Website of the President of Russia: State Council

Meeting of the State Council Presidium working group on developing the tourism, recreation, sanatorium and resort sector

2015-03-29T13:25:27+04:00

The State Council Presidium working group on developing the tourism, recreation, sanatorium and resort sector held its first meeting.

Presidential Aide and Secretary of the State Council Igor Levitin made the introductory remarks at the meeting, which was also addressed by Head of the Republic of Crimea Sergei Aksyonov, the working group’s chairman, Director of the Federal Tourism Agency Oleg Safonov.

During the open discussion, representatives of the federal executive authorities, regions and market players examined the main problems and tasks before the country’s tourism, recreation, sanatorium and resort sector.

The participants approved the concept and structure of a report that will be presented to the State Council Presidium.

State Council working group meeting on improving timber industry efficacy

2015-11-10T20:01:52+04:00

Presidential Aide Igor Levitin chaired a meeting of the working group for monitoring the execution of decisions by the State Council and its Presidium in Krasnoyarsk. The meeting participants addressed the fulfilment of the President’s instructions on improving the efficacy of the timber industry in Russia.

Participants in the meeting included Presidential Plenipotentiary Envoy to the Siberian Federal District Nikolai Rogozhkin, Deputy Natural Resources and Environment Minister and Head of the Federal Forestry Agency Ivan Valentik, representatives of federal executive agencies and the heads of regions in the Siberian Federal District.

The working group studied the main problems pertaining to amending legislation on forestry, related to the use, security, protection and regeneration of forests and developing the timber industry.

Particular attention was given to the discussion of measures pertaining to export and exchange trade of timber, cadastral registration of forest areas, the rational use of forests, and improving the culture of forest management.

State Council Presidium meeting on socioeconomic situation in the regions

2015-11-10T20:03:30+04:00

Vladimir Putin chaired a State Council Presidium meeting On Measures to Improve Economic Stability and Financial Support of the Regions’ Authority.

The meeting participants discussed, in particular, prospects for improving regional budgets’ stability in the current macroeconomic situation and measures to cut regional budget’s debt burden over 2015.

* * *

President of Russia Vladimir Putin: Good afternoon, colleagues,

On our agenda today, we have measures to ensure sustainable socioeconomic development of the regions. This is a very important, multifaceted task, especially given the current conditions – you know what I mean.

In this situation, we should all act consistently, quickly and proactively, and this applies to the regions as well. They should not wait for special instructions from the top, though all our efforts should be coordinated – something I will dwell on later.

This is especially important because many of the regions have already acquired certain experience of working under complex conditions of previous years. Today this experience is extremely valuable and very much in demand. Therefore, attending this meeting are not only Presidium members, but also regional heads, members of the State Council advisory commission. We agreed earlier to meet in this expanded format.

As you may know, the Government has already begun implementing this year’s plan to ensure stable socioeconomic development. The regions are also working on such plans, and I hope they have them ready.

The measures and methods specified in these plans, directed primarily at levelling out the primary risks are of extreme importance and I expect them to bring about the required effect. However, at the same time we have to consider our development prospects, look at the medium term and, as usual, bear in mind the long-term matters of a systematic nature.

”Coming to the fore here is the principle of economic and targeted use of budget funds. This means, among other things, that these resources should be channelled into social security for those citizens who really need it.“

It is extremely important for each of the regions to conduct an in-depth and thorough analysis of their resources and capabilities, identify priority areas of development, internal reserves and work out, as I have already said, efficient mechanisms for the proper use of these reserves.

I believe that the Government commission for economic development and integration headed by Igor Shuvalov should work directly with the regions, have a good understanding of the situation there and coordinate the implementation of anti-crisis measures. Besides, the commission I have just mentioned should include representatives of the gubernatorial corps.

One of the most acute issues now is the financial situation, including the regional budgets. As we all know, many of them bear a heavy burden of debt and loans, including those extended by commercial banks.

The money was borrowed in a different financial and economic situation, of course. Today it often happens that servicing the debt requires ever more funds that have to be diverted from investment and from resolving development tasks.

I would like to add here that unfortunately, the state competes with businesses, with the real economy, the industry and agriculture on the lending market, which requires special attention and support. We are now working on replacing market loans taken out by the regions with loans from the federal budget reducing at the same time the cost of such loans.

This meeting should assess the efficiency of the procedure for extending such loans and analyse what extra measures are required to relieve the debt burden on the regions. I also suggest considering what the regions themselves plan to do to resolve this situation.

A key issue is improving the efficiency of interbudgetary subsidies. The Government has received appropriate instructions. We need to develop a mechanism for joint funding of regional and municipal expenditures using consolidated interbudgetary subsidies, rule out any violations of deadlines for distributing these subsidies and ensure the subsidies reach the regions.

We all know how it often happens: decisions are made, but they remain on paper for quite some time because of the bureaucratic delays and low-key manner of the federal authorities when trying to get things done. As a result, the regions receive the funds with great delays, though the executive authorities report that all is fine.

I would also like to draw your attention to the need to raise the efficiency of budget spending. I would like to state that a simple cutdown in spending – though often we really do need to optimise – is the easiest solution, but sometimes an absolutely inappropriate one.

Coming to the fore here is the principle of economic and targeted use of budget funds. This means, among other things, that these resources should be channelled into social security for those citizens who really need it.

We have been speaking of this for many years, but there has not been any clear and system-wide solution to this situation, which is vital for the citizens. I would like to ask you to return to this matter today to finally develop a specific and functional model.

We have said on numerous occasions that spreading it out thinly all over the pie is pointless – we have to provide assistance to those who really need it, who find it difficult without state support.

I would like to reiterate that matters of financial support to the regions are among the most important and the most complicated ones today. There are resources available in practically every region’s budget policy that remain unused.

This applies to precise prioritising, especially now, when we need to take into consideration the entire scope of complicated circumstances. This also means ensuring the maximum efficiency of all the projects implemented in the regions. This is about smartly using the existing resources and avoiding inefficient spending. This is also about approaching the matters at hand in a balanced and economic way.

Another thing I keep talking about, and will highlight yet again – clearly, as we prioritise, our decision-making should be transparent, and you should maintain close contact with your legislative assemblies, with political parties, public organisations and citizens.

Let’s get down to work.

<…>

State Council working group meeting on small and medium-sized enterprise promotion

2015-11-10T20:04:23+04:00

The third meeting of the State Council working group On Measures to Promote Small and Medium-Sized Enterprises in the Russian Federation was held in Tula.

Speakers at the meeting included Deputy Labour and Social Development Minister Alexei Vovchenko, Deputy Industry and Trade Minister Viktor Yevtukhov, President of the Chamber of Commerce and Industry Sergei Katyrin, and President of the Russian Union of Industrialists and Entrepreneurs Alexander Shokhin.

Other participants included Governor of Arkhangelsk Region Igor Orlov, representatives from the Federation Council and the State Duma, federal and regional executive agencies, members of Russian national public organisations and the expert community.

Deputy Head of the State Council drafting group and CEO of the Agency for Strategic Initiatives Andrei Nikitin stated that the State Council’s report has become the first in a series of reports prepared with direct participation by entrepreneurs from across the nation.

Meeting participants noted that about 17,000 people participated in a survey by the RBC information agency; over 300 suggestions from entrepreneurs were received through a service on the Open Region portal. These suggestions formed the basis of the State Council working group’s report.

Second meeting of State Council working group for small and medium sized business development

2015-03-20T17:59:04+04:00

Presidential Aide and State Council Secretary Igor Levitin chaired the second meeting of the working group to prepare the State Council report On Measures to Develop Small and Medium Sized Business in the Russian Federation.

The head of the State Council working group, Tula Region Governor Vladimir Gruzdev reported on the work conducted by the group to draft the report that includes system-wide measures to support small and medium sized businesses in Russia.

The meeting considered key issues that stand in the way of developing small and medium sized businesses in Russia and measures aimed at relieving the tax burden, removing administrative barriers, reducing the number of inspections by oversight agencies and increasing access for small and medium sized businesses to state purchasing and bank loans.

The group also considered the development of entrepreneurship among young people and the creation of a positive image of an entrepreneur by the media.

Joint session of State Council and Council for Culture and Art

2015-03-20T17:59:08+04:00

Vladimir Putin chaired a joint session of the State Council and the Presidential Council for Culture and Art on the implementation of the state cultural policy.

The meeting focussed on issues pertaining to ensuring freedom of art, preserving and using material and non-material legacy of the peoples of Russia in education and mentoring, on the development of the Russian and national languages, literature, and the creation of information environment favourable for character building.

Also, the President announced that he has signed an Executive Order approving the Basics of the State Cultural Policy. According to Vladimir Putin, the document “reflects the attitude to culture as a mission, as a public good and historical legacy, as a system of values and moral ideals.”

* * *

Excerpts from transcript of joint session of State Council and Council for Culture and Art

President of Russia Vladimir Putin: Good afternoon, colleagues,

We are holding a joint session in this format for the first time, just ahead of the New Year, and so I want to begin by wishing a very happy 2015 to the heads of regions, members of the Council for Culture and Art, staff at relevant agencies and our experts. I wish you health, success and all the very best.

Time flies quickly. It feels like it was just recently, at the beginning of this year, that we declared 2014 the Year of Culture; but today, we will be discussing its results. It was full of various events, festivals, openings, artistic evenings and meetings, including, first and foremost, in the Russian regions, where this topic got particular attention.

The work on the Basics of the State Cultural Policy became a priority. This year, we held three meetings of the corresponding working group, the latest of which was in mid-December. Overall, the discussion of this draft document was open and broad. Various professionals actively engaged in this process, including workers in culture and the arts, educators, researchers and public organisations. But what’s most important is that thousands of citizens took part in this work. This was a truly public discussion, and the debates were intense and heated.

The draft Basics were built on a new ideological platform and proposed rethinking the role of culture, which in recent times has often been perceived simply as part of the social block of issues or as the work of cultural establishments. But most often, it is perceived as the services, leisure or entertainment sector. Of course, this narrow, sectorial approach does not correspond to the nation’s development goals, society’s needs, or the needs of our time. We have talked about this on many occasions.

We have discussed what kind of cultural policy Russia needs, and we also discussed its goals, essence and objectives. The subject of culture’s importance was also reflected in the May 2012 executive orders.

Last year, at a meeting of the Valdai International Discussion Club, we had a separate discussion on preserving and not losing our cultural and national identity; many of those present took part in it. And you recall how much this discussion resonated, as did the topic overall.

The recent Address [to the Federal Assembly] spoke to our need for a strong spiritual and historical foundation, the need to preserve our national origins.

We need serious research work, real projects on preserving monuments, developing museology and educational tourism. We must do this throughout our entire nation: in Chersonese and in major centres of the Russian statehood such as Vladimir, Pskov, Novgorod and other ancient cities. This is a common task for federal and regional authorities.

I repeat: it is important that preparations of the Basics of State Cultural Policy do not begin from a clean slate, but from a common understanding that culture is a multidimensional living system, a powerful factor in society’s development and economic growth, and even in ensuring Russia’s security and sovereignty, in that culture feeds the nation, forms it and unites it.

The Basics of State Cultural Policy have been drafted and were approved today. They reflect a view of culture as a mission, as a public good and historical legacy, as a system of values and moral ideals.

This comprehensive understanding of culture also represents a radical change in the very priorities of state policy. The processes of educating citizens, especially children and youth, take the forefront. Increased attention is given to their spiritual, creative development, patriotic education, and to the creation throughout entire Russia of a high-quality cultural environment, accessible benefits of culture and equal conditions for creative work.

So it is only logical that issues pertaining to the implementation of the Basics of Cultural Policy are being examined today at a joint session of the State Council and the Council for Culture. As I said in the beginning, we are meeting and working for the first time in this format, because the success of decisions taken at the federal level largely depends on how they are implemented on a local level.

Preparing the text of the Basics is an important but preliminary step. We will need to act to bring culture to the height of its public purpose. We must ensure that it truly becomes a natural regulator for day-to-day life, determining people’s behaviour and actions, influencing their attitudes toward their nation, families and education of children.

We will need more than one year to tackle these challenges. And everyone needs to get involved in this work: society, the authorities, cultural establishments, schools, universities, creative unions, educational and academic communities. We need to put in a maximum amount of will power, effort, responsibility, talent and creativity in order to achieve concrete, tangible results.

To implement the Basics, we first need to develop a Strategy of the State Cultural Policy. And here I want to stress that the regions need to be guided by the Basics’ provisions already now and actively engage in the development of the Strategy.

One important thing here, colleagues – and I want to stress it – we must not get buried in the papers. Because if we focus only on the Basics and the Strategy, we will be writing and writing forever. We absolutely need to work and certainly remember what we are doing, what we are aiming for, and not just focus on epistolary work – writing letters to one another – but instead, actually carrying all of this out.

I will touch on the main topics and problems that need to be taken into account in developing the Strategy, as I said.

First, we need to gradually take the existing system of cultural management to a new level. After all, the effect of cultural policy covers a very broad range of areas: education, mentoring, creating an information environment, strengthening interethnic relations, professional art, literature, folk art, and international humanitarian cooperation. This list is certainly far from complete. And many things here are closely intertwined, and each requires the solution of a whole set of problems, including organisational and financial ones.

There is an obvious need to create a supra-departmental coordination structure. Moreover, to ensure the provision of resources for implementing the Basics of Cultural Policy, we will need to establish a Russian Cultural Development Fund. At the same time, I stress that we are not talking about breaking the existing management system. On the contrary, we need to use its experience and opportunities as much as possible.

The second important area is the quality legislative support for cultural policy objectives. I will note that the very notion, in the broader sense set out in the Basics, has not yet been laid into the legislation. Of course, we need to do this right away.

I feel the Strategy should define the stages of implementing the cultural policy. And in accordance with these stages, timely amendments should be made to federal and regional legislation.

At the same time, we should train highly qualified staff. This is an absolute priority during the first stage. After all, effective management of the Basics implementation is possible only when there is a deep understanding of their goals, special features and trends. Here, we need not only competent managers but also genuine culture devotees – those who are deeply concerned about its development.

The Strategy’s third objective is creating conditions for developing public-private partnerships, social and creative entrepreneurship for charity and philanthropy as well as generally involving citizens in the implementation of the cultural policy.

I will note that while various methodological suggestions are welcome and won’t hurt, we can only achieve success and results through daily, committed work with public organisations and professional associations, provided that we hear other people and pay close attention to their suggestions.

For example, right now, there is high demand in areas such as local history. There are many substantive, exciting projects. They should certainly be supported, as should citizens’ desire to participate in ethnographic and archaeological expeditions, in work to preserve objects of cultural heritage.

Respect for culture often begins with an introduction to the history and traditions of the area or region where a person lives. I think it would be useful for each region to put together its own “cultural package” that would include, for example, certain tourist routes, student visits to specific museums and theatres, etc.

Many Russian regions already have good experience doing this. There are also successful interregional programmes. It is enough to mention the “Golden Ring” project, which joins several Russian regions, several of Russia’s federal constituent entities.

There can certainly be far more such comprehensive tourist routes, of course. For example, in the Russian North, in the Caucasus and Northwest, in the Far East and Siberia. Thus, we should all get to work. The regions with well-developed cultural environment should serve as role models, and their best practices should be broadly implemented throughout the nation.

Colleagues, today I would like to touch on the sensitive topic of freedom of creativity. This is a right guaranteed by our nation’s Constitution. And we all know that culture can live and achieve its heights under two key conditions: staying true to historical traditions and, of course, giving broad freedom in creativity, thought, and spiritual development.

Nobody, no government, can dictate to an artist, a writer, a film director, or actually to any person what kind of creative work should gifted people do and in what way. Often, they see something that was once considered unacceptable and today is a standard in their own new way. Anyway, you understand what I’m talking about. And we must treat this particular quality of being ahead of the times carefully and with respect.

Of course, we need to take into account the fact that today, society has set a moral requirement of a sort to all those engaged in cultural activity. It can be explained because often, creative freedom is turned around with pseudo-cultural substitutes, simply in an attempt to earn more. But indeed, there is nothing unusual or new about this.

All these problems are identified in the Basics of the State Cultural Policy and they need to be thoroughly analysed by Strategy developers, who must propose a set of effective measures by engaging all of the creative, educational and intellectual resources. I suggest giving these issues our necessary attention today as well.

And a note on another topic. During discussions of the Basics, calls for cultural self-isolation were decisively rejected. In this respect, I want to stress that Russia was and will certainly be an integral part of global civilisation.

Our multi-ethnic culture has always been characterised by openness and friendliness. It has always responded to global trends in art and enriched itself and largely formed these global trends.

We not only value these traditions, but will also do everything possible to develop and enhance them. We need to remember to expand our cultural influence on the world and we should not isolate ourselves. We must not forget what we have done for the world culture and remember what we can still do. And this means we should also strengthen Russia’s influence as a global power.

In light of this, I want to remind you that next year has been declared the Year of Literature in our nation. It is very important for Russia to restore the high value of good books and foster interest abroad in Russian classic literature, as well as modern authors.

Colleagues, I have defined only a few of the challenges and problems that we must discuss. I suggest that we should get down to work.

<…>

Colleagues, I will not summarise today’s meeting, as it is impossible to summarise efforts to develop culture. This is an endless process.

The whole idea of 2014, declared the Year of Culture, was to draw the attention of state, municipal and regional authorities and of all of society to this important area, which is probably the most important component of our national identity.

By way of technical remarks, I would like to say that our colleagues from the State Duma always draw attention to issues that concern society in one way or another. One major issue is to make sure we stop – as soon as possible – resorting to any form of ideologisation regarding our history and culture.

Undoubtedly, every stage of our state’s development had its positive and dark sides. We have to analyse them impartially, as seen by the modern man and use this to make sure nothing holds us back. Naturally, here we have to properly assess and draw the required attention to the activity of our outstanding compatriots of the past.

Alexander Solzhenitsyn’s and Turgenev’s anniversaries were mentioned here. In this connection, I would like to stress that both Solzhenitsyn and Turgenev spent a considerable time abroad. Solzhenitsyn was expelled, while Turgenev simply liked to spend the cold time of the year in warm places. This is neither good nor bad – this was their life.

Alexander Solzhenitsyn drew attention to the problems of our society not because he was hostile. On the contrary, he was a patriot, he wanted to keep his country from falling apart, but it did fall apart because back then we did not pay attention to the things he focussed on. One should be attentive and fair to everything.

Speaking of anniversaries, I would like to say that on March 7, 2014, I signed an Executive Order to celebrate Ivan Turgenev’s 200^th anniversary in 2018. This is merely for your information. We treat all our outstanding compatriots in the same way.

Something I would like to single out and support here is that we have to pay attention to the Soviet period as well. Everything you said here about the achievements of the Soviet era was absolutely true and we should not use ideological reasons to defile any of the achievements of our country and our people during that very important period of our history.

Mr Zhirinovsky’s speech was brilliant as usual. (Addressing Vladimir Zhirinovsky) You gave me a brochure on how to speak Russian properly. I have read it, thank you very much. I agree with what you said. We need to avoid the excessive use of the Latin alphabet and foreign words, and here I am mainly addressing regional authorities.

You know, sometimes, when you come to a place, you immediately see the level of culture of local officials. Wherever you look, you see the names of companies and stores and advertising written in Latin letters. What country is this? There should be moderation in all things, including the use of foreign terms and words and so forth.

<…>

I would like to thank you all for our joint work. In conclusion I would like to stress that the fact that we met today and talked about these things does not mean that this work is over, that we are turning a new leaf and do not have to think of how to develop culture. On the contrary, let us consider 2014 as the beginning of our further joint work in this crucial area for our state.

Thank you very much.

Meeting of State Council advisory commission

2015-03-20T17:59:08+04:00

Chief of Staff of the Presidential Executive Office Sergei Ivanov chaired an organisational meeting of the State Council advisory commission.

The meeting discussed the advisory commission’s action plan for 2015 and proposals from regional leaders regarding ways to improve interbudgetary relations that will be submitted to the President for consideration at the commission’s next meeting in April of 2015.

The advisory commission of the State Council serves to assist the President in identifying the most crucial issues pertaining to socioeconomic development of Russia and its regions and shall develop proposals on their resolution.

Taking part in the meeting were Presidential Aide and State Council Secretary Igor Levitin and heads of several Russian regions.

Meeting of State Council’s working group to promote the development of small and medium-sized businesses in Russia

2015-03-20T17:59:08+04:00

Presidential Aide and State Council Secretary Igor Levitin chaired the first meeting of the working group on preparing for a State Council meeting On Measures to Develop Small and Medium-Sized Businesses in the Russian Federation.

The State Council’s working group is headed by Governor of Tula Region and State Council member Vladimir Gruzdev. Participants in the meeting included Governor of Kostroma Region Sergei Sitnikov, Presidential Commissioner for Entrepreneurs’ Rights Boris Titov, Head of the Federal Agency for Youth Affairs Sergei Pospelov, Deputy Economic Development Minister Oleg Fomichev, Deputy Finance Minister Sergei Shatalov, Deputy Healthcare Minister Sergei Krayevoy, Deputy Agriculture Minister Dmitry Yuryev, President of the Chamber of Commerce Sergei Katyrin, representatives of the Federation Council and State Duma, federal and regional executive agencies, national public organisations and the expert community.

The working group meeting looked into issues of broadening small and medium-sized businesses’ access to government procurement and bank financial resources, developing youth entrepreneurship, connecting businesses to utility infrastructure – water, gas and electricity – and other government support measures.

Meeting of the State Council Presidium on improving Russia’s road network

2016-02-11T13:54:55+04:00

Vladimir Putin held a meeting of the State Council Presidium on improving Russia’s road network with a view to comprehensive development of the country’s territory.

Before the meeting began, the President visited an exhibition on achievements and modern technological solutions in the road sector.

Earlier in the day, Mr Putin took part in opening the newly completed Bugrinsky Bridge across the Ob River.

* * *

Speech at meeting of State Council Presidium for improving Russia’s road network with a view to comprehensive development of the country’s territory

President of Russia Vladimir Putin: Good afternoon, colleagues.

Today, as we agreed at the September meeting of the State Council, we will discuss construction and development of the road network. This is a never-ending and always topical subject everywhere, and in Russia all the more so.

We all know what a pressing issue this is, and how vitally important it is for our country’s life. Economic growth, business competitiveness, comprehensive regional development and successful achievement of our social goals are all directly dependent on our ability to resolve this issue.

Road development has received a lot of attention at federal, regional and municipal level over these last years. The State Council alone has met three times already on this matter. We have touched on this issue when examining other matters too – land use, forestry, the housing and utilities sector, healthcare, education and business activity. All of this underscores the road network’s importance and the global impact it has on other sectors’ development.

A great deal has already been accomplished in the road sector. We have adopted the law on roads and road-sector activity and have put in place the legal base for raising non-budgetary investment in the road sector. We have established federal, regional and municipal road funds that over a period of not yet four full years have enabled us to double the sector’s financial resources and thus increase the amount of road construction and repair at all levels.

We have built highly complex road infrastructure (let me cite just a few examples) for the Sochi Olympic Games, the APEC summit in Vladivostok, the World Universiade in Kazan and more. The programme to complete construction of 16 bridges spanning Russia’s largest rivers, designed according to individual rather than standard projects, is now finished. Construction of these bridges began back in the Soviet period and was later suspended and all but abandoned. We returned to these projects and completed them all. We plan to implement another highly complex bridge-building project by the end of 2018 – the bridge across the Kerch Strait.

We thus do have some clear results and have achieved a positive dynamic, but we all know very well at the same time that the road network is still a very problematic and difficult issue. Our task is transform it into an advanced and innovative breakthrough sector, but we are still only on the way to reaching this goal. There is still a lot of work to do to turn this sector into one of the powerful drivers for economic development throughout the country.

Federal, regional, municipal and rural roads must all be built following the same logic, namely, that the transport infrastructure must be rational and convenient to use and should form a network linking together our entire vast territory, our towns and villages.

Let me say again that we must expand and develop a network of quality roads. This was why in the 2012 Presidential Address to the Federal Assembly I set the task of doubling the amount of road construction and repair over the coming decade. I ask the Government and the regional heads to concentrate on this goal – during today’s discussion and in their practical everyday work.

Let me now say a few words about the areas that I think require our particular attention.

First is the price/quality relation in road construction. This has always been one of our most acute problems and the subject of a lot of public debate. It remains a serious issue today and we still need to address it.

The authorities are putting considerable investment into road construction and repair, but this investment has not always been very efficient in producing returns. Even recently built roads often do not measure up to the required standards, wear out fast, cannot withstand today’s traffic burden and so on.

We need to take measures to make the estimates and project documentation for road works more accurate and exact. Many of the methods used are clearly outdated and the result is that we still have these ‘black holes’ into which the allocated funds disappear. We repair the same roads over and over, year after year, instead of gradually expanding the amount of high-quality road construction. The working group has a number of proposals on this subject and we will examine them today.

Let me note the very important role played by those who place the orders, the designers, and the state expertise officials, who are responsible for the roads’ quality, reliability and service life. I think that the Chief State Expertise Directorate should be an active channel for encouraging technological progress in the road sector. Attempts to use innovative solutions run up against bureaucratic hurdles and this does absolutely nothing to encourage designers and subcontractors to use new, durable and economically more viable materials and construction technology.

In particular, it is taking a long time to resolve one of the big current problems in road construction – using longer lasting road surfaces. In this area, the road sector continues to base its work on standards dating from 30 years ago. But transport volumes were completely different then, not to mention materials and technology that the whole world is using now but that are still not used or only little used here.

I ask the relevant agencies to analyse these issues and draft coordinated decisions on promoting and introducing innovation in the road sector.

I visited the exhibition before and I see that many of you here know the things I just spoke of. It’s rather strange really, the materials and technology exist, but various bureaucratic hurdles still prevent them from actually being used. It’s quite astounding really, this kind of bureaucratic rigidity.

Maintaining roads is tremendously important too. Large vehicles cause a lot of damage and it is therefore clear that we need to regulate their use of ordinary public roads. This is a difficult matter to resolve, but we have no choice but to do so. We have already discussed this and I gave the relevant instructions about clarifying the powers of the federal agencies that oversee transport of heavy and large cargoes. I want to hear from you today about what has been done in this area. We will also discuss the proposals the State Council’s working group has drafted on ensuring road maintenance.

Another big problem is the unjustified rise of costs for the so-called inert road construction materials, that is, gravel, sand and so on. It happens that the construction or repair of a piece of road infrastructure has not even been officially announced yet and all the neighbouring land that could be used for quarrying is already bought up and the entrepreneurs then dictate monopolist high prices during the actual construction work. We need to check in each particular case who entrepreneurs behaving in this way are linked with. The Government should pay attention to this problem and develop the needed mechanisms.

For your reference, I can tell you that the price of gravel has gone up by 46 percent over the last five years, and the price of sand by 79.7 percent. Do we really have this kind of inflation? What is the reason for this situation? The price of gravel transported to a neighbouring region goes up by 20–30 percent, and the price of sand by up to 90 percent. Gravel accounts for 20–40 percent of overall construction materials costs. We cannot help but ask about the role corruption is playing here.

I would also like to hear the working group’s opinion on issues such as allocating land for road construction and how justified are the prices being asked for it. We need to take measures to prevent cases of profiteering or delay in transfers of land for road construction.

Developing the high-speed road network is another important area. We have made some progress here thanks to the use of public-private partnerships and have already brought the first sections of these new roads into operation. I think the Government should look at putting together a special programme for developing high-speed motorways and examine support mechanisms for projects of this kind at the regional and municipal levels.

As you know, we began construction of the Central Ring Road using funds borrowed from the National Welfare Fund. We plan to allocate 150 billion rubles [$3.7 billion] from the Fund for this project. The flexible lending and repayment conditions have made it possible to dramatically lower the share of direct budget funding from 70 percent to 25 percent. We have set a precedent that opens up big opportunities for widening the use of public-private partnerships in the road sector.

At the same time, we must put more energy and effort into developing competition in this sector and get business more involved, including small and medium businesses. The Government must make a comprehensive analysis of the conditions for selecting subcontractors and concluding contracts and identify best practice in holding tenders and recommend them to the regions. I ask the regional heads to also get actively involved in this work.

Road safety is another issue that requires our particular attention. We still have a very high road toll. There has been some progress made, but we still have around 27,000 people killed every year, and often people die because help arrives too late.

The ERA-GLONASS system has been designed to send immediate signals about road accidents. The system is set for its industrial launch in January 2015. This is not simply a plan but is something that will definitely go ahead. We have worked on this system for three years and spent 3.5 billion-4 billion rubles on it, but the money has not been earmarked yet for the system’s operation and maintenance in 2015–2016. I address my colleagues from the Government: I am aware of the budget constraints and took part right from the start in putting together the budget for next year and the two subsequent years. This work was certainly not easy, but when we have spent billions on a project, we cannot just abandon it halfway. This is not good statecraft. I therefore ask you to pay attention to this matter and work on it with your colleagues from the economic side of the Government.

This system requires stable and reliable mobile telecommunications to work effectively. We recently got the report that the mobile telecommunications system is up and running along the full length of the Chita-Khabarovsk motorway, and in other regions this system has been working reliably for many years now. We must continue this work and ensure that all of our country’s roads have reliable mobile telecommunications.

Colleagues, I have just outlined some of the issues that we need to resolve in the short and medium term. You have your own views on road construction’s future, your experience in the sector and considered proposals. Let’s discuss all of these matters now and try to reach the balanced recommendations that everyone needs and that will then be incorporated in the subsequent instructions.

Let’s begin work.

<…>

During our discussion, we determined that we still need to do a great deal to optimise this work. It is entirely clear that a great deal can be done, even considering the financial opportunities we have available to us. We simply need to spend our funds more efficiently. This has to do with methodology as well as using new materials, the regulatory framework and management. I am not going to repeat what I said in the beginning – namely, the importance of road construction in Russia for economic development, for the social sector, for us to have modern modes of transport, for improving our environment.

This is a very big list of issues that are vitally important for nearly every citizen of the Russian Federation and for the nation overall, for its economy. We have addressed this issue many times and will certainly continue to work on it. You know the saying: “what the eyes fear, the hands do.” This is exactly that case. We need to get moving on resolving all the problems that we touched on. But these are not even all the issues we face; there are many more of them.

We will certainly take into account everything you said today – I want to thank you for such a constructive and highly professional approach to looking into this very important and major topic. We will compile everything and issue instructions accordingly. Naturally, we will monitor their execution appropriately, and we will gather again more than once to discuss this matter.

Thank you very much.

State Council meeting

2016-02-11T15:48:24+04:00

Vladimir Putin held a State Council meeting in the Kremlin.

The meeting focussed on the development of Russian business and making it more competitive on the global market in the context of Russia’s membership in the World Trade Organisation.

* * *

Excerpts from transcript of State Council meeting

President of Russia Vladimir Putin: Good afternoon, colleagues,

Today we will discuss a number of issues on how to make Russia’s economy more competitive.

Ever since the start of the century Russia has been demonstrating good macroeconomic results. Making use of the favourable situation in the global market and introducing certain structural changes made it possible to launch internal sources of economic growth. Although we kept hearing criticism to the effect that these structural changes were insufficient – nothing is ever enough when you wish to do more – however, we have to admit that certain structural changes have been introduced over the years.

We have done a lot to improve the business climate. I have to single out here the persistent efforts of the relevant ministries: the Finance Ministry and the Ministry for Economic Development. Later on we began working even more actively with the business community and set up the Agency for Strategic Initiatives, which joined the work alongside the ministries and the business community. As we joined the World Trade Organisation, we confirmed yet again that we are actively creating an open economy and are ready to closely cooperate with our partners the world over.

”The limitations introduced against our country are nothing but a violation by some of our partners of the basic principles of the WTO. The principle of equal access for all countries involved in economic activity to the markets of goods and services is being violated; the most favoured nation treatment in trade and the principle of fair and free competition is being ignored. All this is politicised, there is no adherence to the generally recognised rules of the WTO.“

It is also obvious that as Russia joined the World Trade Organisation in 2012, the requirements to its national competitiveness increased significantly. We not only started trading in line with common rules and got the opportunity to more efficiently protect the interests of Russian companies, but also undertook obligations to reduce the level of our tariff protection and limit support for certain key sectors of the economy.

We all remember the complicated national discussion on whether we should join the WTO or not, what we gain from it and what we lose. We considered this very seriously before joining the WTO. I would like to remind you that the negotiations lasted 16 years. Overall, I believe we have managed to get our partners to accept such terms for joining the WTO that met our interests, and though certain sectors of the economy had a price to pay, overall we managed to obtain acceptable terms.

However, in the past months the situation has changed. The limitations introduced against our country are nothing but a violation by some of our partners of the basic principles of the WTO. The principle of equal access for all countries involved in economic activity to the markets of goods and services is being violated; the most favoured nation treatment in trade and the principle of fair and free competition is being ignored. All this is politicised, there is no adherence to the generally recognised rules of the World Trade Organisation that I have just mentioned. A number of countries have actually unilaterally deleted these and some other WTO principles for Russia, which is one of the six largest economies in the world.

In response, we took protective measures, and I would like to stress that they are protective; they are not the result of our desire to punish any of our partners or influence their decision in any way. We fully understand that there are things that seem more important for our partners than the normal state of the global economy. It is their business; this is their decision. However, as we take retaliation measures we are primarily concerned with our own interests, our development targets, with protecting our own producers and our own markets from unfair competition.

Our main goal is to make use of one of Russia’s greatest competitive edges – its vast home market, to fill it with high quality goods produced by the real sectors of the national economy, maintaining, naturally, stability and balance within the market and the economy as a whole, and bearing in mind, of course, the consumers’ interests – this is something we should never forget. We are actually trying to develop such an economic policy, such a strategy that would ensure that all the efforts of the federal and regional authorities are directed at the development of the real sectors of the economy.

”We took protective measures, and I would like to stress that they are protective; they are not the result of our desire to punish any of our partners. We fully understand that there are things that seem more important for our partners than the normal state of the global economy. However, as we take retaliation measures we are primarily concerned with our own interests, our development targets, with protecting our own producers and our own markets from unfair competition.“

The measures I consider to be of top priority. Firstly, we need to make loans accessible and create new conditions for funding businesses that would be internationally competitive. We are all aware of this and we have spoken of it on many occasions, this is a key issue for us, even outside the context of any sanctions – interest rates on loans often exceed the profitability of projects, thus actually pushing economic entities outside the boundaries of economic common sense.

The Government and the Bank of Russia have been instructed to analyse these issues, to consider lowering interest rates on loans for industrial enterprises, including through project financing. I know that this mechanism has been developed, the Bank of Russia is implementing it and the ministries and agencies are working on it as well. I would like Economic Development Minister Mr Ulyukayev to report on the progress made, to tell us if you find it feasible to continue along this path, and what is being done to improve work in this area.

Secondly, we need to develop our infrastructure – something we also constantly discuss. We will consider this in detail at the State Council Presidium meeting scheduled for October.

Obviously, given certain budget constraints in developing the infrastructure – and this usually means capital-intensive projects – we need to make maximum use of partnerships between the state and the private sector both at federal and regional levels.

The third important area of activity is training skilled professionals for the real sector of the economy. I know that this work is being actively carried out in such regions of the Russian Federation as Tatarstan, Belgorod and Kaluga regions among others. I expect the heads of these regions to share their positive experience today.

I would also like to note here that, in line with our previous decisions, the National Council for Professional Qualifications has commenced its work. It has already approved or submitted for approval over 130 professional standards. Corresponding councils are being set up in various industries to accompany the application of these standards, to accredit training programmes and workers’ qualification certifications, with the maximum involvement of the employers, trade unions and communities. As we have agreed, we will encourage employers to set up professional training organisations where people will acquire both theoretical knowledge and practical skills.

Obviously, the competitiveness of Russian enterprises will directly depend on whether they would be able to produce enough goods that are of equal quality and cost with their foreign counterparts. The number of such enterprises in certain industries is constantly growing. Thus, petrochemical production and plastic goods production has grown many-fold in the past years; there has been a noticeable increase in the production of automobile parts, of certain types of construction and other materials. The produce of Russia’s military-industrial complex is in high demand on the global arms market; in the area of high technology, we are confidently in the lead in the export of nuclear reactors and peaceful nuclear technology, as well as radars and navigation equipment. We maintain a steady supply of Russian made heavy duty trucks to the domestic market, to say nothing of our services in terms of space exploration.

In agriculture, we almost completely supply ourselves with potatoes and grain; the import of pork has gone down by almost a quarter in the past five years, by 24.6 percent to be exact, that of poultry has decreased 2.3 times, while the import of vegetable oil is down six times.

”Our main goal is to make use of one of Russia’s greatest competitive edges – its vast home market, to fill it with high quality goods produced by the real sectors of the national economy, maintaining, naturally, stability and balance within the market and the economy as a whole, and bearing in mind, of course, the consumers’ interests. We are actually trying to develop such an economic policy, such a strategy that would ensure that all the efforts of the federal and regional authorities are directed at the development of the real sectors of the economy.“

However, such positive dynamics are not a universal trend. I would like to remind you that at the May 14 meeting instructions were issued regarding additional measures to stimulate economic growth. Thus, the Government has been instructed to develop and approve plans to encourage import replacement in the industry and agriculture for 2014–2015. The deadline was October 1. However, I believe that already now many of those present have something to say, specifically regarding the instructions dealing with balancing the regional markets.

We need to have a clear idea of what is going on in the regions of the Federation in terms of import replacement, which instruments have proved to be better than others. I would also like to hear what else needs to be done to support business and make it more competitive in these new conditions. We should of course ensure the delivery to the global markets of competitive products and increase the export of not only raw materials, but of the end products of machine building, machine tool building and other industries. I am aware that the Government attaches great importance to the support of exports and intends to allocate budget funds for the purpose. They should be spent efficiently to provide real returns and strengthen our positions on the global markets.

In conclusion, I would like to stress that in the next 18 to 24 months we need to make a real breakthrough in making the Russian real sector more competitive, something that in the past would have taken us years. Obviously, the achievement of all these goals lies not only in the efforts of the Government, but of everyone here, of all the regions of the Russian Federation. I am certain that the heads of regions will do everything possible to ensure their precise and efficient implementation.

Thank you for your attention.

<…>

The budget is certainly one of the instruments of our economic policy, and this year’s work on the budget has not been easy. I met with the Government just yesterday, and my colleagues reported on what has been done. A great deal of work has been carried out. I want to repeat, and I have said this many times, the budget is always subject to compromise.

I want to address the heads of parliamentary parties. Naturally, there will be discussion in the Parliament on all these topics. I am asking you to treat this matter with great care, because our situation requires heightened financial and budgetary discipline from you, improving the structure of expenditures. This demands utmost diligence with regard to budgetary funding, reducing ineffective expenditures, and increasing the efficacy of budgetary economy regulation overall.

”In the next 18 to 24 months we need to make a real breakthrough in making the Russian real sector more competitive, something that in the past would have taken us years“.

<…>

In conclusion, I would like to say that the Government and I will certainly take into account our discussion today. We will analyse the suggestions made. Naturally, as it often happens, many issues are under debate, but nevertheless, it is good that they are being brought up – for example, the use of Central Bank instruments for road and housing construction. We have long been talking about the need to reduce interest rates on loans, including the key interest rate, and we are always referencing the interest rate levels in certain other nations, in the EU for example. But if we look at the level of inflation on the one hand and the interest rates on the other, then certain things become more clear. We then immediately have the problem with reducing inflation. If we consider it a key problem, which it is, then it gives rise tothe need for certain economic actions. Overall, this is a fairly difficult and major set of issues that we are all taking into account and we will act to address this.

Can we and should we change the excise duty rate and others, and make other changes to our tax legislation? This is also subject to a special, very thorough analysis and all this requires very careful treatment. Any tax-related actions should be clear and transparent, and our entire tax policy must be aimed towards the needs of the economy and businesses. Everything must be calculated within the development plans of specific companies; here we need to show care and stability, which we will strive to do.

In any event, I want to thank the State Council working group for the work it has done and once again stress that we will take today’s discussion into account and will use it in our practical work.

Thank you very much.

State Council Presidium meeting on developing social protection system for senior citizens

2015-03-20T17:59:20+04:00

Vladimir Putin held a meeting of the State Council Presidium on developing the social protection system for senior citizens. Improving senior citizens’ socioeconomic situation and access to healthcare services is the main subject of discussion.

The President visited the Kashirsky Nursing Home for senior citizens and people with disabilities before the start of the meeting and examined the Home’s facilities and living conditions, visited the medical centre, dining hall, and library.

* * *

Speech at State Council Presidium

President of Russia Vladimir Putin: Good afternoon, colleagues,

We are here today to discuss social protection for senior citizens. This is a very important, very sensitive issue that concerns nearly a quarter of our country’s population. Today, we will discuss the package of measures we need to take in this area, in keeping with our demographic and economic possibilities of course.

We are meeting in Voronezh because the region’s governor headed the working group. It must be said too that the region is showing initiative in addressing this matter of social protection. We looked over some of the facilities here and we all saw that they look to be worthy models for our emulation and respect.

Let me start by saying that we have succeeded in increasing the average life expectancy for the country as a whole. The figure is still lower than in some countries. Average life expectancy in Russia today is nearly 70.8 years. As I said, this is lower than in some countries, but it is four years more than the figure we had in 2006.

Our task now is to bring average life expectancy up to at least 74 years by 2018 and to 75.7 years in 2020. To achieve this we will need to give pensioners a better quality of life, and let me stress that we need to see improvement in all parts of the country.

At the same time, we have to realise that different groups of pensioners have different needs, aspirations and demands, and overall can no longer be seen as a single group of weak, defenceless people in need of the state’s constant care and support.

There are quite a few senior citizens in Russia these days who you would be hard pressed to call ‘old’ in terms of their appearance and state of health. It is not by chance that the new term ‘third-age people’ has spread around the world. Many people remain professionally, socially and publicly active at this age, travel, and play sport. Their ability to organise a healthy lifestyle is often a good example for younger people. One in three pensioners continues to work. I draw your attention to this statistic because it is important – one in three senior citizens is still working.

Of course we do have many people who are in difficult circumstances, facing loneliness, inability to take care of themselves, often serious illnesses. These people need on-going and good quality medical care and effective social support, including at home. We saw today examples of how home help can be organised.

The most important things here are care, charity and attention. We need to get volunteers involved in this work, support foster families that take on the job of looking after senior citizens and people with disabilities, and be active in developing home-based social support services.

The time is long since ripe in our society for a new and modern policy towards senior citizens. It has to be based on a differentiated approach and on creating conditions for ensuring both active old age and effective support for those who really do need help.

Implementing this new policy will require radical changes in the way the social protection, healthcare, and education systems work. We will need to adjust a number of sector-based programmes and put more focus on developing the non-state social services provision sector.

We cannot resolve all of these problems overnight of course, and so I agree with the State Council working group’s proposal to draft a common action strategy for senior citizens. Let me mention the main areas we need to take into account in this strategy.

Employment is a key issue. This is important for raising pensioners’ incomes and for giving them a feeling that they are needed and useful to society.

We have an ever greater need for experienced personnel. Many managers have begun to realise that the older generation can make a positive contribution to developing production and that we need to make greater use of specialists’ potential as experts.

It is true that not all senior citizens manage to keep up with the demands of the times. We need mechanisms for repeat integration into professions and re-training programmes for professions in demand on the job market. We also need programmes teaching computer and internet skills.

Let me stress too the importance of raising senior citizens’ financial literacy. Pensioners are active clients of credit organisations, but we cannot call them confident users of various banking products at this point. The reasons are clear: this is a sector that has undergone drastic change. Many senior citizens are probably not well informed about the possibilities today, accessibility, and security. In any case, this is an area that needs our continued attention.

It is imperative to adapt them to modern possibilities in terms of trade, catering, communications and transport. Let me stress that these organisational, informational, educational objectives must be resolved mainly at the regional and municipal level.

One of our priorities is maintaining and improving senior citizens’ health. Their need for medical services is 1.5 times higher than that of middle-aged people; they are hospitalized nearly 3 times as often. However, the medical service they receive often leaves something to be desired; much needs to be changed here. It is not okay when elderly people encounter indifference, spend long hours in queues, often simply to get a prescription, and thus lose a whole day.

These problems exist everywhere – I say this with regret. We must consider measures for encouraging healthcare authorities to treat senior citizens with attention and care, which should include more actively developing gerontological services and better training experts in this domain.

The next topic is organising their leisure time. Many senior citizens have the opportunity to work in their free time, but they also need to use the time they have outside of work. This includes creative pursuits, socialising and sports. The necessary infrastructure is already being built in many major cities – and not just within the social services system, but also in culture, education, sports and tourism. Civil society institutions and regional offices of the leading political parties are getting involved in this work. We certainly need to take advantage of their experience in drafting the Strategy.

Another priority objective is developing the social services market, increasing the quality of and access to such services. And the first thing I want to point out is the implementation of the law On Basic Principles of Social Service for Citizens in Russia. It comes into force on January 1, 2015 and stipulates many important organisational changes.

These changes need to be implemented wisely and carefully; the most important thing is not to ruin anything. What’s most critical is not to lower the quality and quantity of medical and social services, so that people who need constant assistance do not suffer.

Colleagues, I am asking today’s speakers, and those who will be speaking, to talk about interdepartmental coordination on this issue as well as about drafting of legislative acts. There should be quite a few of them: 49.

We will also need to discuss measures that need to be taken to get the businesses involved in the social services sector. The working group suggests introducing tax incentives for such organisations. Let’s look into this suggestion, as well as the working group’s other proposals, taking into account that it’s imperative to broaden participation by the nongovernmental sector in providing services to senior citizens. Currently, they account for just over 1% of the players in this area. And I want to once again stress the significance of volunteer initiatives to care for senior citizens. The regions and municipalities must provide active support for such initiatives.

Colleagues, I mentioned just a few areas (far from all of them) that require special attention. This is a very complex issue, as I said in the beginning, an issue of enormous scale. And we must do everything possible so that these challenges are resolved effectively and quickly, so that senior citizens can realise their plans, be healthy, feel comfortable, and receive the services they need. We must create conditions to ensure that their professional experience and knowledge are needed in society, so that retirement does not lower their social status, and on the contrary, provides them additional opportunities for an active and full life.

<…>

In conclusion, I would like to say the following. We are working on an issue that directly concerns a quarter of our nation’s population.

First of all, in any civilised society and state, it is always a direct duty of the government institutions and public organisations to take care of the elderly. And second, I want to stress that this concerns not only senior citizens, but the entire nation, people of all ages. Because when people see and know that the government cares about its senior citizens, they treat their country and their government differently; they even plan their lives differently, in the sense that there is a reliable system of state support and cares for people. And this always creates internal stability in any nation, in any society. This is no less important for us than any other nation.

So I want to thank the participants in the working group who worked on this issue and say that we do not feel that we have discussed everything here and that all the most effective suggestions have been made. We will continue working on these issues.

Thank you very much.

Instructions following meeting of the State Council and the Council for the Implementation of Priority National Projects and Demographic Policy

2023-04-18T17:55:46+04:00

Vladimir Putin signed a list of instructions following a joint meeting of the State Council and the Presidential Council for the Implementation of Priority National Projects and Demographic Policy that took place on April 21, 2014.

The Government of the Russian Federation has been instructed to work out and approve a long-term strategy for sustainable rural development in Russia with the aim of forming a single state policy regarding the development of agricultural areas and raising the living standards of the rural population.

The strategy should be directed in particular at improving the demographics and maintaining employment in rural areas, at developing the social and engineering infrastructure, cultivating ethnic culture, supporting agricultural cooperatives, developing agricultural and ecological tourism, and personnel training in rural areas.

In addition, the Government received instructions to make adjustments based on this strategy to the Federal Targeted Programme For the Sustainable Development of Rural Areas in 2014–2017 and through to 2020 and other state programmes pertaining to the implementation of this strategy.

The instructions given to the Government and the executive authorities in the Russian regions involve creating new modern rural residential areas with developed production and engineering infrastructure; encouraging young people to work in rural areas; organising transportation and developing a retail network for the sale of agricultural produce.

The Central Bank, together with Rosselkhozbank and other Russian credit institutions concerned, was given recommendations to develop in collaboration with the Government proposals regarding the introduction of new banking products to support small and medium-sized businesses, to assist in the implementation of social projects in rural areas and set up help centres in rural communities that would offer banking consultations to the residents.

Corresponding recommendations were also given to executive authorities in the Russian regions.

Joint meeting of State Council and Council for Implementation of Priority National Projects and Demographic Policy

2015-03-20T18:00:29+04:00

Vladimir Putin held a joint meeting of the State Council and the Presidential Council for the Implementation of Priority National Projects and Demographic Policy at the Kremlin.

Sustained development in rural areas were the main item on the agenda.

The President opened the meeting by announcing that he has signed an executive order on rehabilitation of the Armenian, Bulgarian, Crimean Tatar and German peoples and state support measures for their revival and development.

Opening remarks at joint meeting of State Council and Council for Implementation of Priority National Projects and Demographic Policy

President of Russia Vladimir Putin: Good afternoon, friends,

Before we start work, I want to introduce our new colleagues. They are Plenipotentiary Presidential Envoy to the Crimean Federal District Oleg Belaventsev, Acting Head of the Republic of Crimea Sergei Aksyonov, and Acting Governor of Sevastopol Sergei Menyailo.

We hope the new regions will take an active part in resolving the tasks before Russia, including implementing the measures that we decide upon today.

Let me take this opportunity to inform you that I have signed an executive order on rehabilitation of Crimea’s Crimean Tatar population, as well as the Armenians, Germans, Greeks, and everyone who suffered during Stalin’s repressions. This same executive order also sets out measures for the socioeconomic organisation of regions that were practically abandoned over these last years, if not decades, had no real legal status or recognition and rather than seeing any social development were only in a state of degradation. We will discuss this in more detail later.

Colleagues, we are set to discuss sustained development of Russia’s rural areas at today’s joint meeting of the State Council and the Council for the Implementation of Priority National Projects and Demographic Policy.

I know that there was much discussion during the preparations for today’s meetings, with talk of the need for a comprehensive approach to rural development rather than concentrating only on the production sector. We will take a closer look at this today.

The rural areas have tremendous economic, demographic, natural and historical-cultural potential. Our task is to put this to effective use for the country’s benefit, in order to give millions of our people a new quality of life.

As you know, we launched the agriculture sector national project 8 years ago. The project went on to serve as the base for a targeted state programme. These measures, based on a systemic and programme-focused approach, enabled us to achieve some change in a number of areas, develop agriculture, put in place the conditions for introducing modern technology and attracting investment, increase housing construction, and support enthusiastic and dedicated professionals and agribusiness directors.

People have stopped saying that investing in agriculture and rural areas is a waste of time. It seems to me that the ‘black hole’ they used to talk of is a description that has thankfully become a thing of the past now. We have shown through our actions that competently organised investment can indeed lead to active work and produce the desired results.

But you all know well that there are still a huge number of problems in the rural areas. What’s more, life seems to have frozen altogether and come to a stop in a good many places. This is true not just of villages that have been left deserted, but of places with quite sizeable populations too. The rural areas still lag a long away behind the cities. There are differences between the rural areas themselves too. In one and the same region you can find examples of promising, developing businesses in the countryside and others in a state of degradation.

The rural areas are home to around 37 million people today. In 2000, if you recall, the figure was 40 million. People continue to leave the countryside. Villages with ten or fewer residents now make up 24 percent of the total.

The cities have always been a magnet of course, and we see pretty much the same process happening everywhere else around the world too. But the countryside today is often pushing people into leaving because of no employment prospects, no housing, poor everyday living conditions, and a general sense of having no purpose and place to put oneself to use. It’s telling that the average wage in the countryside is slightly more than 14,000 rubles. People working at big and medium enterprises make a little more – 17,500 rubles. But this is only 52 percent of the average wage in the economy as a whole, which last year came to nearly 30,000 rubles – 29,900 rubles.

I believe that the regions, local government, and rural residents themselves should all take an active part in the efforts to transform life in the rural areas, and the federal authorities must put in place the financial and organisational mechanisms for reaching these objectives.

The State Council’s working group proposes drafting a long-term strategy for developing rural areas. What the working group’s members have in mind is the comprehensive development approach that I mentioned, including social development. I think that we really do need a conceptual document of this kind so that the authorities at all levels, public organisations, political parties and business all have a clear idea of the tasks we need to resolve together and act as a united front, so to speak.

Preparing this strategy will require us to analyse all the legislation concerning rural development and take into account that financial support for agriculture needs to be concentrated on main areas that will have multiplying effect. This includes regional development programmes, improving infrastructure and the insurance system, education, scientific research, and human resource training.

At the same time, we must not forget that the rural areas are not just about producing food for the country. They also represent traditional customs and way of life. They are part of our cultural wealth and the unique heritage of our vast country’s multi-ethnic people.

These and other important subjects were discussed recently at the congress of rural deputies in Volgograd. That event brought together people who know rural problems from the inside, know them better than anyone else. The congress’ recommendations must also be taken into account in drafting the strategy and getting it into its final shape.

Colleagues, we have a good number of important issues to examine today. Let me speak briefly about a few of them.

First is housing provision. The housing stock in the rural areas has increased by 20 percent since 2000. That would seem to be not too bad a result, but this increase has been above all due to individual house-building, which has increased by 36.2 percent. The thing is though, that a large share of these houses are actually country houses built by city dwellers. People living permanently in the rural areas account for only a minimal share of this construction.

More than 490,000 rural families are currently on the waiting lists for improved housing. How are we going to tackle this task? To what extent does the Housing for Russian Families programme take into account rural people’s interests? The Government will soon complete the drafting work on this programme. These are all issues that we will need to discuss today.

The second big issue is infrastructure. This means above all roads of course. We all know that lack of good roads is the main scourge of our countryside. This lack of normal roads deprives people of chances for improving their lives, erodes state support efforts in the countryside, and puts a brake on initiatives in every sector, whether education, healthcare or leisure. Plenty of decisions have been taken on roads in the rural areas, including using part of the money from the road funds for this purpose. I want to hear today about how the money is being used, how the work is going, how effectively the decisions taken are being implemented, and the overall prospects for resolving this issue of such crucial importance for rural development.

The next issue is the effectiveness of local self-governments in the rural areas. I know that this is hard work, not an easy job at all. This is especially true of the village administrations, where you usually have just a few people doing all the work, taking on the role of legal experts, economists and accountants all at once. For all the difficulties though, we see that some villages are doing well, while others are struggling to survive. In some villages the roads are cleared of snow in time so that ambulances or fire engines can get through, while in others the roads get buried under snow the whole winter long.

Clearly, this is not just an issue of money, which we know there is never enough of. I do note though, that the districts should exercise in full their right to transfer to the villages part of the revenue from federal, regional and local taxes and fees. In practice this is done extremely rarely, unfortunately. It is understandable: they haven’t enough money to meet their own needs, but abandoning the villages to their fate is not the solution either.

Economy-minded local and regional authorities should make it a matter of honour to ensure good order in the regions under their control. Much here depends on the heads of the local government bodies, on their being genuinely engaged in their work and on their ability to organise local people and get them involved in resolving pressing problems and support people with initiative.

Local government heads and their teams should always be available, always in touch with the people. Arrogance, snobbishness and big-boss caprices have never done anyone any good. This is all the more so in the rural areas, where everyone knows each other and people always value openness, concern, and working for the common good.

There are quite a few examples now of modern villages being built a long way from district centres, with developed production, engineering and social infrastructure. There are more and more such examples in the country today. Of course we must review and spread this experience. But one thing is clear even without studying the most advanced methods and experience, and that is that development is most successful in places where people care about their home and have active support from their local authorities.

Another important issue that is directly linked to the previous issue is business development in the rural areas. I could spend a long time listing all the measures already taken to support small and medium businesses, and I won’t do so now. The bigger problem is how well informed are people interested in getting into business about these measures? How accessible is the information, how successful have we been at getting it across?

This is a problem not just here in Russia but all around the world, but the fact remains that for an ordinary person to understand what’s written in some of our laws and bylaws, you’d need to translate it from legal language into everyday Russian. And you would need top-class professionals to do the translation, otherwise there’s no making sense of anything.

I think the local government bodies should have a person whose job it would be to explain things for and assist beginning businesspeople. Of course, many municipalities do formally have such people, but small business is not developing in the countryside, sadly. Not enough information is getting through to people. It is time for the regions to take this process under their control and organise effective work to support people who want to go into business.

I am sure that you receive a lot of letters, as I do, from people complaining about how impossible it is to get the needed information in good time. If this situation continues it will be very difficult indeed to develop the rural areas, and so I am drawing your attention to this bureaucratic problem, which is something that most certainly can be resolved.

Let me note too that we are not making use of the rural areas’ tourism and recreation potential. The Government must draft detailed conditions and mechanisms for bringing investment into this sector. I ask you to pay attention too, to systemic development of cooperatives and also to draft proposals for developing banking products designed for supporting SMEs in rural areas, including in the services sector, businesses such as hairdressers, cafes and small hotels. All of this is needed not just by rural residents but also for developing domestic tourism in Russia in general. At the moment though, it is impossible to get the needed loans for such projects. I think that we should make every effort to change the situation in this area so that lending goes not only to production but also to social projects, which can be very profitable, and I draw the attention of our colleagues from the Central Bank and Finance Ministry to this issue, since they work directly with the banks. It is also important to organise specialised consulting services for businesspeople.

Let me say a few words too about attracting young people to work in the rural areas. This is an area where we need to build a comprehensive support system that includes money to help make the move and get started, decent wages, housing provision and additional social services. I know that this kind of work is being carried out in many regions, and we need to look here to the examples of best practice. This approach proved its worth in full during the national projects’ implementation. It provided a good start and we should certainly support it further. I know that some areas and regions are organising this kind of work on their own initiative. This is the kind of experience we should replicate elsewhere, all the more so as it brings positive results and is bringing young people into the areas where such programmes are in place.

I ask the Government to review and summarise all of this experience and make it available to the regional heads in cases where this has not been done yet. I hope that most of our regions will find this experience useful. Overall, life in the cities is not always easy either, and if you offer young graduates attractive conditions in the countryside, they will make a conscious choice to go there.

Colleagues, these are issues that we have discussed before at previous meetings, councils and so on. Many measures have been taken and there are positive results that have been the subject of much discussion too. Today, I ask you to focus on the priority areas and problems that we must resolve in order to achieve sustained development in the rural areas.

No matter how much we talk about rural development it will never be enough. This is an issue we will keep coming back to, and we will be monitoring the situation constantly.

<…>

Rotation in State Council Presidium membership

2015-03-20T18:00:29+04:00

Vladimir Putin signed Instruction On the Russian Federation State Council Presidium, in accordance with which a rotation in the Presidium’s membership has been carried out.

The President also signed Executive Order On Amendment to the Regulation on the Russian Federation State Council, approved by Presidential Executive Order No. 1602 of September 1, 2000.

The Executive Order raises the number of State Council Presidium members from eight to nine.

Prime Minister of the Republic of Crimea Sergei Aksyonov has joined the new State Council Presidium.

Meeting of working group to monitor implementation of State Council resolutions

2015-03-20T18:00:29+04:00

The working group to monitor the implementation of resolutions of the State Council and its Presidium held its first meeting, chaired by Presidential Aide Igor Levitin.

The working group considered the implementation by the Government of instructions to enhance the timber industry’s efficiency issued by the President after the State Council Presidium meeting in April 2013, held in the capital of the Republic of Buryatia, Ulan-Ude.

Reports on implementing the instructions were made by representatives of the Natural Resources and Environment Ministry, Economic Development Ministry, Finance Ministry, Transport Ministry, Interior Ministry and the Prosecutor General’s Office.

The discussion involved Chairman of the State Duma committee on natural resources, their use and the environment Vladimir Kashin, member of the State Council, head of the working group, Novgorod Region Governor Sergei Mitin and business community representatives.

The discussion focused on issues pertaining to the timely drafting of legislative acts directed at enhancing the efficiency of the timber industry.

The meeting participants noted the poor quality of legislative work in a number of federal ministries, which lead to the failure to meet the deadlines set by the President in his instructions. A suggestion was made to federal executive authorities to work to resolve all disagreements on draft legal acts to ensure their speedy consideration by the Government.

A report to the President will be made based on the outcome of the meeting.

List of instructions following State Council Presidium meeting on family, motherhood and childhood policy

2015-03-20T18:00:31+04:00

Vladimir Putin signed a list of instructions following the State Council Presidium meeting on family, motherhood, and childhood policy on February 17, 2014.

The Government, in its work on drafting the family policy concept and implementation plan, has been instructed to develop a family-oriented state information policy that promotes stronger family relations based on families with children, take measures to reduce poverty among families with children, including by creating greater opportunities to combine professional and family responsibilities for women with children under the age of three and parents of children with disabilities, develop pre-schools and day care services, and put in place social support measures for families with children.

The Government has also been instructed to review how effectively the action plan for implementing the 2012–2014 National Children’s Interests Action Strategy has been carried out, and draft a new action plan for 2015–2017.

Instructions issued jointly to the Government and regional executive authorities concern, in particular, raising the quality of federal and regional television and radio programmes for children and developing the children’s film industry.

State Council Presidium meeting on family, motherhood and childhood policy

2016-03-31T16:31:25+04:00

Vladimir Putin held a State Council Presidium meeting on family, motherhood and childhood policy, in particular with regard to implementing the May 2012 Presidential Executive Orders.

Taking part in the meeting were Federation Council Speaker Valentina Matviyenko, Deputy Prime Minister Olga Golodets, Presidential Aide Igor Levitin, the heads of federal ministries and agencies, and a number of regional governors.

Before the meeting began, Mr Putin visited the Cherepovets Steel Mill (Severstal), where he discussed support for motherhood with the plant’s workers.

* * *

SpeechattheStateCouncilPresidiummeetingonfamily, motherhoodandchildhood policy

President of Russia Vladimir Putin: Good afternoon, colleagues.

First of all, let me thank the State Council Presidium for addressing this subject of state support for families, motherhood and childhood. The improvement in the demographic situation over recent years makes this a key issue and something we are working on, and so it is always important to keep it at the centre of our attention.

I visited the steelworks just before this meeting and spoke with the employees there. Overall they are positive in their assessments, but they nonetheless have some questions and particular concerns, and would like to see some adjustments or additions. I hope that we will have the chance to discuss all of these matters today.

Putting in place the right conditions for an increase in births, protecting motherhood and childhood, and strengthening the family as an institution are priority social tasks for Russia. They are crucially important for our country’s present and future and require systemic and coordinated work from the authorities at all levels, as well as from the public, from our citizens. This work must have clear and common objectives and a clear understanding of how we will achieve them.

It is timely that the State Council Presidium is discussing these issues, timely too because the Government is currently in the process of drafting a family policy concept document.

”Putting in place the right conditions for an increase in births, protecting motherhood and childhood, and strengthening the family as an institution are priority social tasks for Russia.“

The main task for the state in this area is to create conditions for the stable wellbeing of families. Several factors are involved here: primarily these are the family income, housing, accessibility and quality of education and healthcare, the physical and spiritual health of children and adults, and many other things.

This principle should form the foundation of the concept and the state policy on families. To achieve this we need to change significantly the objectives of family policy as a whole. Until now, it has been directed mainly at those who have found themselves in a difficult situation and need social security.

This is undoubtedly a very important aspect of our work that needs to be continued, and it will be continued. However, the state should create conditions for raising the living standards and the quality of life for regular Russian families, to raise their prestige in society, bearing in mind that, apart from the state, it is primarily the family that should be responsible for children’s lives.

I would like to focus on a number of issues that require our special attention and discussion. Much has been done lately to raise the importance of family, to establish its leading role in bringing up children. We have instituted special state and regional awards for large families.

We are especially happy to note that the birth rate continues to grow. Last year – we have cited these numbers on numerous occasions – 1.9 million babies were born, which is almost 5,000 more than in 2012. For the first time since 1991, Russia has seen a natural population growth. This is the result both of a decline in the death rate and an increase in the birth rate.

It is of course wonderful when children are born, and it is important for them to be surrounded with love. They should grow up healthy and receive a solid education so that they can apply their talents and abilities as they enter into adulthood and start families of their own.

The media, political parties and public organisations should take an active part in promoting the values of responsible parenthood and healthy living. There is a huge scope of work for them here. I suggest discussing today the efforts required to develop such a family-oriented information and educational policy.

The key issue is to raise the incomes of families with children. This is directly linked to economic development and the creation of new production facilities and, consequently, high quality jobs. This is our long-term priority that we need to focus on now.

Primarily we need to create conditions for parents to have active careers. We have to propagate the efforts of those employers who provide jobs to women who have young children and to parents of disabled children.

This is not only support to families with children; it is also an investment: a company’s reputation depends to a large extend on its attention to employees’ needs. By the way, here in Vologda Region, in Cherepovets, families with children receive various types of support.

Thus, at Severstal, which we visited earlier, pregnant women either are relieved or are redirected to light labour, while their average salary is retained. The women themselves were happy to report this today. PhosAgro runs a similar programme.

”The main task for the state in this area is to create conditions for the stable wellbeing of families.“

Another acute problem is the lack of preschools. Thus, today less than half of all preschools in the country have facilities for children under the age of three. We know what this leads to: we do everything to help mothers with continuing education or job training, adopt measures to assist in their employment, and all these efforts go to waste because they cannot find childcare facilities. Possibly, we will have to consider extending social benefits for women from 18 months to 3 years after childbirth.

It is always best to create proper conditions, but they have to be such that people can get good jobs and receive higher pay rather than depend on social benefits. However, this should be done properly, so that people have true social security. If, however, we cannot properly organise their employment and provide preschool facilities, we should consider raising social benefits. Preschools are currently unavailable for over 1.5 million children. We have to develop the system of childcare for infants under the age of three. This calls for supporting relevant business projects and helping volunteer groups to participate in these efforts.

Now over to preschools for children aged three to seven. This used to be one of our most acute issues, and it has not been fully resolved yet, though we are working on it. Overall, as of January 1, 2014, 425,000 children nationwide were on the waiting list for preschool childcare. The waiting list is getting shorter, though not as fast as we would like it to. However, we are making some progress.

Nevertheless, the problem remains in a number of regions. I would like to ask the heads of those regions to pay special attention to this issue. The situation is especially difficult in 17 regions of the Russian Federation, where the number of children on the waiting list for preschool childcare exceeds 10% of the overall number of children aged 3 to 7. I will not name those regions now, as I am sure their leadership is aware of the situation.

We also need to analyse the effectiveness of social benefits for families with children. As I have already said, these benefits mainly come in the form of monetary allowances, which are usually very modest and have little impact on the family budget.

I believe we should consider the proposal made by the State Council working group to increase allowances for families with children based on a social contract. To be precise, I would actually suggest expanding the population groups that are eligible for such benefits rather than raising the allowances themselves.

Another issue is assistance to large families. Last year 65 regions of the Russian Federation launched an absolutely new measure alongside the maternity capital programme. Thus, on the birth of their third and every consecutive child, a family receives an allowance of about 7,000 rubles a month until that child reaches the age of 3.

In 50 regions of the Russian Federation that have an unfavourable demographic situation, the allowances are co-financed from the federal budget. Meanwhile the criteria for such allowances differ: in some regions, they are based on per capita family income, in others – on an infant’s subsistence rate in a given region. We need to discuss which of these approaches is more justified and help large families to make better use of government aid.

Yet another issue is family instability. Every year some 51,000 parents in Russia are limited in their parental rights, or are totally stripped of such rights. As a result, almost 62,000 children are orphaned while their parents are still alive – we call such children social orphans.

We have done much last year to resolve this, to place children in foster or substitute families. However, our main job – and I am certain you will agree – is to reunite the children with their natural parents. This is not an easy job. Sometimes it is easier for the social services to isolate such children from their dysfunctional families. However, we should do everything possible to help the family, to help people who have found themselves in a difficult situation to get back to normal life.

A special federal foundation has been functioning since 2008, which provides support for children who have found themselves in difficult situations. I would like to hear what the regions and municipalities are doing in this respect.

I would like to say a few words now about non-commercial organisations that support families with children. They are assisting in the parents’ education and employment; they help large families and take part in resolving the issues faced by children with disabilities. These people deserve every respect for their selfless efforts, and the government should certainly support them in their honourable work. Let us consider what local, regional and federal authorities can do here.

Finally, there is a number of topics on our agenda that deal with housing for orphans and support for parents of disabled children. We need to consider all these issues today – this is something our citizens have to deal with practically on a daily basis.

”The key issue is to raise the incomes of families with children. This is directly linked to economic development and the creation of new production facilities and, consequently, high quality jobs. This is our long-term priority that we need to focus on now.“

<…>

Vladimir Putin: Thank you very much.

There is a good reason why we are holding this meeting here in Cherepovets, in Vologda Region: Vologda Region Governor Mr Kuvshinnikov is the head of the State Council working group on this particular issue.

I would like to thank him and all those who took part in this work. I have seen the documents you prepared: you approached the job with great care, considered the current situation in every detail and came up with interesting proposals. Today we have gathered to consider all these proposals, which we have touched upon in the course of our work. Everything we speak about today was discussed during the preparations for this meeting.

I do not intend to go through everything we talked about one more time. I would only like to note that our joint efforts to resolve demographic issues, to strengthen families, to support motherhood and childhood do not end here with this meeting. Mr Savchenko [Belgorod Region Governor] has just told us why.

We are in for some hard times considering the fact that percentage wise, the number of Russians who will be soon entering adulthood and starting families of their own will be smaller than in the previous period. Fewer people were born in the 1990s and this creates certain problems.

Therefore, some years ago we started formulating our policy, suggesting various ways of stimulating the birth rate. Our task is to find further solutions to this problem, because it has definitely not been resolved yet.

Take, for instance, the situation with preschools. We should definitely support those families and those women who want to both raise children and carry on with their careers. A number of factors motivate them: young people do not want to lose their skills, they want to retain their place on the labour market and to progress in their careers.

However, there are other concerns here that we should not disregard. Unfortunately, despite all our efforts to encourage families to have children, the birth of a child is a heavy financial burden for a family. I am sure you are all aware of this.

Some 20% of all children live in families that regularly have to overcome such problems as buying new clothes and footwear, getting access to medical services and paying for medicines. 16% of children live in families that struggle even with meeting their nutritional needs, and a large number of children now live in families that have housing problems. These are all fundamental conditions for the normal development of society and family, and children in particular. We need to keep this in mind.

This does not mean, of course, that all we should do is take money from the federal budget and allocate it blindly to resolve these issues. Why not? Because this is often not the most efficient solution. We must bring together the efforts of municipalities, regional and federal authorities, as well as the business community, the way it is done here at Severstal and at other companies.

We must coordinate our efforts to look for efficient solutions, so that the public can get involved in this work as well. I have every reason to believe that we can do it, as we have proved in the past. As I already mentioned, some seven or eight years ago any sort of progress in this area seemed impossible.

Nevertheless, the situation has changed, and we are making headway, even though it may be slow. We should not cease our efforts; we must consider all the proposals made today and those that the governors came up with as they prepared for this meeting, and move forward.

Thank you.

State Council meeting

2016-02-09T17:51:01+04:00

Vladimir Putin chaired a joint meeting of the State Council and the Commission for Monitoring Targeted Socioeconomic Development Achievement Indicators of the Russian Federation.

The main issues on the meeting's agenda were measures to implement presidential executive orders on Russia's socioeconomic development. The meeting participants discussed three issues in particular: the development of education, modernisation of the housing and utilities sector, and increasing labour productivity.

* * *

Speech at a joint meeting of the State Council and the Commission for Monitoring Targeted Socioeconomic Development Achievement Indicators of the Russian Federation

President of Russia Vladimir Putin: Members of the State Council, friends, colleagues,

This is the final State Council meeting in 2013 and, as usual, we will talk about the year’s results. Above all, we will review the situation in the most important sectors, such as education, housing and utilities, as well as modernising the Russian economy and improving its efficiency. I propose to exclude healthcare, also a vitally important sector, from today's discussion. We will look at it at a separate meeting later this week.

I want to note that overall the federal and regional authorities are coping well with the work on fulfilling the relevant instructions. I spoke about this in the recent Address to the Federal Assembly.

However, life in general is not changing for the better, or the changes are too slow, as we know all too well. Members of the public regularly point this out during our meetings. We must conduct a detailed analysis to understand what is wrong, where the problem lies, and what needs to be done to make the situation improve more rapidly.

I would like to draw the attention of the Government, regional authorities and state agencies to a system-wide, chronic problem. We are still witnessing the situation when the key legislation or document has been adopted but regulations, departmental acts, and instructions describing a specific mechanism, are not prepared on time. As a result, no progress is made. I ask you to make good on these regulatory debts as soon as possible.

Next. Not all regions are actively involved in the work on the implementation of the 2012 executive orders. In some cases, this has happened for objective reasons, while in others there are clear omissions and mistakes. I ask all colleagues in the regions to take note of what I just said. I emphasise again, each of the areas identified in the executive orders requires responsible and coordinated efforts of all levels of government: federal, regional and municipal.

I ask the ministers and regional leaders to focus on the problem areas in their reports, the sectors where there has been no tangible progress so far, including due to the lack of proper interaction, where the efforts of the federal and regional authorities are not coordinated as well as they should be and do not complement each other.

Finally, we have not yet established proper public control over the work of state authorities. We talk a lot on this subject, but progress has been very slow indeed. This means that the Government, state agencies and regional authorities must implement an effective awareness-building policy, explaining the essence of adopted decisions, discussing them openly with the public and engaging the public in the early stages of the decision-making process.

Let's go over some specific topics. I will start with the housing and utilities sector and the housing problem – the most acute and painful issue, and one that we can say is chronic in our country.

Today I would like to say a few words about resettling people living in dilapidated properties. Let me remind you that in line with the executive orders, the current resettlement programme applies to properties recognised to be in an emergency state as of January 1, 2012. The deadline for this work is September 1, 2017. When we set these objectives, we were confident that this task can be completed by the deadline. What is happening in reality? The situation in the sector is abominable. Only four percent of the 2013 plan has been fulfilled: a little over 1,500 people have been resettled out of the planned 42,000.

Colleagues, this is simply unacceptable. This is not serious work. You see, this is a very important, a vital matter for people. What does it mean to live in an emergency building? We are legally obliged to resettle the residents of emergency housing. I know the scale and the numbers can be different, but you are aware of the real situation. It is unacceptable: people spend decades living in barracks and various adapted premises. We discussed this issue at a meeting in Elista and agreed to establish a reserve of rental housing and set up a system of non-profit rentals, but even the legal framework for this area has not been adopted.

I want the regions and the Government to explain what has prevented them from organising the work on resettling residents of emergency buildings and what decisions must be adopted urgently. We have even agreed on the funding that will be allocated for this purpose. I have said a hundred times that we must be able to concentrate financial and administrative resources on the most important issues.

Another question concerns the improvement of housing conditions for large families, including through the allocation of land plots for construction. This idea was first proposed by Mr Medvedev. What happens in reality? There are different local approaches to the provision of land; some localities make active and intelligent use of this mechanism and achieve good results, whereas others seem to deliberately drag out the necessary decisions or submit proposals that make no sense at all. It is completely pointless to allocate land for large families somewhere in the middle of nowhere, without any infrastructure. They can’t even sell it. In addition, large families often don’t have enough money to build their own house. As a result, their housing situation does not improve at all. This summer instructions were issued to work out alternative mechanisms for addressing large families’ housing problems. I hope to hear today what has been done in this area.

Now, let’s move on to education. I would like you to report today on achieving targets for raising the wages at all levels of the education system. It is true that there has been some progress. In secondary education, the average wage (27,556 rubles) is currently at 95 percent of the average for the economy. We can say that this target has been nearly reached.

The results are more modest with regard to additional education, but there has also been some improvement. Preschools are doing a little better than additional education with 93 percent of the average wage, which is also not bad. In universities and the entire higher education system, the figure stands at 35,879 rubles, or 124 percent of the average wage for the economy.

I want to emphasise again that the growth of wages and an increase in budget expenditure for education should be accompanied by structural changes in the budget network. We have already said this many times; everyone understands this, everyone is nodding – yes, this must be done. And it is being done, but on an unacceptably small scale. We need a solid system for teachers’ professional development and a stronger material base of educational institutions.

Particular attention should be paid to increasing the availability of places in kindergartens. It is important to have a clear idea of the current and future needs in the development of the preschool network. Let me remind you that the online kindergarten registration system will be launched on January 1, 2014, and from April 1, 2014 all municipalities will transfer to a single information system.

In addition, we must take another look at the availability of places in secondary schools. As I said in the Address to the Federal Assembly, the number of students in Russia’s secondary schools will increase by one million in the next five to six years. Yet even today almost half of city schools work in two shifts. We must assess the scale of this issue and potential problems, and propose effective solutions.

It is essential to restructure higher education to meet the needs of the economy and the challenges facing individual regions and the country as a whole. There must be a wide range of mechanisms for cooperation between business and educational institutions, so that future professionals can gain the necessary skills directly at the companies that may employ them in the future, and those who are working already have the opportunity to upgrade their skills, change their profession and even their field of activity, if necessary.

I also believe we should consider reviving mentoring programmes. Many of those who are successfully employed in manufacturing have been through this school, and now we need modern forms of experience exchange in the workplace. Of course, this should not exist on paper only. We should create a system of strong incentives for mentors, and it should be effective modern mentoring, the transfer of experience and specific skills.

I would like to emphasise that the training of highly skilled workers and engineers for the real economy is not someone's corporate, private responsibility but a national necessity, one of the main preconditions for a significant increase in productivity, which, as you know, is one of our key development challenges, as we have said many times.

We have often stated at different venues that the Russian economy must be competitive. What does this actually mean? Along with the high standard of training, it involves the improvement of working conditions, replacement of hazardous industries, widespread use of new technologies and, as a result, changes in the structure of the economy, increasing its efficiency, the growth of high quality jobs and higher wages – all of this is called intensive development, to use an economic term. Let me remind you that the volume of investment in the Russian economy must reach at least 25 percent of GDP by 2015, and 25 million highly productive jobs must be created by 2020. Current data show that so far these plans are not being implemented as we would like.

Yes, we have growth: according to Rosstat, investment in fixed capital grew between January and November. Overall, the figure seems decent: 17.8% of GDP. But that’s still 0.8 percent less than last year. Granted, we haven’t included the calculations for December yet, but it is clear we will not have significant growth this year, and we may even have a slight drop: slight, but nevertheless, a drop.

Most importantly, all these priority areas of work are not well reflected in the programmes being implemented at every level of government or in investment plans at companies with state participation. We talk about priorities, but later, as I said, these priorities often fail to be reflected in programmes at ministries and agencies, in regions and state corporations. The one should not lag behind the other; otherwise, we will not achieve any results. Clearly, we are lacking precision, clarity and attention to detail, as well as step-by-step roadmaps to increase labour productivity in the Russian economy. I am referring to effective incentives for businesses to renew and modernise production, state support measures for patenting and certifying new products, and specific mechanisms for increasing employment in small businesses, particularly in single-industry towns.

I believe it is imperative to reinforce this list of measures with a separate Government act and assess the progress in their implementation at least once every six months.

In addition, I am counting on the active implementation of the measures I spoke about in the Address to the Federal Assembly: incentivesfor creating the infrastructure in industrial and technical parks and business incubators. Colleagues, I ask you not to overcomplicate this. It is a concrete measure, we have discussed it together and it can be effective, but it needs to be implemented.

I suggest getting actively involved in creating priority development areas in the Far East and in Eastern Siberia with special conditions for organising non-extractive production. I feel this is the most important task for supporting business activity and creating new jobs.

<…>

Colleagues, let’s wrap up. In conclusion, I would like to say the following.

There are very many of us in this hall. But that is to be expected since this is our concluding, finalmeeting, a discussion summarising the outcomes of this year, an analysis of what has been done in the most important areas of our work.

But although there are many of us here, this number is insignificant compared to the population of our country. We are only a few people compared to Russia’s population of nearly 145 million – 143 million, to be precise. Yet a great deal in our country’s progress and our people’s lives depends on the individuals gathered here today.

We have discussed the most critical areas of our work. I want to repeat again: I would very much like for this not to be just an obligatory meeting where we talk, nod our heads, reflect and go our separate ways.

First of all, I ask the Government and Presidential Executive Office administrationsto jointly prepare a final document of our meeting today.

Second, over the course of the upcoming year, we will return to individual aspects of our work, but there is one I want to highlight especially: the housing programme. After today’s suggestions are formulated and we have laid out methods for addressing the challenges we face, I ask that we meet again in May, in this formator a slightly more restricted one, and discuss what has been done to implement today’s suggestions.

We will hold our first meeting on this issue in May, and the second in November. This will happen in 2014. If I see that the state of affairs we have in some places at present continues, for example, if 25 percent of the federal funding allocated to the housing problem is not being implemented – what does that mean? How are we working? Everywhere else, we hear that there is not enough money – too little here, not enough there.

If this funding returns into the federal budget, if it isn’t used for the intended purpose, if it is redistributed again, the programme will remain at a standstill. Meanwhile, this is one of the most pressingissues in our country. So in May, we will see what has been done and how, and then meet again to discuss this matter in November of next year.

I want to tell you that, as they say in these situations, it’s nothing personal. Just look, almost nothing has been done in Stavropol. It’s understandable that a new person has become Governor and he had some health problems, so he had to take a lot of time off work. But what about other places? What is going on in other regions?

We will look at what has been done in May, and then calmly return to it in November and analyse who has been working, and how, on an individual basis.

I want to repeat: nothing personal! It’s just that I need for this work to be done, for the objectives we have set and articulated to be fulfilled. This is true for both the federal and regional authorities. And at the end of November, we will make certain decisions, including administrative ones, where necessary. I am just asking you to keep this in mind.

Thank you.

State Council meeting

2013-10-04T16:54:45+04:00

Vladimir Putin held a State Council meeting on measures to improve budget spending efficiency.

Speech at the State Council meeting

President of Russia Vladimir Putin: Good afternoon colleagues, members of the State Council.

Let’s begin our work.

Today, we will discuss one of the key issues and fundamental areas of government, an issue that concerns every level of government, from federal to municipal.

I am referring to the efficiency of budget spending, how efficiently we spend the taxpayers’ money, our people’s money, and how effective this spending is in addressing the country’s economic and social challenges.

In 2012, Russia’s consolidated budget spending exceeded 22 trillion roubles [around $700 billion]. This is 37 percent of GDP. As we can see, this is a lot of money.

Our budget’s financial possibilities have indeed grown considerably stronger. At the same time, we know that there are problems too, especially with the quality of budget spending.

”We are radically changing the principles for the budget’s formation. The 2014 federal budget will be formed on a programme basis. The regional and municipal authorities also now have the right to use the programme principle to form their budgets for 2014. Our task is to improve financial management at every level of government.“

This was why we passed laws of a conceptual nature that established new types of state institutions and improved financing mechanisms. We are modernising the state procurement system. This summer, amendments were made to the Budget Code that will continue reform of state institutions and improve financial oversight of state spending.

Finally, we are radically changing the principles for the budget’s formation. This is something we have discussed over a long period of time and have worked on at length. The 2014 federal budget will be formed on a programme basis.

I note that the regional and municipal authorities also now have the right to use the programme principle to form their budgets for 2014. I call on our colleagues in the regions to make active use of this method and develop new, more open and effective budget policy approaches.

Let me make it clear to everyone present that our task is to improve financial management at every level of government, and so we will discuss this issue too, today, in this expanded format.

We have repeated over and over that the budgets are executed in chaotic and very uneven fashion. As the year comes to a close we see a great frenzy of last-minute activity, a last-minute rush to spend available money and resources. Any change here has been very slow, just the tiniest steps.

The 2011–2015 Education Federal Targeted Programme, for example, was executed at 16.8 percent of the target over the first seven months of this year, and the Information Society state programme was executed at 3.5 percent.

This is not a new problem. I must confess that the previous Cabinet had to address these very same problems.

There are some targeted programmes and planned activities that are not being carried out or financed at all. They exist only on paper and the money earmarked for their implementation is just so much deadweight for the budget to carry.

For example, as of August 1, 2013, the Raising Road Traffic Safety and Clean Water federal targeted programmes had not been implemented.

Many budget items and programmes are unclear and amorphous. Instead of setting clear objectives, they are full of vague bureaucratic wording such as ‘improve’ and ‘enhance’. This is all far removed from actual life and, we must admit, is simply no good at all.

The programme to set up a property cadastre was carried out over a 6-year period from 2006 to 2012. Forty-two billion rubles of taxpayers’ money were spent on this project.

The programme has been completed now but the property registration system is still far from ideal.

We sometimes encounter cases when the law is blatantly ignored. Let me cite a few figures.

”All of the state agencies need to set the fundamental goal of ensuring maximum efficiency of budget spending and achieving the best possible results based on the existing financial possibilities.“

In 2012, cases of failure to comply with laws on state and municipal procurement involved a total of more than 130 billion rubles. Cases of violating budget laws involved a total of 187 billion rubles.

Let me make it clear that we are not talking about theft or corruption here. This is simply a lack of proper financial discipline.

Checks resulted in 27,000 officials being sanctioned for these violations. Twenty-seven thousand – that is a huge number.

All of this points to the systemic nature of these problems.

In this context, I propose that we discuss today the possibility of toughening liability in the sphere of state finances. This would extend to both personal responsibility and the responsibility of state organisations.

This alone is not enough of course. We must continue our work to change the actual principles and ideology of the budget process and motivate officials at every level of government to be frugal with budget funds and use them for economically justifiable needs that bring definite final results.

In this respect I want to highlight the following main points.

First, all spending must be justified and carefully calculated at the programme and budget-planning stage.

At the same time, I think that our state and municipal budget planning must be based on a set of budget rules that reflect the optimum ratio of budget spending to final results and take into account regional best practice and each region’s needs. We already have experience in this area.

I ask the Government to work on this matter and draft the relevant proposals.

I note too, that the new law on the Accounts Chamber came into force on October 1, 2013. The Accounts Chamber can now carry out comprehensive analysis of state spending from the planning stage to the evaluation of spending efficiency. I ask Ms Golikova, the Accounts Chamber’s new head, to make active use of these new powers.

Second, budget investment is a separate issue and we have a lot of work to do on this front. We have drafted a large-scale programme for capital construction using budget funds. But there are also problems in this area, as we know. This concerns above all costs increasing from the original estimates as the projects progress.

Furthermore, spreading resources too thin and the effect of various budget restrictions create a situation in which facilities that should have taken a year or two to build end up turning into never-ending projects that go on for years. I ask the Government to do a stocktaking of capital construction projects and concentrate resources on facilities that are close to completion, as we did in 2008–2010. We need to concentrate on projects that are close to being commissioned.

”We must continue our work to change the actual principles and ideology of the budget process and motivate officials at every level of government to be frugal with budget funds and use them for economically justifiable needs that bring definite final results.“

I ask you also to work through decisions on setting construction costs for each capital construction project so as to avoid unjustified cost increases in the future.

Third, there is a lot that we can do with the way state and municipal agencies work in order to make the budget spending that goes into them more effective. Depending on the region, one and the same service in state and municipal agencies can differ widely in price, and this often creates the impression that the final price is just decided on a whim. It is not clear what the budget is paying for and into whose pockets the money is going. At the same time, agencies try to shift extra costs onto consumers.

I propose that we look at this issue today and think about how to spread broadly and swiftly best practice in providing state and municipal services. As I said, many regions already have experience here, and we should make use of and spread this experience.

Next is the issue of public procurement, another serious matter. What we see sometimes in this area is certainly cause for dismay, and the public is quite justified in raising questions.

According to the Control Directorate’s data, in 2012, more than 3.4 million state and municipal procurement orders worth a total of around 8 trillion rubles were placed on the official Internet site. Monitoring of more than 10,000 procurement contracts showed that more than 60 percent of them were carried out with violations.

We have been working together with the Government and the deputies on a replacement for Law No. 94, which I think did play a positive part in resolving a number of problems but also had a number of drawbacks. We have put a lot of time into drafting a new system, and on January 1, 2014 it will take effect as the new federal law On the Contract System. It will radically change the whole public procurement system, from planning and placing orders, to executing contracts.

But I remind you at the same time that this law will not work unless the required bylaws are passed in time. I therefore ask the Government to ensure that all of the required documents are ready for issue by December 1. The Government already has experience here. We know what this law is about, what its provisions entail, and so we need to make sure that all of the bylaws are ready to be issued as soon as the law is adopted. We also need to organise consultations with specialists involved in public procurement.

We will hear a report from the Economic Development Ministry today on how this work is progressing.

Fifth, we need to make more active use of public oversight in the budget’s work. This is not just expressing a desire. Provisions on public oversight and open publication of information on public procurement contracts are enshrined in the law on the contract system.

”All spending must be justified and carefully calculated at the programme and budget-planning stage. Our state and municipal budget planning must be based on a set of budget rules that reflect the optimum ratio of budget spending to final results and take into account regional best practice and each region’s needs.“

As we know very well, when everything is open and transparent you can see immediately things such as excessively high prices and strange or sometimes completely nonsensical conditions for public procurement contracts. I cannot resist giving one example. In Smolensk Region, they placed an order for purchasing school laboratory equipment for a value of 46 million rubles. But listen to this, the condition for the tender was that the equipment had to be capable of working at high-altitude conditions. High altitude conditions in Smolensk Region? What mountains do they have there? Maybe there is a kind of logic to these demands, but it is certainly not clear from first glance.

We must achieve a radical improvement in the whole public procurement system. The Federal Anti-Monopoly Agency and the Accounts Chamber’s work are not enough here. I want to make it clear to you that all of the state agencies need to set the fundamental goal of ensuring maximum efficiency of budget spending and achieving the best possible results based on the existing financial possibilities.

You all know that we are working in difficult conditions today. The global economy is still having problems and is recovering very slowly. Of course this affects our economy too. This means that we are carrying out our objectives in difficult conditions. In this situation the demands on your work must be even higher, and you must be even more accountable before the public.

In conclusion, let me say a few words about something not directly related to today’s discussion.

This is the matter of implementing the instructions that follow from the State Council meetings. This issue has been raised in the past, and I must say frankly that we have yet to see an improvement in the situation. I will not go through the whole list now, but I want to mention a few of the subjects we have discussed and that are clearly important for the country. They include decisions on the management of forests and land resources, development of the Far East and Trans-Baikal regions and a few other issues.

I will not go into depth on the matter right now. I just want to say that we have set up a special working group to oversee the implementation of the State Council and State Council Presidium decisions. I ask the State Council secretary to include the working group’s report on the agenda for one of the meetings in 2014.

Let’s now turn to the subject of today’s meeting.

<…>

Vladimir PUTIN: Colleagues, it is not by chance that we are meeting today, at the start of October. There are several reasons for getting you all together to discuss raising the efficiency of budget spending.

First, we need to analyse how Federal Law No. 83 is working. We will come back to this. There are matters to discuss here.

Second, we are moving away from Law No. 94, which I mentioned, to the new contract system next year. I want the regional heads to note this, be ready and make all of the necessary preparations. The same applies to the Government.

”We have drafted a large-scale programme for capital construction using budget funds. I ask you also to work through decisions on setting construction costs for each capital construction project so as to avoid unjustified cost increases in the future.“

Finally, we have submitted the main economic law to the State Duma: the draft budget for 2014 and the planning period. This is very important. Seeing as we are working in complicated conditions, as I said before, it is for all of these reasons that we decided to discuss the issue of budget spending efficiency.

Now, as we conclude our work, what I want to note is that, as the parliamentary party faction leaders said, we should turn the heating on when it gets cold, and not on the date the instructions state. This is obviously true and it is a fair comment. In this respect, I want to make it clear to the Government and the regional authorities that we have many rules, regulations and instructions from earlier times that are a hindrance in our work and are completely out of touch with today’s demands.

I ask you to work together with members of the expert community. The Government and the Presidential Executive Office have expert departments in these areas. You need to get everyone together and, with the heads in the relevant sectors, do a detailed stocktaking of these rules and regulations. Then you must make a very thorough analysis of how effectively Law No. 83 is working. As the Governor of Ulyanovsk Region said quite convincingly today, and I cannot but agree with him, there is a view that many of the decisions made, including within this law’s framework, should work effectively but are not working as well as we hoped. Either this is because the needed adjustments have not been made in time through bylaws, or because decisions are made that obstruct the law’s implementation. I will not go into the details now.

Regarding making the social sector more efficient, which was something the leader of the Communist Party faction spoke about, I have to agree here too. There is a lot of work to be done here and a lot of debate about how to achieve greater effectiveness, but it is absolutely clear that we do need to do something here. I note that we tax the oil and gas sectors just as much as other countries do. Moreover, unfortunately, compared to last year – the figures need to be checked but the fact remains even so – the trend is that our main oil companies and the oil sector overall are seeing a decrease in profits from 13 to 11 percent this year. As I said, the figures need checking, but this is the preliminary analysis, and so we need to monitor this situation closely and not undermine the sector, not undermine its investment potential.

As for Norway and other northern European countries, their main competitive advantage is not in oil and gas like Norway, which does have these resources and puts nearly all of its oil and gas revenue into reserve funds. The northern European countries’ main competitive advantage is that they have effective state institutions. This is the main competitive advantage of successful countries. This is something we should definitely reflect on.

”We need to make more active use of public oversight in the budget’s work. Provisions on public oversight and open publication of information on public procurement contracts are enshrined in the law on the contract system.“

On the subject of public-private partnerships, this issue was raised today too, by the Omsk Region Governor I think. This is a very important area and we need to look at it again very carefully because when projects are carried out using not only state money but also money from private companies and even from the public, everyone who invests their resources in it begins to track very closely how these resources are used and spent. This makes these kinds of partnerships very important even just in terms of oversight over the progress towards the set objectives, and of course it helps to raise effectiveness.

We must focus greater attention on planning and achieving concrete final results in carrying out big projects, especially infrastructure projects. We invest huge funds in these projects. We agreed that some of the money from the National Prosperity Fund would be used to fund big infrastructure projects that will remove infrastructure limitations that restrict economic growth. These are projects such as expanding our rail transport capacity in Russia’s east, and building high-speed motorways and the Central Ring Road around Moscow. These projects all require huge investment. So, it is unacceptable to start out with one price and end up with costs tripling on the way. This is not in any way efficient and no amount of money would be sufficient.

As for the efficiency of public procurement, costs here are on a comparable level to the state budget’s spending and obviously demand close attention.

Finally, regarding this year’s budget, I once again turn to the speakers of the two chambers of our Federal Assembly and the party faction leaders. We know that this is a difficult process of balancing the different interests and sectors. Every sector is important. The social sector is important, and so are defence and agriculture. There are no secondary areas and less important sectors. But we need to find the best balance between all of these different sectors. The one thing I want to draw to your attention and ask you not to touch is the Government reserves. They will be set at a higher level than originally planned at my request. We are in a difficult situation. Not our country, but the global economy faces a difficult situation. I think that the Government must have greater possibilities for responding swiftly if things start to take a turn in a direction we would not want. This money would not be enough in any case to solve every problem in the economy, but the Government must have a solid enough instrument to be able to influence developments if the situation starts to change.

Thank you for your attention.

We will make the relevant decisions based on the results of our discussion today.

State Council Presidium meeting on increasing availability and improving the quality of medical care in the regions

2016-04-18T13:35:44+04:00

Vladimir Putin held a State Council Presidium meeting on tasks for the Russian regions to increase the availability and improve the quality of medical care.

The issues discussed at the meeting included the organisation and funding of free medical assistance, problems in the sphere of compulsory medical insurance, ensuring availability of medical care in remote areas, and staffing issues.

* * *

President of Russia Vladimir Putin: Good afternoon, colleagues,

Today’s meeting will address the challenges faced by the regions in increasing the availability and improving the quality of medical care. Authorities at all levels are giving their constant attentionto resolving problems in this area.

Recently, we have made major upgrades of the legal framework as regards healthcare, compulsory medical insurance, medicine circulation, and control of smoking. We have implemented programmes to modernise healthcare in Russia’s regions.

With regard to demographic policy, we are putting particular emphasis on providing incentives to families striving to have children, and developing a system for protecting maternity and childhood. However, people are assessing the state of Russia’s healthcare based on their personal experience. There are certainly some positive assessments, but the overall picture is not that simple. Only 35.4% of our citizens are satisfied with the quality of medical assistance provided.

To implement the May executive orders, the Government adopted a state programme at the end of last year to develop healthcare along with an action plan aimed at increasing the efficacy of healthcare and a programme of state guarantees for providing free medical care.

The successful implementation of a roadmap and the state guarantee programme depend directly on the work of regional authorities. Today, during our meeting and our discussion, let’s analyse how medical care quality and accessibility are ensured at a local level. I will stress several key areas.

The first is organising and financing free medical assistance. Every territory currently has its own programmes, but there is a major deficit in their funding. In 2012, 66 regions had a combined deficit of 164 billion rubles [about $5 billion]. This year, the situation has improved somewhat, despite tight budgets, but it remains complicated. The total deficit in 54 regions is over 120 billion rubles. Again, last year, 66 regions had a combined deficit of 164 billion, and this year, 54 regions have a combined deficit of 120 billion.

Let me stress that the funding for free medical care must correspond to the volume of care. If regional programmes guarantee a certain set of services but the funding for them is not made available, that means there are no guarantees.

We need to work on structural changes in healthcare, increase the volume of urgent services in clinics and develop a system of day patient facilities. The medical facilities themselves are a great resource for the rational use of funding. We can and must be more resolute in eliminating ineffective management methods, when funding is directed toward maintaining costly in-patient services. And as the doctors themselves say, and you know this as well, if they were paid for results, there would be far more healthy people. This is the direction in which we should steer the healthcare sector, measuring the quality of the work based on the number of recovered and recovering patients. We must also be more active in seeking additional sources of funding for state guarantee programmes at the federal level.

The second topic we must discuss is the condition and prospects of private and free medical care. First of all, I want to draw your attention to the fact that the regional state guarantee programmes must include a clear list of free services, as well as rules on how they are to be provided, which should be clear to every patient. The lack of clarity on these issues leads to corruption and extortion, forcing people to pay for services that should be free in accordance with the Constitution and the law. As a result, people’s faith in the healthcare system and the authorities is undermined. We need to eliminate the very possibilityof paid medical services replacing free ones. Currently, many such cases occur. More than 70% of requests for paid services are made because people know nearly nothing about the state guarantee programme and the conditions for providing free medical care.

It is imperative to provide people with access to this information, to make it clear, without any ambiguity, in order for everything to be transparent.

Naturally, it is important to develop and support private, pay-per-service medical care as well. This approach serves the interests of our nation’s citizens, who must have not just the right to select their medical facility, but also a real opportunity to make that choice. Today, such opportunitiesare extremely limited. State medical organisations outnumber private ones by three to one. More importantly, private medical centres are usually small, have a narrow focus and sometimes limited equipment. Naturally, there are some outstanding private facilities, but overall, they account for only 2.2% of our nation’s medical services.

I will add that our system of compulsory medical insurance is still not at a modern level; it is not insurance in the full sense of this word. For the most part, health insurance companies only fulfil the role of intermediaries in transferring payments. In addition, they are not motivated to improve the quality of medical assistance provided and carry almost no responsibility for it. I am asking the Healthcare Ministry to tackle the challenge of improving the compulsory medical insurance system. We have already discussed this many times.

Another problem is the affordability of medical services. I must admit that during the height of the healthcare spending optimisation wave, many paramedic centres and local and district hospitals were shut down. As a result, residents of rural areas were deprived of even basic medical assistance.

I have said many times that assuring medical care remains affordable is a priority objective; Governors and relevant agencies are required to focus careful attention on achieving it, creating mobile health centres, developing air ambulance services, and implementing remote medical care options. Incidentally, these elements are being actively implemented in many regions in the Russian Federation.

Another important topic concerns medical personnel, their numbers, qualifications and training. We are used to the term “medical services,” but healthcare is not a service sector. In the past it was referred to as the art of healing; therefore, working as a doctor or a nurse means devoting oneself to helping people. In our nation, many medical professionals carry out this noble mission honourably. Compassion, attention, kindness toward patients and generosity will always be valued in this domain. Teaching these qualities to medical students should be given the same level of priority as imparting modern scientific knowledge. It is imperative to select carefully among applicants to universities and vocational schools teaching medicine. The students at these institutions must be individuals who view medicine as their calling. The report by the State Council’s working group contains a detailed analysis of the entire range of staffing problems in healthcare, and there are suggestions on ways to resolve them. We will certainly address this topic today.

Colleagues, I have mentioned just a few of the challenges that we will need to resolve. Let me stress again that the regions must play the primary role in increasing access to and improving the quality of medical assistance. This concerns both carrying out their own initiatives and implementing measures we have adopted jointly at the federal level. I am requesting that we organise our work today in this spirit.

<…>