Social and Economic Development of the Kaliningrad Region

Well, the table’s clearly not round, oblong perhaps, but the discussion will occur regardless. This is another somewhat tardy report as the meeting was held of 25 January as it occurred after the meeting with Kaliningrad students that did get published on the 25th. Readers will be presented with some factual information I’ll wager none knew that might even astound. So, let’s move on to that revelation. All emphasis mine:

Vladimir Putin: Dear colleagues and friends, Good afternoon!

Today we are planning a meeting on economic and social issues in the Kaliningrad Region.

The development of each region, of course, consists of specific projects and business initiatives, the work of many people, many teams, and specialists in various fields.

Therefore, I am glad to start our work with a greeting to all those who participated in the creation of a new, state-of-the-art plant for the production of silicon wafers for solar panels in the Chernyakhovsk Industrial Park. Soon, also in the first quarter of this year, the second plant for creating solar cells will be launched at the Kaliningrad site.

As a result, Europe's largest production of equipment for solar power plants will operate here in the Kaliningrad region. This is a significant event not only for the residents of the region, but also for the whole country. The launch of these advanced enterprises allows us to localize the production of the main components necessary for the development of environmentally friendly solar generation in our country, and create solar power plants on our own industrial base.

And, what is fundamentally important for us, the development of such promising areas of the industry means new jobs, demand for highly qualified specialists, engineers, and technologists. For people, this is an opportunity for professional growth, of course, to increase income, and therefore for the well-being of families.

I know that the initiators of the project worked ahead of schedule and started training personnel for their tasks in advance, together with the Baltic Federal University. This is a good example of partnership between the education system and business, the real sector of the economy. By the way, we have just talked about this, and in one way or another touched upon these topics at a meeting with students of Kaliningrad universities.

Dear friends, I would like to thank everyone who participated in the construction of the new industrial complex. I congratulate the company's staff on starting their work. I wish you all further success, of course.

I give the floor to the Governor of the Kaliningrad Region, Anton Andreevich Alikhanov. You are welcome.

A. : Thank you very much.

Good afternoon, dear Vladimir Vladimirovich!

The opening of the Encor factory for the production of silicon wafers is a significant event for us. For the region, this is the largest production facility created in the last ten years. In addition, this is a new step towards a new industrial specialization of our region-the production of products for solar energy.

The effects are clear to us: this includes new tax revenues, but the most important thing is new jobs. And here I want to emphasize separately that the company was established not in Kaliningrad, not near Kaliningrad, but in the east of the region, in Chernyakhovsk. This is very important for us. And now this newly opened company employs more than 300 highly qualified specialists, the number of which will more than double with the opening of the second site in March this year. Thus, Encor becomes one of the largest employers in the east of our region.

Thanks to this project, housing construction in Chernyakhovsk was revived – there were no residential buildings built there for probably more than 15 years. In December, the first house was commissioned – the plant purchased apartments in it for those people who will work at the plant, and six more houses are under construction. This is also such an important moment for the east of the region.

For its part, the regional government last year supported the establishment of the enterprise through a special regional subsidy for the construction of infrastructure facilities. We made a special power center and sewage treatment plants. We have invested more than a billion rubles from the regional budget.

I would like to emphasize that it was created in the Chernyakhovsk industrial Park, as you mentioned. A special feature of this industrial park is that it and all the infrastructure in it are almost completely created thanks to our state program for the development of the Kaliningrad region.

We thought that we would be developing the site for ten years, but now there is such an investment boom in the country as a whole, and our region is no exception, that the infrastructure has ended, and this year we have already outlined plans to expand it. We are working with investors and, of course, we will be happy if Encor also expands its presence in the region.

Thanks

Vladimir Putin: Thank you.

Please continue.

A. Gutsan : Dear Vladimir Vladimirovich,

The fact that we are opening a new enterprise "Encor" in Chernyakhovsk is a significant contribution, by and large, to the development of the Kaliningrad Region's economy. I'll repeat myself: This includes jobs, the development of the city of Chernyakhovsk itself, and the construction of six new residential buildings. This will also affect the well-being of those citizens who live in the region. Especially, to be honest, the most problematic area of the Kaliningrad region is the eastern district, where this enterprise is currently being built. Moreover, the second complex of this enterprise, the second stage in the development of this plant, will be launched in March. I think that this will primarily affect the economic development of the region.

Thanks

Vladimir Putin: So it will be.

Denis Valentinovich, please.

Dmitry : Dear Vladimir Vladimirovich,

This complex is one of the most significant and capital-intensive projects for the industry of the Kaliningrad region. We supported the construction of two plants with concessional loans from the Industrial Development Fund in the amount of four billion rubles. The budget also financed the development of technologies used here by 185 million rubles. Since the project is also export-oriented, we have already provided for its support through the mechanism of corporate programs to increase competitiveness. The total amount of the subsidy will be about 3.5 billion rubles, including 2026.

The production facility, which will start operating today, will produce over 200 million silicon wafers annually. And the next stage of the technological chain will provide a plant for the production of photovoltaic cells for a total of 1 gigawatt. As you have already said, it will be launched before the end of the first quarter of this year. My colleagues and I have just got acquainted with the completion of equipment for future production.

Vladimir Vladimirovich, I would like to say that with this project we are giving an additional impetus to the development of the related high-precision engineering industry, since the equipment in it was developed by the Hevel scientific and technical center in St. Petersburg.

In general, the volume of import-substituting products that the entire complex will produce suggests that it will become the largest not only in Europe, but also in the Eurasian space. Thanks to this, we will be able to implement plans for the development of solar generation in our country using our own equipment. We will also supply it to our partners abroad.

If I may, I would like to thank the Kaliningrad Region authorities for their active assistance in implementing this project, as well as the owners who made a responsible investment decision to create a very complex, high-tech production facility. Of course, I would like to share your words: I would also like to wish the entire team success in the further development of this enterprise.

Mr Putin, if you don't mind, I would like to give the floor to Igor Shakhrai, the head of the complex that is currently being set up here.

Vladimir Putin: Please, Igor Stepanovich.

I. Shakhrai: Mr President! Dear colleagues! Good afternoon!

We are located in the monocrystalline silicon ingot growth hall – this is the main workshop for the production of silicon wafers. They, in turn, are the main element for the production of photovoltaic converters of solar modules. The plant was built in a record two years. The total investment amounted to 30 billion rubles.

I would like to say that our production has made a significant contribution to reducing the cost of renewable energy technology and allows us to use our products in various industries.

We use the most modern engineering networks and engineering solutions that allow us to produce more than a gigawatt of plate power and meet very high environmental requirements in the region.

I would like to thank you, the Government of Russia and the Kaliningrad Region for consistently supporting renewable energy and the high-tech industry. Indeed, this makes it possible to create jobs, new production facilities, teach students new professions and specialties, and, most importantly, increase technological independence and scientific and technical potential. Thanks

If you don't mind, let me suggest that we start the production process.

Vladimir Putin: Of course, with pleasure. Get started!

I. Shakhrai: In this video, we see the beginning of the process, as a solid crystal appears from the melt. About 20 thousand of such crystals will be produced at our enterprise, which meets the requirements of other types of renewable energy.

Thanks

Vladimir Putin: Igor Stepanovich, I once again congratulate you and all those who took part in the implementation of this idea. I want to thank you – and you, and the investors, of course-for the decisions that were made and for the way they were implemented. As they say in such cases, no one can be forgotten: workers, engineers, builders – all of them, this is really a good step in terms of developing the region, its production capacities, and creating jobs. Everything has been said about this, but nevertheless it doesn't hurt to repeat it – it's even nice to do it, to repeat it again.

Thank you very much and I wish you and your entire team every success. I am sure that the plant I have already mentioned, the second plant, will also be launched in the near future, will be put into operation, and a full-fledged platform for the development of alternative energy will be created.

Thank you very much, and good luck!

Dmitry Manturov: Thank you.

Vladimir Putin: Dear colleagues,

We now turn to the main part of our meeting, our agenda.

I have already mentioned that we have just met with students of the Kant Federal University here in Kaliningrad, including in connection with the Day of Russian Students. I congratulated students, teachers, postgraduates and all university graduates. Each of us is a graduate, and this is partly our holiday. I also congratulate all of you and our teachers on this, and I would like to express my gratitude to them for the work they have done in their time. I hope that the development of education as an industry in our country will be most actively developed.

Young people expressed their thoughts on what and how they see the development of the region. The vast majority of them, as far as I understand it, connect their future life in the profession with the region where they study, and this is very good. They had a number of ideas. But one way or another, we will touch on all these questions that were raised at the meeting with students.

What would you like to say first? The Kaliningrad region is, of course, the westernmost region of Russia and in this regard has a special geography, and because of this, illegal actions of some countries, violations of logistics chains, attempts at a transport blockade, of course, complicate the work of enterprises.

This was also reflected in the key indicators. If in Russia as a whole, the growth of industrial production was an impressive figure – 14.6 percent, then in Kaliningrad, industrial production decreased by 7.7 percent in the first eleven months of 2023. Therefore, we must further support the development of the region, taking into account these challenges and the new realities that have developed.

In general, the situation is being corrected. I think that the governor will say more, we have already touched on this topic during a short conversation with him. In general, the situation is returning to normal. Yes, Anton Andreevich? What's happening now?

Alexander Alikhanov: Mr President, we have seen growth in the economy since August. That is, we see an upward trend from month to month, but we need time to overcome this failure that we had.

Vladimir Putin: This is very good, and we need to support this positive trend.

This also applies to the economy, incentives for businesses, especially small and medium-sized businesses, and, of course, creating comfortable living conditions for people. Let me remind you that about one million citizens live here.

And here, too, there is a clear trend towards an increase in the permanent population. Recently, the population has grown by 16 percent, confidently exceeded one million people – one million 33 thousand we have stated.

All steps to support the region should be reflected in the state program of social and economic development of the Kaliningrad Region. Let me remind you that it has been operating in our country since 2013. Last September, at a meeting with members of the Government, they discussed in detail the need to extend such a program until 2030, as well as the activities that should be included in it.

Following the meeting, a number of instructions were given, and today I would like to hear about the implementation of our agreements. In general, I would like to hear from you what else needs to be taken into account in the upcoming work, what measures should be additionally included in this program.

I repeat, our task is to achieve dynamic growth of the region's economy in a new situation. In this regard, please tell us in detail what is already provided for in the Kaliningrad Region's business support program, and also be sure to discuss issues of transport accessibility of the region, in particular, cargo delivery to the region and export of finished export products to other regions of Russia and to global markets.

As for transport accessibility. Now only at the university discussed this issue, this proposal of the governor. These "flat" tariffs, for which we allocate 450 million rubles a year for the region, should be extended exclusively to residents of the region, regardless of the category to which people living here belong. Only for residents of the region who permanently reside here, including, of course, students and some other specialists who work on a permanent basis and may not even be formally registered here.

According to the governor, this will enable a much larger number of residents of the Kaliningrad region to take advantage of this benefit. As I understand it, Dmitry Nikolaevich [Chernyshenko] does not mind, he does not see any big threats to the tourist flow to Kaliningrad, it is quite large.

I would like to ask the Minister of Transport how you feel about this proposal.

Vladimir : Mr President, we will take a closer look, we have very active flat fares here. I heard that we will simply assess the situation together with Anton Andreevich and report back to you. I think there are possible options.

Vladimir Putin: So we run out of money in the first four months, but if we extend this benefit not to the whole country, not to spread it out in a small layer, but to extend it only to residents of Kaliningrad, then, of course, a much larger number of people living here permanently will be able to use this benefit. It is probably advisable to do this. Do not delay just – the year begins, you need to do it quickly.

Vladimir Savelyev: Accepted.

Vladimir Putin: Next. Special attention should be paid to the realization of tourist and recreational potential. Without exaggeration, the region has very large, if not colossal, opportunities in this area, the disclosure of which will serve to strengthen and diversify the economy, will create, without any exaggeration, thousands of additional jobs, especially since in recent years the interest in recreation in Kaliningrad, Svetlogorsk, Zelenogradsk and other cities of the region has been noticeable growing. By two-thirds, in my opinion, it has grown: from 490 thousand [people] in 2022 to more than 700 thousand in 2023.

Alexander Alikhanov: Mr President, if I may, yes, the figures you mention are official figures of the Federal State Statistics Service. There are a lot of things that are often not taken into account: This is also the private sector, and someone just rents housing or is placed in some unclassified holiday homes, for example. Not all collective placement tools provide correct statistics.

But we have a unique opportunity here, our geography gives us advantages here-an airport and a railway. We know everyone who comes to us, and the airport's turnover is already growing by four million 300 thousand. According to Sberbank, various bank card and mobile operators, we estimate that the number of these people exceeded two million at the end of last year. This is a separate conversation – questions of statistics. But we are quite critical of this approach, that is, we do not consider day trips, that is, business trips are not considered – only if a person spent the night, spent at least a day here, then we count. This is a note on statistics.

Vladimir Putin: I have a significant point to make, and we must take this into account.

I will ask Dmitry Nikolaevich Chernyshenko later to tell us how, in your opinion, this situation is developing, and, of course, including the project of a new comfortable resort "Belaya Dune", which is being worked out now.

It is clear that increasing the tourist flow will require expanding the capacity of the airport, completing all stages of construction of the Primorsky ring. This is necessary, among other things, so that tourists from other regions of our country can quickly and comfortably reach their vacation destinations, as well as to improve transport links within the Kaliningrad Region, so that there are no traffic jams that create discomfort for residents and guests of the region.

Other priority tasks include increasing the pace of housing commissioning, updating the municipal infrastructure, major repairs and construction of new health, sports and cultural facilities.

Regarding the development of the cultural sphere, I would like to mention such a large-scale project as the creation of a modern cultural cluster in Kaliningrad with branches of the Tretyakov Gallery, the Bolshoi Theater and the Russian State Institute of Performing Arts. We were just getting acquainted with what is happening and what stage this project is at. I hope that all the planned commissioning activities will be completed on time.

I understand certain difficulties associated with the supply of equipment and others, but the road is overcome by walking. Everything can be done, I have no doubts about that, we just need to move forward and be sure that we will do it all. And I'm sure. I hope that both the builders and everyone involved in the project will also be imbued with such confidence.

This cultural center should qualitatively increase access to the best examples of music, theater, and visual arts for residents of the region, and, of course, it will provide additional opportunities for creative self-realization and artistic education for young people.

This, of course, does not mean that people will no longer be interested in traveling, as they say here, to the mainland – to theaters in Moscow, St. Petersburg, other major cities of Russia, to museum centers. Of course, all this will happen, but the creation of such a multi-faceted center here will certainly encourage people who live here to visit the very cultural centers that I mentioned.

There will be a branch of the Bolshoi Theater working here – you will want to go to the Bolshoi Theater as well. There will be a Tretyakov Gallery, a branch – you will want to go and see what we have in the Russian Museum of St. Petersburg or in the Hermitage. This is a different quality of life altogether.

Our agenda includes a number of other topical issues related to the development of the region's economy and industry. Let's start working.

A word to Maxim G. Reshetnikov. You are welcome.

Mikhail : Dear Vladimir Vladimirovich,

Dear colleagues!

Last September, I reported on the measures that the Government had launched to help the Kaliningrad Region cope with the sanctions. Today I would like to tell you how these measures have worked, how the implementation of your additional instructions that you gave in September has progressed, as well as about the regional development program that the Government extended on your instructions in December this year until 2030.

According to the results of last year, the Kaliningrad Region-despite the fact that a certain decline is actually expected, as Anton Andreevich [Alikhanov] said-has really caught up a lot in recent months. Nevertheless, in a number of industrial sectors, production has increased: electronics, chemical industry, food industry. Agricultural production, construction, and investment grew by a record 45 percent higher than the national average in the first three quarters.

According to Russian Railways, deliveries to the region by rail not only recovered, but also exceeded the pre-sanctions period by almost 40 percent. And the decline in traffic from the region, caused precisely by the bans and restrictions of the Baltic countries, was offset by a reorientation to sea transport.

Thanks to the measures taken in the field of transport, it was possible to increase the volume of traffic by 20 percent by 2022. Real incomes of the population increased by more than five percent. Unemployment has decreased. The region continues to increase its own revenues and becomes more independent of federal transfers.

The long-term development of the region is connected with the solution of two key tasks. The first is the provision of transport services, independent of sanctions, and the maintenance of the region, as you noted. Thanks to the mechanism of subsidizing sea transportation, Kaliningrad's cargo turnover with Russian ports increased by one and a half times in a year.

On your instructions, following the results of the September meeting, the Ministry of Finance has reserved 1.8 billion rubles for this year to subsidize ferries. At the same time, last year the amount of subsidies in demand was more than two billion. Therefore, these funds will not be enough – 1.8 billion rubles, it is already clear, and it will be important to allocate additional money during the year as the need arises. In addition, the Ministry of Transport plans to build three railway ferries on your instructions. Our colleagues will report on this separately.

The second strategic goal is to make the economy less dependent on cargo transportation, to rely more on the competence of residents, on technology, on high added value of products, and this is associated with attracting investment.

What is being done here? First, within the special administrative region, the conditions for moving foreign companies to Russia were simplified, the so-called redomicilation procedure. We have two territories in Russia - either Russky Island in the Russian Far East, Primorsky Krai, or Oktyabrsky Island here in the Kaliningrad Region.

Of course, companies that move from Europe usually choose Kaliningrad. Last year, 150 residents moved from other countries – this is twice as many as a year earlier, and six times more than in 2021. In the last two years alone, residents of the special administrative region have brought the region more than 30 billion rubles in investment and more than 11 billion rubles in taxes. There is a special economic zone, its features are the return of customs duties and reduced insurance premiums. Here, 7.6 percent is four times [lower] relative to the general rate.

Now there are about 300 residents in the SEZ, they have invested more than 200 billion rubles in various sectors of the economy: from agriculture, the automotive industry, light industry to fishing, IT, and tourism. Currently, residents produce 40 percent of the goods produced in the region, and 50 percent of taxes are paid.

In addition, more than 30 major investment projects worth 400 billion rubles are being implemented in the region, and one of them has just been opened. Rather, the first stage will continue.

Separately, I would like to mention the project of Rosatom to build a plant for the production of batteries for hybrid cars and electric buses. In particular, to support this project and attract employees, the state program provided for the construction of a medical center in Sovetsk. This is exactly the point of development where the plant will develop, and together with the region we have found such a solution.

A major automaker-a resident of the SEZ-has now reoriented itself to assembling cars from Chinese components and is resuming construction of 12 factories for the production of automotive components at once.

In the sphere of agro-industrial complex, greenhouse livestock complexes are being created. A full-cycle cluster for the production and deep processing of potatoes, milk processing plants and, of course, fish products are being created here. At the same time, it is important that not only large, but also small projects are being implemented.

Two years ago, on your instructions, we allocated 5.5 billion rubles to the region to diversify the economy and support small and medium-sized business projects. As a result, more than 80 projects were supported. This includes the production of electrical equipment, plastic products, fertilizers, paper packaging, composite windows, furniture, cosmetics, amber products.

All companies have started implementing projects, and 24 projects have already been launched, which means that the investment stage is over. Out of 2,000 jobs, 500 have already been created. All other projects, as they say, are on the march, are being actively implemented.

Taking into account that these funds are refundable, that is, the business will start up and gradually return them to the region, we agreed here with Anton Andreevich [Alikhanov] that we will make the mechanism permanent, that is, this money… There will be such a revolving fund, and at the expense of them the region will then continue to support SMEs. In general, I must say that since Anton Andreevich heads the State Council Commission on small and medium-sized businesses, the region is very actively and effectively involved in the national SME project.

A separate promising growth point is tourism. The Kaliningrad Region uses all the mechanisms of state support for development. As part of the national project, modular hotels and two large hotels are being created. We are currently in the third stage of selection under the concessional lending program, and applications are also being received. At the expense of infrastructure budget loans, engineering networks are being built for three sanatorium-resort complexes with 1,300 beds.

In the program, we have included measures for coastal protection and shore protection for the development of the city of Pionersky. This, in general, is also such a powerful resort area, this is the embankment. The development of the embankment and the related construction of a sea terminal for receiving cruise and passenger ships, which the Ministry of Transport implements as part of the transport program, will give a good impetus to this area.

We have already said that the White Dune project is being implemented as part of the Five Seas project. The work is being carried out under the leadership of Dmitry Nikolaevich Chernyshenko. Dmitry Nikolaevich will tell you in detail.

We also support business through regulation, since the region has a special position, it is very important to adjust foreign trade activities. Since August last year, we have introduced a ban on the import of canned fish and seafood from unfriendly countries, analogues of which are produced in the region. This was the proposal of Anton Andreyevich [Alikhanov], we considered it, all departments supported it, and the regulatory framework was adopted.

Moreover, on your instructions, a law was adopted at the end of the year that allows goods from certain regions to be exempt from export duties. There was just such a request from Kaliningrad and the Far East, since the markets are far away, the transport shoulder often makes these markets weakly connected in a number of products. For Kaliningrad, it is extremely important to exempt from duties on canned fish and canned seafood produced here.

As a result, we have now considered all the issues, since the law was only adopted at the end of the year, but now the draft resolution has already been submitted to the Government, just this week. The government promptly considers and accepts such issues, so we will resolve this issue in the near future.

We also removed soy protein concentrate, which is produced here in large volumes and delivered to third countries, from the effect of exchange rate export duties. The producer's savings are estimated at more than 300 million rubles a year. That is, we are definitely working together with the regional administration, with Anton Andreevich [Alikhanov], to work out all such issues and try to quickly resolve such points, even if they are very important for the region.

Within the framework of the Eurasian Economic Commission, we are actively discussing simplifying the procedure for processing customs operations for those vessels that are engaged in fishing in the world's oceans and international waters. This is also extremely important.

What else is important? Implementation of all projects in the economy and launch of new training centers: more than 14 thousand new jobs will be created in the region in industry alone by 2030. This is a big challenge for the region, where the demand for personnel is already more than five times higher than the supply.

Therefore, the solution to this problem is connected with the expansion of the Professional Development program, with increasing labor productivity (the region also participates in the national project), with competent work with migration flows, retraining, as well as at the expense of the university campus, which is being built here on your instructions through the Ministry of Education, as well as by creating a secondary vocational education campus. At the suggestion of the region, we have already included this event in the state program for the development of the Kaliningrad Region, and this campus will also produce a thousand specialists a year in 20 specialties that the region needs.

In general, over the next three years, more than 72 billion rubles will be allocated for the implementation of the state program. At the same time, as you instructed in September, we have provided an additional 5.7 billion rubles starting from 2026 for the new activities I mentioned: the campus, the medical center, and coastal protection.

But it is important that all these activities are related to specific investment projects, so we understand where the new economy will be created at the end. The Ministry of Finance plans to reflect funding in the budget law for 2025-2027, so we can start preparing measures from this year.

Vladimir Vladimirovich, thanks to your decisions and the work of the regional team itself, the Kaliningrad Region's economy has not only survived and adapted, but also has solid prospects for development. We will continue to work with the region to quickly implement the tasks that arise.

Thanks for attention.

Vladimir Putin: Good. Thank you very much.

In general, it turns out. We still need to maintain this trend, as I said in my opening speech.

One of these promising areas is tourism. Please, Dmitry Nikolaevich.

: Thank you very much.

Dear Vladimir Vladimirovich,

Thanks to your decision to launch the national project "Tourism and Hospitality Industry" in 2021, the development of the tourism sector in the country has reached a systematic qualitative level.

The state support measures provided by the national project allow building new tourist infrastructure and encourage investors to invest in tourism. All this allows us to create conditions for safe and affordable recreation of our citizens.

Recently, the direction of state support has changed-from stimulating demand (everything is fine with it now) to creating new accommodation facilities and points of attraction. The Kaliningrad Region actively participates in the activities of the national project, federal state support measures in conjunction with regional ones allow creating a new number of rooms, ensuring the growth of tourist flow.

According to preliminary data from Rosstat (and we and the Ministry of Economic Development are guided by Rosstat data so that we can compare regions), by the end of 2023, the number of people who stayed in collective accommodation facilities in the region is about 800 thousand, which is 20 percent more than in the reference docular 2019 year.

During the New Year holidays, the Kaliningrad region was particularly popular among our citizens, along with Moscow, St. Petersburg, Sochi and the Caucasus Mineral Waters. And for the whole of last year, the tourist flow to the region really amounted to more than two million trips, the figures that the governor says, we confirm.

The potential of the region, of course, as you correctly said, is not fully revealed. This potential is huge there, and to increase the tourist flow now, we need infrastructure. As the governor said, now the infrastructure is over. So it ended for the tourism sector, because there is a huge demand, and therefore, in general, I said that we assess the risks that a "flat" tariff only for citizens can reduce the tourist flow as extremely low.

We will work on this separately and justify it, especially since we have launched a separate special project in the Government Coordination Center on behalf of Mikhail Vladimirovich [Mishustin], according to which we monitor the non-increase [cost] and availability of tourist products, including the transport component. Therefore, if something deviates by more than 20 percent, it is already an incident for us, and we deal with it separately.

Vladimir Vladimirovich, on your instructions to create new federal year-round seaside resorts in the country, which should provide an additional 10 million tourists a year at our seaside resorts, a large-scale project "White Dune"is being developed in the Kaliningrad Region. According to the project parameters declared by the region, it is planned to create more than 10,5 thousand hotel rooms. This is a giant project. In the "Five Seas" – in these 10 million [tourists] - almost 11 percent of his contribution will be.

The resort's infrastructure is designed with the possibility of just year-round operation due to heated thermal pools. The governor has an idea, which we support, to create the world's largest swimming pool, indoor sports grounds, recreation areas, and family recreation. You have a booklet like this on your desk, you can see it. It's a wonderful place.

According to preliminary estimates of the region, the volume of private investment in tourist infrastructure will amount to about 400 billion rubles. Providing infrastructure will require about 37-40 billion rubles starting from 2027 and further until 2035. Thus, for every budget ruble invested, there will be up to 10 rubles of extra-budgetary investments.

When the issue of mooring the Krusenstern and Sedov vessels was just raised at a meeting with students, we promptly consulted with the Minister of Tourism of the region and we believe that there are no obvious restrictions in order to make a site at the Belaya Dune resort, since the marina is planned there, exactly the site on which it is located. with which we could provide these ships with a berth. This will also be an additional attractive factor for tourists who might come there. The marina is pre-planned in the project, and we will take into account its cost. Now let's study the bottom.

Vladimir Putin: That is, the money already available there can be used for the implementation of this structure?

Dmitry Chernyshenko: Yes, absolutely. Since we will still be building the marina, we will immediately make sure that there are places for these two beautiful vessels.

Vladimir Putin: That's right, excellent. Because without this money, there is a decent cost-under 600 million.

Dmitry Chernyshenko: Absolutely.

You correctly noticed that the creation of resorts will further increase the tourist flow to the region. According to preliminary calculations of the subject, it will increase by about an additional 1.1 million people per year. It is extremely important for us to synchronize the work on ensuring the transport accessibility of the resort, increasing the capacity, including the air gate. This will require the construction of a main taxiway along the entire length of the runway, in order to increase its capacity. We have also discussed this with Vitaly Gennadyevich [Savelyev], and he will tell us more about it.

Vladimir Vladimirovich, we are preparing to present you all the projects of year-round seaside resorts in Russia. "Five Seas" is the name of this project, which will provide those same ten million additional people a year. We'll tell you more at a separate meeting.

Several other major investment projects in the field of tourism and culture are also being implemented in the region. Indeed, you have said many times today, including the construction of museum and theater educational complexes in Kaliningrad. The region is indeed one of the four regions where such complexes are being built under your decree. And, of course, the branch of the museum complex of the Tretyakov Gallery, and the branch of the Bolshoi Theater, and the Baltic Higher School of Music and Theater Arts – all these are tourist "magnets". Moreover, as you have heard, the Planet Ocean museum complex will be completed in 2024. We are sure that all these additional points of attraction will attract tourists from all over our country.

Ecotourism is also developing dynamically in the region – this is a distinctive feature of the region. Kaliningrad Region is one of the leaders in the country in creating bicycle infrastructure. A 130-kilometer bike path is being built along the Baltic Sea coast, and on my last visit, the governor and I tried it out: a beautiful path. About 900 [million]rubles have been allocated from the federal budget for this purpose…

Vladimir Putin: Have you driven 130 kilometers?

Dmitry Chernyshenko: No, it was less than that. The governor wanted me to come first. I even believed that I had succeeded.

Vladimir Vladimirovich, on your instructions, we will continue to build infrastructure in the region and introduce new facilities in 2024 as part of the national project "Tourism and Hospitality Industry". Currently, projects with a total loan portfolio of 3.6 billion rubles are being financed under the concessional lending program in the region, and three and four star hotels are being built.

Under the program for the construction of modular non-capital facilities, the region has been allocated more than 400 million rubles, they will build another 230 rooms by the end of the year, and 13 projects of investors have been supported. This year, funding is also provided in the form of a single subsidy – a new form of support that the subject can direct to priority areas at its discretion.

Thanks to your decisions on increasing funding for the creation of modular accommodation facilities, a preferential program, and subsidizing large-scale projects, new numbers appear in the regions in a short time, and large-scale projects are launched.

Vladimir Vladimirovich, I would also like to add an interesting point here, taking advantage of the large audience, since you recently declared 2024 the Year of the Family: we remember and honor traditional family values, which foster a sense of kindness in children first of all – and not only to people, but also to our smaller brothers. There is a very interesting place, the resort of Zelenogradsk, which is considered a city of seals. This "purring" city attracts tourists from all over Russia and abroad. The governor pointed out that cats there are full-fledged residents, if not owners of this city. There are even traffic lights built for them, for cats, children can cuddle them all. In general, family tourists will have something to see and where to come.

I conclude, Mr President. The Kaliningrad region really has a great tourist potential. We recommend that all our residents come here. It's impossible not to fall in love, you want to come back here.

On your instructions, the Government will continue to work together with the region to create conditions for comfortable and safe recreation of our citizens.

Vladimir Putin: Did you hear the remark of the plenipotentiary Alexander Vladimirovich Gutsan when you talked about your attempts to ride a bicycle?

Dmitry Chernyshenko: No.

Vladimir Putin: He says: weaklings. And he definitely took a ride. (Laughter.)

A. Gutsan : One of the first.

Vladimir Vladimirovich, returning to what Dmitry Nikolaevich said about the city of Zelenogradsk, we must also keep in mind that in the state of the city administration there is a position of "kotoshef" – a person who works in the administration and is engaged in improving the living space of these cats that live on the territory of the city of Zelenogradsk.

Vladimir Putin: Yes, this is very good. In this regard, the question arises, of course, how the issue of housing construction in the region is solved for people.

Marat Shakirzyanovich, please.

Oh, and when will the Ocean Museum be completed?

M. Khusnullin : Vladimir Vladimirovich, the museum will be completed by the end of the year, this is a well-known long-term construction project…

Vladimir Putin: What year is it?

M. Khusnullin: This year, Mr President, I will clarify.

Vladimir Putin: Good.

M. Khusnullin: This is a well-known long-term construction project. The customer was first the museum itself, then the North-Western Directorate of the Ministry of Culture. Finally, we handed it over to the federal customer. Last year, you made all the decisions about money. This money was spent on the Tretyakov Gallery and the completion of the museum. Now there, due to the fact that construction technologies were disrupted and not followed, the basement was flooded. The project was changed, 110 people work. The facility will be fully operational by the end of the year. I was there, I know the object. We'll solve everything.

Vladimir Putin: A good idea in itself.

Mikhail Khusnullin: This is a very good museum, Mr Putin.

Vladimir Putin: And here on the seashore, on the Baltic Sea, it will be in demand.

It will really help, as Dmitry Nikolaevich said, to maintain the tourist flow, absolutely.

Mikhail Khusnullin: It's a very good museum, very much in demand, I went to see the exhibits myself, there will be 29 aquariums. The readiness is already quite high there. A very active director, she really asked for additional museum content. This was also taken into account in the framework of the new allocated money. That is, the museum claims to be a pearl not only of Kaliningrad, but also of Russia and Europe absolutely. Therefore, we will wait until the end of the year.

Vladimir Putin: In Monaco, in my opinion, there is something similar – the Museum of the Sea.

M. Khusnullin: So it's small. [We have] almost ten thousand [square meters] of indoor space alone.

Vladimir Putin: In Monaco, a small one?

M. Khusnullin: As far as Monaco is concerned, yes, it is big for them, but as far as our museum is concerned, it is a small museum in Monaco.

Vladimir Putin: So they have such a small country.

M. Khusnullin: But our Kaliningrad region is also not very large. As for the Kaliningrad region, this is also a large object.

Vladimir Putin: You just need to finish it, but everything is fine.

M. Khusnullin: We'll finish it.

Vladimir Putin: All right, all right.

Please, for infrastructure and housing construction.

Mikhail Khusnullin: Mr President, the Kaliningrad Region is consistently a leader in housing construction. In the last four years, more than one meter per person has been built, it is one of the top ten regions that are leaders, and the national project "Housing" has actually already been completed and exceeded. I have already reported this to you, and the Kaliningrad Region is one of these regions.

Moreover, I would like to note that they work under all state programs, and 17 programs are fully implemented. They choose all the measures of federal support, there is not a single "red zone". The housing supply is already 32 meters per person, and according to the results of the record commissioning in our country, it will be about 29, that is, they are 10 percent higher than the national average, and if this rate is maintained, they will reach 40 meters by 2030. In other words, they will exceed all the indicators.

The next point. They are actively engaged in urban potential. Today, when one million square meters are commissioned, they have the right and the place where they can build is already 12 million square meters, and by 2030 they have also taken additional sites into development and want to increase the urban potential to 15 million. This is also one of the largest projects – Oktyabrsky Island in Kaliningrad, where 700 thousand square meters of housing are located. We have actively entered the program of CRT [integrated territorial development]. I think that this indicator will be met. And, of course, to implement these projects, they are very actively using all our tools – the "Infrastructure Menu". I can mention that, for example, four objects worth 4.2 billion were implemented at the expense of this project. These are infrastructure budget loans, which we also discussed. Such a measure of support is very popular, and the governors are happy to use it.

Due to this, a high-pressure inter-settlement gas pipeline, a water intake structure in Svetlogorsk and to the village of Primorye were completed, and sewage treatment plants in Kaliningrad are currently being designed. 750 million rubles have been allocated for housing and utilities modernization projects, and design and development are underway, both at the expense of the National Welfare Fund and at the expense of funds directly for the development of municipal infrastructure.

At the expense of special treasury loans, the bus fleet has been updated and new large-capacity buses have been delivered. And in general, this is within the framework of the Mobile City program, which was approved on your behalf. As a result of the active work of the administration, the car fleet will actually be worn out at the level of 28 percent. This is a very good indicator. Public transport in the city will mostly be provided.

At the end of 2022, Rosavtodor and the Kaliningrad Region signed a program for the development of the main road network. The main road network - the main routes used by people and goods-includes 700 kilometers, including 250 kilometers of federal roads, which are now fully (85 percent) in a standard state.

According to the results of this year, colleagues assure that now they have 440 kilometers of regional roads in a standard state (61 percent). And if all the plans of this year are fulfilled, even the core network will be 85 percent in a standard state. In general, in the whole country, we want to bring the support network to a standard state by 2027.

At the same time, the national project "Safe and High-quality Roads" has been exceeded in the region. Our goal was to get 50 percent done.

Vladimir Putin: And the support network, including regional ones?

M. Khusnullin: Our core network includes all federal roads and major regional ones where the main traffic flows.

Vladimir Putin: And now the entire core network will be 85 percent?

Mikhail Khusnullin: Yes, 85 percent is a very good indicator.

According to the national project "Safe and high-quality Roads", the entire regional network will be 58 percent ready by the end of the year. But also roads in agglomerations, with the plan of 85 percent, colleagues promise to fulfill all the tasks set, to have security of 89 percent. In other words, we also solve the problem of agglomeration.

This, by the way, was achieved due to the fact that you made two very serious decisions, which the Ministry of Finance implemented, this is advanced financing. We have given priority budget loans – 5.2 billion rubles, to solve problems. That is, people just got everything that was planned a year earlier. And we also saved on inflation.

Second. At the expense of the general program, through the "transfer" with the Ministry of Finance, with Anton Germanovich [Siluanov], we additionally found another 5 billion [rubles] and gave [them] to accelerate those capital projects for the reconstruction of the Koltsevaya road, which you instructed to work out. This also gave a serious breakthrough.

But in general, I would like to say that you have set the task of completing stages six and seven, and stages seven and nine, which are being implemented by the Federal Road Agency. The second stage, which is being implemented, is the northern bypass of Kaliningrad directly by the customer. Money is allocated in full rubles until 2028. There is a slight increase in prices for several objects, but this is at the level of 1-2 billion, and we will finish it in the process of execution.

I would like to note that there are proposals for further extension of this project. Anton Andreyevich [Alikhanov] and I looked at it carefully, and it covers five additional stages, about 77 kilometers more, including a very expensive concession bridge. We will look at the technical solutions and terms of the concession. If there is a request from you, we will also finalize the extension of this ring route. The work is proceeding at a good pace.

Vladimir Vladimirovich, I would like to note that as part of a comprehensive plan to modernize and expand our infrastructure, we will complete the international sea terminal in Pionersky this year. This is also a long-term construction project: Rosmorrechflot had it, and we handed it over to a single customer in transport construction, who will finish it by the end of the year. I also visited this site, and it will be a good site, which will give an impetus to tourism and the development of the city of Pionersky itself.

About the airfield. Indeed, there is a need to increase the capacity from 16 to 32 take-off and landing operations, there is a request. I think that we will consider it as part of the future airport development program. There is such a need.

In general, I would like to say that the work of the entire team, Mr Putin, is quite professional. Anton Andreevich [Alikhanov] himself takes part in all the headquarters on a weekly basis, knows all the questions. I can't say anything about our ad block other than words of gratitude. Thanks

The most important thing is the attention that you pay, the huge amount of money that we allocate for transport infrastructure, for everything, of course, and give this result. We very much hope that this positive trend will continue to be maintained next year.

Thanks

Vladimir Putin: Thank you.

Vitaly Gennadievich, please. Transport.

Vladimir : Thank you.

Dear Vladimir Vladimirovich,

Dear colleagues!

In 2023, despite the sanctions pressure on civil aviation, Russian airlines carried more than 105 million passengers, which is 10 million passengers more than in 2022, and 2 million more than the plan was set, the plan was 103 million passengers.

We have a special focus on domestic air transportation. We see a steady increase in passenger traffic here. I also want to note that at the end of the year, the volume of traffic within Russia amounted to 83 million passengers, which is a very large figure, which is 13.5 percent more than the dock-like indicator of 2019. Due to the fact that we are reorienting all our flights from foreign destinations to domestic ones. One of the leaders in the growth of air transportation is the Kaliningrad region, including due to the high tourist potential.

I would like to note that in 2023 Kaliningrad's passenger traffic totaled 4.3 million people, which is almost 15 percent more than in 2022. In 2023, nine Russian airlines operated flights from 21 Russian cities to Kaliningrad, and during the summer periods, up to 360 flights are operated weekly, and in winter - up to 215 flights weekly. More than half of the passengers transported via Khrabrovo are residents of the Kaliningrad region.

Two of our three traditional transportation subsidy programs, which we implement at the federal level, play a major role in increasing passenger traffic. These are the program under Government Decree No. 1242 on the development of the regional route network and the program under Decree No. 215 on ensuring the availability of air transportation for the least socially protected categories of citizens.

In 2023, due to the operation of these programs, 580 million rubles were allocated for transportation in the direction of Kaliningrad. This year, the amount of subsidies will amount to 725 million rubles, which is 25 percent higher than last year. I would like to note an increase in the number of subsidized routes connecting Kaliningrad from 15 last year to 19 this year. In total, in 2024, more than 210 thousand passengers are planned to be transported to Kaliningrad destinations on subsidized routes, this is within the framework of the Government resolutions that I mentioned. And the Aeroflot Group of companies makes an important contribution to ensuring transportation in the Kaliningrad direction, which we also discussed just now. This is due to the implementation of the program of "flat" tariffs.

I would like to note that the one-way fare is 6,400 rubles, and the round-trip fare is 10,650 rubles, and in 2023 more than 695 thousand passengers used such transportation. In total, if we take into account federal subsidy programs and "flat" fares, we transported 901.5 thousand passengers on preferential transportation. And in 2024, we expect that the Aeroflot Group will carry more than 711,000 passengers at flat fares. Taking into account your instructions, Aeroflot and I will now consider a new introduction to Kaliningrad residents in order to stretch it out.

Vladimir Putin: This is the governor's proposal. And I understand that local residents – in particular, students-are also actively supporting, because they are under 23 years old. I was talking to a girl just now, and she says :" I'm turning 23, I'm still a student, so I won't be able to use it."

Vladimir Savelyev: Mr President, I think we will find a solution, so everything will be fine.

Thus, according to our forecast, this year we will transport 921 thousand passengers on preferential terms of transportation between Kaliningrad and Russian cities. It seems to me that this figure is very large.

We, the Ministry of Transport, fully support the region's decision on the reconstruction of Khrabrovo Airport in Kaliningrad. Currently, the capacity of the airfield is 16 take-off and landing operations per hour, but we see when the season is high, due to the high intensity of operation of the airfield during the peak period, the number of take-off and landing operations increases to 32 per hour.

Of course, this requires infrastructure development. And when forming the next budget for 2025 and the planning period 2026-2027, as already mentioned, the Ministry of Transport will consider the necessary funding for the construction of the main taxiway, there are only 5.5 billion rubles. We will try to find these funds in full, based on the capabilities of the federal budget.

I want to say that we are in constant contact with Anton Andreevich [Alikhanov]. I want to report on many of the issues that we are solving in the closed section.

Dear Vladimir Vladimirovich, If possible, I ask you to hold the second part of my speech, which is closed, without any press or cameras.

Vladimir Putin: So let's do it. Let's thank our colleagues.

Secretive development projects? The context tells me that such “closed sections” are standard procedure. That does help to shorten the transcript though. The major point aside from the solar cell plant readers need to comprehend is how all this development is being financed: much of it’s by the state and region, but private partners are also involved. The vast majority of infrastructure works use public funds which of course is communitarian or socialist. But public funds are also used in large tourist facility projects and so forth. Kaliningrad seems to have met the import substitution challenge, and little remains to be sanctioned. Education as an “industry”? A state and regional industry as it’s currently developing. Russia’s a developing, modernizing nation with a red hot economy that ought to easily grow by 5% in 2024. Regional governors need to be excellent planners, promoters and managers. Team Putin provides good examples to follow.

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