Putin & Government Videoconference 17 January

Another long meeting.

Along with discussing the results of Putin’s Far Eastern trip, Minister of Economic Development Maxim Reshetnikov made a report on the results of the development of the Russian economy for 2023. Also, Russia has finally taken action against the UK for its dropping Russia from its ‘most favored nation’ trade status in March 2022 and applying a plethora of illegal sanctions by initiating legislation to end the agreement signed between the USSR and the UK in 1956 allowing the UK to fish in Russia’s Barents Sea waters. RT reports:

The so-called ‘Fisheries Agreement’ had allowed British ships to fish in the Barents Sea off the north coast of the Kola Peninsula. It was initially signed for a period of five years and henceforth automatically renewed every five years since neither party ever withdrew from the agreement.

The cabinet subsequently approved the draft law, the Russian government’s press service confirmed to TASS. The legislation will still need to gain the approval of the parliament and President Vladimir Putin before it becomes law.

The Barents Sea is where the majority of fish is caught that allows the UK to continue to enjoy its traditional dish of fish and chips; and since the UK overfished its own fishing grounds long ago, the cutoff would likely spell the end of fish and chips in UK. Amazing that wasn’t done sometime ago. And now for the meeting. All emphasis mine:

Vladimir Putin: Dear colleagues, good afternoon!

The Prime Minister and I discussed the overall economic situation here in the Kremlin late last night, and discussed the results of our work for 2023. Mikhail Vladimirovich [Mishustin], believes that the country's GDP growth rate, which we are currently talking about, 3.5 percent, in fact, with a more careful calculation, it may turn out to be slightly higher.

Now I will ask Maxim Reshetnikov to tell us about it. But what I would like to note is that this growth is primarily based on domestic consumer and investment demand. It is very important.

Industrial production, construction, agriculture, tourism showed good indicators, and cargo turnover increased. As for construction projects, we have returned to this issue several times. I think we have commissioned 110.1 million square meters of housing. This, of course, is an absolute record, and nothing like this has ever happened in the history of Russia so far. I want to congratulate the builders on this. This is a very good indicator.

However, there are also challenges: inflation is 7.4 percent. I very much hope that by joint efforts with the participation of the Bank of Russia, of course, we will be able to approach this task.

In the first 10 months of last year, real wage growth was 7.7 percent. That's not bad. But, keeping in mind the inflationary processes, it is necessary to compare one with the other.

Please, Maxim Gennadievich. I would ask you to give a more in-depth analysis and comment on what I have just said.

Mikhail : Dear Vladimir Vladimirovich, Dear colleagues!

The Russian economy has not only adapted to the new external economic conditions, but is also developing successfully.

Back in 2021, the World Bank identified Russia as the fifth economy in the world and the largest in Europe in terms of purchasing power parity. By the end of 2022, we are confidently maintaining these positions, and this is despite the fact that the World Bank's calculations are based on early estimates of our economic growth for 2021 and 2022. As a rule, these estimates are subsequently adjusted and refined.

In general, updating statistical indicators as new data is obtained is an international standard, and Rosstat operates in accordance with these standards. That is why we are preparing our first estimate of economic growth in February. It is formed on the basis of operational data on the so-called basic sectors of the economy: industry, construction, agriculture, transport, trade, and then this assessment is adjusted as new information is received, primarily in the service sector, such as catering, tourism, professional services, and the public sector. This is something that requires more in-depth analysis: data on the balance of payments, banking statistics, income, household expenses, and so on. In total, there are five estimates for each year of economic growth, and they are being updated within two years. So, before the New Year, Rosstat published the final, fifth growth estimate for 2021 and, as you know, it was increased: the previous one was 5.6 percent growth, now it is 5.9 percent growth, I will emphasize this, it is still 2021. And the estimate for 2022-this is the third estimate - has been improved. Previously, we thought that the economic downturn was 2.1 percent, but in fact, Rosstat says, it was 1.2 percent. In other words, it is significant for us in two years, in fact, plus there 1.2 percent to the growth of the economy. And this objectively reflects the outstripping growth of the service sector, which is going on in our economy and which, of course, according to indirect data, we also observe.

We expect the first estimate of economic growth for 2023 in mid-February, as I said, at the level of 3.5 percent year - on-year, as we already estimated at the end of the year. We are slightly lower, of course, a little more conservatively, but now we estimate it at 3.5 percent. But if the scale of subsequent adjustments is comparable to previous years, and, according to our indirect estimates, it will definitely not be less, then the final growth estimate may be around 4 percent, I mean, for 2023, economic growth. This is exactly what you and Mikhail Vladimirovich discussed, and indeed our experts confirm that such a result is likely to be achieved, but the final figure will be announced by Rosstat at the end of this year.

At the same time, it is very important how this growth is achieved and how these macroeconomic indicators fit in with the data that we observe in everyday life. But first of all, this growth is ensured, as you noted, due to high domestic demand, both consumer and investment. We have a total turnover of retail trade in public catering and paid services for 11 months of this year in real terms – plus 5.7 percent. I emphasize that this is above inflation. Therefore, there is a real increase.

Vladimir Putin: The past?

Mikhail Reshetnikov: Yes, sorry, 11 months last year.

This is based on the growth of real incomes of the population. For the three quarters of 2023, they grew by 4.4 percent. At the same time, wages have increased in real terms in 10 months, as you noted, by 7.7 percent, if you look at the nominal value – there are more than 13 percent. At the same time, all this was achieved against the background of a historic low in unemployment of 2.9 percent.

Comprehensive measures of social support for the population, which are financed by the growth of budget revenues, budget expenditures and income from business activities, also made a significant contribution to income growth.

It is very important that investment continued to grow. For the three quarters of 2023, growth was plus 10 percent in real terms, and this is taking into account the higher base of 2022. There was also a revaluation and investment growth by 6.7 percent in 2022.

It is important that investments in modernization and expansion of production and purchase of new equipment increased in the structure of investments. This means that they grew faster than the average investment growth.

Consumer and investment demand is being met by growing domestic production. In general, the industry grew by 3.6 percent in 11 months, while the manufacturing sector showed significantly higher growth-plus 7.5 percent.

We see an increase in the output of high-value-added goods, including in the sub-sectors of mechanical engineering. This includes the production of electronics and electrical equipment, the production of railway locomotives and railcars. Car production is gradually being restored. A significant contribution was made by the chemical and metallurgical complexes. Growth in the food industry also remains stable. At the same time, in addition to industrial production, construction, tourism, and cargo transportation grew rapidly.

Thanks to the reorientation of export flows to new markets, we have also maintained high export volumes. Our share of friendly countries in all exports in the second half of 2023 exceeded 80 percent.

As you noted, inflation has become a serious challenge against the backdrop of growing domestic demand and structural adjustment of the economy. The main surge occurred in late summer and early autumn, including against the background of the weakening of the ruble. But thanks to measures taken by the Government and the Bank of Russia, the exchange rate was stabilized, and at the end of the year, inflation was 7.4 percent, which is even slightly lower than our September forecast. In the future, the accelerated growth of prices for certain goods will be contained by increasing supply and maximizing support for the supply economy, the goal that you set at the St. Petersburg Economic Forum.

And, of course, the task for 2024 now for all of us is to maintain a steady increase in citizens ' incomes, continue the structural adjustment of the economy and expand the supply of domestic goods and services.

That's all I wanted to say. Thank you.

Vladimir Putin: Please explain what "first place in Europe and fifth place in the world in terms of purchasing power parity" means, not even for your colleagues participating in the meeting, but for the general public. What is it? So that people understand what we are talking about.

Mikhail Reshetnikov: Mr President, we have international institutions to compare economies and nominal economic volumes. GDP in each country is calculated by its own statistical body. The question arises as to how to bring them to a common denominator. And for this purpose, a certain calculation of this purchasing power parity is used. In other words, the price levels in each particular economy are compared with each other, and the calculated exchange rate of the ruble is made, conditionally, to the dollar, according to which our nominal GDP volume is recalculated, which Rosstat considers in rubles.

It differs significantly from the nominal level, which is lower, because it compares energy prices, food prices, prices for services, such as housing, because somewhere citizens rent more housing, somewhere they own, and so on. In other words, this is a fairly complex international science, international institutions do it – the World Bank, the IMF do it, they even have a few different methods, and so on – but this is really what allows us to bring economies to a common denominator.

So, according to this indicator, the economy of the Russian Federation in 2021 overtook the economy of Germany. By the end of 2022, we have staked out this excess for ourselves. And in principle, if we talk more broadly, we are facing the Japanese economy, we do not have such a large gap with them, and if the differential in growth rates continues (the Japanese economy is growing less than 1 percent, we expect growth above 2 percent), then in principle we can say that in the medium term, within three or four years, we will be able to overtake the Japanese economy (and in terms of comparable size).

But here I must say that at the bottom of the rating, just below us, there are also actively growing economies of our main trading partners in Southeast Asia, so we are in competition here. Of course, competition in ratings is probably not an end in itself, but nevertheless it is an important indicator for us and our international partners also pay attention to it.

Vladimir Putin: Is this data reasonable, objective, and provided by international organizations? [An outstanding question given the nature of Rentier Economies like the Outlaw US Empire and Japan.}

Mikhail Reshetnikov: Yes, Mr Putin, these are the data of those structures that are difficult to accuse of any kind of liking for us. And rather, we have questions about whether our colleagues finish studying everything and take into account the latest grades, or whether they take into account the first grades, and so on. We have questions, we think that we are undervalued there, but nevertheless the whole world uses this data, so, yes, these are absolutely objective estimates. [Dr, Hudson and I would object to that conclusion.]

Vladimir Putin: Well, thank you. We understand (we discussed these issues with Mikhail Vladimirovich yesterday) what challenges we face, what we need to work with, and what we need to pay special attention to. We will not go into details now, but we will do this at separate profile meetings. Thank you very much.

Now about the trip to the Far East. You know that there were a lot of questions that people asked, and we have already discussed some problems with you in one way or another. And right now, we have already exchanged views with many colleagues about what and how we should do in response to people's requests. But, without any doubt, we must work out these decisions, then make them based on expediency, common sense; they must be economically and socially justified, fair from a social point of view.

Let's talk about it. And I would like to ask Alexey Olegovich Chekunkov, Minister for the Far East and Arctic Affairs, to start.

A. : Dear Vladimir Vladimirovich,

The Russian government has started working out solutions to all the issues that people raised during your trip to Chukotka and Khabarovsk Krai.

In Anadyr, a large family asked a question that concerns many parents in the Far East, about the possibility of extending to Chukotka the program of support for large families, which is being implemented in the Primorsky Territory from 2023, when the family can reduce the mortgage by 1 million rubles at the birth of the third or subsequent child. This is an effective measure, it helps large families to solve the housing problem faster.

The payment of 1 million rubles consists of the basic part-450 thousand, which has been valid throughout Russia since 2019, and the Far Eastern allowance of 550 thousand, which is compensated to the region from the federal budget. This surcharge began to operate in Primorye in 2023, and as a result, the number of applications from large families for this measure has tripled compared to the base year of 2019. The number of births of the third and subsequent children increased by more than 3 percent over the year. [Wow!]

According to your instructions given in Chukotka, we, together with the Ministry of Finance and the Ministry of Labor, have worked out and are ready to promptly amend the rules of the program and extend its effect not only to Chukotka, but also to other regions of the Far East where the birth rate in large families is lower than the average for the district. In addition to Primorye and Chukotka, it is also the Khabarovsk Territory, the Amur Region, the Jewish Autonomous Region, Kamchatka and Magadan. Funds for 2025-2027 required for the distribution of the program will be provided for in the state program for the development of the Far East. Payments will be made for families where the third or subsequent child will be born from January 1, 2024. The demographic effect by 2026 is projected at the level of 3,300 additional children born in large families.

The report on this issue is finished.

Vladimir Putin: Fine.

Now, as for granting a delay in the use of a preferential rate on insurance premiums for residents of TORS. [“The Territory of Advanced Socio-Economic Development in the Russian Federation (TOR) is a special economic zone created to attract investment, boost economic development to provide for the better quality of life for its population. Its residents enjoy tax benefits, simpler administrative procedures and other preferences.”]

A. Chekunkov: In Khabarovsk, the director of the medical center, addressing you (the medical center is a private institution, is a resident of the territories of advanced development of Buryatia), drew attention to the need to adjust the system of benefits for paying insurance premiums. Currently, for companies that have started projects before January 1, 2023, the grace period begins from the date of entry into the TOP, and the main burden on the business falls after the facility is put into operation, while at the construction stage this benefit is less useful, since the main staff has not yet been hired.

In order to maintain competitive business conditions in the Far East, we are ready to promptly prepare changes to the legislation so that residents of the TOP, such as Buryat Clinical Hospital and more than 150 other companies that will be subject to such a measure, can more effectively implement new projects. We will give them the opportunity to pause the benefit for paying insurance premiums for the construction period. Residents of the TOP who have received this status since January 1, 2020 will be eligible for deferral.

This is a balanced approach. On the one hand, it will help launch projects for companies that have faced challenges, pandemics, and sanctions, and at the same time it will not create unfair conditions for companies that have long delayed projects excessively.

Until 2030, no additional budget expenditures will be required, but additional revenues will arise, since during this pause, companies that decide to put the benefit on pause will pay insurance premiums at the full rate. The report on this issue is finished.

Vladimir Putin: Maxim Gennadyevich and Anton Germanovich, do you support this decision?

Mikhail Reshetnikov: Yes, Mr President, we believe that it is appropriate for the Far East to extend this benefit, because it turns out that the plant has not yet been launched, production has not yet started, and the benefit period is already ticking, and this, of course, significantly worsens the economy. Therefore, from the point of view of the Ministry of Economy, it is advisable to do this.

Vladimir Putin: And from the point of view of the Ministry of Finance?

Alexander Siluanov : Mr President, we support this decision. The decision was made by you. The only thing I wanted to draw attention to was that it was said that individual investors were delaying projects, but they were taking on obligations. It seems to me that the situation with the obligations that investors take on should be more clearly monitored here, since they receive benefits, and here, probably, control by the state and the ministry should be strengthened. And so we support it. Thank you.

Vladimir Putin: I totally agree. You just need to monitor and, if a failure occurs, then make the appropriate decision. I agree.

Now let's talk about supporting the construction of logistics complexes.

Alexey Chekunkov: Dear Vladimir Vladimirovich,

At your meeting with businesses in Khabarovsk, we talked a lot about the growing flows of goods to the east and the growth of cross-border trade. Over the past year, cargo turnover at automobile checkpoints in the Far East has more than doubled, by 115 percent, at railway checkpoints-by 30 percent, and container turnover has increased by 22 percent.

Checkpoints are being upgraded to handle the growing cargo. By the end of 2026, 29 checkpoints will be upgraded within the framework of state programs of the Ministry of Transport of Russia. As part of the development of the entire transport and logistics industry in the Far East, 485 investment projects are being implemented with a total volume of almost 900 billion rubles (893 billion rubles). Of these, 284 billion have already been invested, and 147 projects have been put into operation. 80 percent of the projects are implemented in the border regions.

Now there is a need to create warehouses, transport and trade services in the territories adjacent to checkpoints, so that the growing flow of goods creates more added value for the Far East.

On your instructions, the Government is working to create a new checkpoint on Bolshoy Ussuriysky Island and an associated transport and logistics hub in Khabarovsk. To support the creation of transport and logistics infrastructure at checkpoints, we will use the mechanism of advanced development territories: we will select land plots near checkpoints and extend the TOP regime to them. Investors in creating new transport and logistics facilities at such sites will receive all the benefits of TOP residents, including support in creating the necessary infrastructure. Funds for this purpose are provided in the state program for the development of the Far East.

Dear Vladimir Vladimirovich, we thank you for your constant attention to the development of the Far East and the Arctic.

The report is over.

Vladimir Putin: About the new checkpoints. The governor supports this and business too, they need to drag goods hundreds of kilometers to the Primorsky Territory and elsewhere, so we need, of course, to finish this, especially since our partners on the other side of the border also ask for it and support it. Everyone is interested, and we need to overcome our bureaucratic problems as quickly as possible. Ok?

A. Chekunkov: Yes.

Vladimir Putin: Thank you.

Denis Valentinovich, about subsidizing the purchase of a car for large families in the Far East. You have probably heard that people there raise the question of using maternity capital for these purposes. But we agreed that we will think about not touching the maternity capital once again, because there are risks there, but make a program to subsidize the purchase of cars for large families.

Dmitry : Mr President, thank you very much for the floor you have given us.

We really watched closely how you had a discussion with the residents and representatives of the Far East. The government has promptly fulfilled your instructions, and starting from Monday, January 15, we have expanded the program of preferential car loans for families with children from the Far Eastern Federal District. This support mechanism works well on a nationwide scale. It provides a 20-percent discount on car purchases for members of the SVO, people with disabilities, as well as medical and educational workers. In the regions of the Far East, for all these categories, and now for large families, it is 25 percent. At the same time, we are talking only about cars produced on the territory of our country. The budget has already provided the necessary funds for the implementation of this socially significant program. Vladimir Vladimirovich, we will work on it.

If I may, there was another speech from entrepreneurs regarding the production of airfield and airport equipment.

Vladimir Putin: No registration required.

Dmitry Manturov: Yes, of course, from the manufacturer. We have contacted him and would like to propose a solution in terms of the law on self-propelled vehicles. Today it does not imply registration and accounting, but we have agreed with the Ministry of Transport to adjust the regulatory framework of the Ministry of Transport itself from March 1 and ensure the operation of this equipment within airports. But at the same time, in relation to a number of cars that go on public roads in order to carry out maintenance and appropriate repairs, we proposed to amend the legislation, in particular, to allow such equipment to be registered with Gostekhnadzor. Colleagues from the Ministry of Transport and the Ministry of Agriculture, who are responsible for Gostekhnadzor, they oversee this area, as well as the International Airport Association supported us in this initiative.

Therefore, Mr Putin, if you support me, I ask you to give instructions to the Ministry of Transport based on the results of today's meeting. They are ready and will work quickly to make appropriate changes to the legislation.

Thank you.

Vladimir Putin: Good. I was surprised to learn that the Ministry of Agriculture was responsible for the registration of airfield equipment. Is that really the case?

Dmitry Manturov: Yes, this is true, because historically it all began with the registration of tractors and combine harvesters, so as not to overload the traffic police in their time, even in Soviet times, the Ministry of Agriculture was engaged in this, so that traffic policemen would not catch tractor drivers and combine harvesters in the fields. Then another technique was added.

Vladimir Putin: The task of traffic policemen is not to catch anyone on the roads, but to ensure road safety, reduce road deaths, and reduce the number of accidents. But it is necessary to bring everything back to normal in accordance with common sense and the needs of the economy and relevant industries.

Please, I'm begging you. When you finish it, just give me the final version of the decision, when the decision is already made.

Dmitry Manturov: Yes, Mr President. As soon as changes are made to the law on self-propelled vehicles, I will also report to you.

Vladimir Putin: Good. Thank you.

Vitaly Gennadievich, there was also talk about the operation of the airport on the island of Kunashir. There is also a completely new airport, in my opinion, built. What's the problem there?

V. : Dear Vladimir Vladimirovich, Dear colleagues!

If I may, Mr Putin, I would like to report a little more broadly on the development of infrastructure in the Far East.

There, two airports were allocated – Yakutsk Airport and Kunashir Island. As a result of your trip, we have already started working on the implementation of the decisions that you have set for us. I think that in the near future we will prepare our proposals to address these issues.

I would like to say that a large number of requests were related to the availability of air transportation, and I would like to note that in 2023, more than 10 million passengers were transported on Far Eastern routes, which is 13 percent more than in 2022.

We are seeing a steady increase in passenger traffic in the Far East. During the 10-year period, the annual growth of traffic volumes was more than 5 percent.

Our traditional transportation subsidy programs play an important role in increasing passenger traffic, and you are well aware of them. This is the development of a regional route network, ensuring the availability of air transportation for the least protected categories of citizens (mainly in the Far East) , and supporting the United Far Eastern Airline Aurora. In 2023, the total amount of support under these programs amounted to more than 30 billion rubles, of which the majority was directed specifically to Far Eastern transportation.

All of these air transportation subsidy programs will continue in 2024, with a total of more than 25 billion rubles allocated for them, of which more than 60 percent will be allocated specifically for transportation in the Far East.

The Aeroflot Group also continues to implement its flat fares program. The one-way fare, as you know, is 15 thousand rubles by Rossiya Airlines and just over 17 thousand rubles one-way by Aeroflot airlines. "Russia" and "Aeroflot" generally close the problem on the "flat" tariffs of Far Eastern transportation.

In 2023, 32 airlines operated flights in the Far Eastern Federal District. And at the end of the year, 2.3 million passengers were transported. I would like to note that 75 percent of the flights are carried out by airlines that are part of the United Far Eastern Airline Aurora. Aurora Airlines is increasing its capacity and demonstrating its stable growth from 2021, largely due to the route subsidy program.

Transport plan for the Far Eastern Federal District and for further incentives to carry up to 4 million passengers, the Russian Ministry of Transport has developed a corresponding draft of a comprehensive plan for the development of air transport in accordance with your instructions, Mr Putin, and in this situation we have prepared it. It includes proposals from the regions of the Far East, and the draft comprehensive plan is currently undergoing interagency approval.

To ensure transport connectivity of the territories and maintain high standards of service for residents of the Far East, we pay special attention to infrastructure development. In total, the Far Eastern Federal District has 80 airfields, 11 of which are international, and 463 landing sites. This year, we plan to put into operation 6 facilities – 4 runways in Okhotsk, Bering, Mirny and Polyarny, as well as 2 infrastructure facilities in Magadan and Olekminsk.

Regarding your question about Yakutsk and Kunashir, I would like to clarify the situation. Separately, I will focus in more detail. Last year, we completed all the necessary measures to modernize the infrastructure of Yakutsk Airport. A huge amount of work has been completed, a 3,400-meter concrete runway, taxiways, apron have been reconstructed, equipment has been updated, now the airport can accept wide-body vessels, and residents will fly long distances without additional transfers. According to the results of 2023, Yakutsk Airport served almost a million people, which shows an increase in passenger traffic compared to 2022. In November 2024, the airport will switch to the second approach category, which will allow receiving aircraft in difficult weather conditions, primarily in fog. The federal budget provides for financing of these works.

The Ministry of Transport of the Russian Federation is engaged in the construction and reconstruction of facilities related only to the provision of take-off and landing of aircraft. The construction of airport complexes, which was also discussed, based on the possibilities of profit-making, is carried out at the expense of the airport operator. I want to say that Yakutsk Airport is a commercial enterprise and is owned by the republic.

A few words about the airfield of Yuzhno-Kurilsk, located on the island of Kunashir. The airport also shows a steady growth in passenger traffic, last year it transported more than 57.5 thousand passengers, which is 8 percent more than in 2022. During the period from 2006 to 2011, work was carried out to replace the plates, lengthen the strip and install light and weather equipment, an apron and a building for employees and passengers were built. During your trip with entrepreneurs of the Far Eastern Federal District, there was a large percentage of canceled flights due to weather conditions. And here I want to say that this problem will be solved by 2025, and we are currently working on it. We will equip the airport with light signaling equipment for the first approach category. Funding for this work is provided by the State Corporation for Air Traffic Management of the Federal Air Transport Agency. These measures will make it possible to receive aircraft in difficult weather conditions, which will significantly increase the airport's ability to receive and send passenger flights.

Mr President, I would like to make a slightly broader proposal on airports. In our country, 241 airfields will be in operation by 2030, of which 228 are already operating airfields, 111 of which are subject to reconstruction and major repairs until 2030. For all this, we need 383 billion rubles. Part of this money that we need will be solved through the mechanism of public-private partnership. On behalf of Mikhail Vladimirovich, we have already built three airports: Sheremetyevo Airport, Novy Urengoy and Blagoveshchensk operate under this mechanism.

Nevertheless, we would like to suggest, if you support us, to create a fund (we will consider the mechanism for creating this fund) specifically for the major repairs and reconstruction of airfields, because this amount of funding is required. We have options when part of the airfield infrastructure will need to be repaired for technical reasons, or we will have to close it.

If you support us, we will soon prepare proposals that will allow us to use the road fund principle to finance the infrastructure of airfields.

Dear Vladimir Vladimirovich,

In conclusion, I would like to add that the Far Eastern region is strategically important for us. We deal with it on an ongoing basis. We will make every effort to unlock its transport potential.

The report is over, thank you for your attention.

Vladimir Putin: The fund for the construction and reconstruction of the airfield system is a possible project. We just need to work on this and understand the sources of funding. And so, in general, this is correct, I agree. The farm is large, you need a permanent reliable source. Thank you very much.

Denis Valentinovich, we recently discussed the issue of small hovercraft, in my opinion, for transporting passengers to Anadyr across the bay. They didn't say anything about it.

Dmitry Manturov: I'm sorry, Mr Putin.

You set the task to prepare proposals on how to ensure the transportation of residents from one side to the other across the bay, especially during the off-season, when ships do not run, and the ice has not yet settled.

We worked it out, and with the administration of Anadyr, with Chukotka, we came up with a proposal to buy four "Severa" (these are amphibians) and "Phantom". They're just slightly different sizes. My colleagues and I have determined what would be optimal for them.

Therefore, if you support us, we will promptly launch production, purchase and ensure delivery. And the region will already exploit this, provide transportation for the population. A total of 5,000 people, 300 people per day for this period. The region believes that this will be the most optimal solution.

Vladimir Putin: How much does it cost?

Dmitry Manturov: All these five cars will cost about 120 million rubles.

Vladimir Putin: Do you have any money?

Dmitry Manturov: Let's find out, Mr President, and solve the problem.

Vladimir Putin: And when will they be manufactured?

D. Manturov: It takes from six to seven months, we have already worked with manufacturers in advance, so a certain corporate regulatory procedure will be required, we will quickly work it out, and the enterprises will start manufacturing. By the beginning of the period when this is required, we will have time to deliver.

Vladimir Putin: What time is it approximately?

Dmitry Manturov: Six months, seven months at most.

Vladimir Putin: And when will they appear? Will they be here in seven or eight months?

D. Manturov: I believe, Mr Putin, that by August we should try to deliver directly.

Vladimir Putin: All right. Good, good.

Dmitry Manturov: We will try to do this.

Vladimir Putin: Good.

Marat Shakirzyanovich, we also discussed this topic, it is such a non-capital solution to the issue, but there are also major ones, perhaps they are not cheap, but nevertheless. Have you watched it? What is possible with bridges there? By the way, and about Yakutsk-what is happening there with the bridge in Yakutia?

M. Khusnullin : We have made all the decisions on the Yakutsk bridge, the money is included in the five-year plan, we have optimized the cost of the bridge, and we have agreed that we will divide it between the region, the Ministry of Finance and the concessionaire. Of course, colleagues say that they will not meet this amount of money. Since we have already determined the final cost, let them work on optimization. I remind you that we started with $ 220 billion, and now we have an approved cost of about $ 130 billion for five years. In other words, Mr Putin, we have resolved this issue – we need to build it, design is underway.

As for the capital bridge in Anadyr. I have worked out this issue, the figure that you mentioned to me, but it has not yet been confirmed. The figure will be significantly higher, but we still need to calculate it for a week. Because there is about five kilometers, and, of course, the figures that were mentioned – or we are looking at a simplified version, such a relatively light bridge. Because if you build a major bridge, taking into account transportation and northern works, it will cost much more. Give me another week, I'll finish it and report back to you.

Vladimir Putin: Good. Thank you.

Maxim Gennadievich, about tourism in the Far North, in remote areas-modular hotels and preferential lending to public catering facilities.

Mikhail Reshetnikov: Mr President, I will start with the main indicators for the development of the tourism industry in the Far East and the Arctic. Just a few numbers for general understanding.

We note a significant increase in the number of tourist trips in these regions. In the first 11 months of last year, 1 million 800 thousand more people stayed in hotels than a year earlier, which is plus 40 percent. That is, for understanding: in our country, growth is plus 20 percent, there – plus forty.

Our share of trips to the Arctic regions and the Far East in the total number of trips to Russia has grown to 8.6 percent – which is more than one percentage point in the total weight. That is, this is a very noticeable increase. At the same time, it is very important that new rooms are being introduced there, the existing number of rooms is being loaded up, and support measures are being implemented through the national tourism project.

Three questions were raised during your meetings with the business community. The first question was from an entrepreneur from Yuzhno-Sakhalinsk, who asked to include in the program of preferential lending to large hotels and infrastructure of ski resorts and amusement parks separate catering facilities, that is, separate loans for the construction of restaurants and cafes.

At the same time, under the current conditions of the program, we finance all projects for the construction of hotels depending on the number of rooms, that is, the main thing is that rooms are entered, and projects for the creation of infrastructure ski resorts and amusement parks are linked to the number of specific visits, that is, the main thing is that there is a flow. At the same time, the projects themselves are usually intra-complex, they can include shops, rental points, SPA complexes, and, of course, cafes and restaurants. Moreover, these cafes and restaurants can be located both in built-in and attached premises, and in separate buildings, that is, there are no restrictions here. But in any case, they should be, once again, part of these large complex projects, where either hotel rooms or visits are at the end. At the same time, in fact, this is what is happening now. We have a lot of projects in our regions that include creating restaurants.

Therefore, for those investors who participate in this program, we propose to clearly explain the program's norms and explicitly indicate in the rules that it is possible to build public catering facilities as infrastructure within large facilities.

At the same time, for those entrepreneurs who want to build separate restaurants in resorts, we offer them support not within the framework of the tourism program, but we have a national project to support small and medium-sized businesses. There is a "Program 1764" to support priority sectors of the economy, and we have included public catering there.

Last year, we allocated 1,200 credits to public catering under this program. There is a loan of up to two billion rubles at a preferential rate. Therefore, we will actively offer this program to investors who plan to develop restaurant projects as independent ones and will conduct additional explanatory work. Support us then.

Vladimir Putin: Yes, of course.

Mikhail Reshetnikov: Thank you.

The second question came from the Amur region. It concerned the possibility of using modular structures not only of factory production in the construction of non-capital hotels. Remember, there was a question there.

Vladimir Putin: Of course I remember.

Mikhail Reshetnikov: When we set these rules, we assumed that mass production (factory production) is more likely to guarantee the safety and quality of products, as well as the level of comfort for tourists. But at the same time, of course, we understand that there are few points of factory production of modular structures in the Far East. Colleagues have to transport modules from Novosibirsk and Irkutsk by road and by rail almost from the Moscow region. This, of course, is a serious cost of logistics.

What do we offer? We propose to amend the rules for granting subsidies and, starting this year, allow the regions of the Far East and the Arctic to determine the list of remote municipalities themselves, where the requirements for factory production will not apply. That is, so that it is not we from Moscow who say: this region is like this, and this one is different. Local colleagues will be able to decide for themselves. But for those cases where there are no requirements for factory production, we will still determine a minimum set of parameters for comfort and so on, but the subjects will control them themselves, so that we don't do this from Moscow. We offer such a solution.

Third question. An entrepreneur from Anadyr asked whether it is possible to introduce changes in the rules for the distribution of regional subsidies for tourism development and eliminate the criterion of the number of available rooms in order to avoid dependence when a small region, no room stock, a small subsidy and, accordingly, there is no opportunity to develop the flow and number of rooms.

What is the reason for this question? The fact is that in December last year, at the request of businesses and regions, we combined four different regional subsidies into a single subsidy, and the money was distributed in proportion to the number of rooms available and the projected increase in tourist flow. That is, we have calculated the money objectively, and then the regions themselves determine the directions where to spend, determine their programs, so that not we here, from Moscow, where what type of tourism is needed, but the regions themselves act. And all the regions of the Far East and the Arctic have applied for a single subsidy and received almost a billion rubles (933 million) for these subsidies.

But what did you pay extra attention to after your assignment? There, colleagues suggested changing the calculation procedure and taking peak indicators instead of the average annual indicator. They do not solve this problem, because as a result, large regions will receive even more. But small regions actually received literally several million rubles from us, such as Chukotka, the Nenets Autonomous District, the Jewish Autonomous Region, Magadan, and so on. And indeed, there is nothing so significant to be done there for those few million rubles. Therefore, we propose to set a minimum amount of subsidies of at least 30 million rubles per region. This is an additional 200 million a year, for 17 regions this is relevant, while half of the money, even more than half, will be taken by the Far East and the Arctic. Magadan, the Jewish District, Chukotka, and the Nenets Autonomous District have the largest increases there.

Question of the source of funding, what do we offer? We propose to use as a source of funding additional revenues from the increase in import duties on wine from unfriendly countries.

Let me remind you that last year we raised these rates and agreed that half of the funds will go to support tourism: half in general to the budget, and half should be used as an additional source. This measure was also effective in protecting the domestic market and Russian winemakers (this is a separate track). On the other hand, we received significantly more money than we had planned. And that is why we suggest that out of this half, which should go to tourism, we should give out just these 200 million rubles, and support these small regions here.

Plus, we have worked with our colleagues from the Ministry of the Far East Development, and they are ready to allocate additional funds for the Far Eastern Tourism program. Therefore, due to this synergy, due to the regimes, including the decision on TORAM that has been supported today, the economy of projects there is basically so tolerant, I would say, of course, everything will not work there, because the conditions are difficult, this is true, but we will be able to balance everything and support development tourism.

Thank you.

Vladimir Putin: Good. Thank you for such a comprehensive approach.

Now for the supply of fish products from the Far East and the north to other regions of the country. Ilya Vasilyevich.

Igor Shestakov: Dear Vladimir Vladimirovich, Dear colleagues!

First of all, I would like to say that in 2023, Russian fishermen caught over 5.3 million tons of fish, which is the best figure for the last 30 years. In general, the level of self-sufficiency in fish is at a high level, amounting to more than 150 percent.

Vladimir Vladimirovich, the import of fish products to Russia in 2023 amounted to 606 thousand tons. And it is important to note that we import products that we do not produce or do not produce enough, which is important and allows us to provide a range of fish products on the domestic market.

In general, we believe that the market situation is balanced, and we do not consider it appropriate to increase import duties at present. As you said, Mr Putin, this may lead to an increase in the cost of selling on the shelves. At the same time, we continue to monitor the situation and, if necessary, will come out with suggestions.

The dynamics of prices for fish products is now multidirectional, and we are even seeing a decrease in the cost of some types, but on average, an increase of 9 percent was observed in 2023. The price change strongly depends on the region, the type of fish and, of course, the fishing season.

At the same time, it should be noted that currently state support measures aimed at reducing the cost of fish products have already been adopted and are in effect. First of all, of course, I am talking about subsidizing the railway tariff. Thanks to the implementation of this measure, the volume of transportation of fish products to the central part of Russia has increased. But for 2022 – 9.4 percent by rail, for 10 months of 2023 - by 2.4 percent.

Deliveries are rhythmic. This year we didn't even see any difficulties with loading refrigerators, everything is quite rhythmic. And the ports in the Far East worked out everything stably, the shipment was dynamic. Therefore, we believe that the work here was quite good this year.

In order to increase consumption, as well as promote and popularize Russian fish products, in accordance with your instructions, under the leadership of Minister Dmitry Nikolaevich Patrushev, we are now actively working to prepare an appropriate action plan, and I think we will submit it for approval in the near future.

Vladimir Vladimirovich, in conclusion, I would like to emphasize once again that today Russia fully supports itself with fish products.

Thank you.

Vladimir Putin: Yes, but still, we now subsidize the transportation of some types of fish, and we do not subsidize some of them, and it is difficult for fishermen to supply them to the European part.

Igor Shestakov: Mr President, yes, so far we only subsidize pollock, of which we have the most extensive production. We are working with the Ministry of Finance to extend this support to salmon and ivasi sardines (we also produce quite a large amount). So far, unfortunately, we have encountered a question related to limited funding. If we can find the funds, then, of course, we would like to be able to extend appropriate support measures to these types as well. This is about another billion rubles needed. We will work with the Ministry of Finance.

Vladimir Putin: But the fish of these varieties would appear on our shelves, domestic production, high-quality. Anton Germanovich.

Alexander Siluanov: We have taken into account a good amount of subsidies, 6.3 billion rubles. We are talking about transportation benefits. Of course, we would like our colleagues to determine their priorities, as always: what to bring first and what to spend this money on. But if it is difficult, then we will work with the Ministry of Agriculture and, I think, find sources.

Vladimir Putin: Take a look with Dmitry Nikolaevich, okay? We need to weigh prices, volumes, and areas where they are delivered. Take a look, please.

Alexander Siluanov: We'll work it out.

Vladimir Putin: Thank you.

Mikhail Albertovich, we have already discussed some aspects of my conversations with colleagues and entrepreneurs in the Far East. You know these questions. You are welcome.

Mikhail Murashko : Thank you very much, dear Vladimir Vladimirovich!

Three groups of questions were asked. The first question concerns assistance to patients, women during pregnancy. As part of your assignment, a global, large-scale project has been implemented to form the levels and system of medical care, perinatal centers have been built, and maternity hospitals have been reconstructed. Today in Chukotka there are about 500 births, all of them are held in institutions of the first and second level, and the third level is involved. Over the past three years, six women have been sent to third-level institutions in Khabarovsk, Vladivostok, and Moscow, the federal center. I would like to note that taking into account the weather conditions, both the air ambulance is functioning, and our colleagues have not allowed a single case of maternal mortality in recent years, and they are working efficiently in this direction. But there is also a need, of course, to involve federal centers. Just this appeal is in a larger volume and institutions of the third level of the Khabarovsk Territory.

Five points that have been implemented since your meeting.

First, personal curators from the Federal Center for Obstetrics and Gynecology have been assigned, and they are already working in Chukotka institutions today.

Secondly, routing within the region has been worked out, and third – level institutions have added additional mechanisms.

Third, the use of modern telemedicine technologies is highlighted, and consultants from remote consultation centers established today and curators in the region will conduct telemedicine rounds directly for patients with severe pathology from the high-risk group.

An agreement "university – region" was signed to improve the training of specialists and improve their skills.

The fifth issue concerned strengthening the material and technical base. The issue of additional allocation of funds has been agreed with the Ministry of Finance. All this has been agreed with the Deputy Prime Minister in charge, and a draft order has been prepared to allocate additional resources.

The second question concerned the registration of medical products, in particular medical devices. Today, the number of Russian-made medical devices of various risk classes is growing from year to year. The question was asked about products of a low class of potential risk. During the pandemic, we introduced a special regulatory regime for them, in fact, a notification procedure. It allows you to make a decision within five days. The decision was made within three days for the manufacturer of the wheelchair applicant. In the future, they must confirm the quality of this type of product directly.

Our employees contacted him and told him that the question concerns the preparatory stage, development, and consulting. Our legislation provides for this, and we have made these changes, which means that the subordinate institute and manufacturers simply need to cooperate more actively.

Therefore, all instructions have been given to ensure that these types of services are provided to domestic developers and manufacturers with training and favorable treatment.

In addition, last year we created a direct branch of the testing center of the All-Russian Research Institute of Medical Technology. We created it in Yekaterinburg in order to bring it as close as possible, including to the centers for the development and production of medical devices in the regions.

On the third issue, this is a question concerning the granting of the right to early retirement for doctors working in medical organizations of various forms of ownership. Today, the legislation provides that the right to early retirement for doctors working in organizations is provided for health care institutions, these are unitary non-profit organizations that bear the social burden, and for others, including non-profit organizations that actually implement, among other things, the program of state guarantees, or so-called, simplified to say, state order.

The decision of the Plenum of the Supreme Court was adopted on this issue, and this issue was also considered by the Constitutional Court. And according to the decisions, it is indicated that the implementation, of course, must necessarily be within the framework of the current legislation and socially useful load, since it is precisely those institutions that participate in the implementation of this state order that do not have the right to regulate the load or directly the working time at their discretion. In other words, they actually work 24/7, providing planned and emergency medical care to citizens in certain conditions, including financial ones, and volumes.

That is why today, having discussed this issue with our colleagues from the executive authorities, we ask you, Mr Putin, to give us an additional opportunity to work out this issue with the expert community, with the deputies, in order to report to you after we have worked on it, to what extent, as you have already mentioned, the social and other conditions have been met. To ensure that health workers working in these conditions respect exactly their rights, including the conditions in which they provide medical care. Sometimes, and in recent years, we see that this is an extremely high load. And the challenges that the healthcare system has taken on today continue to be implemented in full, in large volumes.

Thank you. I finished my report.

Vladimir Putin: As far as I understand, and we have already discussed this today, the issue of social justice in the organization of the healthcare system.

Mikhail Murashko: Yes, of course.

Vladimir Putin: In state institutions, people work a lot, and sometimes they work without any restrictions, bearing in mind the obligation to provide any assistance, any types of medical care, and around the clock. In private medical organizations, the owners of these organizations regulate themselves: today they work five hours, tomorrow three hours, and then something else. In general, they regulate this workload themselves.

And what you have told me, what I have heard, should be fair if different categories of health workers claim to receive certain benefits in the field of pension provision.

It is absolutely necessary to work with the expert community, with the medical expert community and develop balanced solutions in such a way that social justice issues are respected, and that all decisions in this area comply with the law in force in Russia. We need to work, there are questions, we need to strive to ensure that these issues are resolved in the interests of the medical community on the grounds that I have just mentioned. But I ask you to work on this without fail and then report back on the proposals that you will formulate in the course of this work. Ok?

Mikhail Murashko: Very well, Mr Putin.

Today we have several organizations that bear this social burden, non-governmental organizations.

Vladimir Putin: Private companies.

Mikhail Murashko: Yes. Which have the ability to. Therefore, we will work further.

Vladimir Putin: Yes, yes, there should be relevant standards, they should be coordinated, apparently, with medical departments, with health departments. In general, it just needs to be finalized. I agree.

As for licensing of technical means of rehabilitation. Tatyana Alekseevna, I have already asked Maxim Stanislavovich Oreshkin to take a look and talk, not just to look at it, but to talk to the people I talked to in the Far East. I just ask you to specifically list the questions that were asked by my interlocutor, and then I want to get an answer for each of these questions. The main thing here is to prevent any monopolization of this type of activity by anyone. And every step should be worked out. It is sensitive for people and for those who need these technical means of rehabilitation. In general, we can and should set up an appropriate mode of work here.

Tatiana Alekseevna.

T. : All right, let's do it, Mr Putin. But in principle, the work that the Ministry of Health has carried out in relation to registration is clear and obvious to us today. What could have been reduced, we reduced to speed up access to the market and extended the corresponding conditions that were in effect in covid. But in addition, there is one nuance, which, as you quite correctly noticed, at one of the stages there is an organization that is the only institute. Mikhail Albertovich said that we have opened a branch in Yekaterinburg, but we will also work on this topic and give you an exhaustive answer on each item. If we need to change something in terms of regulations, then we will change it in terms of regulations.

Vladimir Putin: Well, this is not only the responsibility of the Ministry of Health, but also of the Ministry of Labor, so I turned to you as the Deputy Prime Minister in charge of all these areas. Ok? Thank you.

Do you have any other questions to discuss?

Mikhail Vladimirovich, no?

Mikhail Mishustin: Mr President, we have closed the summons altogether.

Vladimir Putin: Yes. Thank you.

I ask my colleagues to work out everything we discussed today and implement it as quickly as possible.

I want to finish where I started. It is clear that we all live in the current situation. We can't forget about our domestic political plans, that's all clear. But still, let's use this period in order to use feedback from people, and it becomes more clear, more vivid, more systematic during such periods, not even to solve issues of the domestic political calendar, but to solve issues of substance, those that people care about, based on expediency, like me I have already said, common sense, economic and social validity. This is a very good reason to understand and respond more sensitively to the needs of society.

We have discussed some of these issues, but we will continue to discuss them in the near future. Moreover, this should also help us formulate the main tasks of the country's strategic development, which the Administration and the Government are partly doing now, so that the tasks facing the country are formulated clearly, clearly, and clearly to specialists, the expert community, and citizens in the broadest sense of the word. Because it concerns and interests almost every Russian citizen.

We will work on such subpoenas regularly in the near future.

Thank you very much. Good luck.

Here’s an example of good governance, excellent actually IMO. The close to immediate turn around in addressing citizens concerns from the Far Eastern trip instead of lollygagging and procrastinating thus showing a lack of concern to the problems of citizenry and business. Also, readers will have noted how much of that work is being done which gives an idea of Russia’s political-economic philosophy: Government at all levels are public utilities for solving problems and enhancing citizen wellbeing. China’s Xi talks about modernization being a major engine of economic growth, and here we see how Russia is doing just that.

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