A number of current issues were discussed at the beginning of the meeting. Deputy Prime Minister – Plenipotentiary Presidential Envoy to the Far Eastern Federal District Yury Trutnev reported on the outcome of the Eastern Economic Forum, where 313 agreements worth a total of more than 5.5 trillion rubles were signed this year.
Minister for the Development of the Russian Far East and the Arctic Alexei Chekunkov spoke about the implementation of the law on northern deliveries designed to expedite and cut the cost of goods delivery to the Extreme North.
Minister of Agriculture Oksana Lut briefed the President on the progress of harvesting and autumn sowing. Deputy Prime Minister Dmitry Patrushev reported on import substitution in agriculture.
Minister of Natural Resources and Environment Alexander Kozlov spoke about the current situation in geological exploration.
The main topic on the meeting’s agenda concerned the regions’ individual development programmes and the implementation of the state programme for the development of the Kaliningrad Region. Reports were also delivered by Economic Development Minister Maxim Reshetnikov and Plenipotentiary Presidential Envoy to the Urals Federal District Vladimir Yakushev.
Also taking part in the meeting were Prime Minister Mikhail Mishustin, Chief of Staff of the Presidential Executive Office Anton Vaino, First Deputy Prime Minister Denis Manturov, First Deputy Chief of Staff of the Presidential Executive Office Sergei Kiriyenko, Deputy Prime Minister – Chief of the Government Staff Dmitry Grigorenko, deputy prime ministers Tatyana Golikova, Alexander Novak, Vitaly Savelyev, Marat Khusnullin, Deputy Chief of Staff of the Presidential Executive Office Maxim Oreshkin, Minister of Finance Anton Siluanov, and heads of several Russian regions.
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Excerpts from transcript of meeting with Government members
President of Russia Vladimir Putin: Good afternoon.
Today we will talk about the development of our regions, the implementation of their individual development programmes, and separately about the implementation of the state programme for the development of the Kaliningrad Region.
But first we will discuss the current situation, just as we always do at our meetings. My first question is for Mr Trutnev. It is about the results of the Eastern Economic Forum.
Mr Trutnev, you have the floor.
Deputy Prime Minister – Presidential Plenipotentiary Envoy to the Far Eastern Federal District Yury Trutnev: Thank you.
Mr President, colleagues,
The 9th Eastern Economic Forum, which was held in Vladivostok under your leadership, Mr President, has ended.
The forum enjoys strong interest around the world. Last year, the event brought together 6,300 participants from 62 countries; this year, as many 7,100 people from 75 countries came to participate. The countries of the Asia-Pacific region and other regions of the world were widely represented. Among the participants were representatives of business and diplomatic corps from 16 unfriendly states. These numbers indicate the interest of the outside world in our country and Far Eastern projects.
As many as 313 agreements worth 5.569 trillion rubles were signed at the 9th Eastern Economic Forum, which is the best result over the past years. Last year, we signed 386 investment deals totalling 3.8 trillion [rubles].
Mr President, given that about 80 percent of the signed agreements are embodied in real investment projects, the 9th Eastern Economic Forum secured at least four trillion rubles in investment in the Far East and the Arctic. These agreements have rationalised our proposal to increase the 2030 target for attracting investment to 12 trillion rubles.
The largest projects signed at the forum include the construction of the Vorkuta Chemical Complex, the development of the Kun-Manie nickel-copper deposit in the Amur Region, the expansion of the Berezovskoye iron-ore deposit in the Trans-Baikal Territory, the construction of the Soyuz cross-border railway transhipment hub near the Nizhneleninskoye-Tongjiang bridge, and a marine terminal for the transhipment of liquefied hydrocarbon gases in the Khabarovsk Territory.
Mr President, the most important result of the 9th Eastern Economic Forum, as well as of all previous ones, are the decisions you have taken, which push forward the macro-region’s continued advanced development. I am referring to the decision to keep the mortgage interest rate for residents of the Far East at two percent until 2030, to allocate additional 100 billion rubles for the implementation of master plan projects in Far Eastern cities, to accelerate the work on a programme for the energy sector development in the Far East, to ensure that large families in all regions of the Far Eastern Federal District where the birth rate is below the average for the federal district receive a one-million-ruble benefit, to accelerate the release and certification of the new Baikal aircraft, and a number of others.
I would like to thank you for your attention to the development of the Russian Far East. Thank you very much.
Vladimir Putin: Good.
Thank you, Mr Trutnev. I would like to ask you to keep an eye on what is happening in each of these avenues that you have mentioned, and to support the projects that have just been launched and those that are planned.
Yury Trutnev: Will do.
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Vladimir Putin: The middle of September is a good time to assess our harvest prospects, the progress of harvesting, and the organisation of autumn sowing.
Ms Lut, please.
Minister of Agriculture Oksana Lut: Mr President, colleagues,
I will brief you on the situation in agriculture. As you know, this has been a difficult year for our farmers. Several regions were hit by frost in spring and drought in summer, which still continues, and faced heavy precipitation during harvesting. The harvesting campaign has been complicated by these weather anomalies. Harvesting is lagging behind in the Volga Region and the Urals because of rains, and the crop yield has been affected by frost and drought in some regions.
To date, grain has been harvested on 33 million hectares throughout the country, or about 70 percent of the area. The gross yield is over 97 million tonnes, including 72 million tonnes of wheat. However, I would like to emphasise that the quality of grain is much better compared to last year.
Despite all these difficulties, we have maintained the yield forecast at 132 million tonnes, which we expect to harvest thanks to our farmers’ technological effectiveness. We also expect to report good results in the harvesting of oil-producing plants, sugar beet, vegetables and potatoes.
In addition, we have updated our fruit and berry yield forecast based on the latest information from the South of Russia and the North Caucasus. We expect our gardens to produce about 1.7 million tonnes of fruit, including 1.6 million tonnes of apples. These results are better than the annual average for the past five years.
I would also like to note that the Ministry of Agriculture has forwarded a draft resolution to the Government on the allocation of 930 million rubles from the reserve fund to help fruit growers in the regions affected by May frosts.
Overall, we will harvest a sufficient amount of basic crops for the domestic market and maintain a high export potential when it comes to raw materials and processed goods.
It is notable that this year Russia has increased the tonnage of foods exports to external markets by eight percent, in particular, by increasing the export of grain and pulse crops, flour, sugar, vegetable oil, confectionery, meat and dairy products.
Regarding autumn sowing, farmers in nearly all federal districts have started the sowing campaign and have sown approximately 5.5 million hectares to date. The process is complicated by the low amount of soil moisture in central regions. However, we believe that the total area sown with autumn crops will reach about 20 million hectares, which is comparable to last year.
We are paying special attention to the provision of basic resources to our farmers. As of now, about 80 percent of the necessary amount of seeds have been prepared for sowing.
In this connection, I would like to note that farmers are increasingly using Russian-selected seeds. This year, the share of Russian selection achievements has significantly increased, particularly in sunflower, soy and rape crops. Additionally, beet seeds are now expected to account for just under eight percent of the market. Previously, we imported the majority of all beet seeds from unfriendly countries. We will continue to support the sector’s transition to national selection concepts.
Fertilisers are being purchased as planned, in line with the programme approved by the Ministry of Industry and Trade.
We continue to update our farming machinery fleet. For example, Rosagroleasing has implemented a low-interest equipment purchase programme. To date, the company has supplied over 13,000 pieces of equipment, which is nearly 25 percent more than the same period in 2023.
We continue to monitor prices on a daily basis together with the Energy Ministry and to ensure that agricultural producers have access to fuel. Prices for petroleum, oil and lubricants remain stable, and we are meeting the demand in full.
I would like to say a few words about financial support for the agro-industrial sector. Since the beginning of 2024, we have allocated 94 billion rubles for regional farmers. Recipients have already received 72 percent of this total.
Soft loans are one of the most popular tools used by farmers. This year, the Ministry of Agriculture has approved 224 billion rubles for soft loans to finance seasonal agricultural projects, which is a three percent increase from 2023.
Mr President, I would like to thank you for issuing instructions to set aside additional funding for this mechanism. Farmers find soft loans particularly relevant during seasonal fieldwork.
In conclusion, I would like to note that since the start of 2024, the agro-industrial sector has made positive progress in all major areas. Agricultural output has increased by two percent in the first seven months, and food production has risen by almost five percent.
Mr President, colleagues,
Despite the objective challenges posed by weather conditions, Russian farmers are working hard to achieve impressive results before the end of the year, laying a solid foundation for 2025. In turn, we continue to provide comprehensive support to producers and promptly respond to any urgent issues that arise. We are committed to ensuring the country’s food security.
Thank you. This concludes my report.
Vladimir Putin: What are our projected harvests? Are they expected to total approximately 132 million tonnes?
Oksana Lut: Yes, we are on track to harvest 132 million tonnes, despite the current challenges.
Vladimir Putin: Was it 148 million tonnes last year?
Oksana Lut: Yes, slightly over 148 million tonnes.
Vladimir Putin: And domestic consumption is around 90 million tonnes?
Oksana Lut: 87 million tonnes.
Vladimir Putin: So, our export potential exceeds 40 million tonnes, in addition to carryovers?
Oksana Lut: Yes, we have significant carryovers. Therefore, with a harvest of 132 million tonnes, we can certainly export 60 million tonnes.
Vladimir Putin: Up to 60 million tonnes. I understand.
All right, good. Thank you very much. If the forecast comes true, the overall results will be positive.
Mr Patrushev, we have discussed the situation with import substitution in agriculture many times. How do things stand now?
Deputy Prime Minister Dmitry Patrushev: Mr President, colleagues,
Speaking about the situation in the decade since 2014, when Russia introduced a food embargo, it has been the most active phase of import substitution in agriculture.
State support and healthy protectionism have helped create transparent and profitable conditions for business. As a result, a large number of domestic producers have entered the market that was previously taken by foreign companies. Over that period, our agricultural production has increased by 33 percent.
I would like to highlight crop production in particular. Annual crop harvests have consistently remained above 100 million tonnes since 2014, with the past five years exceeding 120 million tonnes.
It is worth mentioning that soybean production has increased 4.5-fold and sunflower seed production has doubled. We have essentially rebuilt some agricultural sectors from scratch. One of such examples is greenhouse vegetable growing, where output has tripled over the past ten years. We have also planted over 140,000 hectares of high yield orchards, resulting in a threefold increase in fruit and berry harvests since 2014.
A similar trend can be observed in livestock breeding. Meat and poultry production has increased by 35 percent over the past ten years, and milk production is up by 13 percent. In a decade, we have also built and modernised 3,400 livestock breeding complexes.
It is notable that the industrial beef production has been given a powerful boost. It increased by one third in 2023 compared to 2014.
The production of turkey meat, which is an important sector, started nearly from scratch and has increased fourfold over the past ten years. I would like to point out that Russia has become the largest producer of turkey meat in Europe.
In addition, we are working to increase our independence in pedigree animal breeding. In particular, we have established our own genetic resource bank for the majority of breeds.
Overall, our food industry has grown by about 40 percent since the introduction of food embargo. There has been a 2.5-fold increase in vegetable oil production and meat products production has nearly doubled.
One of the most impressive examples that deserves to be emphasised is cheese production. Output has almost doubled, and the range of cheeses we now produce has greatly broadened. Experts estimate that retail chain stores alone sell about 9,500 types of domestically made cheese products.
Another area, where the situation has literally changed completely in a decade, is our winemaking. The area of vineyards has been increased by 63 percent, and thanks to the adoption of the wine law, all of our wine is now made from the locally-grown grapes.
Eventually, in the fish industry the catch has increased by over a million tonnes over the decade, and aquaculture has more than doubled its production. And, of course, all this was possible thanks to our farmers, but in many respects, it is also due to the government's concern for the industry.
Financing of the agro-industrial complex has been increased from 200 billion to half a trillion rubles a year over 10 years. A variety of measures have been offered to support the business like soft loans and partial reimbursement of capital expenses, including grants and preferential leasing and various special subsidies in different sectors. I will underscore at this point that the instruments of our financial support are available to large and small companies. And not so long ago, since 2022, these instruments became available to homesteads.
Mr President, the key result is that Russia currently produces almost any kind of foodstuffs. The agro-industrial complex guarantees our country's food self-sufficiency. In addition, the industry has made significant strides in the area of product quality control, and at the moment, for a number of products, digital traceability has been established at all stages, in effect, from the field to end consumer. Over 10 years, the agro-industrial complex has become a high-tech industry where business is adopting the latest solutions and technologies.
Mr President, I just cannot ignore the development of rural territories. As per your instruction, the work is being performed under a specific government programme since 2020. Infrastructure is being upgraded in rural areas, comfortable and affordable housing is being built. It is important that all these comprehensive transformations are seen by our young people, so they are more willing to choose agro-industrial complex as a sphere for future self-fulfilment. In my opinion, this is also a very important result of the decade.
In conclusion, I will note that the increase in production has ensured Russia's leading position in the global market in many areas. To compare, in 2013 we had export revenues of US$17 billion, and in 2023 we registered export revenues at US$43.5 billion. At the same time, the geography of our supplies has expanded to 160 countries, even despite the fact that some European countries are closed for us, in effect, the entire Europe.
Mr President, the progress made in this sector since 2014 shows that all the new goals you have set will be achieved. Our current objective is to produce domestic products using our own production means and based on our own scientific and technological achievements. This will be carried out through the implementation of the new national project for technological development in the sphere of food security.
Thank you.
Vladimir Putin: Good. Thank you very much, Mr Patrushev.
In response to the unfriendly actions of certain states, Russia has adopted restrictions on agricultural imports. As we all know and remember, the prices of agricultural products in the domestic market initially increased, which is regrettable. However, this subsequently encouraged the development of the national agriculture sector. Today we can see the positive results that Mr Patrushev has reported.
The situation in industry is somewhat similar. It is not exactly the same, but there are similarities. Following the restrictions on the import of industrial goods, our businesses have become involved in certain spheres and have often performed more effectively than our partners, who only supplied relatively cheap products to the industrial goods market. I would like to repeat that this partly explains the growth of our GDP. This is not identical, of course, but this analogy and comparison are appropriate.
Here is what I would like to say in this connection. Russia is a global leader in the reserves of some strategic raw materials, holding approximately 22 percent of the world’s gas, nearly 23 percent of gold, and nearly 55 percent of diamonds.
(Addressing Mikhail Mishustin) Mr Mishustin, I have a request for you. Please, take a look at some types of commodities that we supply to the global market in large quantities, while the supply of some goods to us has been limited. Should we consider restrictions too, like for uranium, titanium and nickel exports? But we must not be our own enemy at the same time.
Some countries are creating strategic reserves and taking other measures. Overall, if this does not harm us, we should consider the above move. Not that this should be done immediately, but we should think about restricting the export of not only the commodities I have mentioned but also several other goods.
I will not elaborate on the reasons for this now. I believe that our colleagues in the Government are fully aware of the importance of such Russian raw materials. I simply mentioned the first goods that came to mind: uranium, titanium and nickel, but there are other such commodities as well.
Please, think about it, and report your ideas to me. Agreed?
Prime Minister Mikhail Mishustin: Yes, Mr President, we will do so.
Vladimir Putin: Good.
Mr Kozlov, what is the general situation in geology and prospecting today?
Minister of Natural Resources and Environment Alexander Kozlov: Good afternoon, Mr President.
Mr Prime Minister, colleagues,
Geological exploration of the subsoil comprises three stages. The first is regional reconnaissance, followed by prospecting, and finally, assessment.
Until September 1, the state held a monopoly on the first stage of the regional reconnaissance – this is where we identify areas that have the potential to yield mineral deposits. This has always been our prerogative. Private companies had no interest in this because of the high investment risks. However, when companies became interested, we agreed to share the market. And we reported this to you, Mr President, at the Eastern Economic Forum three years ago.
The current situation is as follows. Relevant legislation has been passed, and starting September 1, private companies are allowed to engage in regional exploration of the subsoil. In the first 11 days after the law was enacted, companies have shown interest in eight promising sites: several subsoil areas in Chukotka, Karelia, Buryatia, the Arkhangelsk, Kurgan, and Sverdlovsk regions, and in the Khabarovsk Territory. The companies plan to dispatch their first geological crews there next spring.
However, the main responsibility still lies with the state. We prospect for the entire range of natural assets, including drinking water sources. Last year, for example, we addressed water shortages in the Kherson and Zaporozhye regions.
At present, 64 crews are working on regional geological exploration in the field, and they are supervised by three of our research units: the All-Russia Scientific Research Institute for Geology and Mineral Resources of the Ocean [VNIIOkeangeologia], the Institute of Mineralogy, Geochemistry and Crystal Chemistry of Rare Elements, and the All-Russian Geological Research Institute. About 150 Rosgeo crews are engaged in prospecting and subsoil evaluation in Yakutia, the Murmansk Region, and a few in the Caucasus and the Urals. Private companies are widely engaged at the prospecting and evaluation stages; they have their own geological crews. However, they are still not doing enough, and not because there is nothing to look for, but because we need to increase funding for geological exploration in order to increase the prospecting reserve for the future. This is not a quick process; in fact, it can take years, and sometimes decades, from discovery to actual mineral extraction.
For example, when Mr Trutnev spoke about the Eastern Economic Forum, he mentioned two deposits, two projects: the Kun-Manyo [nickel-copper-sulphide] deposit in the Amur Region, which was discovered in 2004 but did not have investors to develop it until now, and the Berezovskoye deposit in Transbaikalia, discovered as far back as 1926, that is, more than 100 years ago.
What are the implications of insufficient geological prospecting? First, a drop in the production of basic commodities. To date, almost all profitable reserves have been licensed and it is important to remember that users must strictly abide by their subsoil license obligations.
Second, large and easily discoverable deposits have mostly been depleted. Geologists are forced to explore deeper and deeper into the Arctic zone and hard-to-reach regions in Siberia and the Far East. These areas undoubtedly have potential, as only 35 percent of Russia’s Far East and 45 percent of Siberia have been geologically explored.
And third, we must definitely minimise exports, considering our objective of achieving raw materials sovereignty. There are 17 raw materials that are regarded as difficult to obtain. We have sufficient reserves of 10 of them. Our focus should be on improving processing technologies and creating energy and transport infrastructure for developing these deposits. As for the other seven raw materials, we have enough to last for 5–15 years, which means we must step up exploration for them. They are uranium, chromium, manganese, titanium, fluor spar, tungsten and aluminium.
Mr President, you are aware that we have prepared programmes for a manifold increase in exploration in the Far East and Siberia. You spoke about them at the plenary session of the Eastern Economic Forum last week. These programmes have been developed in full. They include 329 prospective areas where we plan to conduct exploration, and a third of them contain raw materials that are currently in low supply, like tungsten ores in Yakutia, uranium in Buryatia, and porphyry copper ores in Magadan and the Khabarovsk Territory. We have not overlooked the traditional raw materials either, such as gold, diamonds, copper and iron ore. We are exploring for them too.
Our main task is to develop new mining areas where we would be able to create 20 raw material hubs. Overall, over a thousand new deposits in the 329 areas I have mentioned will be put up for auction. They can create up to 70,000 new jobs. The calculations are based on information about comparable deposits.
Our colleagues at the Economic Development Ministry have calculated that one ruble of state investment will be matched by 10 rubles in private investment, and one invested ruble will subsequently generate 15 rubles in tax payments.
We propose incorporating the Far Eastern and Siberian exploration programmes into the Geology: Revival of a Legend federal project. Its first phase was launched two years ago with support from Mr Mishustin, who continues to strongly support us. We are ready to launch the second phase on January 1, 2025. However, the final decision on the level of funding should be made within the framework of the budget cycle, which is currently being formulated and will determine the priority given to exploration for the raw materials we propose for these regions.
In conclusion of my report, I would like to say a few words about the international agenda. Mr President, I would like to elaborate on what you have said: Russia controls 55 percent of global diamond reserves, 46 percent of palladium and 23 percent of gold. The list is very long, but it holds potential for creating raw material alliances that will offer an exclusive opportunity for balancing global markets. For example, we control 80 percent of global platinum and palladium production together with South Africa, and nearly 56 percent of coal and 84 percent of vanadium production together with China. Both of them are members of the BRICS group. Overall, there are 13 countries and 13 raw materials which we can produce jointly. It is a major topic for cooperative work.
Thank you. This concludes my report.
Vladimir Putin: I would like to ask you and the Government to carefully consider what I have said and the issues confirmed by Mr Kozlov. Once you have done so, we will hold our discussions.
Good, thank you very much.