that a fair tax system, which you mentioned in your Address, also includes the following principle: who invests more, has more appropriate benefits, is entitled to investment tax deductions, and so on. It is necessary to find this balance, of course, and encourage real investors.

We have really increased the attractiveness of the Russian jurisdiction, actually completed the process of transferring companies from offshore to Russian jurisdiction – the so-called redomicilation has been completed. The word is tricky, but the processes are clear to everyone.

Of course, it is very important to show here that this process is reflected in protected property rights, large investments in Russia, and so on. And not only because there is nowhere to withdraw money, but also because there is a high level of social responsibility and awareness that we are part of the country and must think about the future of the country and the economy.

On social responsibility.

An important topic is the environmental and climate agenda. We have quite serious discussions with the Government here, but we are also finding solutions. We understand that the environmental situation in the regions is also a part of production investments: the healthier employees are, the less sick they are, and so on, the larger the calendar fund of working hours. And the territory of presence is favorable for living. Here, too, we can deal with a shortage of personnel.

Although, of course, there is such an approach: business insists that it is necessary to use the principles of environmental requirements related to the introduction of the best available technologies to the maximum extent. Not all the best technologies are available now, but those who can do it should certainly be encouraged.

Creating favorable conditions for foreign economic activity.

This is a very important area. We understand that we need new transport corridors and an alternative payment and settlement system that would overcome the pressure of the dollar. De-dollarization is important not as an ideological construct, but as a way to provide an independent system that is protected from arbitrary sanctions, restrictions, and so on. Here, of course, digital financial assets play a big role. As far as I know, within the framework of BRICS, the Russian Federation will offer various tools based on digital financial assets, a kind of BRICS-stablecoin.

And a few more directions. This is primarily infrastructure, which is a driver of economic growth in general. Here it is important not only to identify a set of projects that allow us to maintain high-level exports and country connectivity, but also to look at financial instruments. This is not only and not so much the budget, but also various financial instruments: infrastructure bonds and a "project Finance Factory".

You have recently signed a list of instructions for a concession related to the Moscow-Petersburg high-speed railway. There is a wide range of tools. This is the approach that can be used in the implementation of infrastructure projects.

And the financial system itself, the development of the market, including through private savings and long-term pension savings.

Here, by the way, the protection of private investors is also needed. You mentioned protection from privatisation, but in some cases investors who purchased shares of these improperly privatised companies on a public platform, on the stock exchange, have also suffered, although the law "On the Securities Market" does not seem to allow this. Therefore, there is a lot to work on in related areas.

To be honest, I don't want to take the bread away from my colleagues, because we have scheduled performances. I hope that in the framework of this congress discussion – if the tradition persists, Mr Putin, we will have a meeting with members of the RSPP bureau after this public part – many of the problems – I did not raise all of them, I hope my colleagues will add many things-could be discussed.

And of course, one of the dry remnants of this discussion is that if you consider it possible to give instructions on them, including to the newly formed Government, we would move quickly enough.

By the way, I would like to return to what you mentioned in your speech – the Responsible Business Leaders Award. I will not, as they say, repeat what kind of bonus it is, what it was derived for. You mentioned this a year ago, and today, when we presented the awards, we talked about it.

If you'll excuse me, we have a short video about the winners. Can I?

Vladimir Putin: Yes, of course.

(Video demonstration.)

Alexander Shokhin: Mr President, although we have three degrees of winners here, but this is quite conditional, the companies, as they say, were neck and neck, and only the methodology allowed them to be divided into different categories. In general, everyone is worthy, well-deserved, and next year, I'm afraid that the number of winners will increase significantly.

I would now like to move on to the discussion and start talking about infrastructure development and attracting extra-budgetary sources of financing for projects in this area.

I would like to give the floor to Igor Alexandrovich Vdovin – Member of the Board of the Russian Union of Industrialists and Entrepreneurs, Chairman of the Committee on Investment Policy, Development Institutions and Public-Private Partnerships.

Please, Igor Alexandrovich.

Vladimir Putin: I suggest that we work in this way: our colleagues from the Government are here, and I am, of course, ready to say a few words on any of the topics, but then I will give the floor to my colleagues, who will tell us more in detail.

Alexander Shokhin: Then will you raise them, members of the Government? Or will they figure out who should comment?

Vladimir Putin: No, I will tell my colleagues from the Government.

Alexey Shokhin: I just thought that you were instructing me to raise my colleagues from the Government.

Vladimir Putin: No, it's me.

Igor Vdovin: Good afternoon, dear Vladimir Vladimirovich, dear Alexander Nikolaevich, dear participants of the Congress!

I think this is a very symbolic place where we are located. Those challenges that you mentioned, they form other circumstances of decision-making – this is often similar [to] when you choose a melody by ear.

The goals that we have, including in terms of infrastructure development, of course, require long-term approaches and, of course, have a very great effect on the development of the country as a whole. Over the past four years, there has been a very high rate of investment in this area. We can especially mention the construction of highways, where the growth over the past four years is the largest than in all previous periods.

And of course, they were very much looking forward to the HSR [High Speed Rail] construction project. You have given an exhaustive list of instructions that describe the project implementation mechanism, and it can, of course, serve as a model for all other major investment projects. We suggest that we pay the same attention to the best practices that we already have and implement other major projects with the participation of clear initiators.

There are also developments in road projects. These are such well-known projects as Dzhubga-Sochi or the ring bypass around St. Petersburg-KAD-2. There are three more sections of the HSR, seaports, and airports.

It is clear that in order to maintain and grow the share of exports in the world market, it will be necessary to invest ahead of time in creating new transport infrastructure, including the fleet, as well as joint projects with friendly importing countries that host the infrastructure.

For rapid development and such ambitious infrastructure plans, which, of course, require huge amounts of money, there are clearly not enough budget funds available. Today, banks have accumulated a large amount of financial liquidity, but this is often complicated by high interest rates.

We understand that the issue is about inflation, and we approve of the efforts that the Central Bank is making to contain it, but this greatly complicates the process of attracting extra-budgetary funding.

The existing financing mechanisms and development institutions have indeed proved their effectiveness. In particular, these are the Project Finance Factory and the DOM. RF infrastructure bond program, a Specialized Project Finance Society.

What do we offer in this part, Mr President? Increase the volume of the infrastructure bond program of SOPF " DOM.Russian Federation" up to one trillion rubles, which will allow to allocate up to three trillion rubles to real sectors. This issue has been worked out, and we suggest that you carefully study it and make a decision on it, including the financing of road projects that can be included in the same mechanism.

As for the "Project Finance Factory", it has proved to be an extremely useful and popular tool that allows you to get “long” money: from seven to 15 years. Therefore, we propose to increase the volume of this "Factory" and raise the participation limit from the current 500 billion rubles to 750 billion rubles, which will allow us to serve projects that are already at the mature stage of consideration in 2025-2026. A lot of work is being done on this issue. We believe that this will have a positive impact on the development of the economy as a whole.

The third thing we propose is to work out the issue of creating an infrastructure development fund. We look at a variety of sources for filling the capital of this fund, including tax deductions for companies that do not have their own large investment projects, or funds from friendly foreign investors who are not always comfortable entering directly into the capital of companies. There are a number of other sources that we are ready to report on.

In general, the pace that the entire infrastructure sector in the Government is currently maintaining is worthy of great respect and attention. Business is actively involved in this process. Of course, we would like to have more flexible tools and transparency in decision-making.

Thank you.

Vladimir Putin: Thank you.

I will say a few words, and then I will ask Marat Shakirzyanovich [Khusnullin] to comment.

As for the HSR, you said it could be a model for other similar projects. First of all, we don't have any other similar projects.

Igor Vdovin: Not yet.

Vladimir Putin: We have others, but not similar ones. They are big, powerful, and there is enough work for everyone. Can this financial model [be used]? I don't know. Why? Because it is somewhat unique. We are working actively here and with Moscow, and the Government and the regions have joined in. Probably, it is possible and necessary to look at it as a sample of what we managed to do.

Now about… This is not directly related to a specific topic, however, I will not go into details: banks have enough liquidity, the key rate interferes. Just yesterday, the day before yesterday again – I am constantly in contact with the Chairman of the Central Bank... The volume of lending is growing, and the pace is good, but the threat of inflation, according to the Central Bank's management, still hangs over us.

We see trends – positive trends, downwards. I hope the regulator will have a corresponding reaction, and we'll see. In any case, today it is possible to balance and maintain the volume of lending to the economy and fight inflation – so far it is possible to do all this. We see, and the Central Bank sees, of course, these trends aimed at reducing inflation, although there are still risks, so they keep it.

Probably, if we follow a different path, a situation may arise, as in some neighboring countries, where inflation of double-digit values is maintained, despite the fact that the key rate has been increased several times. But it doesn't matter: they've crossed some threshold and now they can't cope with it. You know who I mean-our friends in Turkey, for example. It doesn't work yet.

Therefore, we need to be very careful here, this is how the regulator operates, but everyone sees the trend, and the Central Bank's specialists also see it and, of course, I think they will certainly take this into account.

Now about how to recapitalize the "HOUSE.Russian Federation" for infrastructure projects. I don't really understand it, to be honest.

Igor Vdovin: The existing infrastructure bond program has now been raised to 200 billion rubles, which allows about 600 billion rubles to be financed in projects at a reduced rate.

Vladimir Putin: Yes, of course.

I. Vdovin: We looked at the projects that are currently in the portfolio. We believe that this is a very convenient tool. It is very useful, it allows you to attract affordable money to various projects, so we suggest increasing the volume.

Vladimir Putin: Fine. Now Marat Shakirzyanovich [Khusnullin] will say two words, and Anton Germanovich [Siluanov] will also comment.

Now the Project Finance Factory. It is functioning, and Marat Shakirzyanovich will also comment on this.

You suggest creating another additional tool – the infrastructure development fund, right?

Igor Vdovin: Yes.

Vladimir Putin: Marat Shakirzyanovich, please.

Mikhail Khusnullin [Deputy Prime Minister of Russia for Construction and Regional Development]: Mr President, we have DOM.RF" is a very popular mechanism. We have worked for 200 billion rubles, and we have several hundred more projects in the queue.

On your instructions – you then instructed to increase the fund-we are choosing these 200 billion rubles. Anton Germanovich and I have calculated the budget expenditures. They are quite large at the current rate, but if the rate goes down and the budget has opportunities – this mechanism is very popular, all the governors are just waiting in line for it, we have a long list.

As for the Project Finance Factory, VEB and I have worked very well over the past year, and we have invested more than 300 billion rubles in housing and utilities infrastructure, schools, and public transport. And of course, if the budget is able to increase, say, up to one trillion or up to 500 billion, as much as possible, the mechanism is also in demand.

Igor Ivanovich [Shuvalov] and I held a number of meetings. As part of your assignment, 4.5 trillion rubles will be spent on the housing and utilities modernization program. We believe that we could also work here with the Project Finance Factory for up to one trillion rubles. Both the regions are very much interested, and large businesses are interested in participating in this program, who owns utility systems today.

As for the creation of a new fund, it is an interesting topic, but it requires a very serious legal and financial study, Mr Putin. If there is a request from you, my colleagues from the Russian Union of Industrialists and Entrepreneurs and I will work it out and report back to you separately.

Thank you.

Vladimir Putin: Anton Germanovich, please.

Alexey Siluanov [Finance Minister]: The proposals are really interesting, but they are all financially intensive, because we are talking about subsidizing the interest rate. The rate has really increased now, and we have a large amount of the budget allocated for subsidies. My colleagues suggest: let's expand it further. But Marat Shakirzyanovich and I, as he correctly said, will probably look at the budget possibilities and consult with businesses to create tools so that there is more incentive to invest in investments.

This is one such tool. We will work together based on our financial capabilities.

Vladimir Putin: Thank you very much.

Alexander Shokhin: The next speaker is Andrey Vladimirovich Severilov, Chairman of the Board of Directors of FESCO Transport Group, member of the RSPP Management Board. It has a foreign economic theme, linked to logistics and transport infrastructure.

Alexander Severilov: Dear Vladimir Vladimirovich, Dear Alexander Nikolaevich,

Until 2022, the foreign trade routes of Russian business were controlled mainly by foreign companies, large companies that dictated their own rules of the game, monopolized the market, and this undermined sovereignty in the transport industry of the Russian Federation.

With the beginning of the special military operation, international transport holdings tried to stifle the transport business and foreign trade flows of our country. We were denied access to western ports, our ships were recalled, and our container equipment was withdrawn. But Russian logistics companies, together and under the leadership of the Government of the Russian Federation and federal authorities, managed to quickly replace the lost capacity.

Together with the Russian Export Center, we have created new foreign trade services and opened new routes. In particular, for example, the so-called Deep Sea route: from the countries of Southeast Asia through the Indian Ocean to the Suez Canal, around the countries of Europe, to the port of St. Petersburg, to the port of Novorossiysk. The North–South route has been rolled out, and the Northern Sea Route is being implemented under your direct supervision.

At the moment, we can say with confidence that sovereignty in the Russian transport industry has been restored, and building rhythmic logistics between Russian business and businesses from friendly states is a key task for Russian transport workers.

The success of the Russian transport industry, however, irritates the authorities of countries with an unfriendly regime, and therefore we repeatedly face increased sanctions pressure, with uncompetitive actions on the part of large Western companies that put pressure on our partners. We encounter difficulties when buying, building, repairing fleets, bunkering fleets, and maintaining and insuring fleets abroad.

At the same time, we see that in the context of restrictions on our work in Western ports, Western companies have begun attempts to return to the Russian transport market.

To avoid the situation of blocking Russian business abroad, we believe that the next step should be the development of a sovereign transport complex abroad, including through the creation and acquisition of transport infrastructure outside the Russian Federation in the interests of foreign trade.

Taking into account the above, Mr President, we ask you to consider making decisions on the following issues.

First – in order to ensure security and prevent Russian logistics companies from losing control over the transport market, it is necessary to develop a mechanism for prioritizing the activities of Russian logistics operators over foreign operators on international transport routes through the territory of the Russian Federation, including when coordinating ship calls to Russian ports, provided that Russian transport businesses are provided with equal price conditions.

Secondly, Mr Putin, some of the old markets have been lost, and we are having a hard time entering new ones. This is due to complications and the lack of transport infrastructure loyal to Russian business, primarily for non-primary exports.

We ask you to expand the task that you gave at last year's Russia – Africa forum on creating infrastructure in North Africa and ask you to consider creating port and logistics infrastructure controlled by Russian companies on key international transport corridors.

It is necessary to expand state support measures for the creation of such projects by Russian businesses and for the acquisition by Russian companies of capital control in existing transport complexes abroad, as well as state participation in concluding intergovernmental agreements with participating countries with clear parameters.

We believe that first of all, such infrastructure should be created in the People's Republic of China, India, the countries of North and East Africa, and the United Arab Emirates. The tasks of such hubs may vary depending on the location. These are the exposition of Russian export goods, organization of stable cargo flows of parallel imports, storage and transshipment of Russian export cargo, and maintenance of Russian vessels.

The creation or acquisition of its own infrastructure abroad will allow Russian companies and, most importantly, Russian vessels, even after the introduction of targeted sanctions, to ensure direct ship calls between their own Russian ports and their own ports abroad without the possibility of creating any restrictions on the part of third parties.

Third – the process of actively forming new trade routes and new sustainable supply chains is currently underway. Both Russian businesses and companies from friendly countries are actively involved in these processes.

However, when working with African countries, we see some inconsistency in the actions of Russian businesses that act in different directions and try to enter new markets on their own, and the difficulties of African partners who are also trying to find ways to Russian business.

We believe it is advisable to create an interagency coordination center that would unite the efforts of ministries to fulfill their local subordinate tasks, RECs, and large Russian businesses to synchronize their activities in new markets.

In this regard, Mr President, we believe that it is necessary and we ask you to consider the possibility of forming state interdepartmental coordinating bodies for organizing sustainable logistics chains in new markets in key foreign regions: Africa, South America, and South-East Asia.

We believe that the implementation of these measures will allow us not only to meet the growing foreign economic and trade needs, but also to fully realize the transit and export potential of our state.

Thank you.

Vladimir Putin: You have identified three points. The first and second don't differ from each other, in my opinion. Or did I misunderstand something?

Alexander Severilov: The first point concerned prioritizing the activities of Russian maritime operators over foreign trade ones. The fact is that we are currently banned from entering western ports. Using the example of a specific company – MSC, this is a Swiss international maritime operator, which is beginning to actively work in the Russian market. We are not allowed to enter foreign markets, but we allow a Swiss company to work in Russia. We believe that this is incorrect.

Vladimir Putin: We need to think about it in the end. You see, it is not always profitable for us to act on the principle of talion from the ancient law: to do the same thing that they do to you, to put it bluntly. We need to look at what is beneficial and unprofitable for the economy as a whole.

Bans are sometimes beneficial to put those who forbid us in their place, but sometimes they are not profitable if we want to provide our own market with something. We need to think about it, although the very formulation of the question is, of course, correct, it's definitely perfect.

The second question is basically the same thing: the activities of transport companies on the territory of the Russian Federation, right?

Alexander Severilov: The second issue is the need to expand state support measures when Russian businesses acquire transport infrastructure abroad, primarily ports, terminals, etc.

Vladimir Putin: Yes, it's a good topic, it's a very good topic. But some of our companies do.

Alexander Severilov: They do, and we do, but all these actions are so out of sync.

Vladimir Putin: Yes, and this leads to the third question – to create a single center that could coordinate this work. It's a good idea.

Alexander Severilov: Yes. Thank you very much.

The fact is that now all ministries work with new markets, all large companies work with new markets, but all this happens within each of the areas for which a particular department or company is responsible.

Our proposal is to create an interagency coordination center for work in new markets: in Africa, in South America, in the countries of Southeast Asia.

Vladimir Putin: Yes, it definitely makes sense.

You can't create any monopolies here, create any advantages for one company over another, but a regulatory center that closely monitors what is happening in individual markets-I think this is useful.

Alexander Severilov: Thank you very much.

Vladimir Putin: I think this should be done.

Andrey Ramovich, can you comment? And the last suggestion of a colleague.

Alexander Belousov: Absolutely correct about the last sentence. We have already set up a corresponding commission that deals with such coordination, but it may be necessary to strengthen its work. There is a headquarters for translogistic corridors that meets on average once every two weeks and considers these issues, but this does not mean that what you said is irrelevant, but on the contrary.

Igor Ivanovich [Shuvalov] and I were just saying that, of course, it would be nice if VEB and the Russian Export Center (REC) took on such a function. I don't know, probably – (addressing I. Shuvalov) How to say it correctly, Igor Ivanovich? - tracking business performance in new areas. VEB and REC have the right competencies for this.

As for the creation of platforms, indeed, after the sanctions, the situation has changed dramatically. If our exporters used to work mainly in those markets that they had been developing for a long time, already developed markets, and the question was to bring more exporters there, today exporters very often enter unknown, unfamiliar markets. And world practice shows, as well as simple common sense, that without creating both logistics and production sites in new markets, it is extremely difficult or even impossible to achieve success.

In this regard, in the design of the new national export support project, we have provided for 12 such sites in different countries of the world, I will not name them now. And we even offer the amount of funding – 131 billion rubles, including subsidies and transportation costs. So far, we have not reached love and agreement with the Ministry of Finance on this issue, but we are getting closer very quickly. (To A. Siluanov) Yes, Anton? I think we will find a common approach here.

As for the operator, to be honest, we are also looking at the actions of this Swiss company. We have operators in our ports, if we take foreign operators, from five countries: These are China in the Far East, Turkey, Turkish operators on the Black Sea, as well as three other countries: These are Cameroon, Liberia and Panama, and operators are registered in jurisdictions from these countries. And the Swiss really did appear. To be honest, I still don't really understand why we need them and what we will get from this company as a country or as a business. Maybe new technologies. But for now, I'd rather agree with my colleagues that there are more risks than benefits.

Vladimir Putin: And as for the acquisition or creation of infrastructure abroad by our companies, of course, we need to support this process, this is one hundred percent. Those who have done this feel quite confident. You can not even name them, but the acquisitions are large and work effectively in today's conditions.

Let's think about how to help.

Thank you.

Alexander Severilov: Thank you very much.

Alexander Shokhin: Mr President, the next topic is social partnership and employers ' associations.

I would like to invite Andrey Yuryevich Khitrov, who heads the all-Russian industrial association of employers "Union of Employers of the Nuclear Industry, Energy and Science of Russia" – and everything else related to the atom.

A. Khitrov: Good afternoon, dear Vladimir Vladimirovich!

Dear Alexander Nikolaevich, Delegates of the congress, guests!

The most important activity of the Russian Union of Industrialists and Entrepreneurs is participation in social partnership, representing the interests of employers in a social dialogue, which is often difficult, with our social partners: trade unions and government authorities. This work is being carried out at the federal, regional, and territorial levels. Unity and coordination of social partnership in industries and organizations is ensured.

We have devoted a large part of our dialogue to this issue today. But I would still like to say a special thank you to those who are involved in this work in the Government – Tatyana Alekseevna Golikova, Anton Kotyakov and, of course, the representative of the trade unions - Mikhail Shmakov, who, as Vladimir Vladimirovich said at the meeting, is often an inconvenient partner for the Government, but he it is often not an easy partner for employers either.

Social partnership as an instrument of social dialogue has proven itself highly and, as it was already mentioned from this rostrum, is reflected in the Constitution. Nevertheless, there is much to improve. It is necessary to increase the involvement of employers, employees, and government representatives in the social dialogue.

Today, the Government, in accordance with the Constitution, ensures the implementation of the principles of social partnership in the sphere of regulating labor and other directly related relations. At the same time, as Mikhail Viktorovich has already said today, this is not the subject of the functions, powers and responsibilities of ministries, which sometimes leads to a lack of dialogue with employers and trade unions at the industry level, on industry issues.

We suggest that the regulation on ministries should be supplemented with regulations on the development of participation in social partnership in the sectors that fall under the jurisdiction of the relevant FIVS.

The most important factor in the development and implementation of social partnership is the preservation of the contractual nature of relations and, as a consequence, the preservation of the right of the parties in the collective agreement to assess the fulfillment of mutual obligations.

We are concerned about the draft law prepared by the deputies today, which provides for state supervision of the implementation of agreements, without accurate and precise clarification of the powers of control over them between the parties to the agreement and the state supervision service.

We propose to work out and implement an approach in which the control of the parties to the agreement can be supplemented by state control under clear criteria and on clear grounds.

But the most important thing is also what Alexander Nikolaevich said today: we consider it necessary to adjust the employer community first of all in order to avoid imitation of social partnership, ensure the involvement of socially significant organizations in the social dialogue and, as a result, to ensure social stability in such organizations and in the territories of their presence.

Vladimir Vladimirovich, Alexander Nikolaevich has already voiced the main proposals at the meeting with you. A broad discussion has already developed on these proposals, and today it is necessary to fix more clearly the powers of employers ' associations at all levels of social partnership, while improving the criteria for their formation at these levels.

We propose to ensure the formation of a vertically integrated system of employers ' associations based on common organizational and methodological principles at all levels of social partnership, that is, at the federal, sectoral and regional levels; to establish mandatory membership of each association of employers in a higher association.

We consider it necessary to provide for the introduction of mandatory membership of the largest socially significant companies in one of the associations.

This proposal has probably become the most discussed one – with a negative assessment of such a mandatory nature, implying that we want to drive employers into some kind of employers ' association. But the question is a little different. We are talking about the freedom to choose in which association the employer should participate in the social dialogue: either join an existing one, or, perhaps, create one of their own with like-minded people.

Such participation will contribute to a systematic dialogue, systematic work and will contribute to the contribution of each organization to the development of the labor market and social policy.

To do this, it is necessary to make changes to the legislation, to the Federal Law "On the Association of Employers". We ask you to make such changes and discuss them with the Government.

Thank you.

Vladimir Putin: Thank you very much.

Before I ask Tatyana Alekseevna [Golikova] to comment, I would like to give the floor to Mikhail Viktorovich. How do you feel about these offers?

Mikhail Shmakov [President Federation of Independent Trade Unions of Russia]: Mr President, we support you. I think I spoke last time, and you criticized me that membership in any association of employers-not necessarily as Andrey Khitrov said-would be useful for the development of the social partnership system from our point of view.

Vladimir Putin: Mikhail Viktorovich, there were other proposals to add state control to monitoring compliance with the terms of the agreement. But state control already exists on the part of the Government. I don't really understand what that means.

Alexander Shokhin: Mr President, it is the Government and the trade unions that insist. As they say, we are trying to offer a more lenient formula, and that state control should concern only those aspects that are mandatory in the requirements prescribed in the legislation, in the Labor Code, in particular.

Vladimir Putin: So, is that all there is to it now? What else is that?

Mikhail Shmakov: Not exactly-in the sense that we insist. This issue is under discussion. I think that within the framework of the RTK, we can find a mutually acceptable option both with employers and with us.

State control, of course, should not be absolute, but in some areas there are powers that any public associations do not have. Therefore, the use of state powers is also required at some point.

Vladimir Putin: Fine.

Tatiana Alekseevna, please.

Tatyana Golikova: Good afternoon, Vladimir Vladimirovich!

Vladimir Putin: Hello!

Tatyana Golikova: Dear colleagues,

I'm talking first about social partnership and then about what Andrey Yuryevich [Khitrov] said.

It is guaranteed by the Constitution, Article 75, social partnership, and the Labor Code. We define social partnership as the main principles of regulatory and legal regulation of labor relations.

What does this mean? This means that if one of the parties is absent, then there is a high probability that the labor rights of citizens may be violated and the social guarantees that our citizens are entitled to are not fulfilled.

But today, joining the association is voluntary. As part of the instructions that you gave last year at the RSPP congress and not so long ago, in March 2024, we discussed these proposals at the Government platform together with employers ' associations and major employers: is it necessary to regulate the mandatory entry by law? Now we have come to the following conclusion: we must act very carefully here, taking into account our interests. We agreed with our colleagues that our colleagues will prepare a corresponding roadmap for at least 2024, which will contain specific proposals for changing the legislation, proposals on the criteria for possible mandatory entry into employers 'associations, and, as colleagues raised the question, on certain preferences if they are mandatory members of employers' associations.

Such a map of the Russian Union of Industrialists and Entrepreneurs was presented only recently, it was in April. We are currently working together with the federal executive authorities on this issue. In the near future, we will formulate suggestions on how this can be done and whether changes to existing regulations are required. And we will try to use the example of some large [association] to work out both the criteria and such possible changes. Accordingly, then we will propose a mechanism for this obligation, if it is accepted by all parties.

As for what Andrey Yuryevich [Khitrov] said about social partnership in industries and whether there is such a norm in the regulations on ministries and departments. This topic is not new, it is raised almost every time at meetings of the Russian Trilateral Commission.

The fact is that until 2004, before the reform of the federal executive bodies, when we divided them into ministries, agencies and services, such a rule existed in all the provisions. Then it was excluded as unnecessary, meaning that it will be regulated at the level of a single agency, as is the case now with the Ministry of Labor and Social Protection and the Russian Trilateral Commission, and we will encourage everyone else to do this work.

My opinion – given the fact that I am the coordinator of the parties, and every time we discuss this topic, that this is not an unnecessary function: this disciplines the federal executive authorities to a certain extent, when their regulations include interaction with social partners in the relevant sectors that they oversee. However, this does not require additional money, since all federal executive bodies are members of the RTK in one way or another on the part of the Government.

Therefore, as the structure of the Government will change soon, you can consider this issue if you think it is possible.

And the last thing that concerns state control. I agree with Mikhail Viktorovich [Shmakov], this is not entirely true. In principle, the mechanisms of the Russian Trilateral Commission allow us to resolve many issues. And if we still settle this issue on the first two points, I think that there will be no problems in terms of control.

Thank you.

Vladimir Putin: Thank you.

You also mentioned the need for a clearer record of employers ' rights. What did you mean by that?

Alexey Khitrov: At different levels of social partnership, especially at the territorial and regional levels, employers do not always have the right to participate in government meetings. And we would like the practice of dialogue that exists between employers and trade unions at the federal level to be implemented more at the regional level. By the way, we monitor the regional level at the level of the Russian Trilateral Commission. There are completely different practices. But I would like this dialogue to be held at the territorial level as well.

(To T. Golikova.) Tatiana Alekseevna, I would add. What are we talking about when we talk about dialogue in ministries and departments? I represent the nuclear industry, it has its own specifics, we have our own industry commission, where industry trade unions and industry employers meet. In our practice, this is done on a quarterly basis, and we discuss all pressing issues of labor relations, salaries, social packages, and the implementation of some industry-specific programs. I know that my colleagues want to do the same work at the level of ministries and departments, so that not those who come to us in the Russian Trilateral Commission and discuss some issues, but sectoral issues would be discussed in the ministry. We are talking about such rights and powers.

Vladimir Putin: I think that this can and should certainly be supported, especially at the regional level, of course.

Alexander Khitrov: Thank you.

Alexander Shokhin: Mr President, I reported to you in March that we are not trying to offer compulsory membership in associations – in any of the employers ' associations, but not in the Russian Union of Industrialists and Entrepreneurs. At the Congress of trade unions, Mikhail Viktorovich [Shmakov] said: everything is in the Russian Union of Industrialists and Entrepreneurs. No, we believe that anyone who wants-in the Russian Union of Industrialists and Entrepreneurs, who wants to create their own structure-create it.

Representative of the Republic of Kazakhstan Timur Zharkenov, deputy head of the Chamber of Entrepreneurs "Atameken", spoke today. There is a mandatory membership. They found a way to overcome their differences with the International Labour Organization, and the ILO recognized that they were in compliance with the relevant Freedom of Association Convention of 1948.

Vladimir Putin: Listen, this is the practice in Europe's leading economies – the law stipulates mandatory membership in trade union organizations. There is nothing new here, and no violation of the ILO rules exists here either. Therefore, from the point of view of law, it is quite possible to support this.

Alexander Shokhin: As for the criteria that Tatyana Alekseevna [Golikova] mentioned, we suggest using the current legislation. There is a law on bankruptcy, where, in fact, socially significant enterprises are defined – five thousand employees. Or city-forming enterprises that employ more than 25 percent of the population of a particular locality.

Economically significant enterprises in the process of redomicilation – also set the rules, and so on. You can use the current legislation criteria. There, in our opinion, for example, the bar is too high, and you can go down in terms of the number of employees, but at least start with this.

Vladimir Putin: You know, you can apply to the State Duma and hold discussions with deputies. These are all solvable things. The question is whether to organize the work itself.

But, I repeat, this practice exists in the leading economies of Europe. Well, why, we can also implement this, there is nothing like this here.

Alexander Shokhin: Both in Austria and Germany.

Vladimir Putin: Yes, that's right.

Alexander Shokhin: Mr President, we have deliberately limited the number of speeches from the rostrum in order to give you more opportunities to work with the audience.

Vladimir Putin: Please.

Alexey Shokhin: You have already criticized me twice for being "regulated" in our country. We decided, since there are microphones – a live queue to the microphone. How many people will have time to ask a question, so many will have time. I suggest you start with this microphone, the central one.

Vladimir Putin: Yes, please, please.

Alexander Shokhin: Introduce yourself, colleagues.

Alexey Kodzaev: Good afternoon, dear Vladimir Vladimirovich, dear Alexander Nikolaevich!

North Ossetian Regional Branch of the Russian Union of Industrialists and Entrepreneurs, Alan Kodzaev.

In your Address to the Federal Assembly, Mr President, you set a number of important tasks for business in the fiscal sphere, one of which is to minimize fragmentation. You also noted that the state should help businesses.

I would like to note that in fact, the state does a lot to help businesses, especially businesses felt this during the covid events and during the sanctions imposed by some countries. I will call them "some", because at the last congress you said: there are no unfriendly countries in Russia, there are unfriendly elites and unfriendly rulers.

Our next proposal is to carry out a pilot differentiation of the simplified tax system by type of activity, increase the number of people from 130 to 250 in man-intensive industries, while maintaining the income level at the same level.

And the next suggestion is to remove the systemic problems that companies face during active growth, also expand the experiment conducted for public catering in terms of eliminating value-added tax, and apply this experiment in other sectors that are similar in economic parameters.

These were our suggestions.

Mr President, allow me to take this opportunity to express my gratitude to you.

It so happens that exactly three years ago, in your Address to the Federal Assembly, you launched probably the most ambitious program – the program of social pre-gasification. Today, this program has proved to be so popular among the population that it can rightfully be called popular.

I myself work for Gazprom Mezhregiongaz Vladikavkaz and I see these people from the outside when we connect new households. They constantly express words of gratitude. In fact, today, as they say, I convey to you in the first person the words of gratitude from the residents who have used this program.

Thank you for everything.

Vladimir Putin: The program is really going well, and people are very much in demand. But one of the initiators of this program was just Gazprom and the head of Gazprom Alexey Miller. So these are also words of gratitude addressed to him.

Now about what we did as an experiment in catering – VAT exemption and so on. We need to see how it works. Probably, it can't function the same in all industries.

Now I will ask Maxim Reshetnikov to comment.

As for minimizing this fragmentation process, the Minister will also say a few words here. We all proceed from creating favorable conditions for business, so that business does not get scared, so that it does not think that they will somehow be persecuted for this, and some penalties will come. The main thing is to ensure this process, in which it will be profitable and convenient for businesses, and it will also be convenient for the state to solve fiscal functions.

Please, Maxim.

Mikhail Reshetnikov: Dear colleagues,

Two questions.

We have agreed on a catering experiment until 2024. This year is the last in the experiment, we are summing up the results, then we make a decision on replication.

Indeed, there is an appeal from businesses, especially businesses that have a lot of labor-intensive work and a large salary fund. We have agreed with the Ministry of Finance here, and we will look at the results together with public organizations by the end of the year.

About the level of people and further, let's say, expanding the boundaries of small and medium-sized businesses. We have such a very cautious attitude to this, because we already have quite large borders.

:(addressing A. Kodzaev)Vladimir Putin: You are proposing to increase the number of people, aren't you? Should I leave it in terms of turnover?

A. Kodzaev: Yes, the income bar should remain the same.

Mikhail Reshetnikov: It just turns out that this decision will encourage jobs with low wages and low output. But still, the main task of the national project in a labor-deficient economy is to maximize the output and productivity of labor, including in small businesses. Therefore, we need to be very careful in our approach to this, given that the economy of high wages requires high productivity.

That is why, Mr Putin, we would suggest that we look at all this together, taking into account the tax changes that are going to take place now, and discuss it in a comprehensive manner.

Vladimir Putin: As for the economy of high wages, there is much to work on in the North Caucasus, because the level of income of the population there, unfortunately, is still lower than the national average.

Please continue.

Alexander Batakov: Good afternoon, Mr President! Good afternoon, Alexander Nikolaevich, colleagues!

Anton Batakov, Member of the Board of the Russian Union of Industrialists and Entrepreneurs and the Presidium of the Sverdlovsk Branch of Industrialists and Entrepreneurs, Yekaterinburg.

Vladimir Vladimirovich, we congratulate you on your election as President of Russia.

Vladimir Putin: Thank you.

A. Batakov: I am sure that business will achieve all the goals you set for the benefit of the Fatherland.

Vladimir Vladimirovich, a year ago I addressed you with a proposal to adapt industrial mortgages to the needs of small and medium-sized businesses. And thanks to you, the Government and the Russian Union of Industrialists and Entrepreneurs, the issue is being worked on. Thank you very much.

Vladimir Vladimirovich, today we have almost 2.5 thousand measures to support the industry, and it always works in conjunction with other operations: transportation and storage – in a word, with logistics. And we see that no matter how much the manufacturer tries to reduce the cost of the product, its cost to the consumer is many times higher than the production one due to the high key rate that is necessary for the construction of this logistics infrastructure today.

In order to synchronize and strengthen the current support measures and maintain the price track of the product from the manufacturer to the consumer, we propose to subsidize the construction of logistics infrastructure and industrial distribution centers in the form of a separate logistics mortgage program. This solution will provide a narrow price corridor and high turnover of products of industrial clusters and enterprises located along transport corridors, for example, M-12, East–West and North–South, as well as the border with China.

Today, there was a lot of talk about the construction of new highways and roads. Everything goes well, cargo traffic increases, and there is not enough infrastructure just for storage, so this is the offer.

Thank you for your attention.

Vladimir Putin: You know, as for these projects themselves, highways and so on, everything is generally built here.

As for the supporting and servicing infrastructure, first of all, these are storage enterprises and so on, you can probably think about it. But this is also a question of budget opportunities, because all these are subsidies related to budget spending. Now the Government is actively working on this.

I agree with you, of course, it is important to pay attention to these infrastructure-related issues that provide logistics.

Now I will ask, maybe Denis Valentinovich will tell you about the mortgage and other tools to support the industry. They are all generally known, but if the Minister-Deputy Prime Minister summarizes them again, I think it will be useful.

You are welcome.

Dmitry Manturov: Dear Vladimir Vladimirovich,

I don't want to dissonate with the positive comments of colleagues who have previously requested their referrals.

I can only say that the industrial mortgage was your assignment to us the year before last, and we implemented it. And it evolved several times: first it was for the purchase of premises, buildings, then for repairs, for construction. In other words, we implemented all these tasks last year, mainly for small and medium-sized businesses. 800 loans were issued under this mortgage.

Of course, there is no limit to improvement. But it seems to me that today's resource – and taking into account the tasks that you voiced in your Address, increasing the volume of financing for preferential industrial mortgages – is difficult for us to pass today, taking into account the interest rate.

So, as you said, let's take this into consideration in the future. First of all, we will implement the solutions that have already been improved and are working effectively today.

Thank you.

Vladimir Putin: Thank you.

I don't think it makes sense to give Anton Germanovich the floor, because he will say exactly what he said five minutes ago: these are additional budget expenditures related to subsidies.

As you know, now banks usually give loans at floating rates. If loans are taken based on the key rate of 16 percent, then as changes occur, and I am sure that there will be changes, I really hope for this…

(Applause.)

I would like to ask you not to consider the stormy and prolonged applause as some kind of pressure on the Central Bank. (Laughter.)

A. Shokhin: We're ready to clap again.

Vladimir Putin: This will probably happen simply based on objective trends that are developing in the economy.

And if this is the case and you use floating rates, then the rate will also decrease as projects develop.

Nevertheless, we will think about it, of course. This is a very important question, and I totally agree with you.

Elena Shokhina: Hello, Vladimir Vladimirovich, Alexander Nikolaevich, distinguished guests of the Congress!

I got in a little late without waiting in line. My name is Yevgenia Shokhina, I am the president of the RSPP Business School, the editor-in-chief of the Business of Russia magazine and the mother of four children-Alexander Nikolaevich's grandchildren.

To be honest, I don't really have a business question.

Vladimir Putin: Please be a little louder.

Elena Shokhina: I'm just a little worried.

2024 has been declared the Year of the Family. I have two questions in this regard.

The first. Many young people want to go to the civil service or law enforcement agencies, but they do not have this opportunity, because they are prevented by the criminal record of one of the parents or, God forbid, two parents.

Vladimir Putin: Does the criminal record of one of the parents prevent you from going to work in law enforcement agencies?

Yelena Shokhina: Yes, and for the diplomatic service. In this regard, the question is: is it possible to revise this rule?

Vladimir Putin: These are departmental rules related to personnel policy. I think it all depends on specific situations, but I will definitely raise this issue for discussion with my colleagues, I promise you.

Elena Shokhina: Thank you very much. And very quickly the second question…

Vladimir Putin: I agree with you. Of course, no one is responsible for the actions of family members, this is understandable. It is always connected with a specific person, with their personal business qualities, with their capabilities, and so on. First of all, HR departments should be guided by these considerations.

Elena Shokhina: Thank you very much.

Four years ago, I founded the Zhivit Charity Foundation, which is dedicated to improving housing conditions in situations where children are removed from their blood families on the grounds that they have poor repairs. Then we return the children to the court, and the families are restored. Example: in the Tula region, three children were seized and transferred to another region to a professional guardian. We made repairs for 90 thousand rubles and then returned them to the court, and a professional guardian receives from 12 to 30 thousand rubles, depending on the subject. Perhaps the moment has also come when it is possible to review the budget policy in terms of reallocating funds to help relatives and families?

Vladimir Putin: Budget policy – I don't know, it's even difficult for me to react to it in any way, the issue is very delicate and sensitive. But in no case should any lawlessness be allowed in terms of removing children from the family. If they don't give you fresh orange juice for breakfast, this is not a reason to take the child out of the family. The main thing is not orange juice, but love for the child.

But, of course, we must look at the essence of what is happening in the family. There are cases when it is better to take the baby out of there than with some alcoholics he will live there and suffer daily. This is a delicate matter, and here, of course, we need to implement appropriate policies and build them at the state level. You're right, of course.

Elena Shokhina: Thank you very much. Of course, our foundation helps conscientious and respectable families, and we check this.

Vladimir Putin: Thank you.

Igor Utenkov: Dear Vladimir Vladimirovich, Dear Alexander Nikolaevich,

Ivan Vladimirovich Utenkov, Member of the Board of the Russian Union of Industrialists and Entrepreneurs, Unmanned Technologies Group of Companies.

The question will be related to engineers – to be precise, to the qualifications of engineers who are currently ready and able to develop and integrate quantum technologies in our country.

Quantum engineering today in Russia, as in the world, has two approaches. This is its hardware part, it is connected with the use and creation of quantum computers. I hope that our country will receive industrial designs in the foreseeable future.

The second approach, related to quantum algorithms, is already used in Russian and domestic practice. So, for example, the mega-science project-the NICA collider-integrated quantum algorithms into the control and cooling system, as a result of which it increased the controllability and stability of operations performed internally.

Also, of course, it is necessary to note the developing industry-robotics and drones in general, which today are gnawing, so to speak, the granite of science from the point of view of artificial intelligence based on neural networks. The next stage of development is, of course, quantum algorithms in a more in-depth form.

My suggestion, my question is related, of course, to the shortage of personnel in this industry. In 2022, according to open sources, the shortage of engineers, quantum engineers, was a thousand people, in 2023 this demand increased. Naturally, technology is developing faster and faster every day. Given that our country is going to make a technological breakthrough, we believe that this issue should be addressed in a more consolidated manner.

My suggestion, or request, if I may, is that you support the creation of a consortium based on the Russian Union of Industrialists and Entrepreneurs, which would include business and leading universities in the country for the planned training of personnel that is necessary both today and will be necessary for five to seven years in the future.

In fact, this technology is the future of our country, it will be in the logistics and agricultural sectors, and these are security issues.

Thank you.

Vladimir Putin: These questions are extremely important, and I also mentioned this in my opening speech. I would like to once again confirm our most serious attitude to issues of this kind, training of personnel in general.

As I have already said, we intend to provide early career guidance from schools – including with your participation, dear colleagues – from high school to sixth grade, and we have a whole program in place. Then the secondary level: colleges, technical schools, and so on. We will work on repairs and create conditions for young people to live comfortably and develop as professionals. And a high school link. All of this should be linked together.

And by industry: of course, one of the most important industries is drones and everything related to them, including artificial intelligence. Of course, our Defense Ministry is also doing this. You know, the so-called people's military-industrial complex is already working hard. The Ministry of Defense does not have time to follow the proposals made by people working in this field. New offers are born every day.

Moreover, success on the line of contact today depends on how effectively and quickly technological tasks are solved, with what advance the opposing sides do it, simply in real time.

And we do it. Both the Defense Ministry and civilian agencies are engaged, including the Government. Andrey Ramovich, in particular, is also at least partly involved in this area. Andrey Ramovich, can you say a few words on this topic?

Alexey Belousov: If we talk about quantum communications and quantum computing, this is one of the most modern end-to-end technologies in the world, which is developing quite rapidly, and our country's position here is one of the best in the world.

Quantum communications are handled by Russian Railways. My colleagues are very actively developing it, and if I'm not mistaken, they have already launched this line to St. Petersburg, which is working. Oleg Valentinovich Belozerov directs these processes directly. A prototype quantum computer has already been created, and even more than one. Rosatom is also actively engaged in hardware development here.

Of course, there is a need to create special training of personnel in these areas at the leading universities of the country, such as Phystech and ITMO. So far, this is certainly such a piece story. But I think that it is absolutely necessary to resolve this issue literally in the very near future.

Vladimir Putin: Yes.

(To I. Utenkov.) Formulate it again: You suggest creating a single center…

Igor Utenkov: My proposal is to create a consortium based on the Russian Union of Industrialists and Entrepreneurs (RSPP), since the customer here will be mostly business, and to include the leading universities of the country in this consortium.

Today, if you look at clear figures, we have only 450 people graduating from quantum masters per year, this is across the country. This is incomparably small.

Vladimir Putin: I agree. Good offer. I don't know, based on the Russian Union of Industrialists and Entrepreneurs… If Alexander Nikolaevich believes that this can be done on the basis of the Russian Union of Industrialists and Entrepreneurs, then it is quite possible.

Alexander Shokhin: Ivan Vladimirovich heads the recently established group on unmanned innovation systems. Therefore, he will answer his own question.

Vladimir Putin: Come on. But the idea itself is good and deserves not only attention, but also that we do it.

Igor Utyonkov: It's been accepted. Thank you.

Vladimir Putin: Thank you very much.

K. Major: Dear Vladimir Vladimirovich, Alexander Nikolaevich, dear delegates, good day to all!

Vladimir Vladimirovich, at the last congress of the Russian Union of Industrialists and Entrepreneurs and at the forum "Strong Ideas for a New Time", you supported the plan for the development of outdoor advertising technologies. And we, inspired by your support, are successfully implementing them.

Vladimir Vladimirovich, new street media is broadcasting today's meeting right now. And if you think it's possible, we'll show you what it looks like in a few minutes.

Vladimir Vladimirovich, the media market has changed a lot. New technologies make advertising a powerful tool of influence. We need to use these opportunities to positively influence people's moods. But the current legislation does not allow us to fully realize these opportunities.

What do we offer? The first step is to establish new street media at the legislative level, which allows you to instantly convey information about socially significant events in the country to millions of people. We want to broadcast your speeches, rocket launches, and talk about the implementation of major infrastructure projects on street screens, evoking positive emotions and feelings of national pride. To do this, you just need to expand the format of using outdoor advertising.

There is another initiative. Vladimir Vladimirovich, the advertising market is very grateful to you personally for signing the law on extending existing contracts for advertising structures this week. One of the conditions was to place at least 10 percent of social advertising on street screens.

I propose to similarly increase the five percent quota of social advertising established by law for all types of advertising. Now it is especially important to broadcast our traditional moral and cultural values, national successes and achievements by all available means. And social advertising tools are perfect for this.

Vladimir Vladimirovich, we are ready to gather representatives of all interested bodies and the market on the basis of the RSPP Commission on Media and Advertising in order to jointly prepare a legislative framework that will make advertising not only economically profitable, but also socially useful.

In addition, I gave you a project to scale the new street media so that it works in every corner of Russia. Please review it and make time for a possibly private meeting.

Thank you very much.

I serve Russia!

Vladimir Putin: Thank you very much.

You suggested expanding the opportunities for outdoor advertising. What should I do? What does "empower" mean? And you suggest changing the regulatory framework in some way. How?

K. Major: Yes, that's right. Currently, according to the law on advertising, we cannot broadcast news in real time. And in fact, this is the story that allows you to quickly convey to every person, to every Russian news that is socially significant in the country.

Vladimir Putin: To be honest, this is the first time I've heard about it. I think we do everything in real time.

You just said that something is coming to the outdoor advertising screens.

K. Major: Yes, but if you broadcast news, news content: we can't broadcast it the way we broadcast our congress today, because the law does not provide for this.

Vladimir Putin: We need to discuss this with our main TV companies. They are probably afraid of losing some part of the market in which they operate.

Here you need to look carefully to make sure that there is a balance. Because, for example, you said that you could broadcast my speeches there: I am very grateful to you, thank you, it is very attractive. But the law you mentioned says that it is possible to extend – that is, it is not "possible to extend", but state agencies are required to extend existing contracts for these structures for up to ten years.

I signed this law, but there were also people working in this field who say that this creates a monopoly and it is not very good for the market: there is no need for those who have such contracts to improve something, to do something, and the authorities are obliged to appear in person just for the first time. ten years to renew these contracts.

So what am I talking about? In addition to the fact that, despite the attractiveness that you mentioned, the broadcast of my speeches, there are other considerations that market participants formulate. Nevertheless, I signed it anyway, because there are obvious advantages here, including creating stable conditions for your work. But we will definitely see, and I promise that we will do it.

A question about social advertising. This is another "carrot" that you showed us. This is also very correct-except for my performances. Social advertising is very important.

But here in the morning, my colleagues and I also talked about this issue. When we talk about, say, child nutrition or school nutrition, it's kind of like social advertising. But if you show specific companies that produce a particular sausage or sausage that needs to be promoted in schools, then this is already a hidden advertisement for a specific manufacturer or, as they say on television, jeans. All this should be carefully considered.

In general, of course, we will study your suggestions. They are, of course, justified.

Thank you very much.

K. Major: Thank you.

As for the media, we are ready to consider this.

Alexander Shokhin: We agreed to send the video to Dmitry Peskov, probably.

Vladimir Putin: I don't know who he is affiliated with there.

(To K. Major.) We will definitely consider it. Please formulate it well?

K. Major: Thank you very much.

Vladimir Putin: Thank you.

G. Zverev: Dear Vladimir Vladimirovich, Dear Alexander Nikolaevich, Dear delegates and guests of the congress,

Zverev, All-Russian Association of Fishermen.

During the implementation of the national project "[International Cooperation and] Export", Russian fishermen have taken a good position in the global fish market. In 2022, the export of pollock fillet amounted to 120 thousand tons-four times more than ten years earlier, and the export of minced pollock, surimi, – 45 thousand tons, 20 times more than ten years earlier. We have taken a significant share in these markets from our American competitors. Often we go head-to-head with our competitors at prices that are called "neck-and-neck".

Taking into account the import duties imposed on Russian fish products, the export duties imposed at the end of last year in our country negate our price advantage for certain types of products. In some markets, we are already under a lot of pressure. Shipments of deep-processing products began to decline slightly.

The Russian Union of Industrialists and Entrepreneurs (RSPP) offers a point – by-point solution – the abolition of export duties not on all fish products, of course, but on five or six commodity items that are most sensitive to price competition and most important for investors who are building-you know, these are more than a hundred fishing vessels, the construction of onshore factories. Their debts to investors ' banks are already about a trillion rubles. In five years, the debt has increased seven times, and by the end of the year – about 300 billion more.

Therefore, we would like to consider the possibility of spot adjustment of export duties for several items of fish exports.

Vladimir Vladimirovich, the second one. A large-scale transformation of the global fisheries sector has begun. Many countries are completely dissatisfied with the state of affairs in which the United States and the European Union disproportionately influence the rules of global fishing.

Accordingly, we have many allies in the global fisheries sector, and cooperation in fisheries education and science has traditionally been a powerful tool for expanding and strengthening our influence in the global fisheries sector.

Currently, training of personnel for fishing and fish farming is carried out by five technical universities subordinate to the Federal Agency for Fisheries. There is experience, traditions, and qualifications, but the material, technical, and financial support for performing such a state task is not quite sufficient, without exaggeration.

And we would consider it important to develop at the government level, perhaps, a program for the development of fisheries education: both with an emphasis on training foreign students for those countries that will determine the rules in global fisheries in 10-15 years, and training those 15-16 thousand specialists who will be needed to work until 2030. on 130-135 new fishing vessels and 35 new fish processing plants.

We would like to consider supporting the program or developing a program for the development of fisheries education.

Thank you.

Vladimir Putin: Thank you.

As for education, all these universities – five of them, you said-are under the jurisdiction of the Ministry…

G. Zverev: Federal Agency for Fisheries.

Vladimir Putin: Is it? There are some, in my opinion,…

G. Zverev: Federal Agency for Fisheries. Petropavlovsk-Kamchatsky, Vladivostok, Kerch, Astrakhan, Kaliningrad.

Vladimir Putin: Are they all there [under the jurisdiction of the Federal Agency for Fisheries]?

G. Zverev: Yes.

Vladimir Putin: But in general, training is conducted in various specialties in 40 universities that [belong] to the Ministry of Agriculture, but have nothing to do with Rosrybolovstvo. We need to think about how to consolidate all these opportunities. You are certainly right here.

As for export export duties. Look, you said that you increased your exports by 20 times, right?

G. Zverev: Yes, surimi – 45 thousand tons in 2022, in 2012 the export of surimi was less than two thousand tons.

Vladimir Putin: And the debt load has also increased significantly, but only seven times.

G. Zverev: From 128 billion rubles in 2017 to 920 billion at the end of last year. And taking into account the second stage of the investment quota for the construction of ships and coastal factories – about 350 billion more by the end of this year.

Vladimir Putin: I think that you definitely need to help. I will definitely talk to the Minister of [Agriculture] Dmitry Nikolaevich Patrushev. We just need you, together with the Ministry and the Ministry of Economic Development, to make sure that our counters are not left empty. You understand that first of all, of course, we must take care of the domestic market.

G. Zverev: That's why we offer five or six categories in which we are very good in the foreign market, you know, right…

Vladimir Putin: Yes, I understand that you had big catches of red fish there, which I think was a record, and something else.

G. Zverev: Chum salmon – two million tons.

Vladimir Putin: Yes, yes. So, of course, they should not be completely "frozen", these export customs duties. I will ask the Ministry of Economic Development, together with the Ministry of Agriculture, to work out all this with our colleagues. You cannot delay, make a decision.

I agree with you. I need to see it.

G. Zverev: Thank you very much, Vladimir Vladimirovich.

Alexey Dmitriev: Dear Vladimir Vladimirovich, Alexander Nikolaevich! Dear participants of the congress,

Andrey Dmitriev, Russian Union of Industrialists and Entrepreneurs, Tver region, Metavr plant.

Vladimir Vladimirovich, in my address, I would like to touch upon an issue that we actively discussed in 2023 – the issue of personnel and their training. Within the framework of the "Professionalitet" program, for which I would like to thank you for your support, and the Ministry of Education for the level of project implementation in the regions that we are seeing.

I think I will voice the position of the business that we did not even expect such an effect when we could be so systematically integrated into the process of training specialists. Accordingly, it shows flexibility. In the federal direction, we receive equipment upgrades, we receive major repairs.

The business is also beginning to invest in the training of mentors. We understand that without mentors, unfortunately, the quality of our graduates will be low. So what do we do? First of all, we train in the infrastructure that is available to us within the regions, and we also took on the responsibility of further training our specialists. For example, this is our case in the Tver region: we have created three clusters, dozens of industrial partners – and now we have a whole group of mentors that we are starting to train.

Vladimir Vladimirovich, as experience shows, the best mentor is a former graduate of the project "Professionalitet", and this is a person who has passed through all, let's say, stages of development, showed himself in production. We want to work with you to create a certain program to support such specialists who work for us in the "Professionalitet".

Last year, it was announced about a social mortgage for mentors. We tried to use the mechanism of Far Eastern mortgages, IT mortgages, and various other social mortgages. But, unfortunately, this mechanism does not allow new qualified personnel to be involved in the open source industry, because they are usually young and are not suitable for certain support measures.

That is why our first suggestion, Mr Putin, is to return to the issue of social mortgages. We have actively discussed it, and we even know the figures.

The second proposal, which comes from business, is that despite the fact that we are also starting to increase their income level, including through partial employment of teachers-mentors at our enterprises, we are still developing an additional program for financing teachers of vocational technology of the "Professionalitet" project within the framework of federal funding.

Thank you.

Vladimir Putin: Yes, this is a very important question, and I fully agree with it. Of course, we need to improve the level of training and status of those who do this. One of the key things, of course, is housing. You can see what is happening: experts of the economic block, the Central Bank, believe that the mortgage lending market is overheated, and this may negatively affect inflation and, accordingly, forces the Central Bank to keep the key rate high.

We understand that everything is so interconnected. But nevertheless, of course, you need to think about it. Just a mortgage – one of the reasons for this, as some experts believe, dangerous warming up of the economy. Therefore, on the contrary, the Government is trying to restrain mortgage lending a little in order to normalize the macroeconomic situation in general, including in the near future with the key rate.

But nevertheless, we need to think about it, because we need to strengthen this link in the training of specialists, as well as think about bonuses in terms of a decent salary level.

Colleagues are sitting here, everyone is listening, believe me, everyone wants to do it. It may not even be a matter of money, although this is also important, as the budget costs are additional. But we will definitely think about it. The idea is correct.

thank you.

(Applause.)

Alexander Voloshin: Alexander Voloshin, Senator from the Donetsk People's Republic.

Dear Vladimir Vladimirovich, Alexander Nikolaevich! Participants of the congress!

Despite the fighting, a lot of work is currently being done in our region to restore the economy, industry, and infrastructure. We have a transition period until 2026, but now we are not sitting idly by, but are looking far ahead and carrying out systematic work on analyzing the legislation. We have built up effective work with the Integration Council in the Federation Council, we submit our initiatives and proposals there, they respond quickly, they are an effective body, and the heads of the regions and the federal center provide tremendous support.

But given the amount of destruction, it is important to create conditions for private money to be invested in the development of socio-cultural objects. We have a proposal: allow private investors, including mining companies, to use the tax deduction if they use their own money to build social and cultural facilities in our region, and give them the opportunity to keep these facilities on their balance sheets in order to relieve regional and municipal budgets.

It's no secret that, in addition to the fighting, over the decades of "Ukrainism", just everything was "washed out" of the region: industrial enterprises were "washed out", mines were mercilessly exploited, the entire infrastructure was finished off, in Donetsk, water supply networks were worn out – 90 percent, heating networks – more. You know what state everything is in.

Now we need to support those investors who come to our enterprises, who are not in the simplest position, let's just say, these are not some tasty morsels. And now, looking ahead to 2026, we see that we will face a problem in environmental legislation – the problem of mine and quarry waters. Why? Because according to Russian legislation, enterprises and mines, using water, must then purify it to the level of distilled water, and this is absolutely impossible. And we understand that this work should be carried out in advance, looking ahead, because the process is not fast. If we do not do this work now, then after 2026, accordingly, enterprises will either have to stop, because they will definitely not be able to deal with water treatment in that volume, or they will violate the law, they will not comply with it. And what is the first, what is the second – this is not included in our plans at all.

And here we ask to instruct the Government to work out and find such a human and fair balance in the field of ecology. Because we love our land, we don't want to make it worse ourselves. But here's a simple suggestion: what was taken from nature was returned to nature in the same form, so as not to overload our industry.

I would like to take this opportunity to convey the words of great gratitude from the residents of Donbass for not being abandoned at a difficult moment to be devoured by this fascist evil spirits. People are grateful, the whole vast Russia came to the rescue, and, of course, without your strong-willed, wise and very far-sighted decision, nothing would have happened. Despite the fact that today we already know all the plans: who, how, when, where was going to beat-is no longer a secret for anyone, it is absolutely useless to play on this topic. The results of the elections that took place [show that] our people expressed their position and attitude towards our national leader not in words, but in deeds.

(Applause.)

Vladimir Putin: Thank you very much.

We, in turn, should all thank the residents of Donbass and Novorossiya for their courage, long-suffering and heroism. The most difficult trials that people have been going through in these regions since 2014, of course, sometimes do not fit in the head. It's just painful to watch. But we'll clean it up, that's for sure. (Applause.)

Now to the substance of your questions. You mentioned the tax deduction for social and cultural objects.

Before answering your questions, there are many of them, I want to say that in general, the Donbass has a very good industrial potential. It is no coincidence that in the 20s of the XX century, as we all know, there were posters "Donbass is the heart of Russia". So it was then. This is largely due to the huge industrial potential. And it is saved.

You said that many enterprises have a difficult environment, and that's for sure, but the potential is very good. Many enterprises in Donbass have good prospects. We can see the result, the return is already underway, and the enterprises have already started working. You just need to support and help. In this regard, of course, this investment tax deduction is important, it is applied in your country, it works.

Marat Shakirzyanovich, does it work? Please say a few words about this.

Mikhail Khusnullin: Mr President, we have zero income tax for the participants of the free economic zone, two-thirds of social taxes and property taxes have been set to zero, so conditions have been created for everyone who wants to work today. This is the first one.

Second. Can I immediately comment on the ecology?

We have already instructed the Ministry of Natural Resources and Environment to find a mechanism for this water disposal. Rostechnadzor has also been instructed to extend the deadline for monitoring the technical condition of mines at least until 2026, and not to switch to full-fledged Russian requirements yet, because otherwise the mines will simply stop. We are doing this work, we know it. Thank you.

Vladimir Putin: Thank you.

As for the tax deduction-it works, as you know, Marat Shakirzyanovich has just confirmed it. In this regard, one small remark.

You said that enterprises, businesses are building or intend to build, will build social and cultural facilities, and then let them take them on the balance sheet. We are trying to avoid this in Russia, because institutions of this kind overload the balance sheet and put enterprises in difficult conditions.

Therefore, it is better to let the administrative bodies work directly with the Ministry of Economic Development, with the Ministry of Finance, and get the necessary resources for the maintenance and development of social institutions that businesses build. If a business not only invests money in these institutions, but then overloads its balance sheets with their content, nothing good can be expected for business here. We'd better clear out this area of activity.

Alexander Shokhin: Mr President, we have presented awards. Most companies are just engaged in building objects, keeping them, because municipalities can't just keep them.

Vladimir Putin: I know. Here, where you can't do it, you can do it. Therefore, we have a transition period for Donbass until 2026. It also works: you need to use it and see what will happen and what it will result in.

I know that many people build and maintain it. Vladimir Leonidovich Bogdanov, General Director of Surgutneftegaz the whole city has been rebuilt and is happy and proud of it, and rightfully proud. But I mean in the economy as a whole: they did it, they built it, and it's better to do it calmly, in good condition [handed it over], by mutual agreement. This should be done in advance, so that both municipalities and regions, and in some cases the Federation, can plan in advance the costs of maintaining these objects. This trend is correct.

As for the environment. Of course, you can't do everything at once, in one stroke – it won't work. We have been implementing these standards in Russia for more than 10 years, to be honest. Everything is postponed, postponed, but then the decisions were made: at the legislative level, we say that we will not give up on this. But these same enterprises do not operate in an airless space, people live around, including those who work at these enterprises, their families live there, and your children live there.

So these questions are: what to postpone, what dates to postpone, what future dates to postpone-of course, we will need to discuss with local authorities, including representative authorities, because members of parliaments should certainly be participants in this process and take a direct part in the development of decisions. And so we will act, of course, carefully. No one is interested in killing businesses with the excessive requirements you mentioned. This won't happen.

With.Voronkov: Dear Vladimir Vladimirovich, Alexander Nikolaevich! Good day!

Sergey G. Voronkov – Commission of the Russian Union of Industrialists and Entrepreneurs, Russian Union of Exhibitions and Fairs, ExpoForum.

Vladimir Vladimirovich, we have two requests and suggestions from the congress and exhibition industry, but I would also like to start by thanking you for instructing us at the RSPP congress two years ago to develop additional measures to support the congress and exhibition industry.

I would like to express my special gratitude to the Government of the Russian Federation and personally to the team of Rosprom [Federal Agency for Industry of Russia] for the fact that fundamental work has been done in less than two years. The industry development strategy and road map until 2030, the system of standards, the system of state statistics were adopted, and educational programs were launched. And this turned out to be a very timely measure, because after the start of a special military operation in the new economic reality in which we found ourselves, the country turned out to have a very effective tool for rebuilding the economy.

In 2023, 1.5 thousand industrial exhibitions were held in the country, 55 million meetings and negotiations were held, as a result of which contracts worth more than 17 trillion rubles were signed, which is 10 percent of the country's GDP. In fact, the industry has become a new driver of economic development, a kind of conveyor belt and factory that turns contacts into contracts.

The second unique story that happened is that the convention and exhibition industry has become a new institution of socialization, which began to form relevant meanings and positive impressions through the demonstration of new achievements and live communication. This is exemplified by thousands of social events, ranging from the well-known "This is a Family Event" contest to professional skill contests that have effectively replaced WorldSkills and become international events.

The most striking example, of course, is the exhibition "Russia", which was visited by tens of millions of people, hundreds of millions of people watched in the media. Today, we say that congress and exhibition venues are truly a unique place where a new economy, a new social positive, and social cohesion are being formed.

During these two years, we have seen problems and challenges. The first request-proposal will be related to expanding the possibility of participation in Russian exhibitions of small and medium-sized businesses.

Everything is fine-tuned in the mechanism of the Russian Export Center. This is a unified methodology that gives equal rights and opportunities to all exporters to participate in foreign exhibitions. As for Russian exhibitions, unfortunately, there is a lot to work on. Because, first of all, funding is declining. Since 2021, it has decreased by almost 35 percent.

The idea itself is very good: small and medium-sized businesses co-finance participation in exhibitions, financed by the federal part, financed by the regional part. But due to the fact that the federal budget has decreased, the regional budget has also decreased. In fact, with the exception of Moscow and St. Petersburg, no more than 10-15 companies receive assistance for participating in exhibitions from the subject of the Federation, and the demand for this service is extremely high. Exporters rate such a measure as participation in exhibitions and congresses as the second most popular, because it is really not a fish, it is a fishing rod, it encourages not consumerism, but activity.

It is also very important that there is no single methodology in this area. More than four hundred centers and organizations provide this assistance in the regions. And in most regions, for example, they do not take into account the beginning and end of the year. Usually, by September, all the limits are already over, the international status does not allow you to participate in Russian exhibitions, and so on.

Therefore, our proposal is related to developing and approving a single mechanism for compensating at least 50 percent of expenses for small and medium-sized businesses to participate in Russian exhibitions and congresses. We estimated that this is not such a large amount, about 2 billion rubles, which will allow us to double the number of small businesses that receive this assistance. In 2023, it was 10 thousand companies, that is, this is 0.1 percent of those who want it. At least we should be back by 2021. This is the first sentence.

The second proposal is already systematic in terms of legislative support and implementation of ambitious indicators that are included in the Strategy, and bringing the regulatory framework into line, because today more than 40 regulatory acts, which often duplicate and contradict each other, regulate the industry's activities.

It is necessary to put the conceptual framework in order, because today there are no differences between mass events, museum exhibitions, trade fairs, exhibitions and congresses, although they require different approaches. We need to define the powers of federal, regional and municipal authorities in order to solve the same problems of small business that I mentioned earlier.

We need to encourage investors to build the much-needed convention and exhibition complexes. Today in Russia, only 24 regions of the Federation are provided with specialized congress and exhibition complexes, and the need is huge.

Everyone was inspired by the exhibition "Russia" and wants to make similar expositions in their small homeland, but for this we need to encourage investors, we need to give [access] to cheap financial resources. It is especially necessary to build these complexes in regions that are developing cross-border cooperation.

Vladimir Vladimirovich, for this purpose, together with the industry community, the Institute of Legal Studies under the Government of the Russian Federation, and the State Duma Committee on Economic Policy, we have developed the main draft law and the sputnik law and submitted it to the Ministry of Industry and Trade. We ask you to support our initiative, discuss and submit to the State Duma the law on congress and exhibition activities. (Applause.)

Vladimir Vladimirovich, we are sure that you have given the industry the opportunity to be born and will give it the opportunity to get a birth certificate and a start in life, and the industry will not let you down. Thank you.

Vladimir Putin: Thank you.

It seems to me that over the past year and a half we have done a lot to promote Russian brands. And in general, we see a very good return.

Of course, in this area, which you have just mentioned, exhibition activities, from what you say, it is clear that something needs to be added to the tools that have been created. Right now, I don't know if there should be 50 percent support, or less, or more. Please, Denis Valentinovich [Manturov] will comment further. But it definitely needs to be supported. We must develop common approaches.

You said that you have already submitted a draft law, and now Denis Valentinovich will give his opinion on this issue. Of course, we need to work it out in detail, but we certainly need to move in this direction. It's definitely perfect.

Please, Denis.

Dmitry Manturov: Mr President, thank you.

All the instructions that you gave us at the birth of this industry, from the glossary to the introduction of OKVED codes [All-Russian Classifier of Economic Activities] and standards, as Sergey Georgievich said, have really been implemented and done.

Regarding the budgeting of the issue of compensation for the costs of holding events in the country: let's calculate and see how much it will be possible in the near future.

Vladimir Putin: He's not talking about other countries, he's also saying that this needs to be done internally. Small and medium-sized enterprises have limited opportunities to participate in these exhibitions, meaning rather high costs. We are talking again about subsidizing, in fact. We need to develop mechanisms. I understand that our colleagues are proposing these mechanisms so that they can be combined "in the bushes", as they say, according to their interests, something else, and give them some benefits. That's what we're talking about, isn't it?

With.Voronkov: That's right.

Dmitry Manturov: Mr President, we have worked out such a design for export. Let's do some math and look inside the country.

As for the law, we will study the subject of regulation through this law in this industry and conduct an interdepartmental discussion.

Vladimir Putin: All right.

You have the project ready already, right?

With.Voronkov: The draft of both the basic law and the satellite law is ready.

Vladimir Putin: Where is this project? Where did you send him?"

With.Voronkov: We sent it to the Ministry of Industry and Trade as our own ministry.

Vladimir Putin: Excellent. This is what the native ministry sees.

How long will it take the "home ministry" to review it?

Dmitry Manturov: Mr President, we will work on it within a month and we will be ready.

Vladimir Putin: All right? Within a month will suit you?

With.Voronkov: Yes, I think that's quite enough.

Vladimir Putin: Agreed. Thank you.

With.Voronkov: Thank you.

Alexander Shokhin: Sergey Georgievich, you say that the ministry is your own, but you thanked not the Ministry of Industry and Trade at first, but Rosprom, that is, your exhibition. The Freudian clause.

Colleagues, it's time for us to finish our work, because we still have a narrow meeting with the members of the RSPP bureau.

Final question.

Vladimir Putin: Please.

A. Gabitov: Dear Vladimir Vladimirovich,

Gabitov Alexander Firovich, Leningrad region, your proxy for the last election.

Vladimir Putin: Good afternoon!

Alexander Gabitov: Mr Putin, at the last congress, there was indeed a proposal from both myself and Mikhail Viktorovich [Shmakov] to have members of the Russian Union of Industrialists and Entrepreneurs.

I want to say once again that I traveled through all the districts of the region during the elections, and it was much easier to work with the RSPP enterprises. Managers, employees understood more, there were staples. Somehow, people really understood the tasks that we set-pride in our past, tasks of our future-with understanding.

Therefore, I would like to confirm once again from this point of view that membership in the Russian Union of Industrialists and Entrepreneurs and large enterprises are a very important component of the current development of our state, first of all, unity.

Thank you.

And I finish all the same on sewage. (Laughter.) You know, I also raised this issue at the last congress. What's the idea? What kind of water we took, we'll give it back. It is possible to introduce such a norm not only for new regions, but also for those enterprises that operate in our wonderful beloved country.

Thank you.

Vladimir Putin: Just a second.

I understand the whole logic of what you said. You live in the Leningrad region, right?

A. Gabitov: That's right.

Vladimir Putin: And you live in the Leningrad region. There's so much…

A. Gabitov: Beauty.

Vladimir Putin: Yes, exactly, just like that, so much beauty.

Do you always use water for production that can be used by humans?

Alexander Gabitov: Mr President, you know, but it is completely illogical to drain drinking water into the sewer system.

Vladimir Putin: I agree, I understand.

But still, there must be some criteria. After all, sometimes they take such water for production that it is impossible not only to drink, but also to wash with it.

Alexander Gabitov: Yes, that's right.

Vladimir Putin: It's scary to look at it. So let's have a businesslike look, I mean, let's have a look.

A. Gabitov: Is it possible to conduct an experiment in the Leningrad Region and allow our enterprises to use what water they have taken, and we will drain it?

Alexander Shokhin: You don't have a lot of mines and quarries like in the Donbas.

Vladimir Putin: But listen, everyone sitting here – we live in a country. Therefore, of course, we need to pay attention to environmental issues. I understand your concern, but it's not by chance that we've postponed certain decisions for years. Let's take a closer look. So that it is not a deterrent to development. So that it remains within the bounds of common sense.

A. Gabitov: Exactly so.

Vladimir Putin: Okay? We'll see. But we will still proceed from the fact that we must leave our children and grandchildren a country where they can live.

Alexander Gabitov: Mr President, we ask for your wise instructions on this matter.

Vladimir Putin: Let's work together.

Alexander Gabitov: Thank you.

Vladimir Putin: Thank you very much.

Alexey Shokhin: Dear colleagues, allow me to thank Vladimir Vladimirovich on your behalf…

Vladimir Putin: There is another colleague of ours [with a question].

Alexander Shokhin: They will not end.

Vladimir Putin: It's a good thing that we won't end up working together. But the discussion we should…

Alexander Shokhin: And if the mandatory membership is in employers ' associations, then our army will be many times larger.

Vladimir Putin: All right. Please, please.

Alexander Meshkov: Mr President, good afternoon. I'm not talking about sewage, I'm talking about something else entirely. You know, I would like to say that I am from the military-industrial complex, I work at Uralvagonzavod. Now he has already joined the concern's board of Directors.

I would like to talk about the reliability of people. One of the most important characteristics of reliability is the ability to perform, the ability to keep your word.

We talked to you about the Unified State Exam last year. I will say such everyday things, but you really helped people. I'll explain why. And we will put a bold end to the Unified State Exam today, I'll explain everything now.

Vladimir Vladimirovich, the main problem was that there was no way to simply retake the exam in a human way. People didn't pass – they wait a year, then retake it the next year. But we also have an ideologue-an assistant to the President. I have delved into this issue, I have worked through this issue, but in fact it is a big social elevator. Very large.

Vladimir Putin: Yes.

Igor Meshkov: And even now, Mr President, there are no questions about dormitories. That is, ordinary people come from Yekaterinburg, Chelyabinsk, Novosibirsk, and there are no problems with hostels. So let's put a bold dot on the Unified State Exam. Our ministers come and go, but [Andriy] Fursenko will always be there. I just got into it.

Vladimir Vladimirovich, second question.

Alexander Shokhin: Who will we award this time? Last time, the General Director of Magnitogorsk received an award thanks to you.

Igor Meshkov: No, Alexander Nikolaevich, you're turning me on.

Vladimir Vladimirovich, second question. You know, I wanted to say that I graduated from the Chelyabinsk Automobile School, worked as an assistant to the rector of Chelyabinsk State University, and graduated from the Novosibirsk FSB Institute.

Vladimir Putin: Look how much we have in common: I was also an assistant to the rector of Leningrad State University.

Igor Meshkov: Yes.

Vladimir Putin: I worked as an assistant to the rector of Leningrad and then St. Petersburg Universities, and then I also studied at special educational institutions through the security service. We have almost come the same way.

Igor Meshkov: We will go through it again.

Mr President, I would also like to say something important about reliability. If you'll excuse me, I'll touch on something personal. Viktor Filippovich [Rashnikov] and I were in Magnitogorsk in October…

Vladimir Putin: Viktor Filippovich, I congratulate you on the victory of Magnitogorsk . I wanted to call you yesterday, but you were so busy, I couldn't get through to you. Apparently, they celebrated the victory with the team.

Igor Meshkov: Mr President, I would like to mention reliability. Please forgive me. (To D. Manturov.) Denis Valentinovich [Manturov], forgive me. This is my personal opinion, otherwise they will put pressure on me and Sergey Viktorovich [Lavrov] somewhere.

Look, Mr President, we have a reliable partner. You and this manager call each other friends, and he is very important to us right now. I wanted to say something about Xi Jinping. You celebrated your birthday. He's a real friend of yours, isn't he?

He used to speak at MGIMO, and I work part-time as an adviser to Yuri Viktorovich Ushakov.

Vladimir Putin: On a voluntary basis?

I. Meshkov: On public roads. Yuri Viktorovich will not pay me, there are only public ones.

Vladimir Vladimirovich, you know, I listened to the lecture very carefully. I didn't even know that Xi Jinping had a favorite book and a favorite author. This book is called " What to Do?" Chernyshevsky is the youth of Xi Jinping. This book describes how the main character slept in the cold, on nails, and so on. There is a direct speech by Xi Jinping, he tells it himself, and for him this person has become an example.

Vladimir Vladimirovich, what did I do? While the [congress] of the Russian Union of Industrialists and Entrepreneurs was being postponed, I found Chernyshevsky's book " What to Do?". I've been looking for a long time, and I'll tell you later. The most interesting thing is that [this copy] is stamped and the date when it entered the library is June 15, and the book is 1953. This is Xi Jinping's birthday and year of birth. This is his favorite author and favorite book. If suddenly…

Alexander Shokhin: Mr President, you are going to pay a visit to China.

Igor Meshkov: Mr Putin, then I will either hand over the book to Anton Eduardovich [Vaino] or Dmitry Sergeyevich [Peskov], okay?

Vladimir Putin: Fine.

Igor Meshkov: China is the key right now. Okay?

Vladimir Putin: Yes.

Igor Meshkov: I won't say anything about Erdogan.

Thank you very much, Vladimir Vladimirovich.

Vladimir Putin: Please.

I have a visit planned for May, and I will definitely take this book with me and give it to our friend. He is a strong leader and a real man. Therefore, jokes are jokes, but really, if this is so, he loves the book, I will be happy to give it to him.

Alexander Shokhin: Mr President, if we do not complete this plenary part of our congress, the public part, then the members of the RSPP bureau may dismiss me from my post.

Vladimir Putin: They will simply run away.

Alexey Shokhin: No, they won't run away, but they will demote me by the next congress.

Vladimir Putin: Let's finish it.

Alexander Nikolaevich, final question?

Alexander Shokhin: Dear colleagues,

We have traditional meetings with members of the bureau to continue discussing key issues in the dialogue mode that you conduct, and the bureau members are silent, waiting for their turn – and they may not wait, Vladimir Vladimirovich will say: "I have a schedule."

Vladimir Putin: Please.

Let's agree that this will be the final question. I ask you to.

Yevgeny Galushko: Good afternoon, dear Vladimir Vladimirovich! Good afternoon, Alexander Nikolaevich!

On August 9, 1999, when you first appeared on the TV screen and were introduced by Boris Nikolayevich Yeltsin, I was 22 years old. It was my dream to be here. And 25 years – I set a strategic goal that I would turn up and ask a question.

Today I am the chairman of the All-Russian public Organization "Women of Business". I represent 62 regions, and they have this question.

Vladimir Vladimirovich, at the [St. Petersburg International] Economic Forum, can you give us, the 62 leading regions, some time to focus on women's entrepreneurship? We invite you to lunch to talk. I have the courage to say this from the women's [business]… And I want to thank you for supporting us, women's entrepreneurship.

Thank you very much. We are waiting for you in St. Petersburg.

Vladimir Putin: First of all, I would like to note that women are playing an increasingly prominent role in our business community. And not only in secondary roles, but also independently, they are the organizers of many enterprises, and in some industries they are leaders. This is certainly true, and it shows the maturity of our society, the maturity of our business community. I must say – my colleagues know this-that everyone respects women who succeed. And we must do everything possible to support this trend.

Therefore, I am happy to accept your invitation to lunch.

Thank you very much.

Alexander Shokhin: Mr President, there are 62 regions, we have 89 regions, so let them work and expand their organization.

Vladimir Putin: He is trying to dissuade me from visiting you.

Alexander Shokhin: No, we will help you with money if you don't have enough for lunch.

:(referring to E. Galushko)V.Putin Agreed, we will definitely meet and hold such a business meeting, of course.

Thank you very much.

Alexander Shokhin: Mr President, thank you very much for working so hard with us.

We could have asked many more questions, but I think that the questions that were asked also showed a fairly wide range of interests of Russian business, its interest in solving not only purely financial and production tasks, but also a wide range of social tasks and social responsibility.

And the fact that we have held a ceremony today that completes the signing of the general agreement between social partners and the presentation of the national award "Leaders of Responsible Business" confirms that Russian business understands its mission, its role in solving the challenges facing the country.

Thank you. [My Emphasis]

Do note at the top the big provisions being made to increase the skills and thus wellbeing/earnings status of the proletariat. Both business and government are well aware of this need and conversations with workers show they are completely supportive and are hungry for such opportunities. Social responsibility of big business within Russia is a hangover from Soviet times and in practice is vastly different from the Company Town and Store as practiced within the USA which really shouldn’t be seen as social responsibility as it was just another way to exploit and control workers.

Capital investment given the severing of many foreign sources is very inventive, and given the overall scope of Russia’s long term goals will need to function for at least forty more years. I’ll note again the fact that Capital exists in all monetized economies—socialist and capitalist.

The read’s so long it’s hard to do a decent recap, particularly with all the banter at its end. I’m sure many readers will be somewhat mystified by it all, especially those who haven’t been exposed to such a meeting before. Those familiar with Sergei Galzyev’s critiques of Russia’s Central banking policies regarding its efforts to fight inflation at the expense of investment saw some of the dynamic at play. Putin didn’t mention it aside from very broadly, but inflation for the first several months is close to zero while economic growth is over 6% annually. The next two items involving Putin will also focus on economics: a meeting with the Council of Legislators and then a meeting with the government over economic issues where Putin will provide a review of the current stats prior to the lengthy discussion the transcript doesn’t provide.

Russia’s 89 regions provide a wide spectrum of challenges for governance which must clearly be flexible and adaptive—it’s hard to enact one-size-fits-all legislation. And of course, business conditions are just as jumbled. Yet, Russia is able to stand as one.

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