Channel One war correspondent Dmitry Kulko and VGTRK presenter Alexandra Suvorova moderated the Results of the Year with Vladimir Putin.
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Deputy Chief of Staff of the Presidential Executive Office – Presidential Press Secretary Dmitry Peskov: Good afternoon everyone.
The President will be here within minutes to review the results of the outgoing year. I would like to remind you that this year we combine two events, the news conference and Direct Line.
Please show respect for your colleagues when I give the floor to journalists and make your questions as concise and clear as possible. This will allow the President to answer more questions.
Our moderators this year are Alexandra Suvorova and Dmitry Kulko, who will talk with the President. They worked hard to personally read extremely many questions from our people, possibly tens of thousands of them. They understand what the people of Russia are talking about and will help the President outline the subjects that are at the top of the agenda throughout the country.
Please.
Alexandra Suvorova: Good afternoon. This is the Results of the Year with Vladimir Putin. As usual, questions can be submitted in a number of ways until the end of our programme. Our colleagues continue working with the incoming questions.
First, you can submit your questions by calling 8 (800) 200 4040 or sending an SMS or MMS message to 04040. Questions can also be submitted via the programme’s official accounts on Vkontakte and Odnoklassniki. You can also use the website and mobile app called москва-путину.рф.
We have already received over 2.2 million
questions, including 1.2 million via telephone, about 43,000 via SMS messages,
and over 140,000 via the website. We can see that the number of questions is
increasing in real time.
Let me share some interesting facts and figures on the Results of the Year with Vladimir Putin programme since this format was created. There was a time when the Direct Line and the news conference were two separate events and formats. This is the third time we are having it in a hybrid format. The first time it happened was before the COVID pandemic, the second was a post-COVID event in 2023, and now we are in 2024. Once again, the programme is taking place in a hybrid format, which means that both the people of Russia and, of course, journalists get to ask questions.
Here are some interesting statistics. For example, the event with the biggest number of questions took place in 2015 when the President received 2.25 million questions. This year, we have not reached this number. However, I believe that this could be attributable to the fact that regions hold their own direct lines, with governors answering questions from their people at the regional level. Therefore, some questions get resolved on the ground.
One thing to note here is that if we add up all the time Vladimir Putin has spent answering questions during events of this kind, the total already exceeds 64 hours. People have been tuning in from the regions since 2001 when the very first programme of this kind took place. It goes without saying that there will also be people joining us via videoconference from the regions today. Throughout the years when we had the Direct Line and the Results of the Year, people have been proactively contributing to these events not only by raising various issues with the President, sharing their concerns or asking for something, but also by expressing their gratitude. This year, considering that we are holding this event on December 19, we also received New Year greetings. This is another trend I wanted to mention.
Of course, social matters are in the spotlight today, judging by the submissions we have selected. Many questions deal with the special military operation. International matters are also high on the agenda, of course. So let us get started.
Dmitry Kulko: President of the Russian Federation Vladimir Putin.
For the third year in a row, volunteers from the Russian Popular Front have been helping prepare our programme and process the messages and calls. This year, they were also joined by veterans of the special military operation. For ten days since the free telephone line opened, they, too, have been taking phone calls. However, the Russian Popular Front’s work does not end today. In fact, we can say that it is only just beginning, because the moment the broadcast ends, the Popular Front volunteers will continue to work on the appeals people made to ensure that none of them is left unattended.
Alexandra Suvorova: I would like to add that some of the appeals have already been processed during the preparations for the Results of the Year programme, and some of the issues have been addressed by Popular Front volunteers and regional and federal authorities.
There is one more aspect that is different this year. GigaChat, an AI model provided by Sber, has helped us process people’s appeals and questions. Mr President, I know that you have already seen it.
President of Russia Vladimir Putin: I have.
Dmitry Kulko: Yes, GigaChat has drawn conclusions. This technology can do more than transcribe audio files into text – it can also extract the message and the essence of the problem, which has significantly accelerated the processing of requests this year. You will be able to see GigaChat’s insights on the screen throughout the programme. You will see the key subjects of people’s appeals, across the country and in each region. We will be using this virtual assistant during the programme today.
Anna Suvorova: Before we start taking questions from our people and our colleagues, journalists, I would like to ask the first general question.
In recent time, everyone has been feeling a disturbing sense that the world is going crazy, or already has, because the potential for conflict is off the charts in every part of the world, and the global economy is struggling. How does Russia manage not only to stay afloat, but also to continue growing in this situation?
Vladimir Putin: You know, when all is calm and life is measured and stable, we get bored. This amounts to stagnation, so we crave action. When action begins, time starts whistling by – or bullets do, for that matter. Unfortunately, bullets are what is zipping past our heads these days. We are scared, yes – but not as “all get out” kind of scared.
Our economics are the ultimate measure of things. As is traditional, I will start with the economy. Although your question was a bit provocative, I will turn to the economy anyway. The economy is number one; it is the cornerstone. It has an impact on living standards, general stability, and the country’s defence capability. The economy is everything.
The economic situation in Russia is generally positive and stable. We are growing in spite of everything, in spite of any external threats or attempts at outside influence.
As you know, last year Russia increased its GDP by 3.6 percent, and this year the economy is expected to grow by 3.9 percent, or possibly even four percent. However, we will have to wait and see the final results, as the year-end figures will be de facto factored into these projections in the first quarter of next year, which will be 2025 in this particular case. It may well be that this indicator reaches four percent. What this means is that our economy will have grown by eight percent over the past two years. After all, the tenths and hundredths of a percent make for a negligeable difference. This is what experts have been telling me – we exchanged views this very morning. About eight percent over the past two years, compared to a growth rate between five and six percent for the United States, one percent for the Eurozone, and zero for Germany, the EU’s leading economy. It seems that next year that country will also have zero growth.
International financial and economic institutions ranked Russia as Europe’s biggest economy in terms of volume, in terms of purchasing power parity, and the world’s fourth largest economy. We are behind China, the United States and India. Last year, Russia surpassed Germany and this year, we left Japan behind. But this is not the time for us to be complacent. We will definitely keep moving forward.
There is development everywhere you look and so much positive momentum across the board. If the Eurozone has fallen asleep, there are other centres of global development that are advancing. The situation in the Eurozone and the United States has been changing too. We must maintain the momentum we have gathered and transform our economy at its core, from a qualitative perspective.
There are other general performance indicators which have been quite satisfactory, to say the least. Unemployment is the first such indicator. All countries around the world, and all economies, pay a great deal of attention to this figure. For Russia, it is at its all-time low of 2.3 percent. We have not experienced anything like this before. This is my first point.
Second, there has been growth in specific manufacturing and industrial sectors. In fact, industrial output increased by 4.4 percent, while the processing sector reported a growth rate of 8.1 percent, with some of its sectors achieving even higher growth rates.
Of course, inflation has been causing some concerns. Only yesterday, while preparing for today’s event, I talked to the Central Bank Governor, and Elvira Nabiullina told me that the inflation rate has already reached about 9.2–9.3 percent year-to-date. That said, salaries have increased by nine percent, and I am talking about an increase in real terms, minus inflation. In addition, disposable incomes have also increased. So, the overall situation is stable and, let me reiterate, solid.
There are certain challenges with inflation and with the economy heating up. Therefore, the Government and the Central Bank have been seeking to ensure a soft landing. Estimates may vary for next year, but we expect the economy to grow at a rate of 2–2.5 percent. This soft landing would enable us to keep improving our macroeconomic performance.
This is what we must aspire to. I think that we will probably raise these matters during today’s meeting. Overall, the economy can be described as stable and resilient.
Alexandra Suvorova: I have a follow-up question, given the numerous questions surrounding price growth, to which we will return. You have cited Germany and Japan as examples. I wish to focus on Germany having a zero percent growth rate, which you mentioned as a case previously known for its economic expansion.
Do you believe this is perhaps linked to politics and sovereignty? Not long ago, at the VTB Forum Russia Calling!, you reminisced about Gerhard Schroeder's birthday celebration, remarking how all the songs were in English, with none performed in German.
Vladimir Putin: There were. It's an interesting episode. Quite some time ago, it was Gerhard Schroeder's birthday, he invited me and I attended. There was a small concert, and, as it happened, all the companies performed in English. I remarked at the time, “Even the Hannover girls' choir sang in English.”
There was, however, one ensemble that performed in German: the Kuban Cossack Choir, which accompanied me. Moreover, this was entirely unexpected on my part. I inquired, “How did you come to know these songs?” They replied, “Out of respect for the Germans, our hosts, we learnt these songs en route and performed them in German, including those from the local region where we are now.”
During the intermission, numerous attendees approached me (I recount this as it truly unfolded) and expressed, “We are embarrassed, truly, that only Russian Cossacks performed in German here.”
I recounted this to a colleague who was present at the event, which has now been recalled. You see, sovereignty is a crucial concept; it must reside within, in one's heart. In the post-war era, I believe this sense – of homeland and sovereignty – has been somewhat eroded among the German people.
Who are the Europeans, after all? They are proud to be European, yet they are foremost French, German, Italian, Spanish, and then European. There is a tendency to smooth out things, to homogenise. Ultimately, this affects everything, including the economy.
I previously spoke about our economic growth – this is largely attributable to the reinforcement of sovereignty, which extends to the economic realm.
Many foreign manufacturers have exited our market. What has been the consequence? Our entrepreneurs have started producing these goods domestically, necessitating further research and the engagement of institutions, including those focused on development. All of this – what we are discussing – is the enhancement of technological sovereignty.
Sovereignty manifests itself in various forms: defence, technology, science, education, culture. This is of paramount importance, especially for our nation, because should we lose sovereignty, we risk losing statehood. That is the crux.
Economic growth is also an effect of bolstered sovereignty.
Dmitry Kulko: Mr President, I suggest we move on to questions from our citizens.
Vladimir Putin: Yes, let us begin.
Dmitry Kulko: You spoke about economic growth. It is true that a look at our economic indicators, which do look good, shows that the majority of Russian enterprises are working to capacity and wages are rising, yet they cannot keep pace with price increases.
Many Russian citizens have written about this, and AI has analysed all the requests and compiled a list of regions where more questions concerned price growth. These are eastern regions, such as the Kamchatka Territory and the Sakhalin Region, and also our westernmost territory, the Kaliningrad Region. Also, the majority of questions from the Irkutsk Region concern price growth. In short, it is a topical issue.
Alexandra Suvorova: It is topical indeed. I will cite the figures which have also been provided by GigaChat, which we are using.
The most frequent questions have to do with the rise in prices of bread, fish, milk, eggs and butter. People also write about the growth of fuel prices. This file contains some of the citizens’ questions about price growth.
If we look at the official data of the Federal State Statistics Service (Rosstat), we got it last night, we will see that the prices of fruits and vegetables have increased by 3.4 percent over the past week. For example, the price of cucumbers has grown by ten percent after rising by 43 percent in November.
Vladimir Putin: First, I would like to apologise to the audience, especially those who are following this event via various media platforms, including online. When I said that price growth or inflation was slightly above nine percent this year, at 9.2–9.3 percent, and that people’s wages and real disposable incomes have grown as well, I cited average figures. Of course, our country is very big, and some people might ask me what I was talking about, that their well-being has not improved but remained at the same level. And some might even say that their well-being has deteriorated. Yes, this can be so and it is so, in some cases. I cited average figures, because when we make plans, we need to have figures to rely on, and we can only rely on average figures.
As for the growth of prices, there are both objective and subjective reasons for that.
What is more important is that the supply in our market should correlate with people’s incomes, or rather, people’s incomes and their purchasing capacity should correlate with the volume of goods produced in the country. Wages and incomes have been growing faster than the mass of commodities and the rate of production.
To be continued.