President of Russia Vladimir Putin: Colleagues, Mr Shokhin, friends,
I welcome all participants and guests of the 35th Congress of the Russian Union of Industrialists and Entrepreneurs. This event traditionally brings together owners and senior executives of major domestic companies and, naturally, attracts the attention of the entire Russian business community.
Many of those present in this hall meet with me regularly to discuss the most pressing issues facing your companies. Some of you work directly and regularly with the Government of the Russian Federation and officials of the Presidential Executive Office. Therefore, as they say, we are all well-versed in the subject, and I will not be announcing anything revolutionary today. Nevertheless, Mr Shokhin considers it appropriate to hold such meetings – they do not often take place on such a large scale – and there is likely some merit in doing so to reinforce certain key points. Indeed, the format of the Congress allows for discussions on current issues that play a crucial role in conducting business, improving the investment climate, formulating ideas, and outlining directions for further cooperation between the state and the business community.
The format of the Congress provides an opportunity to address pressing issues vital for business operations and the investment climate, as well as to generate ideas and set directions for future collaboration between the state and the business community.
We have built a constructive, results-driven dialogue with the Union of Industrialists and Entrepreneurs and other business associations, on the one hand, and with government bodies and civil society institutions, on the other hand. This dialogue has proven its value over time. As Mr Shokhin noted, our collaboration has been particularly active during significant periods, including the challenging years at the end of the last century and the efforts to relaunch the domestic economy at the start of the new one.
Mutual trust and close cooperation between the state and the business community are especially crucial today, as uncertainty – and even stress – has risen sharply across the globe and in international markets.
We are all well aware of the events of 2014, when Russia – indeed, we – were forced, as I have repeatedly stated, to take all necessary measures to protect our people in Crimea and later in southeastern Ukraine more broadly. Following that, illegal sanctions were imposed. I want to stress that these sanctions are unlawful, as they were never endorsed by United Nations resolutions. Today, the armed conflict in the Middle East is adding further strain to the situation, inflicting significant damage on international logistics, production, and supply chains. Entire sectors, including the extraction and processing of hydrocarbons, metals, fertilisers, and numerous other goods and commodities, have been severely affected.
The full impact of the conflict in the Middle East remains difficult to predict. I suspect even those directly involved in the conflict cannot foresee its course, and for us, the uncertainty is even greater. Nevertheless, we must operate within the reality shaped by these events. Some assessments have already begun to compare their effects to the coronavirus pandemic, which, let me remind you, dramatically slowed development across every region and continent without exception.
It is no coincidence that comparisons are being made with the recent pandemic. As evidenced by the events the global community has faced in recent years, turmoil in trade, investment, and international relations more broadly is occurring more and more often, becoming a new reality that goes hand in hand with the transition of the entire global economy to a new state.
To meet the challenges of our time, Russia must be strong – we discuss this privately on a regular basis. It also needs to be united in its understanding of national interests, in addressing the tasks before us, and in achieving our strategic development goals.
Despite the objective challenges and artificial restrictions imposed on our country, we have succeeded in maintaining macroeconomic stability, with inflation and unemployment remaining at sustainable and predictable levels. Together with the business community, we continue to work toward fostering economic growth and addressing social issues.
I would like to take this opportunity to express my gratitude to the members of the Union, as well as to the teams of your companies and enterprises, for your daily and significant contributions to strengthening Russia’s potential and supporting regional development. Above all, thank you for standing by our soldiers, our heroes – the participants in the special military operation – and their families. I know that many of you are actively involved in these efforts and closely monitor these issues. Your work has been invaluable in supporting the economic revival of Donbass and Novorossiya.
Let me stress once again: it is this form of partnership that is crucial for addressing today’s extraordinary challenges and for charting a path toward sustainable and lasting growth for our domestic economy amid global transformations, which bring not only risks but also opportunities, particularly for exporters.
Today, as the prices of our traditional exports rise amid turbulent markets, one might be tempted to take advantage of the situation and to pursue opportunistic profits, channel them into dividends, or, in the case of the state, inflate budget expenditures and government spending.
I spoke about this publicly before, but I want to reiterate it here: we must remain reasonable and prudent. Markets that have swung in one direction today can move the opposite way tomorrow. You are perfectly aware – as this audience are highly knowledgeable and experienced – that a measured, conservative approach is essential, both in business and in public finance. We will continue to uphold this principle in our budgetary policies, honouring our commitments to the citizens of the country.
At the same time, it is important to maintain the country’s trajectory of progressive development, enhance the competitiveness of our domestic economy, and strengthen the standing of Russian enterprises and companies on both international and domestic markets.
To achieve this, we must reinforce our national sovereignty. I believe there is no doubt today about what sovereignty means nowadays, what it is worth, and what consequences await the countries that at one point voluntarily gave it up, hoping it would bring peace, lower costs, and better conditions for economic and social development. The reality is different: without sovereignty, it is impossible to safeguard fundamental national interests. This principle applies across all sectors, including the development of transport, logistics, and financial infrastructure. As you know, national projects with respective objectives have already been launched.
Separately, it is those who invest in technological innovations and constantly work to improve their efficiency at a qualitatively new level that succeed in the modern world, on the global markets. Mr Shokhin mentioned these areas earlier, and I will also say a few words on the matter.
We will continue to provide incentives for business investments in the modernisation of enterprises and production capacities based on our own technological base. We will particularly support the implementation of solutions in three key cross-cutting technologies: artificial intelligence, autonomous systems, and digital platforms.
There is scope for cooperation with foreign states in this work, including those from rapidly growing regions of the world, such as the Asia-Pacific region and Southern Eurasia. We plan to develop such cooperation, as has also been mentioned today, primarily through BRICS.
Only recently, in February, the National Committee for Business Cooperation within BRICS was established. I understand its first meeting was scheduled for today, was it not, Mr Shokhin? I urge Russian businesspeople, members of the Russian Union of Industrialists and Entrepreneurs, to actively engage in the Committee’s work, jointly prepare proposals for the development of economic ties within BRICS and the launch of new, modern projects with partners in science, innovation, industry, agriculture, infrastructure, and logistics.
Naturally, to finance capital investments, it is essential to enhance the availability of credit and other instruments, as we all are well aware, including venture capital mechanisms and the opportunities offered by the stock market. The Government, together with the Central Bank, is making consistent progress in this direction. Proposals from the business community are obviously indispensable here.
To increase investment and expand the space for business initiative, we will continue to reduce costs for enterprises and organisations and remove administrative barriers – something we constantly discuss – including through the use of electronic services.
For instance, over the past five years, the process of obtaining more than four hundred licences and permits has been optimised and digitised. These procedures have become more straightforward and convenient, with their average processing times more than halved. This is a good indicator, after all.
The same reduction of red tape and paperwork must be carried out in the budgetary sphere. In healthcare and education, it is necessary to streamline reporting and other documentation so that doctors, teachers, and educators can devote more time to patients, schoolchildren and students. We often discuss this as well. Progress is being made, albeit gradually. However, it must be acknowledged that this is most noticeable in Moscow.
The supervision and control system is undergoing transformation through the adoption of advanced technological solutions. Since 2019, basically a fundamentally new regulatory framework has been introduced, with uniform rules and principles aimed at increasing transparency and overall effectiveness in this sphere.
All stages of inspections have been digitised and integrated into a unified information system. The number of inspections has decreased, but their effectiveness has improved. Meanwhile, the very purpose of inspections is changing: while previously regulatory bodies focused on identifying violations, now the emphasis is on their prevention, including through the use of artificial intelligence. Colleagues, please note that this reflects the essence of a risk-based approach as an element of a modern, globally competitive economy.
I have repeatedly spoken about Russia’s progress in international business rankings. These results do not only reflect expert evaluations but also the assessments of entrepreneurs themselves regarding the ease of doing business and operating in Russia, in our markets.
Nevertheless, the business environment requires constant improvement. We are carrying out this work systematically, with the active involvement of the Russian Union of Industrialists and Entrepreneurs and other business associations. For example, the Government has approved the National Model of Targeted Business Conditions until 2030. It outlines priority areas for action, including specific efforts on the legislative, political level that need to be taken to simplify business operations and improve the investment climate.
The initial results of the National Model will be reviewed shortly, ahead of the upcoming St Petersburg International Economic Forum. The agenda will also include discussion of a unified system for supporting investment projects, providing comprehensive and professional assistance to both domestic and foreign investors throughout the entire project lifecycle, with our leading development corporation, VEB.RF, playing an active role in it.
I would also like to note that business owners and shareholders are focusing on environmental well-being of their cities and regions, the quality of life of their employees, and the development of local communities.
I know that many of you are already consistently engaged in this effort, and I would like to express my gratitude for this. This is an essential component of our joint work and of the broader development of the country.
To be continued.