Transcript: Putin speech on 16/03/2022 

0:00
Good afternoon, colleagues. Taking part in our meeting are senior Government officials, plenipotentiary presidential envoys in the federal districts and heads of Russian regions.
0:05
We are meeting in a complicate period as our Armed Forces are conducting a special military operation in Ukraine and Donbass.
0:14
I would like to remind you that at the beginning, on the morning of February 24, I publicly announced the reasons for and the main goal of Russia’s actions.
0:29
It is to help our people in Donbass, who have been subjected to real genocide for nearly eight years in the most barbarous ways, that is, through blockade, large-scale punitive operations, terrorist attacks and constant artillery raids.
0:51
Their only guilt was that they demanded basic human rights: to live according to their forefathers’ laws and traditions, to speak their native language, and to bring up their children as they want.
1:05
During these years, the Kiev authorities have ignored and sabotaged the implementation of the Minsk Package of Measures for a peaceful settlement of the crisis and ultimately late last year openly refused to implement it.
1:23
They also started to implement plans to join NATO. Moreover, the Kiev authorities also announced their intention to have nuclear weapons and delivery vehicles. This was a real threat. With foreign technical support, the pro-Nazi Kiev regime would have obtained weapons of mass destruction in the foreseeable future and, of course, would have targeted them against Russia.
1:54
There was a network of dozens of laboratories in Ukraine, where military biological programmes were conducted under the guidance and with the financial support of the Pentagon, including experiments with coronavirus strains, anthrax, cholera, African swine fever and other deadly diseases. Frantic attempts are being made to conceal traces of these secret programmes.
2:22
However, we have grounds to assume that components of biological weapons were being created in direct proximity to Russia on the territory of Ukraine.
2:34
Our numerous warnings that such developments posed a direct threat to the security of Russia were rejected with open and cynical arrogance by Ukraine and its US and NATO patrons.
2:50
In other words, all our diplomatic efforts were fully in vain. We have been left with no peaceful alternative to settle the problems that developed through no fault of ours. In this situation, we were forced to begin this special military operation.
3:10
The movement of Russian forces against Kiev and other Ukrainian cities is not connected with a desire to occupy that country. This is not our goal, as I pointed out openly in my statement on February 24.
3:29
As for the combat tactics drafted by the Defence Ministry of Russia and the General Staff, this has fully justified itself. Our fellows – soldiers and officers – are displaying courage and heroism and are doing all they can to avoid civilian losses in Ukrainian cities.
3:51
This is what I would like to say for the first time: at the very start of the operation in Donbass, the Kiev authorities were offered opportunities to avoid hostilities, via different channels, to simply withdraw their troops from Donbass as an alternative to bloodshed.
4:11
They did not want to do this. Well, this was their decision; now they will understand what is happening in reality, on the ground.
4:24
The operation is being carried out successfully, in strict conformity with the approved plan.
4:31
I must note that, encouraged by the United States and other Western countries, Ukraine was purposefully preparing for a scenario of force, a massacre and an ethnic cleansing in Donbass. A massive onslaught on Donbass and later Crimea was just a matter of time. However, our Armed Forces have shattered these plans.
4:54
Kiev was not just preparing for war, for aggression against Russia – it was conducting it. There were endless attempts to stage acts of subversion and organise a terrorist underground in Crimea. Hostilities in Donbass and the shelling of peaceful residential areas have continued all these years. Almost 14,000 civilians, including children have been killed over this time.
5:20
As you know, there was a missile strike at the centre of Donetsk on March 14. This was an overt bloody act of terror that took over 20 lives. Shelling has been ongoing during the past few days. They are striking randomly at squares with the fervor of fanatics and the exasperation of the doomed. They are acting like the Nazis did when they tried to drag as many innocent victims as they could to their graves.
5:49
But what is shocking in its extreme cynicism is not just Kiev’s blatant lies and statements that Russia allegedly launched this missile at Donetsk (they have gone as far as this), but the attitude of the so-called civilised world. The European and American press did not even notice this tragedy in Donetsk, as if nothing happened.
6:15
This is how they have been hypocritically looking the other way over the past eight years as mothers buried their children in Donbass, as elderly people were killed. This is simply moral degradation, complete de-humanisation.
6:32
It was no longer possible to tolerate this outrageous attitude towards the people of Donbass. To put an end to this genocide, Russia recognized the people’s republics of Donbass and signed treaties of friendship and mutual aid with them. Based on these treaties, the republics appealed to Russia for military aid in rebuffing the aggression. We rendered this aid because we simply could not do otherwise. We had no right to act otherwise.
6:58
I would like to emphasise this point and draw your attention to it: if our troops had acted only within the people's republics and helped them liberate their territory, it would not have been a final solution, it would not have led to peace and would not have ultimately removed the threat – to our country, this time to Russia. On the contrary, a new frontline would have been extended around Donbass and its borders, and shelling and provocations would have continued.
7:26
In other words, this armed conflict would have continued indefinitely. It would have been fuelled by the revanchist hysteria of the Kiev regime, as NATO deployed its military infrastructure faster and more aggressively. In this case, we would have been faced with the fact that the attack, the offensive weapons of the alliance were already at our borders.
7:46
I will repeat – we had no alternative for self-defence, for ensuring Russia's security, to this special military operation. We will reach the goals we set. We will certainly ensure the security of Russia and our people and will never allow Ukraine to be a bridgehead for aggressive actions against our country.
8:11
We remain ready to discuss matters of fundamental importance to Russia’s future during the talks. This includes Ukraine’s status as a neutral country, and demilitarisation and denazification. Our country has done everything it could to organise and hold these talks realising that it is important to use every opportunity to save people and their lives.
8:38
But time and time again we see that the Kiev regime, which its Western handlers have charged with the task of creating an aggressive “anti-Russia” stance, does not care about the future of the people of Ukraine. They do not care that people are dying, that hundreds of thousands, or even millions of people had to flee their homes, and that a horrendous humanitarian disaster is unfolding in the cities controlled by the neo-Nazis and armed criminals who were cut loose.
9:07
Clearly, Kiev’s Western patrons are just pushing them to continue the bloodshed. They incessantly supply Kiev with weapons and intelligence, as well as other types of assistance, including military advisers and mercenaries.
9:24
They are using economic, financial, trade and other sanctions against Russia as weapons, but these sanctions have backfired in Europe and in the United States where prices of gasoline, energy and food have shot up, and jobs in the industries associated with the Russian market have been cut. So, do not shift the blame on us and do not accuse our country of everything that goes wrong in your countries.
9:53
I want ordinary Western people hear me, too. You are being persistently told that your current difficulties are the result of Russia’s hostile actions and that you have to pay for the efforts to counter the alleged Russian threat from your own pockets. All of that is a lie.
10:13
The truth is that the problems faced by millions of people in the West are the result of many years of actions by the ruling elite of your respective countries, their mistakes, and short-sighted policies and ambitions. This elite is not thinking about how to improve the lives of their citizens in Western countries. They are obsessed with their own self-serving interests and super profits.
10:39
This can be seen in the data provided by international organisations, which clearly show that social problems, even in the leading Western countries, have exacerbated in recent years, that inequality and the gap between the rich and the poor is widening, and racial and ethnic conflicts are making themselves felt. The myth of the Western welfare society, the so-called golden billion, is crumbling.
11:06
To reiterate, the whole planet is now paying for the West’s ambitions and the West’s attempts to maintain its elusive dominance by any means possible.
11:18
Imposing sanctions is the logical continuation and the distillation of the irresponsible and short-sighted policy of the US and EU countries’ governments and central banks. They themselves have driven up global inflation in recent years, and with their actions caused rising global poverty and greater inequality across the world. The question now arises – who will answer for the millions who will die of hunger in the world’s poorest countries due to growing food shortages?
11:54
Let me reiterate, the global economy and global trade as a whole have suffered a major blow, as did trust in the US dollar as the main reserve currency.
12:04
The illegitimate freezing of some of the currency reserves of the Bank of Russia marks the end of the reliability of so-called first-class assets. In fact, the US and the EU have defaulted on their obligations to Russia. Now everybody knows that financial reserves can simply be stolen. And many countries in the immediate future may begin – I am sure this is what will happen – to convert their paper and digital assets into real reserves of raw materials, land, food, gold and other real assets which will only result in more shortages in these markets.
12:48
Let me add that the seizure of foreign assets and accounts of Russian companies and individuals is also a lesson for domestic businesses that there is nothing as reliable as investing in one’s own country. I personally have said that a number of times.
13:06
We appreciate the position of those foreign companies who continue working in our country despite the brazen pressure from the US and its vassals. They are sure to find additional opportunities for growth in the future.
13:21
We also know those who cowardly betrayed their partners and forgot about their responsibility to employees and customers in Russia, rushing to earn illusory dividends from joining the anti-Russia campaign. However, unlike Western countries, we will respect property rights.
13:42
Here is what I would like to point out. We must clearly understand that a new package of sanctions and restrictions would have been imposed on us no matter what. I want to emphasise this. For the West, our military operation in Ukraine is just a pretext for imposing more sanctions on us. Indeed, this time they are concentrated. In the same way, the West used the referendum in Crimea as a pretext, which, by the way, took place on March 16, 2014, eight years ago today, when the residents of Crimea and Sevastopol made the free choice to be one with their historical homeland.
14:20
To reiterate, these are just pretexts. The policy of containing and weakening Russia, including through economic isolation, a blockade, is a premeditated, long-term strategy. Western leaders are no longer hiding the fact that the sanctions are not directed against individuals or companies. Their goal is to deliver a blow to our entire economy, our social and cultural sphere, every family, and every Russian citizen.
14:50
In fact, the steps designed to make the lives of millions of people worse have all the attributes of an aggression, a war by economic, political, and informational means, and it is of a comprehensive and blatant nature. Again, the West’s top political circles do not even hesitate to talk about it openly.
15:13
The verbal tinsel of political correctness, inviolability of private property and freedom of speech was blown off overnight. Even the Olympic principles were trampled upon. They did not hesitate to settle their score through the Paralympic athletes. So much for “sport being separate from politics.”
15:33
In many Western countries, people are subjected to persecution just because they are originally from Russia. They are being denied medical care, their children are expelled from schools, parents are losing their jobs, and Russian music, culture, and literature are being banned. In its attempts to “cancel” Russia, the West tore off its mask of decency and began to act crudely showing its true colours.
16:00
One cannot help but remember the anti-Semitic Nazi pogroms in Germany in the 1930s, and then pogroms perpetrated by their henchmen in many European countries that joined the Nazi aggression against our country during the Great Patriotic War.
16:17
A massive attack against Russia has also been unleashed in cyberspace.
16:23
An unprecedented information campaign has been launched through global social networks and all Western media outlets,
16:30
whose impartiality and independence have proved to be a mere myth.
16:36
Access to information is being restricted and people are being crammed full of all sorts of fake stories, propaganda, and fabrication, or simply put, snake oil.
16:45
It even got to the point where American social media companies said straight out that it was possible to post calls for the murder of Russian nationals.
16:56
We realise what kind of resources this empire of lies has at its disposal but, all the same, when confronted with truth and justice, it is helpless.
17:05
Russia will never stop trying to make its position clear to the whole world. Our position is honest and open,
17:12
an increasing number of people hear, understand and share it.
17:18
I want to be as direct as possible: hostile geopolitical designs lie behind the hypocritical talk and recent actions by the so-called collective West.
17:30
They have no use – simply no use – for a strong and sovereign Russia, and they will not forgive us for our independent policy or for standing up for our national interests.
17:42
We still remember how they supported separatism and terrorism by encouraging terrorists and bandits in the North Caucasus. Just like in the 1990s and the early 2000s, they want to try again to finish us off, to reduce us to nothing by turning us into a weak and dependent country, destroying our territorial integrity, and dismembering Russia as they see fit. They failed then and they will fail this time.
18:13
Yes, of course, they will back the so-called fifth column, national traitors – those who make money here in our country but live over there, and “live” not in the geographical sense of the word but in their minds, in their servile mentality.
18:35
I do not in the least condemn those who have villas in Miami or the French Riviera, who cannot make do without foie gras, oysters or gender freedom as they call it. That is not the problem, not at all. The problem, again, is that many of these people are, essentially, over there in their minds and not here with our people and with Russia. In their opinion – in their opinion! – it is a sign of belonging to the superior caste, the superior race. People like this would sell their own mothers just to be allowed to sit on the entry bench of the superior caste.
19:15
They want to be just like them and imitate them in everything. But they forget or just completely fail to see that even if this so-called superior caste needs them, it needs them as expendable raw material to inflict maximum damage on our people.
19:36
The collective West is trying to divide our society using, to its own advantage, combat losses and the socioeconomic consequences of the sanctions, and to provoke civil unrest in Russia and use its fifth column in an attempt to achieve this goal. As I mentioned earlier, their goal is to destroy Russia.
19:56
But any nation, and even more so the Russian people, will always be able to distinguish true patriots from scum and traitors and will simply spit them out like an insect in their mouth, spit them onto the pavement. I am convinced that a natural and necessary self-detoxification of society like this would strengthen our country, our solidarity and cohesion and our readiness to respond to any challenge.
20:24
The so-called collective West and its fifth column are accustomed to measuring everything and everyone by their own standards. They believe that everything is for sale and everything can be bought, and therefore they think we will break down and back off. But they do not know our history and our people well enough.
20:40
Indeed, many countries around the world have long put up with living with their backs bent, obsequiously accepting all the decisions that come from their sovereign, looking up to it subserviently. This is how many countries live. Unfortunately, in Europe, as well.
20:59
In spite of this Russia will never be seen in such a miserable and humiliated situation, and the fight we are waging is the fight for our sovereignty and the future of our country and our children. We will fight for the right to be and remain Russia. The courage and fortitude of our soldiers and officers, the faithful defenders of the Fatherland, should inspire us.
21:25
Dear colleagues! Clearly, the ongoing developments are drawing a line under the global dominance of Western countries in politics and the economy. Moreover, they call into question the economic model that has been imposed on the developing countries and the entire world in recent decades.
21:47
Importantly, the obsession of the United States and its proponents with the sanctions is not shared by the countries that are home to more than half of the global population. These states represent the fastest growing and the most promising portion of the global economy. That includes Russia.
22:05
Indeed, it is difficult for us at the moment. Russian financial companies, major enterprises, small and medium-sized businesses are facing unprecedented pressure.
22:16
The banking system was the first to come under sanctions, but our banks dealt with this challenge. They are working literally around the clock to make payments and settlements between individual clients and to ensure the functioning of enterprises.
22:32
The second wave of sanctions was designed to set off panic in the area of retail. According to estimates, over the past three weeks, additional demand for goods has exceeded one trillion rubles. However, our manufacturers, suppliers, transport and logistics companies did everything humanly possible to avoid major shortages in retail chains.
22:53
I would like to thank the business community and the teams at companies, banks and organisations, which are not only responding effectively to sanction-related challenges but are also laying the foundation for the continued sustainable development of our economy. I would like to make a special mention of the Government, the Bank of Russia, regional governors and regional and municipal teams. In the current tough conditions, you are carrying out your responsibilities admirably.
23:25
Obviously, the attempts to organise an economic "outcry" against Russia, demoralise our society and push us around have failed, and so we are sure to see attempts to bring even greater pressure to bear on our country. But we will overcome these difficulties as well. The Russian economy will adapt to the new realities. We will strengthen our sovereignty in science and technology, allocate additional resources to support agriculture, the processing industry, infrastructure, and housing, and continue developing foreign trade ties to tap into rapidly growing, dynamic international markets.
24:06
Clearly, in the new realities, we will have to make deep structural changes in our economy, and I will not pretend that they will be easy or that they will not lead to a temporary increase in inflation and unemployment.
24:18
In this situation, our task is to minimize such risks. We must not just meet all the social commitments of the state but also launch new, more effective mechanisms for supporting our people and their incomes.
24:34
We will focus on protecting mothers and children and supporting families with children. We have already made a decision – you know about it – to introduce as of April 1 payments for children aged 8 through 16 in low-income families.
24:53
The size of the payment will range from 50 to 100 percent of the subsistence minimum for every child. Currently, the national average is up to 12,300 rubles. Thus, we will have a uniform system of support from when a mother first becomes pregnant until the child turns 17.
25:18
I am instructing the Government to oversee the operation of this system so that it quickly detects any changes in the material status of families. That is, it is necessary to make sure families start receiving state support as soon as possible if the parents lost their jobs or faced other difficult circumstances.
25:38
I also ask the Government to promptly analyse the efficacy of the measures to support those who have lost their jobs. Such measures must obviously be expanded, through the social contract mechanism, among other.
25:52
I am aware that the price hikes are a big blow to people’s incomes, and so we will take action to increase all social payments shortly including benefits and pensions, we will raise the minimum wage and the minimum subsistence level and also the wages of public-sector workers. I ask the Government to calculate the exact parameters for the increases.
26:20
To emphasise, even under the current difficult conditions we must reduce poverty and inequality by the end of the year. This issue remains quite solvable even now. I ask the Government and the regions to focus on this task. I will add that we understand that it is not only an economic issue but also one of social justice.
26:44
At present, much depends on the lead of the heads of the constituent entities of the Federation and their readiness to assume responsibility. I signed an executive order today on additional powers for heads of regions – they will be authorised to take flexible and responsive decisions to support our citizens, the economy and social policy in light of the situation on the ground.
27:07
Let me remind you that we streamlined our steps in fighting the coronavirus in exactly this way, making it possible to consider the situation in each region, city and village – and the situation is different everywhere.
27:21
I am instructing all the departments of federal bodies in the constituent entities of the Federation to coordinate their work with the regional authorities, and governors must establish operational centres to ensure economic development and to personally lead this work.
27:41
What is the priority here? Private businesses must play the key role in overcoming the current problems as they can quickly rework logistics, find new suppliers and increase output of in-demand products.
27:59
Supporting employment, incomes and wages and supporting the stable, balanced performance of the economy in general depend on how quickly private businesses will be able to find the right solutions and take them. That is why we must respond to external pressure with the utmost entrepreneurial freedom and with support for business initiative.
28:21
I want the Government, law enforcement agencies and oversight authorities to continue their work on lifting unnecessary administrative and regulatory barriers. Furthermore, it is unacceptable to distract the private sector and regional authorities from addressing the most pressing tasks and burden them with all sorts of inspections and oversight procedures.
28:43
The lack of working capital and the unavailability or high cost of loans is among the key problems facing companies now, and the Central Bank was forced to take appropriate measures. In this regard, I am ordering the following steps to be taken.
29:01
First, companies that fulfill orders placed by government authorities and companies partly owned by the state should be paid for the delivered goods and services as soon as possible, and reinvest the proceeds into business. In this regard, I propose increasing the amount of advance payments under government contracts.
29:20
The advance payment must amount to at least a half of the total amount of a contract, and the payment term for the delivered goods and services should be reduced to seven business days. A similar decision must also be made at the level of the constituent entities of the Federation, municipalities and companies with state participation.
29:40
Second, it is imperative to improve entrepreneurs’ ability to raise additional resources from development institutions, by which I mean expanding the Project Financing Factory’s activities (it is working well, and we know from practice that its services are in demand), providing resources for business investment plans through the Industry Development Fund (which is one of the really well-performing tools),
30:05
the Bank for Small and Medium-Sized Enterprises, and also through regional support institutions, including guarantee funds. I hereby instruct the Government to allocate additional funds to the constituent entities of the Federation to fund these regional tools.
30:21
I want the Government and our colleagues in the regions to pay attention to the fact that the most important task is to ensure the availability of goods on the consumer market, primarily essential supplies, medications and medical products. Logistical complications and other objective problems that result in price surges must be resolved quickly. At the same time, it is imperative to rule out intervention in price regulation. The increased supply of goods and nothing else should lead to a decrease and stabilisation of prices.
30:53
Separately, I would like to address our exporters. Whenever deliveries to international markets do not run smoothly, you should send extra batches of goods to the domestic market rather than reduce your production rates. This should objectively reduce domestic prices, including those of gasoline, diesel, bitumen, metals, and other export goods. I want the Government and the Federal Antimonopoly Service, as well regional authorities, to monitor these markets at all times.
31:26
Furthermore, considering the new challenges faced by Russia, we must maintain and expand our long-term development agenda, including the implementation of all planned federal and regional projects. We must make full use of the potential of our budget system as a tool for stimulation.
31:48
As we agreed, federal funding for various projects, including construction projects, will be carried out in full. Moreover, in December we decided on allocating additional funds if construction costs went up for objective reasons.
32:05
I consider it important to note that there will be no problems with federal budget funding in the current situation. Our economy is generating adequate revenue. This means we will not have to resort to emissions. In simple terms, the Central bank will not have to print money. We have revenue – sound market revenue. The problem is not rooted in money.
32:34
Let me repeat that we have the resources. The main difficulties are related to the supply of spare parts, technology and construction materials, and the need to organise the work of subcontractors. Therefore, the deadlines and the methods for implementing specific projects and project phases may be subject to change. This will require the smooth operation of government bodies and business representatives and expediting the implementation of import substitution programmes. This is an important point.
33:00
In the process, it is also important to simplify the procedure for cooperation between the regions and the federal government bodies and give the regions of the Federation more freedom in using resources and more opportunities for launching new construction projects and programmes.
33:14
Additional funding for road construction has already been allocated to the regions. I would like to ask the Government to consider an increase in funding other infrastructure facilities so work can start this year, and the possibility of building up purchases from Russian companies, for instance, with a view to upgrading public transport.
33:35
Obviously, this will be a serious additional burden on the budgets of the regions of the Russian Federation. Therefore, as we agreed, we will additionally adjust the subsidies to even out fiscal capacity. We will also use other measures for supporting regional finances. Thus, all payments on budget loans scheduled for this year will be suspended and payments on commercial loans will be replaced with budget loans wherever necessary. I would like to ask the Government to study this issue in detail and dig to the bottom of every case. Only a case-by-case approach will produce the desired effect.
34:19
In addition, the Ministry of Finance will additionally provide an unconditional credit line to each constituent entity of the Russian Federation. It will amount to ten percent of the total income with a maturity date not earlier than the end of the current year.
34:35
We are going to maintain the same volume of infrastructure budget loans. I am instructing the Government to make arrangements for flexible management of this programme and to take account of the challenges involved in the implementation of the projects that I mentioned earlier.
34:50
The regions should be able to take swift action on altering the portfolio and the contents of the projects, and focus on the ones that can be implemented as efficiently as possible in the current circumstances. If need be, we will explore the possibility of increasing the volume of infrastructure loans. This is possible and is quite feasible. In general, we will closely monitor regional finances and make additional decisions to support them, if need be.
35:20
I would like to emphasise that direct communication between all levels of government and a clear sequence of actions are of paramount importance now. The State Council and its specialised commissions have proved their effectiveness. I want the public administration commission led by Sergei Sobyanin to team up with our colleagues from the Government and to focus on problematic items on the regional agenda, to come up with the best solutions and to scale them to all Russian regions. We have gained extensive experience from combating the pandemic.
35:58
Colleagues, Our economy, the state budget and private sector possess the necessary resources to address long-term tasks. All strategic and national goals that we have set for the period to 2030 must be achieved. The current challenges and the opportunities that they offer should mobilise us – this is what we should set our minds to in order to achieve tangible results in the interests of our people.
36:30
Clearly, we will need to fine-tune our programmes, and we welcome the initiatives coming from business circles, academics, and public associations. In this regard, I want the regions to join in organising the forum convened by the Agency for Strategic Initiatives titled, Powerful Ideas for New Times, where every Russian citizen will have a chance to present their proposals and specific projects for advancing their respective cities, regions, and our country as a whole.
37:00
To reiterate, the current developments represent a challenge for all of us. I am confident that we will come through with dignity. By working hard and working together, by supporting each other, we will overcome all challenges and emerge even stronger, as has always been the case in the thousand-year history of Russia. That is how I want you to think about this work.
37:27
Let us move on to discussing the agenda. Word to Sergei Semyonovich Sobyanin:
37:32
(Auto translation after this point!!!!) Good afternoon, dear Vladimir Vladimirovich! Dear colleagues! Vladimir Vladimirovich, I communicate quite a lot and constantly with my colleagues, leaders of the constituent entities of the Russian Federation. I must say that we all sincerely support the decisions that you have taken to conduct a special military operation.
37:43
We understand that this is a forced, but, in fact, the only solution to ensure the security of not only the residents of the DNR and LNR, but, in fact, Russia, its security, its future. We clearly understand the difficulties that we are already facing and will have to face in the near future. For our part, we want to assure you, Vladimir Vladimirovich, that we will take all necessary measures to ensure the normal operation of the regional economy and the social sphere under your leadership, together with the Government of the Russian Federation, business, citizens of Russia, to ensure victory in the economic war that , as you rightly said, is unleashed against our country. Thank you for signing the Decree on Additional Powers. Indeed, this will help to take the necessary measures to stabilize the situation faster, faster and more efficiently. On your instruction, I chaired several State Council working groups. We have connected all the commissions of the State Council, and today we have received hundreds of proposals from the constituent entities of the Russian Federation, which, in turn, were collected in the territories from business, from the population.
37:49
We have built an almost "seamless" system of interaction with the Government of the Russian Federation, the system of the Ministry of Economic Development, the operational headquarters and the commission headed by Mikhail Vladimirovich. Literally in a matter of days, two major packages of changes to the current legislation and a decree of the Government of the Russian Federation were adopted, which made it possible to solve a huge range of problems. Some of these decisions had previously been discussed and debated for months, or even years. Today, these decisions are being made, I repeat, in a matter of days. This is a great merit of our colleagues from the Government and Parliament. We will continue to work in the same way. A working group was also literally held today, and a whole package of proposals was assembled. We will implement it through relevant laws, by-laws and decisions of ministries and departments.
37:55
In what directions are we working out the situation. The first thing that needed to be done was, in fact, to untie the hands of authorities, regions, municipalities in the prompt adoption of budget issues so that we set up the entire budget process for the implementation of anti-crisis measures. Such decisions have been made, laws have been signed by you. Thank you very much for your efficiency. In addition, legislative decisions were also made to temporarily simplify the placement of state orders - changing the 44th, 223rd laws. This is also an extremely important measure, because we cannot play out state order procedures for half a year. As you rightly said, this is generally one of the incentives for economic development, so these decisions must be made immediately and quickly. In addition, we discussed issues related to supporting the budgets of the constituent entities of the Russian Federation for quite a long time. Obviously, today there are practically no problems with budgets, both federal and regional. There is a high dynamics of the filling of budgets, revenues to the budget.
38:01
But there are risks that this situation may change and at the end of the year we will face a serious budget deficit. The decisions that you announced today give confidence to the constituent entities of the Russian Federation and regional authorities that they can safely continue normal, stable work within the framework of the budgets that have been adopted, within the framework of the implementation of national projects and, most importantly, the implementation of all investment programs to support the economy. This requires confidence that the budgets will be stable, and the decisions you have voiced give just such confidence in decision-making. My colleagues and I talked about this several times - both in the Government and at our meetings - that we will invest as much as possible in the economy according to the programs that have been adopted. In particular, in Moscow, we do not stop the construction of the subway, the purchase of transport, work with the Russian Railways and the Government on the reconstruction of suburban communications and the construction of Central Diameters, the construction of roads, the construction of social and cultural facilities. All these programs will be implemented to the last.
38:07
An equally important area, in addition to state investments, is business investments. This is a commercial construction of housing, industrial facilities, commercial facilities, multifunctional centers, technology parks, social and cultural facilities. Here, of course, we cannot do without the help of the federal authorities, and business cannot do without it. What is this about? About subsidizing interest rates, about reconfiguring the program of preferential mortgage lending, about reducing administrative procedures. Everything related to the rapid adoption of urban planning decisions: administrative procedures have already been adopted, laws have been adopted. Together with the Government, we are working on proposals for mortgages and subsidizing lending to systemic organizations in construction. This is an important direction, it is very important to maintain volumes so that people can invest in real estate, and not in imported goods, which today, as you know, are sometimes rushed off the shelves.
38:13
This is the best investment in the economy, especially since construction is 95 percent of all building materials produced in Russia. And these are hundreds of thousands of places, even if we talk about Moscow, the multiplier effect makes it possible for hundreds of thousands of Russians to work in enterprises and supply building materials. A very important topic. In addition, it is necessary, of course, to support other business sectors. And today, all colleagues consider one of the most important support for business sectors. For a number of these sectors, in particular lending to small and medium-sized businesses, on your instruction, the Government has already adopted four lending packages, four areas of subsidizing interest rates and concessional lending to small businesses. A decision was made to subsidize two sectors: industry and agriculture. At the last meeting with Mikhail Vladimirovich [Mishustin], we agreed that it is necessary to make a decision as soon as possible on subsidizing interest rates in other industries: IT, construction, transport and other industries.
38:19
Many thanks, Vladimir Vladimirovich, for making a decision on the capitalization of regional funds for the support and development of industry. We talked about it, but no decision was made. Today you have made a decision. This is a good tool. For our part, we will also increase the capitalization of these funds. In particular, in Moscow we have decided to invest 10 billion in the Moscow Industrial Development Fund. You touched on the topic of medical care. Provision of medicines is the most important topic, it has an economic aspect and an even more social one. Therefore, in recent years, as part of offset transactions, we have concluded a number of long-term contracts with businesses. Due to this, we have built several factories in Moscow for the production of medicines, medicines, which, in fact, are import substitution. Today, a whole line of these drugs will be produced in Moscow under these contracts. We propose to expand the law on offset transactions, in fact, long-term contracts with the obligation of enterprises to develop their industrial sites and engage in import substitution. To do this, not even loans are needed, but a long-term order from the authorities. I propose that appropriate amendments be made to the law in order to simplify these procedures and to enable as many subjects of the Russian Federation as possible to engage in such work.
38:25
In addition, I believe that those programs, including those under national projects, on primary health care should not be stopped. We must continue to modernize polyclinics and primary care. In Moscow, we are not stopping this program; we will fulfill everything that we promised our citizens. With regard to social assistance, of course, we will support the decisions that are made at the federal level, index our social benefits, social assistance, introduce targeted assistance tools, and make other decisions to maintain the required level of wages for state employees. Today, unemployment (at least in Moscow, I think the situation is about the same in the regions) is at a historical minimum, but nevertheless, you absolutely correctly said, Vladimir Vladimirovich, that we have risks of unemployment growth, especially considering the enterprises owned by foreign companies.
38:31
Therefore, we have created a personnel center in which we systematically work with everyone who announced such a stoppage or possible closure, and with large system enterprises of the city, where we could move these citizens, give them work, especially since we have hundreds of thousands of vacancies for other enterprises. I think that we should, as you said, deal with this work substantively and do everything so that people have jobs and prosperity. Vladimir Vladimirovich, as you said, we will daily deal with the problems of stabilizing the economy, oppose the sanctions that are imposed on our cities, regions, the country as a whole, and do everything to ensure stability in the territories of the constituent entities of the Russian Federation, work out those tasks together with the Government that you put before us. Thanks. Vladimir Putin: Thank you very much. Sergei Semyonovich, but, as I said in my speech, I ask you to constantly keep in touch with your colleagues within the framework of the commission, analyze the situation, discuss and formulate your proposals for the Government. Sergei Sobyanin: Mr Putin, we have agreed with the Government that in order to synchronize our work, we will hold our working group at least weekly together with Andrei Removich Belousov, invite representatives of the Government there, and promptly work out the issues that arise from the regions. It is natural to exchange experience, monitor the situation and bring all the information about the decisions that are made at the federal level. Thanks. Vladimir Putin: Thank you very much. Please, Marat Shakirzyanovich. Mikhail Khusnullin: Dear Vladimir Vladimirovich! Work with the regions is organized on a daily, continuous basis, in manual mode. We have collected about seven thousand events and proposals from the regions, systematized them, some of them have already been included in those regulations, what Sergey Semyonovich said.
38:37
We agreed that those measures that have already been identified, those that are in progress, promptly bring information to the regions at our headquarters for regional policy, our deputy prime ministers held meetings with the districts on behalf of the Prime Minister. The most important task now is to implement these measures promptly, to quickly implement them, to see where, what is hindering, where, what is going wrong, where we need to speed up, where, what needs to be added. We have prepared a whole range of measures to support regional economies. First of all, thank you very much for your decision to preserve all investment programs. This is a key decision. Taking into account the investment and construction cycle, we cannot stop for a single day, but only pick up the pace. Fortunately, we have a good start on all our investment projects that we have done in previous years. We have decided on the terms of concessional lending to backbone enterprises to replenish working capital. Now we are working out this list with the regions on a daily basis, supplementing it and transferring it to the commission to Andrey Removich. We have zeroed import duties on critical Russian imports, and we are updating this list every day, we are working on this list.
38:43
Also, certain provisions of the legislation containing mandatory requirements were suspended. Vladimir Vladimirovich, you once, a year ago, said such a catchphrase about "SNiPy-khripy" - that it is high time to get rid of this, that which prevents us from building. We got rid of a year and a half. I report that we will completely withdraw from all mandatory requirements within the next month. We have already prepared all solutions without loss for quality and safety. And this measure has already been taken. We have formed a large set of measures to support regional finance. The Ministry of Finance has carried out a huge amount of work with the regions, verified it. A number of measures have already been legislatively resolved and are in effect: such as the possibility of prompt redistribution of budget allocations in the course of the execution of federal budgets, regional and local budgets; the right of the Government to approve the distribution of interbudgetary transfers without making changes to the consolidated budget breakdown; vesting the regions with the authority to extend the deadline for the payment of regional and local taxes; restrictions on the amount of reserve funds of entities have been lifted; the right of the regions to use the funds released as a result of the restructuring of budget loans not only for infrastructure projects, but also for leveling the consequences of sanctions pressure has been extended. This is several hundred billion a year, huge assistance will be provided to the regions. The regions are also given the right to change projects, terms and their composition within the framework of infrastructure and budgetary loans.
38:49
Thank you very much for the decision, Vladimir Vladimirovich, which you said that we are continuing and will consider. Because now we have manually decomposed each project to the details, how many shares of imported components: what we can implement now, what we will need to postpone the deadlines for, for what deadlines, what we can replace. And of course, this right gives us greater mobility and hope that these loans will really go into life, will be used to improve and develop the territories. In addition, the adoption of the following set of measures, which just yesterday we approved at the Prime Minister's office and put into work, will provide significant support to regional budgets. This is the provision of additional budget loans to the regions to pay off debts for 2022, on government securities and commercial loans. This will save about 255 billion. Exemption of regions from the repayment of budget loans of the federal budget in 2022 - 60 billion. Provision of budget loans by the Federal Treasury for a longer period, advance provision of subsidies in the presence of cash gaps in the execution of regional budgets.
38:55
Dear Vladimir Vladimirovich! I also want to emphasize that in our conditions, time is money. On your instructions, we are constantly working to reduce the investment and construction cycle. The task is to reduce 350 approvals and information in documents and reduce them by at least 30 percent, and in this situation we need to reduce the decision-making time by several times in order to make all decisions promptly. I can say that at the legislative level, among the key measures, one can note the adoption of decisions to reduce the preparation and approval of urban planning documentation. And we gave the regions the right to determine the conditions for work on urban documentation at the legislative level. Simplified the procedure for changing design documentation, including without re-examinations. You can quickly change everything. Any import substitution, everything can be changed quickly in a few days and continue to work. On your instructions, we have reduced the number of documents for registering objects. You have spoken about this many times. Terms, the number of documents are significantly reduced.
39:01
In terms of procurement activities, the regions were given the right to establish additional cases of procurement from single suppliers, more flexible procurement and determine their order. It is possible to change the essential terms of contracts in terms of terms, price, application of penalties. Another very important decision has been made. You said to increase the advance payment from 50 percent, and we are now developing a methodology to increase the advance payment from 50 to 80 percent. This is a very important measure in today's conditions. We are also working to combine various types of expertise and work on the principle of "one window" for all types of documents. In addition, we are preparing a number of proposals to reduce the construction time for infrastructure facilities that are important for citizens. Our task is to make sure that residents get new roads, social facilities, and engineering structures as soon as possible. I ask you to instruct me to make appropriate changes in an expedited manner. As an anti-crisis measure, we have prepared a number of legislative initiatives that will allow us to build all infrastructure-related facilities much faster. A moratorium on business inspections has already been introduced. At the same time, I want to note that the state is the largest investor. Therefore, in addition to this, Vladimir Vladimirovich, we propose to introduce a moratorium in 2022 on inspections of state customers, authorities and state-owned companies, since the implementation of all anti-crisis measures depends on the speed and responsibility of their decisions. I ask for relevant instructions.
39:07
I would also like to note that we are working to maintain the availability of mortgages for citizens, including preferential ones. We have not yet canceled any preferential program. It goes on, day by day gaining momentum. This is one of the highest priority and demanded tasks. Together with the Ministry of Finance, we prepared coordinated measures, reported to the Prime Minister, tomorrow we will discuss with the Central Bank. Separately, I note that we need to take measures to support not only mortgages, but also developers. Today we have 3.2 trillion of citizens' funds placed on escrow accounts in our accounts. Therefore, we now urgently need to work out measures to ensure funding for both high-readiness facilities and facilities that have just begun. Today, we still have a rate of 10 to 25 percent. At such a rate, of course, there is a risk that the houses will not be completed, which means that citizens have the risk of getting apartments on time. I really hope that together with the Central Bank and the financial system we will find the necessary measures and suggest how to quickly apply these measures so as not to have a single day of delay.
39:13
I hope that the coordinated work of the Government and the regions will allow us to minimize all the consequences of sanctions pressure. This has been proven in the implementation of decisions during the pandemic, which have already yielded results in 2021 and created a reserve for the future. Vladimir Vladimirovich, after your speech and those given instructions, we can only say thank you and organize the work as quickly and efficiently as possible. The report is finished. Vladimir Putin: Marat Shakirzyanovich, one small remark. I think it will be clear. 50-80 percent of advances is very decent, and it is clear what this is connected with, and I have already said about it. The high key rate of the Central Bank and, accordingly, the high rates of commercial banks dictate the need to support participants in economic activity in the real sector of the economy. But when enterprises take a loan from a bank, the bank monitors the progress of work and financial discipline.
39:19
Here it is necessary to establish such control on the part of those government structures that will ensure the allocation of these funds, in this case in the form of advance payments. It is necessary, of course, to control how the work is going and how the plans are being implemented, for which the appropriate resources are allocated. There are other technical things, we will talk about this later. Thanks a lot. Please, Andrey Sergeevich Nikitin. Andrei Nikitin: Dear Vladimir Vladimirovich! Dear colleagues! You spoke about the future of Russian children. Vladimir Vladimirovich, all governors, we proceed from the fact that social obligations are an absolute priority in the activities of any leader of the region. This is the basic task that we must do first. You have made a very important decision about new benefits for parents of children aged eight to 16. In fact, this made it possible to create an integral system of support for parents, support for childhood: from the decision of parents to have a child and, in general, to adulthood.
39:25
In fact, this system is much larger, taking into account the work that, with the support of the Government, is being carried out to modernize our technical schools, to develop regional universities, taking into account the fact that many regions have introduced additional payments for young professionals, young teachers, doctors who go to the countryside . This was also done by the Novgorod region. We, in fact, have such a full-fledged holistic system that allows our children to choose their future, become a worthy member of society and achieve success in life. I believe that, despite the fact that all these measures have different departmental affiliations, different levels - federal and regional - we need to consider them as a single, integral task, as a single life situation, to manage it as a single coherent process. This is very important, because what our country will be like in 10-15 years will depend on it. It is these children who will build the country, develop the country and make it great and worthy of life. A very important issue that you mentioned is the social contract. Why is it important - because this is an opportunity for a person to open his own business, this is an opportunity for a person to get a new profession, an opportunity to change his life. This is not just a manual, it is a fishing rod that enables a person to take a step forward.
39:31
Of course, it is effective, it is working successfully now, but, of course, there is something to adjust, there are things that, probably, need to be looked at taking into account the situation. For example, it is clear that for families who want to open their own small production, a payment of 250 thousand is unlikely to be enough to buy machine tools, equipment, consumables, and so on. And there are such families, including those in the Novgorod region, who, on the basis of a social contract, not only organize their business in trade and services, but also, for example, begin to produce some parts, produce souvenirs, and repair vehicles. It also seems to me that it would be fair: now in the case of a family, the contract is given only to one non-working family member, the second person, the second parent, in this case does not receive a social contract.
39:37
But if two people want to move, two people want to learn and develop, and despite the fact that if they were not married, they would receive these contracts separately, probably, in the case of a family, they should not be limited in this. We are working very actively with the Government, with the Ministry of Labor and Social Protection. And I think that we, of course, will be able to resolve all these issues with our colleagues, because this is indeed a very popular and very effective measure. Vladimir Vladimirovich, there are a lot of solutions, we are working in contact both under the leadership of Sergei Semyonovich [Sobyanin], and directly as a working group on social policy with an appropriate social block to support people who may be left without work. Today, indeed, there is no unemployment, that is, while these risks are only emerging, we are actively preparing for them and discussing possible support measures that may be. But I would like to ask you a little about this. I believe that we certainly need to expand the lists of backbone enterprises that exist today that enjoy access to concessional financing. Why is it needed? We have enterprises, maybe not so big, but they occupy a fundamentally critical position for specific territories and settlements, small towns. It is extremely important to prevent a situation in which we may find ourselves, as several years ago, decades ago, when single-industry towns appeared. Such enterprises that operate in small areas should definitely be helped, given preferential loans, even if they are slightly smaller than those that are backbone.
39:43
Many thanks for the decision to increase the capitalization of regional industry support funds, for the support, because now a lot of factories, in particular in our territory, are actively implementing import substitution programs, developing production on their territory, and, of course, a huge issue is the lack of liquidity. These enterprises do not want to slow down, they do not want to lay off anyone. It is important to give them money now so that they can replace their imported components with Russian counterparts as soon as possible and continue their work at the same pace. Then we'll need fewer benefits, fewer unemployment benefits. Vladimir Vladimirovich, I would like to thank you for everything that is being done to support the social sphere, to support mothers and children. It so happened that on the 12th we had a regional parent forum. Of course, all parents are very pleased and thank you for the solutions that we have. Thanks. Vladimir Putin: Thank you.
39:49
Andrey Sergeevich, and I want to address other colleagues, primarily from the regions, about the social contract. We have been using this tool for more than a year now. There is a practice of its application, and, of course, there are already developed proposals for its improvement. I ask you, of course, to pay special attention to this. This is absolutely true, I agree completely. Rustam Nurgalievich, please. Roman Minnikhanov: Dear Vladimir Vladimirovich! Dear colleagues! Our commission of the State Council, representing the interests of the regions, organizes joint work with the Ministry of Construction of Russia, prompt resolution of emerging issues within the framework of the work of the headquarters under the leadership of Marat Shakirzyanovich Khusnullin. At this stage, our work is aimed at leveling the consequences of restrictive measures. As a result of joint work, relevant federal laws were adopted. I would like to thank the Parliament and the Government of Russia for prompt decision-making. These laws allow us to remove the most pressing issues, such as the possibility of changing project documentation without re-examinations, simplifying the procedure for preparing and approving urban planning documentation.
39:55
Our commission, together with the Government of Russia, will continue to work to reduce redundant approvals and documents. A number of decisions on state contracts were also adopted. In particular, for the prompt conclusion of government contracts, the possibility is provided for the constituent entities of the Russian Federation to purchase from a single supplier. I would like to ask you to take similar decisions on procurement for municipal needs. In addition, the adoption of a number of project financing measures will make it possible to avoid sanctions for untimely commissioning of shared facilities. At the same time, the regions should strengthen monitoring of the construction of such facilities and prevent the appearance of deceived equity holders.
40:01
It also requires a decision on lending for the construction of commercial real estate. This will create new jobs, as well as ensure the development of territories. I want to thank you, dear Vladimir Vladimirovich, and the Government of the country for maintaining the limits on national projects and large infrastructure facilities, including those implemented as part of the infrastructure menu. This will ensure demand for engineering products, load the construction industry and other related industries, and, most importantly, ensure the preservation of jobs. Today there is an increase in the cost of building materials. In this regard, it is necessary to ensure the purchase of building materials at current prices. We ask you to provide for the possibility of advance payment of the concluded contracts up to 80 percent. This money must be "colored". We know how to work with “colored” money. I think that this will be a very serious support. For the effective use of the advance, we also propose to revise the requirements for the need for bank guarantees for government contracts.
40:07
We would also ask the Government of the country to organize centralized purchases of building materials under government contracts, similar to the purchase of mineral fertilizers. The Government has adopted such a decision, and work on mineral fertilizers is in progress. To implement major construction and road works, it is necessary to increase financial support for manufacturers of special equipment for their technological modernization. This will allow domestic companies to compete with global brands and increase technological sovereignty. We also propose to subsidize construction, road and municipal organizations part of the costs of paying the down payment on the leasing of domestic special equipment, and perhaps, without a down payment, already allocate this equipment.
40:13
At the end of last year, a record volume of housing was introduced in the country. Our republic also for the first time in history has overcome the milestone of 3 million square meters. The key task for the current year is to maintain the accelerating pace of housing construction and ensure stable demand for it. Given the increase in the key rate of the Bank of Russia and the end of the preferential mortgage lending program, there is a risk of a decrease in the volume of housing sales in the primary market. I would like to note that preferential mortgages accounted for 67 percent of all mortgage loans in 2021. In this regard, they asked - Marat Shakirzyanovich also spoke about this - to maintain the preferential mortgage program, and to expand it in some positions.
40:19
At present, the implementation of previously started projects continues, but for new projects, the construction of which has not yet begun, lending has been suspended. In this regard, we ask you to make a decision as soon as possible on subsidizing the interest rate on loans as part of project financing for developers. An important measure to support vulnerable segments of the population was the decision of the Government of the Russian Federation to change the conditions for calculating penalties for late payment of housing and communal services. At the same time, the regions need to ensure control over the payment discipline of both the population and legal entities. In order to contain tariffs, we also propose to consider the issue of subsidizing resource-supplying organizations, the interest rate on loans to finance their investment programs. If there are not enough payments, investment programs may fail.
40:25
We monitor the situation on a daily basis in terms of the cost of basic building materials and changes in the business climate in the industry. Our customers and designers have focused on selecting analogues of equipment and materials included in the sanctions lists. The main task is to prevent a slowdown in construction. Dear Vladimir Vladimirovich! Briefly wanted to report on our republic. A headquarters has been set up in the republic, an action plan has been approved to ensure the sustainable development of the economy, and the main socially significant goods and the availability of their stocks are being monitored. For essential goods, we have a stock of at least two months. Also formed a reserve fund of flour, sugar, medicines. From March 19, agricultural fairs begin to work in cities and regions of the republic, where the products of the villagers are 20 percent cheaper than in retail chains. We subsidize transport costs for the delivery of agricultural products from the budget of the republic.
40:31
Also, preparations for sowing work are underway in working order. Farmers will be fully provided with seeds, fertilizers, machinery and fuels and lubricants. In order to support the backbone enterprises of the republic, they would be asked to speed up the launch of the soft lending program and the development of new transport and logistics schemes. For import substitution, we ask you to provide for the creation of a mechanism for accelerated financing of projects and establish interregional cooperation. These issues are the most important, and we are waiting for the relevant federal decisions. For our part, we have created a regional marketing center, which has a supplier search tool. And another very important topic is employment support. In Tatarstan, machine-building enterprises have suffered the most, will suffer and will switch to part-time work. For example, at KamAZ, a decrease in production volumes can reach 40 percent, and about 15 thousand employees of the plant will be forced to go into idle mode until the issue with the supply of components is resolved. And, of course, we would ask for federal support to solve this problem.
40:37
In general, Vladimir Vladimirovich, we will strictly fulfill all the tasks you have set, there is no doubt about it. I would like to thank you for the support you provide. Thank you for attention. Vladimir Putin: Your topic is very important both for the economy as a whole and for people: housing and communal services, the urban environment. What could be more important? What I would like to draw your attention to, as you just mentioned, is the rise in prices for building materials. Even before today's events, we noted an increase in prices for building materials, including various bulk cargoes: crushed stone, sand, and so on, which was absolutely incomprehensible and inexplicable. I very much ask you and all other regional leaders to follow closely so that today's events do not become a pretext for unreasonable price increases. Also, the FAS should work on this in the most serious way and take care of it. And in general, thank you very much.
40:43
Please, Anton Andreevich. Alexander Alikhanov: Good afternoon, dear Vladimir Vladimirovich! Today, in the face of this external sanctions pressure, we are faced with the task in the short term - to support enterprises, save jobs, help businesses, it is very important now to debug new supply chains. And in the medium term, of course, the most important thing for us is to ensure accelerated import substitution and encourage the creation of new industries. To date, a number of important decisions have already been made, especially sensitive and important for small and medium-sized businesses. These are moratoriums on scheduled checks and credit holidays, extensions of the fast payment reimbursement program, automatic renewal of licenses, and much more.
40:49
In this regard, taking into account the proposals that came from the members of the State Council commission on the direction of small and medium-sized enterprises, I would like to voice a few more proposals. In 2022, this year, we propose to reduce the amount of insurance premiums for payments to off-budget funds for SMEs to 15 percent for the entire wage fund, including wages, within the minimum wage. In our opinion, this will stimulate businesses to further “whitewash” wages, and for those who have already done this after your decision two years ago, this will allow them to stimulate, keep wages at the same level, in such a “white”, official regime. The second proposal is to revise the criteria for classifying organizations as small and medium-sized businesses. Please double these thresholds. Vladimir Vladimirovich, our last review took place in 2016. Quite a lot of time has already passed, the accumulated volume of inflation over the years is more than 130 percent. Therefore, in our opinion, such a twofold increase in the thresholds for recognizing a business as small or medium-sized fits well into the economic logic.
40:55
We would also ask to consider the issue of raising the maximum income threshold for special tax regimes. Now we have 200 million rubles under the simplified taxation system, we have proposed raising it to 300 million rubles and raising this threshold for the patent taxation system from 60 to 80 million rubles. Today my colleagues, both Sergey Semyonovich and Andrey Nikitin, noted the positive role of the Industrial Development Fund in the work of the regions. And we are very pleased that the decision on additional capitalization has been made. We would also like, Vladimir Vladimirovich, to draw your attention to the fact that now, at least in previous years, the level of co-financing of these projects by businesses was 50 percent. Given the rather difficult situation and understandably high interest rates in the banking sector, we would ask that this level be reviewed and possibly lowered to the level of 20–30 percent of our own co-financing. In our opinion, this would also speed up the implementation of these projects.
41:01
Separately, Vladimir Vladimirovich, we talked with colleagues, in particular, from the Yamalo-Nenets Autonomous Okrug, from other subjects of the Russian Federation, and would like to ask to consider the possibility this year to allow funds to promote lending to SMEs, which are non-profit organizations, these are our regional so-called guarantee funds, to participate in the issuance of guarantees for those who participate in public procurement under the 44th and 223rd federal laws. Now, unfortunately, the Civil Code does not give us such opportunities. We would also ask you to consider the need to amend the legislation. Vladimir Vladimirovich, several years ago, at one of the State Councils, I asked you to consider the issue of accelerated involvement in the circulation of lands that are in the so-called unallocated shares, in collective farm shares. Such a draft law was prepared by the Government of the Russian Federation and, as far as I know, submitted to the State Duma, but has not yet been adopted.
41:07
In our opinion, taking into account your message about the need to expand the product offer, this bill is now becoming especially relevant. We would also ask, if possible, to expedite its consideration in Parliament. In our opinion, the involvement of tens of millions of hectares, which are still not plowed in our country, into land circulation would also be critically important. I would like to thank you for the decisions that you made and announced today on lending to regional budgets. In recent years, we have seriously reduced this burden from 73 percent five years ago in the Kaliningrad Region to 42 percent, the level of debt. Of course, now the stakes are quite high, so the support of the federal budget will be extremely important for us. There are also a number of proposals regarding the 44th law. I would like to say that the initial and maximum price of contracts today is in accordance with the law, in accordance with the regulatory framework of the Ministry of Economic Development, the Ministry of Health and other departments ... In order to form the initial and maximum contract prices for public procurement, you need to get from three to five commercial offers from various market players. At the current time, this is quite difficult to do: not all companies agree to give such commercial offers, they look at the market situation, they wait.
41:13
We would like to ask, Vladimir Vladimirovich, to instruct us to revise these regulations now so that we can form the initial maximum contract price for bidding on the basis of one or two commercial proposals. That's all. Thanks a lot. Vladimir Putin: Thank you very much.