Website of the President of Russia: Photos: Speeches

Russia – ASEAN Summit

2026-06-22T12:47:19+04:00

Vladimir Putin took part in the anniversary plenary sessions of the Russia – Association of Southeast Asian Nations (ASEAN) Summit, marking 35 years since the establishment of their relations.

The agenda for the meeting in Kazan includes a review of the strategic partnership between the Russian Federation and ASEAN, as well as new avenues for collaboration on the political, economic and humanitarian tracks, and an exchange of views on the latest international and regional developments.

Heads of the delegations taking part in the summit posed for a group photo ahead of the first plenary meeting.

Following the summit, a package of documents was approved, including the Kazan Declaration, the Comprehensive Plan of Action for Russia–ASEAN, the Joint Statement on Cultural Cooperation, and the Joint Statement on Energy Cooperation.

ASEAN includes 11 Southeast Asian countries: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Timor-Leste, and Vietnam. Russia has been ASEAN’s full-scale dialogue partner since July 1996.

Taking part in the summit are Sultan of Brunei Darussalam Hassanal Bolkiah, Prime Minister of the Kingdom of Cambodia Hun Manet, Foreign Minister of the Republic of Indonesia Sugiono, Prime Minister of Lao PDR Sonexay Siphandone, Prime Minister of Malaysia Anwar Ibrahim, Presidential Special Representative and Permanent Secretary of the Ministry of Foreign Affairs of the Republic of the Union of Myanmar hau Khan Sum, President of the Republic of the Philippines Ferdinand Marcos, Prime Minister of the Republic of Singapore Lawrence Wong, Prime Minister of the Kingdom of Thailand Anutin Charnvirakul, Prime Minister of the Democratic Republic of Timor-Leste Xanana Gusmão, and Prime Minister of the Socialist Republic of Vietnam Le Minh Hung. Secretary-General of the Association of Southeast Asian Nations (ASEAN) Dr Kao Kim Hourn, Secretary-General of the Shanghai Cooperation Organisation (SCO) Nurlan Yermekbayev, and Chair of the Eurasian Economic Commission’s (EEC) Board Bakytzhan Sagintayev are also taking part in the summit.

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Opening remarks by the President of Russia at the Russia – ASEAN Summit

President of Russia Vladimir Putin: Colleagues, friends,

I am delighted to welcome all of you to Kazan for the anniversary Russia – ASEAN Summit, which marks 35 years since the establishment of relations between Russia and the Association of Southeast Asian Nations.

Friends, many of you have visited our country in the past, while for some, this is their first time here. Welcome to everyone.

Delegations at the previous Russia – ASEAN meeting did not include Timor-Leste, which joined ASEAN in 2025. We are delighted to have the Prime Minister of the Democratic Republic of Timor-Leste with us today.

The Association of Southeast Asian Nations is an authoritative organisation extending beyond the Asia-Pacific region. Relevant on a global scale, it has withstood the test of time, building a system of cooperation between states founded on universally recognised norms of international law and mutual respect for each other’s interests.

These are precisely the principles underpinning Russia-ASEAN relations. It is a strategic partnership that serves as an essential stabilising factor in the Asia-Pacific amidst geopolitical turbulence, contributing to the formation of a balanced security architecture and equitable mutually beneficial cooperation.

Today’s agenda is as follows: we will exchange opinions on topical regional and international issues, share assessments of the outcomes of Russia-ASEAN cooperation over the past 35 years, and discuss future areas, tasks and objectives of the Russia-ASEAN strategic partnership.

It goes without saying that our discussion may cover other issues as well. Please feel free to raise any matters you deem worthy of discussion.

Our cooperation demonstrates clear results. We have developed a robust legal and regulatory framework to govern our relations, as well as an extensive network of joint mechanisms. We have launched new dialogue platforms. We have expanded the scope of practical cooperation in such areas as combating new security challenges and threats, as well as trade and investment, energy, agriculture, digitalisation, science and technology, tourism, and humanitarian contacts more broadly.

I hope this day will be productive and we will have a constructive and engaged exchange of opinions, as always.

I will be co-hosting this meeting with the President of the Republic of the Philippines, a country chairing ASEAN this year. With great pleasure, I pass the floor to Mr Ferdinand Marcos for his opening remarks.

Mr President, please.

President of the Republic of the Philippines Ferdinand Marcos: Thank you, Mr President, Your Majesty,

Excellencies, distinguished guests, good morning.

It is my honour to serve as co-chair of the ASEAN–Russia Commemorative Summit alongside President Putin as we mark 35 years of a partnership built on mutual respect, shared interests, and a steady conviction that cooperation, not confrontation, is the surest path to peace.

I wish to express our deep appreciation to the government and people of the Russian Federation for their generous hospitality and for the excellent arrangements that have brought us together here in Kazan, a city where civilizations have long met, mingled, and enriched one another. It is a fitting venue for a gathering that is itself an exercise in bridging distances, both geographic and cultural.

Thirty-five years ago, Russia’s participation in the ASEAN ministerial meeting in Kuala Lumpur planted the first seeds of what has grown into a strategic partnership of genuine consequence. The principles that guided those early steps – mutual respect, sovereign equality, and the commitment to peaceful cooperation enshrined in the Treaty of Amity and Cooperation – remain as relevant today as they were then.

They are not merely historical anchors. They are active guides for the work still before us. As we mark this milestone, the Philippines would like to highlight three priorities that should animate our cooperation in the years ahead.

First, peace, security, and stability. In an era of deepening geopolitical uncertainty, the value of steady political and security engagement between ASEAN and Russia cannot be overstated. Transnational threats such as terrorism, illicit trafficking, cybercrime, and online scams do not respect borders, and neither can our responses.

We must strengthen practical cooperation on maritime security and counterterrorism, reinforce our collective resilience in cyberspace, and develop the institutional habits of anticipation rather than mere reaction.

Second, a more dynamic economic partnership. Our trade and investment ties have grown, but they have yet to reach full potential. We must be more deliberate and more ambitious in expanding economic opportunities, improving trade facilitation, deepening investment flows, and connecting our business communities. Food and energy security deserve a particular attention, as these are the foundations on which broader stability rests. Our economic cooperation must also be inclusive. Our micro, small, and medium enterprises must have a place in this partnership, and our cooperation must extend into the emerging sectors that will shape tomorrow’s global economy.

And third, perhaps the most and most enduring, is our people. Scholarships, student exchanges, academic partnerships, tourism, and the arts, these are not peripheral to our relationship, they are at its living core.

The connections forged between our peoples outlast any summit declaration and carry our partnership forward in ways that policy alone cannot do. We must continue to invest in these bonds, placing our youth not merely at the receiving end of this cooperation, but at its centre, as the generation that will ultimately decide what ASEAN-Russia relations will become.

Your Majesty, Excellencies, colleagues,

Guided by our chairship theme, Navigating Our Future Together, the Philippines approaches this summit not just as a ceremony of commemoration, but as a renewed call for action.

Thirty-five years is a foundation. What we build on it is our choice and our responsibility. Let us choose well.

Thank you.

Plenary session of the St Petersburg International Economic Forum

2026-06-16T19:09:44+04:00

Vladimir Putin took part in the plenary session of the 29th St Petersburg International Economic Forum (SPIEF).

Joining him on the panel were President of Uzbekistan Shavkat Mirziyoyev, President of the United Republic of Tanzania Samia Suluhu Hassan, and Vice President of the People’s Republic of China Han Zheng.

The discussion was moderated by Geeta Mohan, Foreign Affairs Editor at India Today, TV Today Network.

Held annually since 1997, this year’s forum runs from 3 to 6 June under the theme “Pragmatic Dialogue: The Path to a Stable Future,” bringing together more than 20,000 participants from 130 countries.

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Moderator of the discussion, India Today Group Foreign Affairs Editor Geeta Mohan: Namaskar, namaste, zdravstvuite, hello.

Excellencies, distinguished guests and friends, it is a privilege to welcome you to this very important conversation at a time when the world is clearly standing at an inflection point.

For decades, the global economic order was shaped by a few powerful capitals, a few dominant institutions, and a few accepted rules of engagement. But a new global economic order and architecture is emerging: one that is more diverse, more contested, of course; but also more representative. The countries on the stage reflect that shift. We have Russia – a major power at the centre of today’s geopolitical realignment; China – one of the world’s largest economies, and a defining force when it comes to AI, trade, and infrastructure. We also have Uzbekistan representing the rise of central Asia and as a region of energy, connectivity, and geostrategic opportunity. And then, we have Tanzania – an important African voice led by one of the most significant women leaders of our time.

And, of course, since the moderator is from India, we can say the stage also has a little bit of Indian spice, a little bit of balance, and just enough to keep everyone comfortable.

The question before us is simple but profound: are we witnessing only a redistribution of power, or are we witnessing the birth of a fair world order? The era of being lectured, pressured, or bullied is seriously being challenged.

At the same time, independence is not easy. Strategic autonomy comes with costs. So today’s discussion is not merely about geopolitics. It is about the price of sovereignty – something President Putin has emphasised time and time again.

Can countries protect the national interests without being forced into camps or being sanctioned? It is about whether a multipolar world will be genuinely fair or simply replace one centre of power with several competing centres. It is about whether BRICS and South-South cooperation can move from rhetoric to real economic instruments. It is about whether alternative payment systems, new trade corridors, energy partnerships, and technology cooperation can give the Global South true agency.

And it is about a new world order, where countries no longer want to be spoken for but want to speak for themselves.

With that, let us begin our conversation today. I would like to begin by inviting President of the Russian Federation honourable Vladimir Putin for his opening remarks.

President of Russia Vladimir Putin: Good afternoon, ladies and gentlemen. Mr Mirziyoyev. Madam Samia Suluhu Hassan. Mr Han Zheng. Ladies and gentlemen.

It is a real pleasure to see such a distinguished audience here. The President of Uzbekistan and I were just comparing notes. He remarked that the hall is full – which speaks to the level of interest that the St Petersburg International Economic Forum generates. I would like to welcome all participants and guests.

Russia and St Petersburg are once again hosting executives from leading companies, business leaders, and experts – this year from more than 130 countries – all here to expand business contacts and forge new ties.

Our host has set the bar and outlined the topics, which I will try to cover. But before entering this auditorium, she also mentioned that, in her opinion, the excellent atmosphere was created by those who organised the event. So I would like to start by thanking everyone who made this forum possible. Thank you very much.

The unrivalled and appealing nature of the St Petersburg Forum lies precisely in the opportunity to engage in free dialogue on matters that are of interest to entrepreneurs, entire industries, and even entire countries. We remain open to everyone interested in engaging with our country and is ready to pursue equal and mutually beneficial cooperation. We are convinced that this particular approach where partners hear one another, understand their partners’ interests, and identify common solutions represents a harmonious path of development and makes it possible to respond to the serious challenges facing the modern-day world.

We are witnessing turmoil in the energy markets and tensions being provoked in certain regions, primarily in the Middle East, and how the short-sighted EU bureaucracy policies are being implemented to the accompaniment of aggressive rhetoric and leading to Europe continuing to lose its standing in the global economy, while also undermining regional and global security. In fact, European elites are inciting chaos and are trying to embroil ever more countries into it.

These processes did not arise all by themselves; they are the result of the world undergoing the largest structural transformation in decades. This transformation is not a transition from one phase of a cycle to another. We are witnessing a change in the paradigm of global development.

I would like to bring your attention to what came before. For decades, the global development model was built around a limited number of financial centres, technological solutions, insurance and logistics hubs, credit rating agencies, and reserve currencies. This construct was presented as universal and supposedly suitable for everyone, and, above all, as supposedly neutral. In reality, however, it was increasingly used as a tool to exert political pressure and promote unfair competition, where settlements, technologies, logistics, or even access to information could be cut off at a moment’s notice in order to punish those who chose to act in their own national interests. In essence, it was a deliberately created system of dependency and resource extraction.

Today, the overwhelming majority of countries see this, as do entrepreneurs, banks, manufacturing companies, farmers, and transport operators. It has become clear that investment plans and business development steps may face serious risk where the external infrastructure on which they rely could be used against them. Therefore, countries are beginning to develop their own technological solutions, create their own supply routes, and build their own institutions.

Russia is experiencing these transformations firsthand. Although pressure on our country persists, the changing global landscape has also created greater room for manoeuvre. New partnerships are emerging, new financial and technological solutions are being developed, and access to promising markets is expanding. Against this backdrop, Russia views global change not only as a source of challenges but also as a tremendous opportunity. To make the most of these opportunities, we seek to act swiftly and pragmatically.

Let me reiterate: the roots of today’s global turbulence lie in the ongoing transition from a vertical, hierarchical model – one that primarily served the interests of a limited number of states – to a far more complex, distributed, and multipolar international order. What does this mean in practice? Above all, it means that the geography of economic growth is changing, with new centres of development emerging across the countries of the Global South. And, colleagues, as you can clearly see for yourselves, this is not a political slogan; it is an objective reality. In these countries, populations are growing, the middle class is taking shape, industrial capacity is expanding, and domestic markets are developing. As a result, new cities, roads, ports, energy infrastructure, and digital networks are being built. At the same time, these nations are establishing their own financial institutions, educational systems, and scientific and technological centres.

In this context, I would like to emphasise that the world becomes more equitable when economic growth is distributed more broadly and opportunities become available to billions of people who have long remained on the periphery of the global economy. It is very important that these new centres of growth seek to shape their own development paths, increase their share of value creation, and build their own brands, standards, and capabilities.

If you look at the global GDP dynamics of the last five years, you will see that almost half of its annual growth, 49 percent, is accounted for by BRICS countries, whereas the contribution of the so-called Group of Seven is estimated at 18 percent. To put this into perspective, between 2021 and 2025, the global economy expanded at an average annual rate of 4.1 percent. Of that growth, 2 percentage points were generated by the BRICS countries, compared with only 0.8 percentage points contributed by the G7. Today, the BRICS share of global GDP, measured in purchasing power parity terms, stands at approximately 40 percent, while the corresponding figure for the G7 is below 29 percent. By this measure, BRICS surpassed the G7 as early as 2020, and the gap has continued to widen ever since.

This trend is expected to continue increasingly in favour of the BRICS countries. The reason is straightforward: economic growth rates in the BRICS economies are already higher than those of the G7 and are projected to remain so in the years ahead. By the end of the current decade, annual economic growth in the G7 countries is expected to average no more than 1.5 percent, while the BRICS economies are projected to expand at an average rate exceeding 4 percent.

Ladies and gentlemen, friends. This is not something we made up. It is the data from the IMF and the World Bank – international institutions. They are forced to acknowledge this reality.

Naturally, businesses are drawn to places where growth is more dynamic and where there are greater opportunities to expand production and sales. As a result, the centre of gravity of global trade — and, with it, the global financial system — will continue to shift. In fact, that shift is already under way, and the trend is set to continue.

For many years, the principal flows of goods, capital and information passed through a small number of Western infrastructure hubs. Even when goods moved from one Eurasian country to another, payments, logistics, insurance and arbitration often relied on institutions located in third countries. This created additional costs and fostered political dependencies.

Today, international trade is becoming more effective, as direct shipments without intermediaries are growing, national currency payments are developing, and new corridors are opening. In Eurasia, these include the North-South Corridor, the Trans-Arctic Route, and links running through the Caspian region, Central Asia, the Black Sea, and the Far East. All of these projects and logistics routes are defining features of today's economy and, importantly, of future development.

To give you an example of the global trade system ceasing to be Western-centric, I want to note the following. Over the past 25 years, the BRICS share in global merchandise trade has more than doubled. Last year, our group accounted for almost 25 percent of global exports. This indicator continues to grow steadily, as does trade within BRICS itself, which now exceeds $1 trillion annually.

A particularly important role in these processes is being played by what might be called “connector countries”. These countries link markets, technologies, financial flows and business cultures. Their role extends far beyond simple transit or transportation through a particular territory. What matters most is their ability to ensure trust and provide efficient logistics, reliable payment mechanisms, legal certainty and technological compatibility.

Taking part in this panel session is the President of the Republic of Uzbekistan – and I would once again ask you to welcome him. Thank you very much for being with us today.

He is the leader of a country that is one of the centres of economic growth. Its population is growing fast; industrial plans are being fulfilled; its agricultural and energy potentials are growing, as is the domestic market. At the same time, Uzbekistan is an essential link between Russia, Central and South Asia, China and the Middle East. There will be more and more examples of countries whose own development is enhanced by, and benefits from, their links with other centres of the emerging multipolar world.

The same is true of our other guest, from Tanzania – let us welcome her once again – who plays a similar role in East Africa. I would also like to draw your attention to another important trend: the architecture of global trade is gradually moving away from the principles that originally underpinned the World Trade Organisation. Since the beginning of this century, the number of bilateral, regional, and mega-regional trade agreements has increased nearly fourfold.

Why is this happening? The erosion of the World Trade Organisation was set off by the very authors of this organisation: the Western nations, to be more precise. When it benefited them, they promoted the WTO, they invited other countries to join. But once the West started to lose in this competition, universal and common rules for trade introduced by the WTO lost their appeal to them. Instead, they adopted unilateral restrictions and so-called sanctions. By doing so, Western countries effectively sidelined the mechanisms of the World Trade Organisation and undermined confidence in these institutions. And when trust disappears, and an institution no longer functions as intended, businesses and governments inevitably begin looking for alternative solutions. These alternatives take the form of bilateral and multilateral trade agreements.

One more point. As I have already noted, the sanctions and, basically, the theft of Russia’s international reserves have had an irreversible effect on the positions of the world currencies, the US dollar and the euro. This is an objective reality that cannot be ignored. Today, every country – let me stress, every country without exception – understands that, like Russia, it could at any moment lose access to assets lawfully held in dollars or euros, as well as to Western financial and payment infrastructure.

We recognise that this ultimately boils down to the issue of unfair competition. The specific pretexts may vary, and they can always be found. In Russia’s case, it was the conflict in Ukraine. In other instances, it may be developments in the Middle East, conflicts in Africa, or even a country’s stance on LGBT-related issues. A justification can always be found. But the underlying problem remains the same: this is unfair competition.

Incidentally, confidence in the West is also being undermined by the state of its public finances, reflected in rising government debt and persistent budget deficits. In 2025, public debt in the eurozone reached 81.7 percent of GDP. The highest levels are well known: Greece stands at 146 percent of GDP, Italy at 137 percent, France at 115 percent, and Belgium at 108 percent. By comparison, Russia’s public debt remains at approximately 16.4 percent of GDP. In fact, during a meeting with the heads of major news agencies yesterday, some experts cited a figure of 15.8 percent. In any case, the difference is simply not comparable.

The budget deficit of the European Union in 2025 stood at 3.1 percent of GDP. The highest deficits are recorded in countries such as Poland 7.3 percent, Belgium 5.2 percent, France 5.1 percent, and the United States 5.9 percent. In Russia it is 2.6 percent. It may increase by the end of this year, but I believe it will still remain lower than in other industrialised countries.

Such a situation is fraught with a new surge in inflation for Western currencies, as was the case in 2021–2022, when prices in the euro area and in the United States rose by 14 percent in a matter of two years. Clearly, given the circumstances countries around the world are taking their assets out of the West and shifting to payments in national currencies, increasingly using alternative payment systems, and expanding the role of digital financial assets, including central bank digital currencies.

In its trade relations with its key partners, Russia uses national currencies as the primary means of payment. Thus, the share of the ruble in our export transactions is currently standing at 65 percent, or almost two thirds.

Importantly, the world needs modern, flexible and responsible financial architecture without risks, prohibitions or barriers, but with incentives for sovereign development. Its instruments must reduce costs, speed up settlements, and expand access to financing, and, of course, ensure proper counteraction to tax evasion, fraud and money laundering. Naturally, this must always be given special attention.

Next. Historically, the West has been regarded by other countries as a source of technological development, but we are seeing a major transformation here as well. Over the past 25 years, BRICS countries have significantly increased their high-tech exports; they now account for over a third of global supplies, which indicates a shift in technological leadership around the world. This is happening gradually, but it is happening.

For example, our strategic partner China holds the largest number of patents in AI, where Russia also has excellent prospects. Let us welcome the Vice Chairman of the People’s Republic of China. (Applause.)

Another key partner of ours, India, is a leading player in the IT industry. It accounts for a significant share of the global software market. Russia holds strong positions in the pace of adoption of digital platforms, online marketplaces, and financial solutions, as well as municipal services, healthcare and education which improve the quality of life for people in Russia and in dozens of countries around the world, where they successfully compete with their foreign counterparts.

We also lead in a complex field such as nuclear energy. Over 80 percent of NPP construction projects on the global market are implemented with the participation of Rosatom. Over 80 percent is a substantial figure. (Applause.)

We also have significant engineering and technological capabilities in managing the water energy balance, which is becoming increasingly important in Asia, Africa, and indeed throughout the world. I believe that our colleagues participating in the panel session cannot but agree with this, and they do agree.

Clearly, technological progress is the most important factor in global transformation. Experts identify three key technologies of today and tomorrow that are capable of making a difference in people’s lives, business operations, and public administration.

What are they? First, artificial intelligence, which can process massive amounts of data and make the best decisions available across virtually all areas. Second, autonomous systems, which dramatically increase productivity and transform entire sectors of the economy. Finally, third, platform-based solutions, which allow market participants to exchange information and conclude transactions directly, in real time, and in an automated manner.

According to forecasts by researchers and specialists, the countries or groups of countries that possess a full set of their own technologies in AI, autonomous systems, and digital platforms will become powerful centres of sovereignty in a multipolar world. Moreover, without these technologies, genuine sovereignty will be unattainable in principle.

Importantly, possessing an independent technological base is critical for countries with large populations, vast territories, and distinctive cultures. Such countries cannot act merely as users of foreign-made solutions, because in that case they risk becoming objects of control by external platforms. And how those platforms are used is another matter.

In essence, major countries – true civilisations – face a historic choice: either they create their own platform and technological ecosystems, or they become a digital periphery. There should be no illusions about this. Foreign services may initially be user friendly, but over time the cost of such dependency will inevitably become apparent.

Russia has learned one such lesson. We have seen certain software providers walk away from the market, payments get blocked, and interference in commercial relations ensue. Therefore, we will strengthen our own critical infrastructure and cooperate and engage only with the partners who respect mutual obligations.

We have gained such experience over many years in our relations with the People’s Republic of China which is Russia’s truly strategic partner. Our economic cooperation covers virtually all areas, including high-tech sphere, transport, mechanical engineering, and, of course, energy.

Friends,

As I have said before, a country’s position in the global economic system and its claim to global leadership depend on its ability to ensure its own sovereignty. It is no exaggeration to say that the race for sovereignty has begun – and it is gaining momentum.

This is not just about resisting external pressure or protecting national interests. It is also about the quality of the state, the economy, and society. Sovereignty means being stronger and, I emphasise, smarter – managing resources more precisely and investing more effectively, including in technological development.

True sovereignty demands efficiency. It is not a licence to do things expensively, slowly, or inconveniently. On the contrary, we must act with maximum initiative and maximum efficacy across all areas of our work. We must produce faster, thereby increasing revenues for the state, for business, and for our citizens.

In these tense and challenging conditions, Russia continues to strengthen its sovereignty – not by isolating itself, but by expanding its circle of partners. Yes, economic momentum is currently subdued, and we will probably discuss that further. But let me remind you of the task set for the Government: starting next year, we must return to sustainable growth rates in the domestic economy.

That can only be achieved under one condition: by increasing capital investment and launching a new investment cycle. Between 2021 and 2024, investment in Russia grew by nearly 38 percent in real terms, though last year, of course, it saw a decline.

I want to stress that launching a new investment cycle is a key task for our economic authorities, and investment growth is a crucial indicator of their effectiveness. It is important that economic growth be balanced, supported by domestic demand, and combined with a further reduction in inflation, which has already slowed significantly and continues to fall. I believe I mentioned yesterday that inflation is forecast to approach 5.2 percent this year.

My colleagues and I regularly discuss economic issues. I should point out that the dynamics of industrial production, GDP, and consumer activity in Russia are positive. Despite all the problems, industrial production grew in April. There will likely be some questions about this today.

In any case, industrial production in our country grew by 1.9 percent in April, including manufacturing, which grew by 3.1 percent. Retail added 6.5 percent. GDP grew by 1.3 percent in April, and by 0.2 percent over the period from January to April.

What would I say about all this? Of course, we hear criticism from all sides – that we have lost momentum. Yes, but we have fallen only to the level that the eurozone countries have been experiencing for the past few years. And now we are on the upswing.

Most importantly, we have preserved the fundamentals of our macroeconomic policy. I am confident that this will ensure continued forward progress. These trends must be consolidated, while our country’s position in the world and its sovereignty must become even stronger.

In this regard, I would like to share several thoughts on the kind of sovereignty Russia needs. I have already touched on this topic, but I would like to elaborate further.

First, as I noted earlier, a sovereign economy is built on the full-cycle implementation of technologies and the use of advanced solutions that simplify business operations, automate processes, increase labour productivity, and improve the overall efficiency of the economy. This is especially important in such areas as defence and security.

Russia has made significant progress in the development and adoption of digital platforms across all sectors of the economy. We are also witnessing rapid growth in e-commerce, which is expanding by approximately 30 percent annually. Our country ranks among the global leaders in this field. This, among other things, reflects the quality of Russian platform solutions, which benefit both domestic producers and foreign suppliers.

Today I have already mentioned our friends and partners in the Republic of Uzbekistan. Let me give you an example. In 2023, the value of Uzbek goods sold through the Wildberries platform amounted to $418 million. That was in 2023. By 2025, that figure had reached nearly $1.5 billion, and this year it may exceed $2 billion.

What does this mean in practice? It means that producers of a wide range of goods, including small and medium-sized enterprises, are gaining easy access to the Russian market through this platform. In fact, they are not only entering the Russian market but also reaching consumers in other countries through our platform. The volumes are growing, businesses are operating efficiently, people are earning good incomes, and small and medium-sized enterprises are developing successfully. All of this is being achieved through modern logistics systems, with taxes and customs duties being properly paid. This is something we can only welcome.

As a result, turnover has already increased 3.5 times and continues to grow, including through access to consumers throughout the Eurasian Economic Union and in partner countries, for example, the rapidly developing markets on the African continent. This is what our platform infrastructure makes possible.

Today, this Russian platform provides businesses with access to nearly half a billion potential customers worldwide, and that number continues to increase. In this way, Russian platform solutions are becoming a genuine driver of economic growth and development for our partners.

Apart from trade, the transition to a platform-based framework has been affecting the transport sector, finance, logistics, tourism, as well as healthcare, education, the media sector and other domains. Of course, we need to generate greater momentum to move towards a platform-based approach to developing various sectors by introducing artificial intelligence and autonomous systems.

We have already adopted a national Strategy for Artificial Intelligence Development. I ask the Government to prepare similar national strategies for autonomous systems and digital platforms.

I suggest that we discuss the topic of ecosystems for a platform-based economy at the Future Technologies Forum, which is scheduled to take place in early 2027. I also ask for an inter-agency working group to be formed under the Presidential Executive Office’s supervision to oversee preparations for this forum.

The second point I wanted to highlight is that people, the knowledge they have, their skills and their ability to master advanced technology and create breakthrough goods, services and shape entire market segments – all this has an immediate and defining bearing on sovereignty, both today and tomorrow. It goes without saying that people who have these professional skills must get adequate compensation for their work.

Only high living standards and generous salaries can make our country competitive and enable it to succeed on the demographic front, and to have excellent talent who can be confident about their professional careers and their future.

Russia has one of the lowest unemployment rates among industrial countries. It is equal to about 2.2 percent of the economically active population. This is a very robust result compared to other developed countries. For comparison, Japan is catching up to us with an unemployment rate of 2.5 percent, while this indicator for India is 4.2 percent, the United States has an unemployment rate of 4.2 percent, and the eurozone stands at 5.9 percent.

Over the past five years, salaries within the Russian economy increased by over 30 percent in real terms. I am referring to real wages, which means that the inflation rate is taken into consideration. Of course, this is a high growth rate.

Let me emphasise once again that any further increases in wages must be primarily driven by higher labour efficiency, as well as increased manufacturing efficiencies based on the latest technological solutions as developed by our excellent engineering schools.

Labour mobility is a separate matter. It consists of enabling specialists to find relevant and well-paid jobs at new enterprises in other regions of the country that need talent more than others, while their companies belong to emerging strategic sectors committed to making high value-added products.

As you know, young people graduating from educational institutions or during their senior years at universities and other higher education institutions are more prone than anyone else to move around the country. In order to empower them to start their professional careers, we agreed to set forth laws governing internships by introducing obligations for employers. We also agreed to update the apprentice contract so that it corresponds to present-day reality.

I know that the amendments to the Labour Code have been drafted. I ask the Government and the State Duma to adopt them faster.

Thirdly, it is evident that the sovereignty of a nation as expansive as Russia is defined not solely by the strength of its capital or a few major industrial centres. It is crucial that each region attracts investment, creates high-quality jobs, and develops both its production capacity and its urban environment.

Exhibition stands have been set up at the forum, where the constituent entities of the Federation showcase their strengths, achievements, and future plans, engaging in dialogue with investors and businesses seeking to enter their markets. I am confident that the participants in our panel discussion, along with our guests, have already witnessed this rich diversity of Russia’s regions and have had the opportunity to familiarise themselves with them.

However, in keeping with tradition, the forum’s sidelines also see the announcement of the results of the national investment climate ranking in the constituent entities of the Russian Federation. This year, the leading positions are held by Moscow, the republics of Tatarstan and Bashkortostan, and the Nizhny Novgorod and Moscow regions. St Petersburg and the Sakhalin Region have entered the top tier for the first time. Among the regions demonstrating the most robust growth are the Khanty-Mansi and Yamalo-Nenets autonomous areas, the Omsk, Vladimir, and Volgograd regions, as well as the Krasnodar and Primorye territories.

I congratulate my colleagues on these achievements. (Applause.)

We will continue to provide financial assistance to the regions in this area, including through infrastructure budget loans. Over the past four years, more than one trillion rubles have been allocated to the regions through this mechanism. By 2030, we plan to allocate an additional 750 billion.

At the same time, we are writing off the regions’ debt on budget loans: over the past two years, this has amounted to nearly 440 billion rubles, and this year we will defer the repayment of this debt by a further 100 billion rubles. These freed-up funds may be directed by the regions towards development projects as well.

Let me add that, starting this year, the National Investment Climate Ranking also includes a new component. This relates to reducing the investment and construction cycle for cultural heritage sites: historic houses, estates, and buildings. The aim is to expedite their restoration, bring them into economic circulation, and make them accessible to the public. This is particularly relevant for the cities of Central Russia, and for our tourist destinations, including those along the route of the renowned Golden Ring.

I would like to recognise the Yaroslavl, Nizhniy Novgorod, Lipetsk and Novgorod regions, as well as Tatarstan for their successful work with cultural heritage sites. It is my hope that other regions follow their lead. Engaging strategic business partners in efforts to restore cultural heritage sites and in regional development efforts in general is instrumental. I am referring to our major corporations and enterprises which play a defining role in the economies of the corresponding regions.

The decision has been taken to devise mechanisms for enabling these corporations from the construction sector to contribute to developing social infrastructure. This includes kindergartens, schools, hospitals, and outpatient clinics. I ask you to complete this work as quickly as possible.

At this juncture, let me also remind you that we had an agreement on moving major state-owned companies and corporations from Moscow to the regions in order to free up some space in the capital and create a regional development driver by enabling regional budgets to generate more revenue and create new jobs. Mr Sobyanin, Moscow also stands to benefit from this initiative.

RusHydro and PSB Bank both offer positive examples of relocated corporations. The United Engine Corporation has adopted the corresponding resolutions, and similar decisions are about to be taken by the Russian Railways group, as well as other structures involved in railway construction. I can understand that changing a company’s office location is not easy, but we must step up these efforts.

Moving on, businesses in today’s world go beyond expanding their operations and often contribute to shaping their operating environment. A people-friendly urban environment emerges around them, and sometimes even entire communities, which offer greater comfort and are attractive. We already have examples of this kind.

I believe that it would be advisable to support innovative approaches by private investors and enable them to be more creative, as they say, by using new solutions in their economic operations and construction. This can be done by setting up dedicated legal frameworks blending high-technology investment, tourism, culture, creativity and local identities.

In addition, we must encourage collective investment in projects to develop urban spaces. This involves mechanisms enabling grassroots participation in developing the home region or community by investing in making it look better. I ask the Government to work with development institutions and the Agency for Strategic Initiatives to set forth these regulations.

Next. A strong, sovereign and dynamic economy requires the promotion of private initiative, as it is entrepreneurs and companies that identify and create market niches, produce goods and services, and stimulate employment. Predictability and stability of the investment climate are important for high business activity. Businesses must clearly understand the tax system, tariffs, regulation, government support measures and mechanisms, and, in general, operating conditions for many years to come.

We have already made additional adjustments to the tax system and have established a line of investment support at both federal and regional levels. In conjunction with the business community, we have drafted a national model of targeted business environment. Among other things, we are talking about specific steps to simplify company registrations and the filing of tax reports. These efforts should certainly continue; connection to infrastructure should be made easier, the effectiveness of law enforcement improved, and so on, and so forth.

I would like to underscore once again that it is vital for the national model to yield tangible results for businesses and entrepreneurs.

On a separate note, I will just say a couple of words about the systematic work of small and medium-sized businesses.

A lot has already been done to ensure that ambitious and enterprising people can easily start their own business, launch production, and provide sought-after services to the public. However, when a business grows and develops, organisational issues and additional financial costs sometimes arise, and not all entrepreneurs are ready to cope with them. We need to minimise these costs and ensure a seamless transition of the business to a higher category, including through ready-made digital solutions or individual support.

I ask the Government, together with VEB and, of course, with business associations, to draft a concept for a smooth transition in business development and growth, which will cover all stages: from self-employment to individual entrepreneurship, and then to a company with all the advantages of corporate governance. In this work, it is necessary to factor in the transition of the economy to a platform path.

In addition, I draw your attention to a topic that I know has also been a centrepiece of discussion: starting this year, the revenue threshold for applying the simplified taxation system has been lowered. Now it is 20 million rubles, next year it is expected to be 15 million, and a year later – 10 million. We have discussed this issue in detail with representatives of the business community and with the Prime Minister.

I would like to say the following. I believe it is feasible to postpone further lowering of the revenue threshold. (Applause.) I knew that there would definitely be a reaction from the audience at this point. (Applause.) And the threshold should remain at today’s level, at the current level. I won’t give you a deadline, but the longer it does, the better. I ask the Government, together with the deputies of the State Duma, to make the necessary amendments.

I also propose that we, together with representatives of business associations, consider introducing preferential and more favourable conditions for small and medium-sized enterprises in the manufacturing sector. I believe this will have a positive impact on the creation of a fairer and more competitive business environment. The goal of bringing the economy further out of the shadows has been set, and we will continue to move steadily in that direction.

Finally, in conclusion, I would like to emphasise once again that a strong and sovereign country cannot be isolated. As I have said many times, recent experience has demonstrated that we need to produce critical goods domestically and to strengthen infrastructure that is essential for national security, business development, and improving the quality of life of our citizens. At the same time, we must continue to strengthen ties with foreign partners, expand cooperation, and promote cross-border projects.

Naturally, we will continue implementing plans to increase the capacity of our road and rail networks, including the development of a high-speed rail system based on domestic technologies. As is well known, the pilot project in this area is the Moscow–St Petersburg high-speed railway.

I am also referring to the expansion of seaport capacity and the development of the Trans-Arctic Transport Corridor as a major global transport artery. We will continue developing our merchant and icebreaker fleets, building tankers and vessels of various classes. Our goal is to rank among the world’s top ten countries in terms of the total deadweight tonnage of the national merchant fleet.

I would like to ask the Government and the Ministry of Transport to continue their work to increase the attractiveness and competitiveness of the Russian national trade flag.

A strong domestic logistics, production, technological, and financial infrastructure, together with a predictable business environment and the development of human capital, constitute powerful competitive advantages in the global economy. These are the foundations for successful cooperation with countries and investors interested in partnership, those who seek to build mutually beneficial alliances with us, invest in Russia and in joint ventures, and invite Russian companies to take part in joint projects.

I am confident that events such as the St Petersburg International Economic Forum make a significant contribution to this broad and important effort and help all of us achieve new successes in advancing the prosperity and wellbeing of our countries and peoples.

Thank you for your attention. (Applause.)

Geeta Mohan: Thank you so much, Mr President, for setting the tone and tenor for the conversation that we are having but before we go further, let me invite the President of the Republic of Uzbekistan, Honorable Shavkat Mirziyoyev. Thank you so much, sir. Please.

President of the Republic of Uzbekistan Shavkat Mirziyoyev: Mr Putin, heads of state and government, ladies and gentlemen,

First and foremost, I would like to express my sincere gratitude to President of the Russian Federation Vladimir Putin for the invitation and for the warm welcome that our delegation has enjoyed in St Petersburg over the past few days.

I also wish to greet President of Tanzania Samia Suluhu Hassan and Vice President of the People’s Republic of China Han Zheng.

It is a great honour for me to participate in the St Petersburg International Economic Forum, which over its three decades of existence has become one of the most authoritative and highly sought-after platforms for exchanging views on the most pressing issues on the global agenda.

I am truly delighted to be in St Petersburg once again, the cultural capital of Russia, a city bound to Uzbekistan by a unique history, spiritual affinity, and the destinies of our people. During the harsh years of the war, many Uzbek citizens fought in the defence of Leningrad, and Tashkent provided refuge for over one and a half million evacuated children, women, and the elderly. The memory of this remains an integral part of our shared moral heritage.

Ladies and gentlemen,

Today, right here on the banks of the Neva, mindful of our past, we are discussing challenges of the future and the new architecture of the global economy. The President of Russia has just paid particular attention to these matters. This new architecture of the global economy – we all see it, recognise it, and feel it.

The world is undergoing a profound restructuring: transport routes are changing, new supply chains are being formed, modern technological platforms are emerging, artificial intelligence is being introduced across the board, and a fundamental reappraisal of energy, food, and digital security is taking place. Competition is increasingly manifest not only in the contest for markets and natural resources – it is shifting into the sphere of technology, logistics, and infrastructure.

Amidst turbulence in the global economy, the importance of states and regions that play a consolidating role – I wish to emphasise this in particular – a consolidating role, and that are capable of fostering around themselves a space of cooperation, stability, and mutual benefit, is growing.

For millennia, Uzbekistan stood at the heart of the Great Silk Road. Samarkand, Bukhara, and Tashkent were not merely points along a trade route; they were crossroads where ideas, knowledge, and cultural and religious traditions converged. For this reason, openness has never been simply a choice for us, but a vital necessity and part of our civilisational identity.

Today, this openness is acquiring new significance. Uzbekistan, and Central Asia as a whole, are becoming an independent centre of economic growth. It is here that the transport, technological, and demographic contours of the future are taking shape. It is here that the key corridors linking North and South, West and East are converging. In order to firmly consolidate this positive trend, we urgently need an entirely new level of connectivity.

This is not only about linking traditional transport, logistics, and energy corridors. It is also about integrating digital, payment, and industrial infrastructure. A strong, united, economically interconnected, open, and stable Central Asia serves the strategic interests of all our partners.

Ladies and gentlemen,

For Uzbekistan, Russia is more than just a neighbouring country. It is a longstanding strategic partner and ally. Today, our relations have entered a new stage, characterised by deep and multifaceted cooperation. We have moved beyond simple trade in goods to the development of complex industrial value chains, technological alliances, joint design initiatives, and localised production.

According to our statistics, bilateral trade has more than tripled over the past decade, increasing from $4 billion to $13 billion. The current portfolio of joint projects with Russia exceeds $50 billion.

Trade and economic cooperation between the regions of our two countries continues to expand steadily. Our key partners are actively involved in this process: Moscow and St Petersburg, the Moscow and Leningrad regions, the republics of Tatarstan and Bashkortostan, the Krasnoyarsk Territory, the Perm Territory, and many other Russian regions.

The value of regional projects currently under implementation exceeds $5 billion, while an additional investment package worth another $5 billion is in preparation. Cooperation spans virtually all major sectors of the economy, including energy, chemicals and petrochemicals, mechanical engineering, agriculture, logistics, textiles, food processing, and many others.

Among these initiatives, the joint industrial parks established in five regions of Uzbekistan deserve particular attention. They are already delivering tangible results. Another notable example of our successful cooperation is the creation of a railcar manufacturing cluster in Tashkent.

I would like to turn specifically to the energy sector. Through investment projects, including those with Russian participation, we have expanded electricity production by 50 percent, from 58 to 87 billion kilowatt-hours. By 2030, we plan to increase generation to 120 billion kilowatt-hours, 54 percent of which will come from renewable sources.

Our capacity will grow further with the commissioning of the first hybrid nuclear power plant in Uzbekistan, with Russian participation. As you may have seen, yesterday President Putin and I took part in the concrete-pouring ceremony for that plant. For us, this represents a long-term development project – the growth of a new engineering school and the advancement of cutting-edge technologies.

We also intend to collaborate in other areas of peaceful nuclear applications, including medicine, agriculture, industry, and science.

Friends,

In the current climate, technological and industrial cooperation between Uzbekistan and Russia should not be limited to bilateral ties. We are focused on wider cooperation areas that can combine industrial potential, resources, markets, and competencies.

That is why we are proposing the formation of a Eurasian Technological Industrialisation Belt – a system of interconnected production and technology clusters united by a single digital industrial cooperation platform. This would involve creating full-cycle supply chains, from technology development and personnel training to the localisation of industrial production and access to foreign markets.

We propose implementing this initiative on the proven platform of the “Innoprom: Central Asia” Innovation and Industrial Exhibition, because, I should say, we have built up very good experience working together over the years. We hold it annually in Tashkent. This approach will allow businesses to find partners directly and establish mutually beneficial relationships.

Ladies and gentlemen,

A promising area of cooperation is undoubtedly digitalisation, which is becoming the new language of the economy. Where infrastructure once meant roads, pipelines, and power lines, today it primarily means digital platforms. These platforms create entire ecosystems around themselves – generating jobs, logistics, payment services, and new export opportunities.

Uzbekistan’s businesses are pushing forward with digital solutions and, at the same time, are open to technological partnerships with a wide range of countries – through Russian marketplaces and digital services, for example.

The Russian President noted in his speech, and I would also like to point out that we only began this process recently. It has not been long, but we are already seeing good results. Our sales volume has grown 3.5‑fold over the past few years, reaching, as already mentioned, over $1.5 billion. I think this is a positive outcome, and it bodes well for our future collaboration.

We suggest embarking on an effort to deepen our cooperation by building a shared digital ecosystem. This could include enacting similar regulations for e-commerce and city services, and then moving on to promoting brands from both Uzbekistan and Russia on our respective platforms, creating a single digital profile for employment-related matters, and developing AI-driven products. This would create new markets for businesses, while people stand to benefit from additional revenue streams.

At the same time, while seeking to promote the digital transition, it is essential that we remember that people must always be front and centre in any changes or reforms. Today, Uzbekistan is one of the world’s youngest countries where young people account for over a half of the population. This is more than just statistics, since it creates positive development momentum, a new kind of demand. This is our future.

Today, our goal does not boil down to offering up-to-date knowledge to our young people. It is instrumental that we create an environment in which young people can master the most advanced competences and fulfil their potential. Cooperation in education and personnel training plays a special role in this regard.

There are 32 branches of foreign higher education institutions in Uzbekistan. I would like to repeat this number, since the President of Russia has offered a lot of support regarding each and every university. In fact, Russian higher education institutions account for 15 out of 32 branches of foreign universities. This is therefore Russia’s biggest university network abroad.

At the same time, vocational training is also essential, especially when it comes to introducing hands-on training programmes. We already have good examples of these practices as demonstrated by the launch of the first joint engineering schools in Almalyk and Tashkent.

Online training seminars could offer an effective cooperation framework in this domain. They could enable young people to acquire the knowledge they need, especially in the most remote locations. This, in turn, would radically change the labour mobility model and elevate it to a whole new level.

In this connection, we suggest creating a joint online platform for developing human capital. Its objective consists of bridging education, professional training and the employment market. This framework could bring together under a single umbrella educational programmes, language and IT courses, projects to support young business leaders, and the ability to get in touch with employers. This would create an intelligible path for young people for integrating in the new economy, while business could access a talent pool of trained personnel. As for universities and colleges, they will have a window connecting them to what the market actually needs. This would be a long-term effort for Uzbekistan and Russia, and a long-term investment too, but we would be investing in people, which is our highest priority. This is what matters the most. If Mr Putin supports this undertaking, we can instruct our sectoral agencies and their senior executives to launch these platforms as quickly as possible.

Vladimir Putin: Of course.

Shavkat Mirziyoyev: I wish to highlight tourism as the cultural cornerstone of our partnership. This sector epitomises the building of a trust-based economy. When people visit Uzbekistan, they do not merely see monuments and cities, but also experience its culture, hospitality, business environment, and business opportunities.

In 2025, nearly one million Russians travelled to our country. This year, we are set to welcome even more. To facilitate this, we are developing not only our tourist infrastructure but also the creative economy. By 2030, its contribution is expected to reach five percent of GDP, making this creative sector one of the drivers of economic growth.

To enhance the cultural and educational dimensions of our collaboration, we propose the establishment of a creative tourism corridor from Samarkand to St Petersburg. This initiative envisages the organisation of joint art and film festivals, museum exhibitions, gastronomic weeks, and musical events. Projects highlighting Uzbekistan’s culture and arts have already been launched at the Mariinsky Theatre and the Hermitage.

Ladies and gentlemen,

The year 2026 holds special significance for our nation: we are on the cusp of a pivotal milestone in systemic reforms. A decade ago, we embarked on the building of a new Uzbekistan, committing to openness, inclusivity, and pragmatism. Over this period, a robust foundation has been laid for long-term growth, a favourable business climate has been cultivated, and a sustainable industrial base and new infrastructure have been established. The scale of our economy has expanded: in 2016, our economy was valued at just 50 billion dollars; by the end of 2025, it had grown to 147 billion dollars. This year, we expect growth exceeding eight percent

Over the years of reform, over 150 billion dollars in foreign investment has been attracted to the country, and thousands of modern enterprises have been established. Exports of goods and services have nearly tripled. Even today, amid global instability, Uzbekistan continues to maintain sustained growth. Our economy is becoming increasingly diversified, the domestic market is expanding, and demand for modern technologies, infrastructure, and quality employment is rising.

One of Uzbekistan’s principal advantages lies in its youthful, dynamic, and rapidly growing population. This provides a long-term basis for the development of entrepreneurship, technology, services, and industry. However, demography alone does not guarantee success; this potential must be converted into a powerful intellectual resource, into skills, into productivity, and into the capacity to create high-value-added products and technologies.

From the outset of our reforms, we have endeavoured to combine market efficiency with social responsibility. This is the defining characteristic of the Uzbek model of economic development. Growth must not solely be rapid – it must be sustainable, inclusive, and aimed at enhancing the quality of life for our people. In just five years, total household incomes have grown 150 percent.

Our primary criterion is a high quality of life, human dignity, and the realisation of each individual’s potential. The Uzbekistan‑2030 development strategy is dedicated to this purpose. By this date, we aim to elevate household incomes to levels above the average, to transition all industries to a model of technological and innovative growth, and to expand the economy by a further 50 percent, to more than 240 billion dollars.

Ladies and gentlemen,

Uzbekistan is consistently building all necessary conditions for global investment, creating a favourable business climate, improving market institutions, boosting competition and production potential. We invite investors present here to create new industrial chains with high added value. Our priorities are deep localisation and competence of production and development, as well as the development of modern engineering and new export routes. It is particularly important for the industries creating the new economy, such as industrial processing, agrotechnology, biochemistry, robotics, digital solutions and artificial intelligence.

We see great cooperation potential in projects in the public-private partnership format – in energy, aviation, education, geology, and many other industries. We offer our interested partners not only a growing domestic market but also direct access to neighbouring countries and regions.

Friends,

Uzbekistan is a reliable and predictable country for the global and business communities. Our economy’s progress towards utmost openness has been objectively attested by leading rating agencies. This year alone, our country has gone up 14 positions in the economic freedom index. Over the past years, we have placed $16 billion worth of sovereign and corporate bonds in international markets. Last month, the National Investment Fund of Uzbekistan launched its first share offering at the London Stock Exchange, with assets of our largest state corporations.

To continue developing the capital market and build a stable financial and investment platform that operates to the highest standards, we have launched the construction of the Tashkent International Financial Centre. The centre’s special legal and tax regime will provide investors with convenient tools and reliable guarantees for doing business.

I want to take this opportunity to invite you all to the Tashkent International Investment Forum on June 16–18 июня, where you can learn the new Uzbekistan’s opening opportunities in person.

Ladies and gentlemen,

This forum’s slogan is symbolic: Pragmatic dialogue for the stable future. Indeed, open and respectful dialogue is becoming the main condition for sustainable development. New opportunities open where there is trust, readiness for cooperation, and intention to look for solutions together. The partnership between Uzbekistan and Russia is a telling example of such cooperation.

Once again, I want to express my sincere gratitude to Russian President Vladimir Putin for the invitation to this major international forum and for the opportunity to present the new Uzbekistan’s development priorities.

Finally, I wish all participants productive work and a meaningful exchange of opinions.

Thank you. (Applause.)

Moderator Geeta Mohan: Ladies and gentlemen, that was the President of the Republic of Uzbekistan. I’d now like to invite the President of the United Republic of Tanzania, Honourable Samia Suluhu Hassan. Madam President, the floor is yours.

President of the United Republic of Tanzania Samia Suluhu Hassan: Your Excellency, Vladimir Putin, President of the Russian Federation and our gracious host; Your Excellency, Shavkat Mirziyoyev, President of the Republic of Uzbekistan; Your Excellency, Han Zheng, Vice President of the People’s Republic of China; honourable ministers and heads of delegations, distinguished captains of the industry, scholars and friends of Africa, ladies and gentlemen. At the outset, permit me to convey warm greetings from the fraternal people of the United Republic of Tanzania. Greetings from the snow of Mount Kilimanjaro, the highest freestanding mountain in the world. (Applause.)

Thank you. Greetings from the great plains of the Serengeti, where the wildebeest migration writes one of nature’s oldest and most magnificent stories. And greetings from the spice island of Zanzibar. (Applause.)

It is a profound honour to stand before you, before this distinguished plenary [session], a stage that, for over 29 editions, has become one of the world’s most significant platforms for candid economic conversations. I sincerely reiterate my profound appreciation to our host, His Excellency President Putin, and the people of the Russian Federation for the warm hospitality extended to me and my delegation since our arrival in this magnificent country. Excellencies, as you may be aware, Tanzania and Russia share a longstanding partnership that spans more than six decades.

In December this year, our two countries will commemorate 65 years of diplomatic relations. Certainly, we do not take this milestone for granted. We treat it as an enduring testament of strong commitment to a mutually beneficial partnership that seeks to uplift the lives of our people.

Excellencies, Tanzania is one of the fastest growing economies in Africa. Our economic growth currently stands at six percent and is projected to expand to 6.3 percent by the end of this year. The goal is to attain an upper middle-income economy status with a per capita income of around $7,000, in line with the Tanzania Vision 2050.

In order to achieve this goal, we are building three pillars at once. We are prioritising construction of transport infrastructure, including the Standard Gauge Railway, with plans to connect the Dar es Salaam port to the land-linked countries of Rwanda, Burundi, and the Eastern Democratic Republic of the Congo. On the same note, the Five Years Development Plan 2026–2031 outlines plans to extend the railway networks connecting Tanga Port in the north of Tanzania to Musoma Port in Lake Victoria, to facilitate transportation facilities in Lake Victoria to the neighbouring countries.

The Southern Corridor Railway, which is going to connect Tanzania to Malawi and Mozambique, is another railway project. We have successfully completed the construction of the Julius Nyerere hydropower project, which has added more than 2,000 megawatts to our national grids. Plans to generate 8,000 megawatts by 2030 and 70,000 megawatts by 2050 are underway.

On the other hand, we joined hands with Uganda in implementing the East African oil pipeline that will transport crude oil through our territories to global markets. Similarly, we are expanding the soft infrastructure by increasing the broadband coverage to more than 95 percent, also building more data centres and extending cross-border fibre as part of our ICT broadband project. This project stretches beyond our borders and connects to the neighbouring countries of Kenya, Uganda, Rwanda, Burundi, Zambia, Mozambique, and Malawi, positioning Tanzania as a regional digital hub for land-linked countries.

Excellencies, allow me now to narrate a thought that I believe deserves a place in this forum. By 2050, one in four human beings in this planet will be African. Africa will be the only continent on Earth still adding workers to the global labour force on a large scale. Africa will host nine of the world’s 20 fastest growing economies. Africa’s middle class will exceed one billion people, and the African continental free trade area, when fully operational, will constitute the largest single market in the world by population. This is not just a forecast but an arithmetic. Africa is destined to grow. The question, however, is on what terms, with which partners, and on whose model of growth. Africa somehow has charted its own development model.

It is clearly articulated in the African Union’s Agenda 2063, operationalised through the African continental free trade area, the programme for infrastructure development in Africa, and the development plans in our regional blocs. To date, talking of our bilateral relation between Tanzania and Russia, to date, relations between our investment authorities, Russia’s Roscongress, and the Tanzania Investment Authority have been formalised through signing a memorandum of understanding which will open a new bridge of business to Tanzania. Concrete steps have been taken to review our laws and regulations for purposes of creating favourable investment environment and henceforth attracting more capital investment.

In 2025, we created a one-stop centre for all investors coming to Tanzania. New companies can now register online within 24 hours. (Applause.)

This has transformed Tanzania into the fastest-growing investment destination in Africa, receiving around $12 billion worth of foreign direct investment in 2025, compared to nearly $3 billion in 2021. We are proud to say Russian enterprises have contributed to this growth trajectory.

Our trade has equally remained steady at around $4 million annually. Tanzania’s challenge is to export more to Russia, and Russia is exporting more to Tanzania.

Ladies and gentlemen, at this juncture, allow me to mention five main projects for which we are here to seek partnership from international business community.

First, we are delighted to inform you that Tanzania is embarking on one of the most ambitious port infrastructure development projects, encompassing a special economic zone, and this is being done just four kilometres north of our commercial city, Dar es Salaam. We are turning a small historic trade vicinity into a global hub of commerce, manufacturing, and maritime sector development. The Bagamoyo special economic zone is our number one flagship project, and we welcome international enterprises to partner with us. Moreover, we are developing a complex Mangapwani port – a transshipment port on our beautiful island of Zanzibar. The feasibility studies for both ports are ready, and we are eagerly encouraging partners to join us in investments.

Second, on mining and mineral beneficiation, we have endeavoured to ensure that the existing wealth of gold, uranium, nickel, graphite, helium, niobium, and other rare earth elements bring us massive economic returns. Our national policy is clear. We intend to move steadily from being a producer of raw materials to a producer of finished products. We invite partners to invest with us in industrial parks that will give real meaning to mining beneficiation.

Third comes tourism. Tanzania is one of the world-renowned tourist destinations. Our remarkable hospitality industry continues to dominate the global tourism platforms. Last year, for the second time, the Serengeti National Park won the Africa’s leading national park at the World Travel Awards, held in December 2025. At the same time, Tanzania has also been crowned as Africa’s leading destination, and Zanzibar was awarded Africa’s best corporate retreat destination. As part of our plan to attract tourists from Russia, we have designated our national carrier, Air Tanzania – The Wings of Kilimanjaro – to begin direct flights between Dar es Salaam, Moscow, and Zanzibar. The first flight is expected to be on the 2^nd of July this year. We aim to increase the number of Russian visitors to Tanzania to 500,000 by the year 2030, and a million shortly after.

Fourth, as part of efforts to transform the agriculture sector and enhance food security, we have prioritised local fertiliser production to sustain our growing domestic demand. Since Russia is the world’s largest exporter of fertilisers, Tanzania highly encourages the establishment of the local fertiliser plants geared to serve the country and the region at large. Fifth is the critical issue of energy generation: Tanzania has huge deposits of uranium.

Our main target is to use some of it in generating nuclear energy to meet the growing demand, which is expected to reach 8,000 megawatts by 2030 and subsequently 70,000 megawatts by 2050. It is in this context that Tanzania is advancing to nuclear energy as part of our long-term strategy to diversify our energy mix and support sustainable economic growth. To guide this effort, we have developed an ambitious national roadmap for nuclear power development, including the use of small modular reactors in our long-term energy strategy. And here, the Rosatom company of Russia has shown great interest, and we are holding discussions with them.

In conclusion, Excellencies, it suffices to say that the world is moving faster, and that necessitates developing countries to keep the pace. We must go where the wind blows. Indeed, this is a time for partnership, clarity, and trust. Above all, it is a time for us to take charge and realise our full potential. In this situation, I dare say that Tanzania is open for business. Tanzania is ready for new ideas and innovation. Tanzania is open to collaboration with international partners. This meeting has been a useful platform for enriching engagement in such endeavours.

We are confident that the outcome of this forum will contribute significantly to promoting greater partnership in trading and investment. Your Excellency President Putin, allow me once again to reiterate my gratitude to you, Your Excellency, for the generous invitation to be part of this important engagement. I also look forward to closer and greater economic collaborations between Tanzania and the Russian Federation, as well as other international enterprises who are ready to work with us.

Asante sana. Thank you very much.

Moderator Geeta Mohan: Ladies and gentlemen, that was the President of Tanzania. Tanzania is open for business.

With that, I call upon our next speaker, Vice President of the People’s Republic of China Han Zheng.

Vice President of the People’s Republic of China Han Zheng: Mr President Putin. Mr President of Uzbekistan. Madam President of Tanzania. Ladies and gentlemen. Friends, good afternoon.

It is a great pleasure to meet with you on the banks of the Neva River for the 29th St Petersburg International Economic Forum.

This year’s forum is held under the theme Pragmatic Dialogue: The Path to a Stable Future – a theme that reflects the shared aspirations of all countries, particularly in the current climate, for stability, cooperation, and development. This forum is of great significance.

On behalf of the Government of China, I would like to take this opportunity to express my heartfelt congratulations on the successful opening of the forum.

Against a backdrop of accelerating global transformation, challenges and governance deficits are growing worldwide. Last September, President Xi Jinping solemnly launched the Global Governance Initiative based on five guiding principles: commitment to sovereign equality, international rule of law, multilateralism, a people-centred approach, and a focus on real actions and results.

This initiative has received a broad positive response from more than 160 countries and international organisations. The establishment of the Group of Friends of Global Governance within the UN is rightly considered a modern manifesto for upholding the purposes and principles of the UN Charter, defending genuine multilateralism, and opposing unipolarity.

China, as the initiator, is bringing all parties together through practical steps to jointly promote the reform and improvement of the global governance system.

Ladies and gentlemen,

Friends,

Implementing the Global Governance Initiative requires the joint efforts of the international community. As leading global powers and permanent members of the UN Security Council, China and Russia play an important role in transforming the global governance system.

Following the recent summit in Beijing, President Xi Jinping and President Putin approved the Joint Declaration on the Formation of a Multipolar World and a New Type of International Relations. This document demonstrates the firm resolve and responsibility of China and Russia, as leading powers, to jointly promote a more equitable and rational global governance system.

China intends to strengthen cooperation with Russia and other countries through the Global Governance Initiative, and to work together towards a world of openness, tolerance, equality, justice, and mutually beneficial cooperation.

In this regard, I would like to share the following vision.

First, we must adhere to the principle of equal cooperation and uphold the concept of global governance based on joint consultation, joint development, and shared benefit. In the face of unipolarity and protectionism within the international community, defending the core values and fundamental principles of multilateralism is more urgent than ever.

We must adhere to genuine multilateralism, promote equal engagement of all countries, as well as equality in decision-making, and equal use of benefits in global governance. We must categorically support democratisation in international relations, expand representation, make sure the opinions of the developing countries are taken more seriously, and abandon ideological divides to ensure that the rational demands of different countries are fully accounted for by global governance.

Second, we must unequivocally protect international justice and defend the status and authority of the UN. China invariably supports the following: the parties must work together to defend a UN-centric international system, a world order based on international law and the fundamental norms of international relations focused on the goals and principles of the UN Charter. At the same time, China is against hegemonism and the policy of force in any form.

We must protect international justice in accordance with the generally recognised norms of international law, counter double standards and selective enforcement. We should support the restoration of authority and vitality of the UN in the new environment so that this organisation continues to serve as a key platform for coordinating international efforts and overcoming challenges together.

Third, we must promote comprehensive development and provide tangible benefits to all nations. To increase the effectiveness of global governance, improving people’s wealth and prosperity must become a focus. It is necessary to comprehensively fulfill the 2030 Agenda for Sustainable Development, assist in joint development and prosperity of all countries, and adhere to the principles of mutually beneficial cooperation.

China will continue to maintain a high level of external openness and provide unique progress opportunities to the world with its own high-quality development. As the host of the 33rd informal meeting of APEC leaders, China is ready to give a new impetus to the development and prosperity of the Asia-Pacific Region and the entire world.

Fourth, to strengthen coordination and create more visible results. China continuously promotes the high-quality construction of the Belt and Road, playing a leading role in cooperation within the SCO, BRICS and other multilateral bodies, supporting development and progress of the Global South, and assisting with the dialogue and cooperation within the international community on such significant areas as AI and climate change. China is also a co-founder of the International Organisation for Mediation along with over 30 other states.

It is necessary to coordinate international actions while focusing on aligning strategic initiatives with political coordination both among different countries and among international organisations and international bodies for the purpose of shaping a powerful force to respond to global challenges and promoting joint development.

Ladies and gentlemen, friends,

This year launches China’s 15th five-year plan that includes both grand development plans for our country in the next five years and broad horizons of China’s mutually beneficial cooperation with all countries in the world.

China is ready to work with all of its friends to fully realise the global governance initiative, create a more just rational system of global governance, and open the brilliant future for humanity shoulder to shoulder.

Thank you. (Applause.)

Moderator Geeta Mohan: Thank you so much. That’s the Vice President of the People’s Republic of China.

We are now going to open up the Q&A session and we begin with what this room looks like: hundred and thirty countries, representations from not just the Global South – we are looking at America for the first time being represented in this room, yes, Rodney Mims Cook Jr. right there in front of me.

This is also a room where Saudi Arabia is the guest of honour and so we have the Minister of Energy of Saudi Arabia sitting right there.

So, honourable President Putin, my question to you is, with hundred and thirty countries being represented in this room: when the world talks about economic isolation of Russia, does this look like isolation?

And, pardon me for being a little forward when it comes to thoughts and opinions – is it Russia that is isolated or is it partly Europe today that stands isolated?

Vladimir Putin: The answer came with an obvious hint – thank you very much. However, I must assure you, there was no need for any hint, as there was never any isolation.

The initiator of these attempts at isolation was the previous administration of the United States – a fact well known to all. Subsequently, their satellites in Europe followed suit, and have now surpassed even the US administration in these efforts. Yet, isolation never materialised, largely due to ongoing cooperation with certain partners in the United States.

I have previously cited this example. Present here today is a representative from one of our energy companies. Despite persistent opposition from the previous administration to one of our liquefied natural gas projects, once the project was launched, the first shipment was directed to the American market. To be honest, I was surprised – I could hardly believe it. I enquired: why? Because it was profitable.

We continue to supply uranium to the American market. The leading supplier in terms of uranium volumes is the United States – an American company; the second is an international company with both European and American capital; and Russia, still, ranks third in terms of volumes. And all is well. Where there is profit, Americans are pragmatic, and we ought to follow their example – nothing ever ceased with us.

Nor have our energy projects in the Far East with certain countries that, ostensibly, have formally announced their withdrawal from those projects, come to a halt. Everything is now operational – they seek expansion and are requesting more in numerous other sectors.

I am not even speaking of our friends – and I wish to underscore this: not merely friends, but partners who are reliable for everyone. I refer to both African nations and the countries within the Asian region – and, naturally, India, which never yields to external pressure, and the People’s Republic of China, whose sovereignty and independent decision-making are indisputable.

Within the framework of the well-known organisations, everything has always been satisfactory – and even more so with our closest allies, partners, and historical neighbours. Everything is advancing and proceeding without any significant detriment to us.

The fact that we now, as you have noted, are joined by official representatives of the United States here – and I am aware that there are also representatives from European countries in attendance – is a development we can only welcome. We have never isolated ourselves from anyone. If the circumstances have evolved in such a way that representatives from these states are also present here with us, we are only too pleased. Welcome! (Applause.)

Moderator Geeta Mohan: I promised to stick to the economic questions, but being a journalist, I have to ask you this. Ukrainian President Vladimir Zelensky wrote an open letter and he has not just offered direct talks – in the same letter he directly threatened you and has called this your war.

I would like to quote him, if I may. He says, “Our long-range drones paid a visit to the opening of your forum in St Petersburg covering a distance of more than a thousand kilometres.”

He says this war is your personal choice, a war without a real cause.

“We often hear you are comfortable with this war. Of course, not in those cases when it comes to the security of your residence in Valdai or your parade in Moscow. You own life is valuable to you.”

He adds you will have to fight much harder for your own existence, not Russia but your own.

He has proposed to set a clear date for a meeting between you and him. Your first reaction.

Vladimir Putin: As for the [strikes on the] residence or the parade – that is not my personal matter. They later gave us information, telling us, “We knew you were not there at the residence,” and so on. Why they are doing that is a different issue.

My press secretary, Mr Peskov, showed me this letter yesterday. But we had a working meeting – a working dinner with the President of Uzbekistan, so honestly, I did not have time to look at it. This morning, Peskov slipped it to me again. I glanced at it briefly, but still. A few things I would like to point out.

First, the author mentioned my age. Well, what can I say? Of course, everyone should think about age, but I imagine many other political figures my age are fulfilling their duties, some of them are even older than me. Age is not the most important thing… (Applause) …It certainly matters, but it is not everything. What matters is political capability and mental sharpness. Some of my colleagues, who, I repeat, are older, show enough vigour. Whether they are doing well or badly is another question – that is a matter of political judgment, but on the whole, they work actively.

Now, he also noted the length of time spent in elected office. That is an important issue, of course. But we have to stand for election – not be afraid to run for office – and always act within the framework of the Constitution. Holding power outside the Constitution is called usurpation; it is a criminal offence. So there is no need to be afraid. We have to stand, and I would advise everyone to do the same. Especially since in Ukraine, they were talking about elections coming soon, and then it all went quiet, for no clear reason.

The author also argues that the agreements reached in Anchorage should not be fulfilled, and that genuine guarantors of any potential Russia-Ukraine agreement need to be sought – and they should be sought in Europe. Reliable guarantors are always helpful, but why the US administration and President Trump are being denied that role is beyond me. They want weapons from the United States, but for some reason they do not want the US administration and President Trump as guarantors. That raises questions.

But we all saw how Donald, in front of the whole world, disciplined the author of that letter – insisting on a dress code, remember? Playing Rambo: First Blood all the time may work, but only up to a point, and not everywhere. That is the first point. And on manners: overall, I want to thank Donald for that effort – it was certainly useful. But there is still room for improvement. The work needs to continue. (Applause.)

Now, to address the central issue. Given that the Ukrainian side has chosen to thrust our relations into the public sphere, moving towards open discourse and debate – which, in my estimation, is somewhat inappropriate or altogether incorrect – this provides me with the opportunity, and indeed the right, to discuss certain matters that are either little known or entirely unknown to the public.

What am I referring to? This is a serious matter, let me assure you, without a trace of irony or jest.

Three weeks ago, a representative of our business community contacted me with a matter. I have been acquainted with this individual for a considerable time; although we do not maintain close ties, I regard him as trustworthy and honourable. He called me and said: “Mr President, I am being invited to Kiev.” I responded: “Well, by all means, go ahead; how does this concern me?” He replied: “I felt it was imperative to inform you, as the discussion will likely involve issues pertinent to relations between our two countries.”

I advised him: “Listen, I cannot dispatch you in any official capacity; such matters should be the remit of qualified professionals from the Ministry of Foreign Affairs, the Ministry of Defence, and other relevant services – much as occurred during our negotiations in Istanbul. Therefore, I cannot sanction any official action on your part.” He replied: “I merely wished to inform you of this invitation. I would go, listen, and subsequently report back to you on the discussions.” I replied: “I cannot prevent you; feel free to go.”

He travelled to Kiev, where he met with the individual, the author of that letter, at his residence, not at Valdai. Upon his return, I convened with him. Amidst the less substantive elements, the salient point was this: Mr Zelensky was requesting a meeting. I remarked: “I have never declined such requests.” However, to convene merely for the sake of empty dialogue, as we say – I am well familiar with that.

If I am not mistaken, the letter contains a reference to the Minsk agreements. We laboured through the night on those Minsk agreements – drafting them – only to have it subsequently revealed, through the statements of the leading representatives of the Federal Republic of Germany and France, that it was all a futile exercise. The entirety of the Minsk agreements served one purpose: to buy time for the rearmament of Ukraine. What need do we have for such agreements?

Thus, I stated: “I see no merit in such a meeting.” The sole objective, from the Ukrainian perspective, is to impede the progress of our Armed Forces, nothing more. We require agreements that endure not for mere months, not for half a year, but for a significant historical period. Let the specialists deliberate, devise solutions, and only thereafter can we convene, attend – as I mentioned – the signing of pertinent documents, or even append our signatures ourselves. However, a solution must first be formulated.

Now, to the most critical point, which the audience, particularly the Russian audience, will comprehend. This occurred, I believe, on May 21, and on May 22, Ukrainian forces executed a heinous terrorist attack on a college dormitory in the Lugansk People’s Republic, resulting in the tragic loss of children, adolescents. This constitutes a grievous crime. There were no military installations nearby, nor were there any military vehicles in the vicinity.

That morning, I contacted this – shall we say – colleague who had journeyed to Kiev and asked: “What does this signify?” They ask for a meeting whilst perpetrating such horrendous crimes as the murder of children. What is the implication of this? He responded: “I am at a loss for an explanation. They are contacting me once more; I will speak with them and subsequently apprise you and keep you informed.” I replied: “Very well.” I have not communicated with him since.

And the letter you have just mentioned does indeed contain certain rudeness. Is this really a way to create the conditions for personal meetings and negotiations? Or does it instead create an atmosphere in which such meetings become virtually impossible? I believe it is the latter.

Therefore, our attention should be directed not towards the authors of this letter, not towards the fans of the epistolary genre, but towards our soldiers on the line of contact. (Applause.) And addressing them, I would like to say: “Comrade soldiers and sailors! Comrade sergeants and warrant officers! Comrade officers, admirals, and generals! The entire country is watching you. The entire country is proud of you and places its hopes in you. Keep up the good work, brothers!” (Applause.)

Moderator Geeta Mohan: So, I will take that as a “No”, that you are not going to meet the author of the letter.

Vladimir Putin: I do not yet see the point.

Moderator Geeta Mohan: Because you have mentioned the American President, is Trump your window to once and for all settle the Russia-Ukraine question?

I ask you this, President Putin, because President Trump is, maybe, the only American President who is engaging Ukraine in a way to bring them to the talking table to strike a deal. He puts President Zelensky on notice. If it were Biden or Obama this would not have been offered at all. Is he the window?

Vladimir Putin: I already spoke about this in Anchorage, and I was sincere about that. I believe that if President Trump had been in power at that time – and I believe he had been deprived of victory through what I consider serious irregularities in that election – events might have unfolded differently. I believe that the widespread use of mail-in voting did not meet accepted international standards for ensuring fair elections. Had he held the office, perhaps these events would not have occurred. Perhaps he would have devoted greater attention to finding a peaceful solution.

In fact, during the final days of President Biden’s tenure, I spoke with him by telephone and told him exactly that. However, the administration at the time did not respond to the proposals we had put forward in December 2021. Well, that is now a matter of history. Perhaps, had President Trump been in office, developments would have taken a different course.

I regard him as a colleague of mine, and I respect him. As far as I can judge, the current US Administration’s attitude toward Russia is similar. Our personal relations are based on mutual respect. But naturally, key issues must ultimately be resolved between Russia and Ukraine. Our colleagues in the United States and other regions of the world can only help create the necessary conditions and act as guarantors. That is what we proceed from.

Moderator Geeta Mohan: President Putin, we are sitting and discussing this at SPIEF 2026: how do you really offer a stable economic future and invite investors to Russia when we are looking at critical infrastructure being actively targeted by Ukraine?

Vladimir Putin: You know, these attacks certainly do not contribute anything positive. Moreover, they cause us vertain damage. However, when investors make investment decisions, they assess the entire range of risks.

Yesterday, when speaking with your colleagues – the heads of major news agencies – I said that this means only one thing for us: we must strengthen our security, reinforce our missile defence capabilities, and enhance our air defence systems. And this is what we will do. However, businesses, especially serious investors, think in terms of long-term historical perspectives. Above all, they evaluate the economy in which they intend to invest.

We have discussed the current situation in the Russian economy. We acknowledge that the GDP growth has slowed and that there are certain other challenges. However, we have conceded to this in order to strengthen the foundations and, so to speak, improve the overall health of the Russian economy and its macroeconomic indicators. We are deliberately cooling the economy. And I want to assure you that we see no threats either today or in the foreseeable future. On the contrary, we can see that the measures we are taking are producing results. I know that many of my colleagues are present here, including representatives of the real sector of the economy. I meet with them regularly, and we discuss all of these issues.

As for the cries of “All is lost!” – a kind of Yaroslavna’s Lament – this expression is not entirely clear to you, but the Russian audience will understand the reference, we are aware that the key interest rate and other factors undoubtedly make investment activity more difficult. However, I want to emphasise once again the main point: the fundamental foundations of the Russian economy remain strong. This gives us every reason to believe that Russia continues to be an attractive destination for investment, not only domestic but also foreign. And I must say that we do see this interest. We will certainly welcome our partners. (Applause.)

Moderator Geeta Mohan: Ok. You are saying that in your speech you have set ambitious goals launching a new investment cycle but you yourself said that there has been a decline of 2.3 percent last year.

How do you then propose to grow in an environment of wars, sanctions, frozen assets and while you talk about sovereignty, how do you balance that with inviting foreigners here to Russia?

Vladimir Putin: Look, you have mentioned war and sanctions, yet our economy continues to develop steadily. The domestic market is expanding, and the well-being of our population is on the rise. We have set ourselves the objective – as I stated yesterday – of reducing the poverty rate to below seven percent by 2030. We have already achieved a rate of 6.7 percent, reaching this target ahead of schedule and exceeding expectations. Our macroeconomic indicators remain stable – I must emphasise this once again.

Despite these challenges – of which there are always many, everywhere – the solid foundations of Russian economic development remain stable and offer promising growth prospects. Every business and company remains vigilant to the risks – I reiterate – of today, the near future, and the long term. There are those prepared to proceed having evaluated these risks. I am confident that we will overcome these challenges, and in due course, such risks will diminish.

Regarding combat operations, we operate under the assumption that they will eventually conclude, and that they will certainly do so once we have attained the objectives we have set.

As for sanctions – well, I maintain that they inflict more harm on those who impose them. Do these sanctions cause us damage? Yes, they do. They froze 300 billion, and we currently hold over 500 billion, if calculated in dollars. They froze 300 billion, and we already possess over 500 billion. That is the result for you.

Do they cause us damage? Yes, but do those who impose these sanctions suffer as a result? Without a doubt, and profoundly so! According to various estimates – taking the eurozone as an example – the damage inflicted by the sanctions against us amounts to between 1.5 and 2.5 trillion euros. However, there is currently a reassessment of this situation underway. This reassessment is leading many to conclude that a return to cooperation with Russian partners might well be the wiser course.

We will monitor this closely. If the partners who left us – withdrawing from our market two or three years ago – did not create significant disruption or act insolently, we will welcome their return. Indeed, there are already interested parties who wish to return. Nevertheless, we will, of course, prioritise the interests of domestic business in this regard. (Applause.)

Moderator Geeta Mohan: We will come back to your goals and Ukraine, but I will have to ask you this Madam President – amid sanctions you are wanting to do and increase business with Russia. How are you going to circumvent or bypass the sanctions?

Samia Suluhu Hassan: Thank you, Madam Moderator, and I must say that I have been envying those panel members using their national languages and I would like to use this opportunity to do this. So, I will switch from English to Swahili.

[Speaks Swahili]

You asked me about sanctions and how we will move forward with development. I want to assure you that Tanzania is not under sanctions. We are not under sanctions at all, and we are continuing to organize ourselves to develop our country. But we are not under sanctions.

Moderator Geeta Mohan: Coming back to the sanctions experience, President Putin, you spoke about goals. In the sanctions that we are seeing and that have been imposed on Russia, there is certainly some room for a deal to be struck with Ukraine, what is that goal that Russia wants to achieve before a deal is struck and what are the red lines here?

Vladimir Putin: You know, during my speech at the Russian Ministry of Foreign Affairs in the summer of 2024, I laid out all of my objectives. In essence, they were set out at the very beginning of the special military operation.

This is going to take a while, but I will summarise the key points briefly.

Under the Charter of the United Nations, every nation has the right to self-determination. Following the coup in Ukraine, several regions of the country rejected the new authorities, declared that they did not support the coup, and proclaimed their independence and sovereignty. In doing so, they acted in full accordance with international law and the provisions of the UN Charter.

For a long time, we sought to resolve all these disputes through peaceful means. The Minsk Agreements, signed in Minsk, the capital of Belarus, established a framework for addressing the complicated situation in southeastern Ukraine.

However, it later became clear that the parties on the other side had signed these agreements solely to gain time, enhance their military capabilities, and launch military operations. That is how events unfolded. Subsequently, these territories declared their independence.

It is worth recalling that, in its consideration of the Kosovo case, the International Court of Justice determined that a territory declaring independence is neither required nor obligated to seek permission from the central authorities of the state to which it belongs. This was the International Court’s ruling, and on that basis Kosovo’s actions were deemed legitimate.

By the same reasoning, both the Donetsk and Lugansk people’s republics also acted within that framework. Although we refrained from recognising their independence for a considerable period, we eventually did so after concluding that a negotiated settlement among all parties was unattainable and that we were, in effect, being deceived. We therefore recognised the independence and sovereignty of these entities, and subsequently entered into agreements with them.

Did we have the right to recognise them? Yes, we did, and we did so. This does not contradict the UN Charter. Could we conclude a treaty of friendship, cooperation, and mutual assistance with them? Of course – and we did exactly that. The agreement was ratified by the Russian parliament. They requested our assistance, and we stated that we would provide it within the framework of this agreement. That is the first task, and it is being carried out.

The same letter you referred to states that our objective is the liberation of Donbass – and these two republics, the Lugansk People’s Republic and the Donetsk People’s Republic, constitute the Donbass region. The letter also states that this objective will never be achieved.

Does Kiev not know that, since April 1 of this year, the Lugansk People’s Republic has been fully under the control of the Russian Federation and Russian forces, while less than 15 percent of the territory of the Donetsk People’s Republic remains under Kiev’s control? We are steadily and confidently moving toward achieving these tasks, and there is no doubt we will accomplish this.

The same applies to other goals that we intend to achieve through negotiations – and I am talking about denazification. I also spoke about this yesterday. We were constantly being told, “What denazification? What are you talking about? That is just nonsense!” But what kind of nonsense is it? Recently, we saw the reburial of Nazi criminals being treated as heroes of Ukraine, with military honours and salutes. And who is doing all that? The head of the Kiev regime, who is Jewish. It is simply outrageous. Only Poland reacted somewhat timidly, and there is a reason for that – because it was mainly Jews and Poles, as well as Russians and Roma, who were exterminated by Nazis during World War II. Some million people [were exterminated].

I already said this yesterday, but it bears repeating. This is a huge part of the tragedy of the Holocaust. A million people, do you understand? Women and children were stabbed with pitchforks and burned in their homes. But now [Nazi criminals] are being reburied with military honours, with the head of the current regime present there and salutes and honours given, effectively glorifying Nazis. Our goal is to achieve denazification, and we hope for support from the international community in doing so.

(Applause)

Geeta Mohan: Shifting focus back to the topic at hand over here, let’s talk about energy security. President Mirziyoyev, it is during these wars and conflicts that countries have realised the need for energy security, the need for alternative energy resources and sources, and in that Uzbekistan and Russia have just signed an agreement for a nuclear facility. Tell us more about what this means for Uzbekistan in terms of the facility, the specialists that you would require, because this is after a long time that we’re looking at a nuclear facility in Uzbekistan, and how much time it will take, how important it is to have a nuclear facility, an energy resource that is not dependent on oil.

Shavkat Mirziyoyev: Thank you very much.

In fact, this is a very strategic, necessary project – the energy security of any country, and in 10 years the need in energy for Uzbekistan will double. I have also mentioned in my speech why we are seriously working on this issue, because as far as fuel, that is, uranium, is concerned, we are ranked as the world’s fifth top uranium producer, with with the world’s tenth largest uranium reserves.

We have been discussing these projects with our Russian colleagues for a long time, having designed and arrived at a unique resolution – for the first time in the history of Russia and Uzbekistan, there will be two small and two large nuclear reactors. This is a unique new model of a nuclear power plant. Of course, before we say this, we have been discussing this with the Russian President for many years.

What was the first thing we did? I asked to open a branch of the National Research Nuclear University MEPhI. We need to have specifically trained personnel before we could discuss something. Because, of course, during the Soviet Union, we had a huge school of peaceful nuclear development, there was science. But unfortunately, I say “unfortunately” because it was all forgotten, to put it mildly, and we have restored it all from scratch.

When we opened the branch, we opened up all the competencies, created science, and today there are 300 people students and 150 graduates. We have reached an agreement with MEPhI, some 400 students from Uzbekistan study there. We pay very serious attention, that is, we already have a research base.

Second. We have been working on the project for a very long time. The project is unique because the Russian content meets all international standards. And we are already this close to completing this grandiose, unique project, I would say.

Mr Putin and I commissioned its launch yesterday. And you know, here I am, and it was already late in Uzbekistan, but I still talked with the regional leadership after this meeting. People didn’t leave, people delivered speeches, people rejoiced, because this is a prospect for the future.

I would like to say that this project is not the last joint project of a nuclear power plant with Russia, and we will continue to build and erect more plants. Because we have created such a good foundation, and, as you yourself noted, we have also created human resources. So now it's up to us to accelerate.

We discussed this with Mr Putin yesterday as well, that we will keep it under the control at the highest level, because people have long been waiting for nuclear power plants in Uzbekistan. I would like to reiterate what I said in my speech – the economy is growing, and guaranteed electricity supply is very important for the economy.

Incidentally speaking, yesterday we even talked about other major energy-efficient projects in Uzbekistan. So, I think yesterday was a historic day. I congratulate both our Russian colleagues and citizens in Uzbekistan who have been very enthusiastic about this project. It will bring a very serious foundation for energy security to the Republic of Uzbekistan. (Applause).

Moderator Geeta Mohan: Partnership, they say, should be partnership of equals. President Putin, the trade ledger shows Russia exports raw energy heavily to China but imports a lot of machinery, technology and components. Is this relationship a partnership of equals or is Russia sliding into a colonial trade imbalance?

Vladimir Putin: (Laughs.) Talking about this topic even makes me laugh. We do have equal relations with our Chinese partners and friends. Moreover, the share of our high-tech exports to China is constantly on the rise.

As for energy in general, the share of machinery and equipment from Russia in this industry clearly – I can't give specific figures now lest I make a mistake – certainly exceeds the share of our Chinese friends.

If we talk about energy, I will also start with nuclear energy, atomic energy. We are building nuclear power plants in China. (Addressing Alexey Likhachev) How many units, Alexey?

Director General of the State Atomic Energy Corporation Rosatom Alexei Likhachev: We have four units, which have been built, are operating, four more are under construction.

Vladimir Putin: Four units designed by us are operating, and we are building another four in the People’s Republic of China. And our cooperation in science and education is developing. We have a very close cooperation in this area, and it is mutually beneficial.

As for, say, hydrocarbon energy, we have our own competencies growing here. And at one time, when we cooperated with foreign partners in this area, they were mostly American partners. Now we are increasing our competence in these areas. The heads of our largest companies are here, and if you talk to them separately later, they will tell you.

But, of course, we refer to our reliable partners and friends, including Chinese companies, to share information, technologies, and we will continue to do so. I would like to emphasise in particular that cooperation with China in this sense is mutually beneficial and absolutely equal.

Geeta Mohan: Okay, then let me invite Vice President Zheng.

[Given] the fact that there was a recent meeting between the two heads of state of Russia and China, which drew a lot of international attention, please throw some light on what this relationship is all about and where it’s headed.

Han Zheng (retranslated): Thank you for your question.

As President Putin correctly noted, cooperation in the sphere of trade between Russia and China is moving forward successfully and this is mutually beneficial as our economies complement each other. In the past years, it has been developing in a stable and a sustainable way, and we see a solid growth and healthy dynamics.

As you know, two weeks ago President Putin paid

a very successful visit to China, and President Xi Jinping and President Putin had talks in Beijing on development of bilateral relations and mutually beneficial cooperation in different spheres and many agreements were made in the trade and economy track. All these outcomes were of great interest for the entire world community. All mainstream media were covering this.

I’d like to touch upon three major points.

First, as I mentioned in my speech, China and Russia are large states, we are neighboring countries, and both are standing members of the UN Security Council.

The development of relations between Russia and China and the deepening of these relations and mutually beneficial cooperation in all spheres have already demonstrated that this is promoting the development and growth of both of these countries and contributes to increase of the well-being and wealth of both countries. At the same time, it allows us to bring very precious stability and positivity to the modern turbulent world, this is my fist point.

Secondly, I know that you give great attention to our practical cooperation. I would like to stress that it is not directed against any other third party and it is not impacted by any external influence.

Madam moderator has already asked such a question, our relations are forward-looking thanks to the strategic leadership by President Xi Jinping and President Putin. This comprehensive strategic cooperation and partnership of our countries has been developing for 30 years. This year we celebrate 25 years of the Treaty of Good-Neighborliness and Friendly Cooperation

We have been successfully moving along the designated path and we are enriching our relations with new substantial meaning. This not only improves the well-being of the two countries’ population but also supports the stability and peace in the region and the whole world.

Thank you.

Vladimir Putin: After your question, I looked around the room, including at those seated in the front row. Top executives of our major companies, including those in the energy sector, are here today.

I would like to draw attention to one point. Many of our companies, naturally, relied on the obvious achievements and expertise of Western service providers, particularly US companies. However, when that source of support was cut off, they began establishing their own engineering centres, and many of them have achieved remarkable success.

Take Gazprom Neft, for example. I have not yet had the opportunity to visit personally, but I promise I will certainly do so. From the video footage and other materials I have seen, the progress has been tremendous and truly significant. Obviously, we are not rejecting future cooperation; there is still much work ahead, and together with our partners from other countries, we will continue to deliver strong results.

Or consider NOVATEK. This company boasts technologies that are unmatched anywhere across the globe. We are currently discussing these technologies with our American partners. If they adopt them, production, liquefaction, and ultimately the sale of products in Alaska will, in my view, become far more efficient than originally envisioned through pipeline-based systems – significantly more efficient, by an order of magnitude. We have a lot to discuss in this regard. While sanctions and other restrictions have created challenges for us in certain areas, in others they have had the opposite effect, encouraging the development of our own expertise.

The same is true with respect to our European partners. Gazprom’s subsidiaries produce a number of natural gas-based products, and our partners who had previously expanded successfully, including through cooperation with us, are now facing massive challenges if they choose to remain in the market. Privately, they express dissatisfaction [with the actions] of their governments, yet they are compelled to comply with them. They have lost access to the Russian market, while we have enhanced our own competencies and have begun to replace them in third-country markets because we now possess both the products and the technologies ourselves. This is the outcome of the short-sighted policies pursued by some of our partners. Yet, in this regard, those actions have worked to our advantage. (Applause.)

Geeta Mohan: Talking about technology and talking of technology, you are helping [with] uranium when it comes to nuclear facility. What about countries like India that actually have a lot of potential and need maybe assistance and partnership in the technology sphere when it comes to hydrocarbon and rare-earth minerals harnessing, harnessing of hydrocarbons in India? Is that something that you are looking at?

Vladimir Putin: Certainly, we cooperate very actively. Our company, Rosneft, is among the largest foreign investors in the Indian economy.

(Addressing Igor Sechin) Mr Sechin, how much did you invest in the oil refinery plant in India? Twenty billion?

Rosneft CEO Igor Sechin (answers off-mic): …

Vladimir Putin: Rosneft has invested approximately $25 billion in the Indian economy, including the refinery, the port, a network of fuelling stations, and other facilities.

Naturally, we work closely with our Indian friends, and together we continue to achieve the positive outcomes we can see today. This cooperation also involves the exchange of technologies. Our diplomatic relations with India date back to 1947, and our relationship has always been special, built on trust and fraternity in every sense of the word. Over the decades of our partnership, we have become convinced that the Indian people are highly talented and well educated. They boast their own competence; their achievements in programming and other fields, including the one you mentioned, are recognised across the globe.

Of course, Prime Minister Modi is currently compelled to introduce certain restrictions, urging people to limit the use of personal vehicles and avoid travel, particularly long-distance trips, amid the developments in the Strait of Hormuz and the broader situation in the Middle East. However, the Indian government bears no responsibility for these circumstances; it is the Indian economy that is experiencing the effects.

I believe that both our companies and our Indian partners made a proper decision in establishing such close cooperation. In today’s environment, we strive to support one another, extend a helping hand when needed, and increase our supplies to the Indian market, as well as to Asia more broadly. We are already exchanging technological solutions, and we will continue to do so. (Applause)

Geeta Mohan: You spoke of the war, so I have to ask you this: What is Russia’s assessment, what is your assessment of what the global economic impact is going to be of the US-Iran war? And let’s be honest: Has Russia been at an advantage because of the war because they’ve got longer waivers to buy Russian oil? A lot of countries can now buy Russian oil legally without a problem because of the energy crunch that the world is facing. And President Trump allowed (should I use the word ‘allowed’?) the world to use Russian oil.

Vladimir Putin: Oil revenues have always been important to Russia, making up a significant part of our total GDP and budget revenue. But the dependence of the Russian economy and budget on oil and gas revenues has significantly decreased in recent years naturally – not during the sanctions period, but simply in recent years. The share of our GDP that isn’t oil and gas was approximately 43 percent just two or three years ago – in 2022, I think. That’s if you subtract the oil and gas component from the country’s GDP, plus the non-oil and gas component. It used to be 45–46 percent, I think – oil and gas accounted for a large share of GDP, but now it’s only 23 percent. It used to be 42 percent, now it’s 23 percent. The difference is enormous.

As regards the federal budget revenues – the Minister of Finance is present here, and if I am wrong, he will correct me now – oil and gas revenues accounted for about, I think… (Addressing Anton Siluanov) How much, Mr Siluanov?

Minister of Finance Anton Siluanov: 20 percent.

Vladimir Putin: Now it’s 20 percent. How much was it?

Anton Siluanov: 50.

Vladimir Putin: 50 percent was generated by oil and gas revenues, while now, as the Minister confirmed, only 20 percent of the budget is derived from oil and gas revenues.

So, it would be wrong to say that this is critically important for us – it is actually not that important. Although, of course, it is significant as 20 percent is currently generated by oil and gas revenues.

But for us, as for all other nations with developing, rapidly advancing economies, something else is more important. Obviously, our oil and gas companies receive certain preferences in connection with long-term contracts, and the rising price of our oil naturally impacts the budget, which is a plus. But that’s not the most important thing; what’s more important is market stability, because we exist not only on oil and gas, as I just explained, but also on the development of the economy at large. If global oil prices are too high, this impacts the part of the Russian economy that represents the real economy. That’s the whole point.

Therefore, it is important for us that this price is balanced between the interests of manufacturers and consumers and, most importantly, stable. How much is it now? The Deputy Prime Minister will tell me if I am wrong – I think oil supplies to global markets have decreased by 10 percent. Of course, this shakes the global economy and global energy markets.

We are not interested in this. What interests us is further cooperation with our friends within OPEC+ aiming to stabilise the market and reduce its volatility. This is our priority, and this is our way forward. (Applause.)

Geeta Mohan: Okay. I suppose that's the reason why Saudi Arabia is the guest country this year at SPIEF. Having said that, you also spoke about payments.

Vladimir Putin: Not only for this reason. Because we have been friends with Saudi Arabia for many years and we are glad to greet the distinguished guest. (Applause.)

Geeta Mohan: This is an energy partnership that the world will actually be looking at a time when we are seeing, we are faced with wars and conflicts. But you spoke about payments, you spoke about concerns regarding payments, the fact that in a jiffy, in a moment Russia not just can be sanctioned but its assets can be frozen, payments under SWIFT can be blocked and you're left with nothing in such a scenario. One: how do you tackle it? Secondly, why should any country then consider Russia as a consistent partner?

Vladimir Putin: The first thing that I wanted to say: I think that many people in the United States, too, do understand this, the attempt to use the dollar as an instrument of political struggle, as a weapon in the political struggle, was an immense, catastrophic, I would say strategic mistake of the former US leadership.

The dollar is one of the basic components of the US economic might and its undoubted competitive advantage. And this competitive advantage consists not only in being a reserve currency, but also in the possibility for the US economy to get a win, to earn real money, big money. When the former US leadership began to use its currency, which so far remains the world reserve currency, as an instrument of political struggle everybody thought: And they can use these weapons against us, too. And what will happen? What will happen to our reserves nominated in dollars? What will happen to our money invested in US assets?

Of course, the basic foundations of the US economic might are great and strong. But still, there problems that I have mentioned: both the debt and the undermined trust in the dollar as a world currency. Now, if the oil price stays high, it will be expensive and this will tell on the entire chain of economic interaction. Most likely this will have an impact on the inflation of the leading economies, including inflation in the United States. And this is a basic, an absolutely fundamental condition of the US currency’s stability.

After all, it is not secured by anything, the United States once abandoned the gold standard. And what is the basis of the US currency’s stability? The reliability and stability of the economy itself, with low inflation as its main condition. Oil prices are high, the inflation is growing and the foundation of the US economy will be shaking, do you see? Here are the repercussions.

And we want to avoid this; we want stability in this sector and will work for it. This is why I think that everybody understands us: we and Saudi Arabia, our friends, with the Crown Prince are just working on balancing the interests of both suppliers and consumers, and so far, everything works out in general. We are very grateful to the Crown Prince and all our friends who work in this domain.

Maybe we can give our guest the opportunity to say a few words? It would be interesting to listen to him. Although it defies the traditions of our panel discussion session.

Geeta Mohan: It’s always fun to break traditions, Mr President. Is there a mic that can go to our honorable minister? We’ll arrange for a mic. Meanwhile, can I just take a question till the mic comes?

Vladimir Putin: Yes, please.

Geeta Mohan: So, we’re waiting for a mic for the Minister of Energy to speak and respond to President Putin. But I have taken note of the fact that every time you mention America, you’re only mentioning the past administrations. I suppose you all are taking note as well on the specific way and the manner in which you’re responding to the US-Russia equation. Having said that, every country has its own struggles.

Tanzania and Madam President over here has been at the forefront, a leading woman voice. Great to have a woman on the panel, too, who’s been fighting liberalisation of her economy. How has that gone and how is that moving ahead despite and in spite of fears of sanctions and criticism from various quarters? How are you managing economic liberalisation in the country?

Samia Suluhu Hassan (retranslated): Perhaps, I should say that Tanzania is a country with a diversified economy. We don’t depend on one commodity. Our economy depends on agriculture, mining and tourism. It depends on many other sectors – the manufacturing sector, we are also there. So all these sectors contribute together and they grow together at varying degrees but they grow together.

Therefore, we are determined to work and we do work with the international community and the private sector, calling on everybody to come to invest in Tanzania and to do business. Since 2021, we have been able to attract a lot of capital and foreign direct investment from abroad. And this is what makes Tanzania feel safe about its own economy and its strength.

But most importantly, Tanzania is strategically located as an epicentre or a hub of the economic corridors that connect the north, south, west and east of Africa. The port of Dar-es-Salaam serves all these corridors and connects them as a hub.

As a result, thanks to its strategic location, Tanzania helps inland countries and is extremely attractive economically. Tanzania has a very vibrant economy that is steadily growing. This growth continues. In 2021, we started with 3.4 percent, and then we moved towards 4.5–4.6 percent. We expect to reach 6.3 percent.

You asked me how I can manage the economy while being a woman president and maintain economic development. I should say that the economy has nothing to do with the leader’s gender. It depends on how you steer the affairs of the nation and how you lead the country. Whether you are a male or female, you have to have a strategic plan to sustain your economy. It is the strategic plan that matters.

I suppose this is my response. (Applause.)

Geeta Mohan: Thank you so much.

Would it be too much to ask the honorable minister to come and respond here because I think we’re having a bit of a problem getting the mic. Would it be too much to ask the minister to come on the stage and respond? Thank you so much for doing this. Thank you.

Oh, the mic has come, sir. The mic has come.

Abdulaziz bin Salman Al Saud: Magic.

Vladimir Putin: You are in Russia. (Applause.)

Abdulaziz bin Salman Al Saud: Mr President, magic does happen in St Petersburg.

I am very grateful that you’ve given me the opportunity. I see it as an opportunity not for myself but it’s coming from a president who is a friend of both His Majesty, the custodian of the 200 mosques King Salman, his Royal Highness the Crown Prince, Prime Minister Prince Mohammed, but both of them, I think, will vouch that this honour is also more important for the people of Saudi Arabia and the Kingdom of Saudi Arabia. So I’m very grateful to you for giving me the opportunity. Yes, it’s a partnership that we struck somewhere in January 2015 and it withstood all of the situations that this world had endured from Covid to all of these storms and winds and whims of the war. And even today we’re going through so many crises in many places, in different places, with different causes. Yet we’re weathering all of these storms with a diligent commitment to each other as partners. Although I am a Muslim and Russia is not Catholic, but still we do go by ‘until death do us part.’ Thank you.

Geeta Mohan: That’s lovely indeed.

Vladimir Putin: Thank you, thank you, Your Excellency.

I want to draw your attention to the fact that 10 to 15, rather closer to 15 percent of the Russian Federation citizens practice Islam, and they have no other homeland.

May I ask the moderator? You said that representatives of the EU and the United States are probably also among the audience. Maybe they would like to raise their hands and wish to say something? It would be good. (Applause.) We are speaking about them all the time, could they say something about themselves?

Geeta Mohan: Rodney, will you humour us and take the mic? And say a few words.

Vladimir Putin: Yes, please.

Chairman of the United States Commission of Fine Arts Rodney Mims Cook, Jr.: Well, you haven't put me on the spot at all. President Putin, it’s very nice to see you, and I appreciate all of the hospitality that has been afforded me on my return to St Petersburg. I love the city and I think you're aware of that, and I've been coming here for 30 years.

Vladimir Putin: Hurray! I like Petersburg, too. (Applause.)

Rodney Mims Cook, Jr.: You have a beautiful hometown, and so do I, and I said to a number of audiences since I’ve been here – there is a great kinship between Atlanta and St. Petersburg. I have come from a city that, sadly, was destroyed in war, burned to the ground, and St Petersburg had resolve and fight to prevail over the Fuerer coming through the Admiralty Arch and proclaiming to the city that he had conquered her and then reduce it to rubble the next day. St Petersburg fought that off.

And yesterday I was privileged to have an orchestra play for us at my request Shostakovich’s Symphony Number Seven. Not only did you fight it off with resolve and grit, but you also did it with culture and music. And if only Atlanta had had Shostakovich, maybe quite possibly my beautiful city would still be as intact as this beautiful place is.

I do give a good hello from your friend, President Trump, and I am encouraged by everything that has happened since I’ve been here, Mr President, and I appreciate the offer to speak. And we have a lot of ideas to talk about between our two capital cities in the next two weeks.

Geeta Mohan: Can I can I ask you a question, Rodney?

Rodney Mims Cook, Jr.: You may ask it, but I'm not sure I’ll answer it.

Geeta Mohan: That’s all right. Are you taking anything back to DC when you plan the ballroom?

Rodney Mims Cook, Jr.: Explain your question a little bit better. Have I learned more from St Petersburg architecture about the ballroom?

Geeta Mohan: No. Inspire. Will you be inspired while creating the ballroom in Washington DC at the White House?

Rodney Mims Cook, Jr.: I have already been inspired by St Petersburg ballrooms in my lifetime and have done a lot of work in your cathedrals and your palaces. So, the answer is yes.

Vladimir Putin: Thank you, thank you for the greetings from Washington. Please, convey the return greetings to President Trump.

And thank you very much for such kind and heartfelt words about St Petersburg. (Applause.)

Geeta Mohan: I have some very tough questions to ask, but before that we had opened the floor to our European friends here. There, that lady over there.

Can a mic go to her, please?

Diana Iovanovici Șoșoacă: My name is Diana Iovanovici Șoșoacă, I'm a member of European Parliament, I'm from Romania and I think I'm the only Romanian here. (Applause.)

I would like to tell you that Romanian people do not hate you. Romanian people want peace with Russia. We don’t to help Ukraine, we don’t want to give them money and arms. But unfortunately, Romania is being led from Brussels. And I cannot send you a warm hello from our president because we do not have a president. From my point of view, I am a resident of the political party S.O.S. Romania which is a parliamentarian and Euro parliamentarian political party and the only opposition in Romania.

And Mr. President, I would like to tell you that I was senator in Romanian Parliament in 2023, I think, when Zelensky wanted to talk in my Romanian parliament, and I didn't let him and I got him out of the Romanian Parliament. (Applause.)

I would like to thank you from the bottom of the hearts of Romanian people and European people who think a lot and who have brains that we want to cooperate with Russia. We are not enemies. You are the biggest country in the world, you are one of the biggest economies. We admire you for your force, and we admire entire Russian people. We want to congratulate you on everything you have done and you doing, for this forum. Congratulations! And this is a lesson for the European Union. I hope in a short time we will not have Ursula von der Leyen as President of the European Commission.

Thank you very much. (Applause.)

Vladimir Putin: Thank you very much.

Diana Iovanovici Șoșoacă (in Russian): You are welcome.

Vladimir Putin: I cannot – and frankly do not wish to – comment on Romania’s domestic political situation. But our friend from Saudi Arabia noted earlier that Russia is, after all, a predominantly Orthodox country. And the same is true of Romania. Please convey our warmest wishes to all Orthodox believers there. (Applause.)

Geeta Mohan: All this is great but we still have some tough questions on sanctions and on waiver. It comes at a time and I ask you and we're going to discuss this only because of the Iran-US war a war that has shut down one of the most critical of maritime routes.

Okay, please go ahead, madam.

Karin Kneissl (speaking Russian): Sorry, my name is Karin Kneissl. I arrived from Lebanon two years ago. I am very grateful that now I can live and work in Russia. Thank you, thank you for this opportunity. (Applause.)

Unfortunately, people in the West are sure that I worked for Russia even 40 years ago. (Laughter.)

I will ask my question in English because I think there's also no German interpreter. I know that the president insists on German but let us do it in English.

Mr. President, my question is on the modern warfare, use of drones, which have created such a horrible distance between the perpetrator – I don't want to say the soldier because it’s not always a soldier – and the target. There is now a sort of technical artificial distance which is creating a new form of cruelty and we don’t anymore have any sort of code of honor between the parties. It was different still in World War I.

How do you see this modern warfare in which the Russian army and the Ukrainian army have gained special experience? Here in St Petersburg about 140 years ago, Tsar Nikolai II launched a conference on disarmament. His ambassador Martens said, “Whenever we don't have a strict law how to do the war, let public conscience speak.”

May I ask you about this warfare? How can we handle it? How can how can it be done or be finished? Thank you.

Vladimir Putin: Yes, yes, I understand.

On new methods and means of warfare: they are constantly emerging, and the international community keeps trying to respond – for example, with agreements not to use landmines and so on. But unfortunately, many countries are moving away from these commitments. And we see how Ukrainian troops are being supplied by Western states, including with that very type of weaponry.

As for modern weapons, including unmanned aerial vehicles – yes, unfortunately, that is the new reality. And of course, most of them come to Ukraine from Western countries; they only need to assemble them. Although they try to develop some of their own, they have not achieved much.

How can and should we respond? We need to strengthen our air defence system, as I said yesterday at the meeting with heads of news agencies, and do everything necessary to secure the territory of the Russian Federation. We are working in that direction.

I should point out that, unlike the Ukrainian armed forces, Russia has all the necessary resources for self-sufficient development: its resource potential, scientific and education institutions – in other words, workforce – a developed industry, and the ability to implement all the plans the Russian Federation has set for itself. Our industry and defence science are doing everything, and are capable of doing everything, to provide the Russian Armed Forces with these means of warfare, among other things.

Since you have asked this question, I will answer: there is parity on the battlefield, and in some areas, we even have an advantage. The same applies to long-range fixed-wing aviation. It would not pose such a significant threat if appropriate decisions had been made in a timely manner and the corresponding capabilities developed. These are, after all, low-flying and slow-flying targets. True, jet-powered drones are already appearing, but even these means of warfare are essentially defensible.

The other side does not have its own production of the weapons that Russia possesses. That includes hypersonic weapons, cruise missiles – a full range of them – and a number of other weapons that other countries do not have. For example, medium-range weapons like the much-discussed Oreshnik. We are developing other weapons as well.

But I agree with you that, when the most dangerous means of warfare emerge, especially those affecting civilians, the international community must certainly consider how to limit their use, particularly against civilians. That is completely unacceptable; I believe such acts amount to humanitarian crimes. But that is a topic for a separate discussion involving experts and representatives of the international community.

Geeta Mohan: Before I go to the war question, can I just take one question from Madame President here? You said one out of four will be African by what? By when? By 2050?

And I ask you this because we ask this to everybody who boasts about population and the fact that they have a huge population. It's not about quantity. It's about quality. What do you have to offer to the world? What does Africa have to offer to the world in terms of quality?

Samia Suluhu Hassan: We have an African continent. We recognize the fact that during this in this era we are supposed to develop and to promote our human capital, to develop human capital. That's very, very important, that's critical for Africa. That's what we are doing. Of course, we are doing it in varying degrees in each country but we are doing, for example, in Tanzania. For instance, we do have right now about 500 students in the Russian Federation. They are here learning here, and in our discussion we have agreed that we'll get more opportunity to take our children to Russia for education because we have new areas, which are being unlocked.

For instance, if we speak of digital economy, we have to learn what is it. When we speak of nuclear energy, we also need to get nuclear engineers. We need to get all the experts who can work in that field. So, development of human capital that is the direction we want to take. It is critical to our development.

But secondly, especially for Africa, it is to give the opportunity to women. Because currently in Africa, the doors which were closed, they now look they opened. Especially for those who have through the doors, we have the responsibility to develop others. an African girl to make sure that an African girl has the hope for the future and understand that she is the part of the nation building as we were told in SDG-sustainable as it is explicit in the sustainable development goals that we don't have to leave anyone behind. (Applause.)

We are now aware that no one should be left behind. Take an example a country of, a country growing at 80 percent. Six percent GDP growth annually, how can it manage without involving each and everybody. So, society inclusion is very, very important and you said it right, CO2 society inclusion but quality society not only society inclusion everyone has to be involved managing their own sustainable development.

So, we say by that, by that year one out of four will be an African by 2050, because African population is growing at a higher rate, that we have to build our human capital and we are doing it.

Yesterday when I was in RUDN University, I met Nigerians there, Tanzanians, Ghanaians, so many students from African countries, they are there studying. So, this is one country, Russia, but we are our students spread all over the world.

So, we are trying to build our human capital, both boys and girls. So that's why I said in those years nine out of 20 countries that would lead the economy, nine are coming from Africa, and I think Tanzania is one of them.

Geeta Mohan: Now I’ll go back to the war question – the Iran-US war, the Strait of Hormuz blockade. There is a real cause of concern and worry. How is Russia looking at it? What's your assessment and reading on the global impact it is having apart from the fact that yes Russia maybe has had a bit of an advantage what's the assessment of the blockade and the attack on Iran? Would you consider it provoked or unprovoked?

Vladimir Putin: I cannot see any provocations on the part of Iran. It seems to me that we once came to terms and adopted a relevant agreement on Iran’s nuclear programme and everything was under the IAEA’s control.

Yet, regretfully the situation unfolded following a different scenario, in a different vein. Everything resulted in today’s tragedy, to put it bluntly. The strike at Iran, losses, including among the civilian population, we know it well enough, relations between the neighboring countries worsened, which is undoubtedly of great concern for us because we have very good, friendly relations with the Arab world and with the Gulf countries. And all the time we (I also spoke about it yesterday, I remind you), in conversations with our Iranian friends, are talking them into abstaining from strikes against the neighboring states. However, their answer is simple, they say: “We were attacked, they kill our children, they have assassinated all the country’s leadership. What shall we do? We have to respond this way.”

You see, the situation is not easy for us in this regard. Our relations with Iran are very amicable, we are neighbours, as well as with the Arab countries. Frankly speaking, it puts us in a complicated situation. Still, we proceed from the idea that President Trump’s decision to suspend hostilities is the only correct one. We sincerely hope that this ceasefire, that is taking place now, will lead to a lasting peace.

I have already spoken about it on many occasions; there is no need to repeat it and waste time. In 2015, Russia played a noticeable role in settling the crisis. If we can do anything today, we are ready for this joint work. If no, we will just hope that all the countries involved in the conflict will eventually manage to resolve this issue peacefully. (Applause.)

Geeta Mohan: Have they approached for Russia to play role in mediating in brokering peace? Are you in touch with President Pezeshkian or also have you had an opportunity to speak with the new Supreme Leader?

Vladimir Putin: No, it’s not about approaching, the thing is that some time ago, it was even a year ago already, may be later, we reminded them about our cooperation in 2015, when we took the enriched uranium to the Russian Federation. Then it defused the situation. We reminded them about it and said that it is possible, and if all the parties involved in the conflict are interested in such Russian participation at the given time, then we are prepared to repeat it and are ready to do it all. We have the required technologies and initially, I repeat, practically all the parties involved in the conflict, i.e. Iran itself, Israel and the United States said yes, it is interesting, it may be considered. However, later they toughened their requirements and everything resulted in today’s situation.

Our proposals are on the table; we do not insist on anything. If the parties involved in the conflict decide that this is a good proposal – welcome. If no, we will just monitor the situation and, where possible, exert influence with a view to mitigate the situation. (Applause.)

Geeta Mohan: Does the offer for, uh, the uranium enrichment to be taken to Russia still stand? Are you engaged with Washington DC on this? Because I suppose DC is very clear that they want to have the uranium, and Iran is insistent that it stays in Iran.

Vladimir Putin: We are in contact with Washington, Tehran, and Tel Aviv. (Applause.)

Geeta Mohan: Because you mentioned Tel Aviv. Do you think Prime Minister Netanyahu’s plans as they stand are one of the main reasons why America is in a position where it needs to look at how to get out of this, how to exit this? And do you think that President Trump was misled?

Vladimir Putin: I have no reason to say that Mr Trump has been misled in any way. He is an experienced, mature politician, and it is unlikely that anyone from the outside could exert any significant influence over him.

Israel’s concerns are well known. They stem from Israel’s belief that Iran is seeking to develop nuclear weapons. But Iran has repeatedly stated, both in the past and continues to state now, that it has no such plans. And we have no reason to doubt that, because we also have no evidence that Iran is seeking to develop nuclear weapons.

That said, Israel’s concerns exist. And the main problem here is the lack of trust between the two sides. In this situation, it is crucial to place all these materials under the control of the IAEA, the international organisation whose director general, as I mentioned, joined us via videoconference yesterday for the launch of the nuclear power plant project in Uzbekistan. If this is under IAEA control, then, frankly, I do not see any major problems.

Agreeing on enrichment levels in Iran is a different matter – no less pressing, in my view. Iran has the right to peaceful nuclear programmes, and we are cooperating with Iran in this area. We have already built one unit at the Bushehr nuclear power plant, and it is operational. We are continuing construction on two more units. Our specialists are present there. We have withdrawn most of our personnel because Bushehr is located practically on the shore of the Strait of Hormuz – almost in the combat zone. We were forced to withdraw some of the women and children, but some remain.

On that point, I want to note that we are in contact with both the Americans and the Israelis. Everyone assures us that the shell impacts near the plant were accidental. Everyone assures us that it was an accident and will not happen again. And I have no reason to believe we are being misled. We have spoken with the Israelis about this many times, and we see their concern and their willingness to ensure the safety of the Bushehr plant.

The situation is quite different elsewhere – at the Zaporozhskaya Nuclear Power Plant, for example. There, Ukrainian forces are constantly launching strikes near the plant. Or, recently, they seem to have completely lost their minds and struck the reactor directly. Thank God, there were no significant consequences and the reactor was not damaged, but it has, of course, been shut down. That said, the situation there is very dangerous, given the spent fuel and so on.

If those storage tanks are damaged, it becomes a very serious question: which way will the wind blow? And it is not at all certain that it will blow towards the Russian Federation. It could just as easily blow towards Europe. So, Europeans who encourage any actions by the current Kiev regime should think carefully about that and consider their own security – something that, by the way, Mr Grossi, Director General of the IAEA, has clearly, if very carefully, alluded to.

Returning to your original question: we generally intend, once the situation calms down, to continue working with our Iranian friends on the construction of these nuclear facilities. But here too, I think that allaying Iran’s concerns about restrictions on its peaceful nuclear projects could play a certain role. We are working with them and are ready to provide everything they need, including enriched uranium for nuclear energy.

Geeta Mohan: Beyond economic friendship or economic partnership, there are reports in western media where they say that Russia has supported Iran uh not just not just symbolically, not just in words but in satellite images and data sharing, in information sharing. What do you have to say to those reports?

Vladimir Putin: The information is always on the table. Some modern means of control have dual designation. I think that Iranians, I do not know it for sure, could well obtain information not only from our satellites, but also from other, commercial satellites, which easily sell it as a product on a commercial basis.

As for weapons, Iran did not ask us for this and we did not supply any armaments to Iran. (Applause.)

Geeta Mohan: But these wars today have shown a different side of modern warfare – drone technology. Whether it is Ukraine or, for that matter, Iran, we are head in drone technology, in the use of artificial intelligence. How does Russia fare? And what is your assessment on what you want to do, and reading on, Ukraine’s drone technology, Iran’s drone technology?

Vladimir Putin: As regards Ukrainian UAVs, they must be downed and it should be done more effectively.

Now regarding the use of artificial intelligence. Yes, the United States and Europe are active in developing this area, we are doing this too. (Applause.) By the way, UAVs and their components come mostly from there – mostly from Europe, partially from the United States if we talk about their components. We are making all this using own resources.

Geeta Mohan: Is AI an enabler or a disruptor?

Vladimir Putin: These are new means of an armed struggle, there is nothing unusual in this, as a matter of principle it was known long before. Still, all parties, as usual, all, I insist, begin to get ready for this when it appears in real life, in the course of real struggle.

But these means are not the only ones. The result is achieved through a synergy of forces, means, and most importantly, motivation of the very armed forces and stability, domestic political stability in society.

Here are UAV operations, among other things. They delivered a strike at a coal harbour; achieved, by all appearance, what they wanted, some noise, smoke, when the coal caught fire. That’s the goal. Have they achieved anything in this regard? Yes, they have archived something. Is it decisive for achieving the goal? No, it is not. We need stronger internal unity in the society, our own resources for developing modern weapons, hardware, our own scientific basis, a resource basis. Russia has all of this. We are working on this and will continue to do so. The sooner those who are fighting us realize this, the better it will be for them. (Applause.)

Well, I am sorry, you spoke about Iran. We should give credit to the Iranian leadership; Iran still provides for the stability of its society; this is an obvious fact. And after the beginning of hostilities some in the West believed that Iran will collapse from within – no, that analysis was erroneous. Because we can see that the situation is quite opposite – the Iranian society gets consolidated.

You should know, you have seen or probably heard that, I do not know, a month ago or more, when the conflict just started, and the first strikes were delivered, the Iranian leadership spread the word “Life for Iran.” Within a week, five million people, and more than 10 million to date, have voluntarily expressed the wish to give their lives for Iran. This fact speaks volumes and should always be kept in mind. In this case it concerns the conflict in Iran.

Geeta Mohan: Dissent also has to be recognized by countries and leaders. There's dissent in Tanzania, there's dissent in Russia, there's dissent in the US and in China, including India. How do you see dissent and how do you engage the youth?

Vladimir Putin: The more points of view, the better, because that allows us to choose the best option. (Applause.)

Geeta Mohan: Okay. I have to ask my Indian question.

Yesterday you were meeting with some of the editors and you spoke about Su-57, that it was an offer for a collaboration. Does that offer still stand? What are the details? What is the conversation you are having with New Delhi?

Vladimir Putin: We have very good, long-standing relations with India in the area of defence technology cooperation. A significant portion of the Indian Army uses Russian-made equipment. That has been the case since the Soviet era, and it continues to evolve.

Our relationship with our Indian friends in this area is unique in that, thanks to our mutual trust, our collaboration is focused not just on trade – buying and selling – but on joint development. One of the best-known examples is the BrahMos medium-range missile. Indian specialists were involved from the very beginning, alongside Russian ones, and a very good product has emerged.

As for aircraft, India traditionally buys our planes and helicopters, and I know the pilots are satisfied with them. The Su-57 is a good aircraft – modern, perhaps the most advanced in the world right now, and the most effective. As I mentioned yesterday, we originally proposed to our Indian friends that we work on it together. That did not work out back then, so we went ahead and did it ourselves.

Now we are ready to supply this aircraft, which – I am not sure the audience is very interested in this detail – can be flown by two pilots in combat missions and can also serve as a command post. We can supply it alongside other platforms. In short, we are moving forward and working very intensively, not only on aircraft but also on naval equipment, submarines, and surface ships.

Geeta Mohan: Is there a waiver or carve-out for India in acquiring and procuring Su-57s and S-500 air defense systems from the United States of America? And will that stand? How do you think India should be dealing with America and the sanctions?

Vladimir Putin: India always behaves like a sovereign state, and under Prime Minister Modi’s leadership, the threat of sanctions tends to backfire. I know that for a fact – we have had very good, friendly relations for many years. I remember that he was once even banned from entering the United States; we remember that, too. I know that Prime Minister Modi has not forgotten that either.

But now he is Prime Minister, and all those sanctions have been lifted. Relations between India and the United States are now advancing steadily, as far as I understand.

India is a sovereign country and chooses the products, including in the military sphere, that it considers most appropriate and attractive based on the well-known principle of price and quality. And no matter what anyone says, India has always done so and will always do so. How exactly? It will always be guided by its national interests.

This is a very sensitive area – military technology. And here is something very important, something fundamental: our cooperation with India, just like with our other partners, is not subject to political considerations. No one can tell us not to supply India. And no one ever says that to us. We will do what we deem necessary and will always fulfil our obligations to our partners – especially to partners like India. That is how we operate, by those rules. And that is how we will continue to work. (Applause.)

Geeta Mohan: I began the session by saying we can't be dictated to and my co-moderator President Putin has said the same. On that note, we end the session.

Thank you so much for joining us.

Vladimir Putin: On behalf of everyone present – ourselves and everyone else in this room – I would like to thank our charming moderator for our work together and for leading our discussion today.

Thank you very much. (Applause.)

Meeting of the International Forum Peace and Trust: Unity of Goals for a Sustainable Future

2025-12-13T13:42:30+04:00

In Ashgabat, Vladimir Putin participated in the forum marking the International Year of Peace and Trust, the International Day of Neutrality, and the 30^th anniversary of Turkmenistan’s permanent neutrality.

Prior to the plenary session, the President of Turkmenistan held a welcoming ceremony for the heads of delegations participating in the International Forum, which was followed by a group photograph of the attending delegation heads.

* * *

Remarks at the plenary session of the International Forum themed Peace and Trust: Unity of Goals for a Sustainable Future

President of Russia Vladimir Putin: Mr Berdimuhamedov, ladies and gentlemen,

I am pleased to participate in this forum, which is dedicated to the International Year of Peace and Trust, the International Day of Neutrality, and the 30^th anniversary of Turkmenistan’s proclamation of permanent neutrality.

It is symbolic that on December 12, exactly thirty years ago, the United Nations General Assembly unanimously adopted a resolution formally granting your country the status of neutrality. This day is celebrated in Turkmenistan as a national holiday, and it was precisely this date that, at the initiative of our Turkmen friends, was later proclaimed by the UN as the International Day of Neutrality.

I would like to offer my sincere congratulations to everyone on this significant occasion, to all our Turkmen friends and, of course, first and foremost, to President Serdar Berdimuhamedov, National Leader of the Turkmen people Gurbanguly Berdimuhamedov, and all the people of our friendly Turkmenistan.

Your country’s leaders chose permanent neutrality 30 years ago, and this decision has de facto defined Turkmenistan’s development as an independent and sovereign state, as a state which commands the respect and authority it deserves in Central Asia and around the world. Turkmenistan has been building on its rich historical, cultural and spiritual heritage to develop and succeed in various economic sectors and in social affairs. Your country has a balanced foreign policy and makes a meaningful contribution to strengthening regional and international security and stability, while making serious efforts to foster an atmosphere of cooperation and mutual trust in international affairs.

In this context, I would like to praise the draft Ashgabat Declaration. Prepared by our colleagues from Turkmenistan, it is designed to present the key outcomes of our deliberations at this forum. Of course, Russia supports this document and the way it affirms a commitment to the key principles governing international relations as set forth in the UN Charter. These principles include the commitment to peace and non-interference in the domestic affairs of other countries, respecting the right of countries and their people to choose their own development and growth models, their own worldview, traditions and religion. Let me emphasise that the UN designated 2025, which is drawing to an end, as the Year of Peace and Trust. The United Nations also celebrated its anniversary in 2025.

Established 80 years ago, it has been worthy of its mission. In fact, it presents a unique and often the only mechanism for balancing interests on the international stage and, importantly, for finding coordinated solutions to challenging issues by taking into consideration the positions and opinions of all countries.

We firmly believe that it is precisely within this logic, and based on the principles of the UN Charter, that truly honest, open, and mutually beneficial relations between states can and must be built in this new era of a multipolar world. A testament to this is the strategic partnership between Russia and Turkmenistan, which continues to develop successfully in a spirit of friendship and good neighbourliness.

Bilateral economic ties continue to expand. In the first ten months of 2025 alone, trade turnover increased by 35 percent, a figure that already surpasses the total for the entire previous year. Russian companies are pursuing new investment projects in the Turkmen market, while cooperation in energy, transport and a number of other sectors is being strengthened.

With the active participation of Russia and Turkmenistan, large-scale multilateral economic initiatives are being implemented, including in the Caspian region and Central Asia. The construction of the North–South international transport corridor is underway, bilateral interregional contacts are progressing steadily, and exchanges in cultural, humanitarian, and educational spheres are growing. Particularly noteworthy is the fact that more than 54,000 students from Turkmenistan are currently studying in Russia.

Our countries are engaged in integration processes within the Commonwealth of Independent States. In 2026, Turkmenistan will assume the CIS Chairmanship. In this regard, I wish our Turkmen colleagues every success and would like to assure them that the Russian side will provide all necessary assistance.

In conclusion, I would like to express my gratitude to the leadership of Turkmenistan, President Serdar Berdimuhamedov, and all our Turkmen friends for their warmth and hospitality. Once again, I congratulate everyone on International Day of Neutrality and on Turkmenistan’s Neutrality Day.

Thank you for your attention.

Plenary session of the Russia – Country of Sports Forum

2025-11-07T12:05:28+04:00

Vladimir Putin delivered a speech at a plenary session of the 13^th Russia – Country of Sports International Sports Forum in Samara.

The Russia – Country of Sports Forum was established by Presidential Executive Order of July 27, 2009. This year, its theme is Sport for the Future: Winning Together.

The plenary session was held at the Vladimir Vysotsky Sports Palace.

Following his address, the President reviewed a presentation of a demonstration and educational centre for adaptive sports. Currently under construction in Samara, this facility is being built in fulfilment of the head of state’s instruction issued after the previous meeting of the Council for the Development of Physical Culture and Sport.

The centre’s grounds will feature more than 30 adaptive disciplines, which will help inform and attract a greater number of individuals with disabilities and health limitations to systematic participation in adaptive physical fitness and sport.

Vladimir Putin was given explanations by Pavel Rozhkov, President of the Russian Paralympic Committee, and Yekaterina Leshchinskaya, Chair of the Healthy Fatherland nationwide public movement for the promotion of sports and patriotic education.

Minister of Sport Mikhail Degtyarev presented the President with a unified sports kit for the national teams. The Golden Heritage collection, designed by Bosco, is crafted from domestic materials at a factory located in the Kaluga Region.

* * *

Address by the President of Russia at the plenary session of the 13^th Russia – Country of Sports International Sports Forum

President of Russia Vladimir Putin: Colleagues, ladies and gentlemen, friends.

It is a pleasure to welcome the guests and participants of the Russia – Country of Sports International Forum.

This year, the forum is being hosted by Samara – one of the most beautiful and distinctive cities in our Volga Region, renowned for its achievements and traditions, including in sports. Many athletes whose names are etched in the annals of world sport hail from Samara.

Naturally, a bright chapter in sporting history was written in 2018, when the city hosted matches of the FIFA World Cup, held right here at the Solidarnost [Solidarity] Samara Arena – the main venue of our forum, which has long served as a meeting place for like-minded individuals devoted to sport, its ideals, and values.

These qualities, your readiness for cooperation and dialogue, and your unity in achieving goals are reflected in this year’s forum theme – Sport for the Future: Winning Together.

We all recognise the importance of sport as a universal tool for developing a person’s physical, creative, and spiritual potential, and we understand that many challenges of the modern world can only be overcome together.

Russia, like most nations around the globe, advocates for broad international cooperation based on equality, a strict respect for mutual interests, and an appreciation for national cultures.

Sport has a lofty mission: to unite people and to build bridges between nations. This is one of the essential missions and core values of international sports organisations.

In this regard, I would like to thank our partners for their recent balanced and fair decision to reinstate the rights of the Russian Paralympic Committee.

Our position remains unchanged: athletes’ access to international tournaments must be equal and based solely on their sporting achievements. There is no place for politics in sport.

For Russia, these are not empty words. When preparing and hosting competitions at all levels, we have always warmly welcomed representatives of international sports associations, committees, and federations. We create all the necessary conditions for athletes who, through tremendous work and talent, have earned the right to represent their countries. In doing so, we are guided by sporting principles, not by the state of our political relations with any given country.

I will repeat: sport, along with cultural and humanitarian cooperation, must not become a hostage to conflicts or geopolitical disagreements.

It is worth reminding ourselves that the United Nations’ sustainable development agenda identifies sport as a key factor in achieving goals for healthcare, education, and social integration. Russia fully shares this approach and incorporates it into our own national development goals.

We prioritise developing mass sports infrastructure, making it accessible to people of all ages and abilities. We are building large stadiums and sports centres, as well as smaller facilities for daily use in schools, universities, parks, and courtyards. Russia currently has over 370,000 sports facilities, and we have no intention of stopping there. We will continue moving forward.

Modern information technology is also playing an increasingly important role in developing sports. Alongside traditional sports, new disciplines such as phygital sports and e-sports are gaining popularity both in Russia and globally. We are actively working in this area and are ready to share our experience.

We will continue to pay special attention to engaging children and adolescents in sports. The values and benchmarks instilled in a person at a young age often shape their entire adult life, and fitness and sport are always a path to success.

Friends, I wish you a productive forum and all the very best. Thank you all for being here today.

Thank you for your attention. Good luck and thank you again.

Meeting of the Council for the Implementation of State Demographic and Family Policy

2025-10-24T19:21:48+04:00

The President attended the first meeting of the Council for the Implementation of State Demographic and Family Policy.

The agenda includes regional experience, measures to support student families, the introduction of corporate demographic standards, the protection of reproductive health, and proposals on addressing housing problems of families with children.

* * *

President of Russia Vladimir Putin: Colleagues,

Today, we are holding the first meeting of the Council for the Implementation of State Demographic and Family Policy. We will evaluate what has been accomplished, and outline further steps in our joint work.

I want to emphasise right away that supporting families and creating conditions that enable the birth of as many children as possible in Russia is a crucial and, effectively, a cross-cutting trend of all our national projects and strategic development plans. It permeates practically all spheres of life and encompasses everything that is needed and important for our people.

This is an absolute priority because it concerns the future of our country. In this regard, it is particularly important for the state, the business community, civil society, and leaders of our traditional religions to coordinate and consolidate their efforts. Additionally, we all need support from the media, as well as well-aligned actions at all levels and in all areas, actions based on a single line of logic.

The Council’s composition – and it includes representatives of federal and regional authorities, public and non-profit organisations, scientific and entrepreneurial communities – undoubtedly reflects the commitment to a comprehensive, system-wide approach to addressing the tasks we face. I hope that today we will discuss specific proposals aimed at making our policy on demographic development and support for families more effective and robust.

Colleagues,

Falling birth rates have become a global trend and a global challenge in the modern world. While not in all countries are affected equally, many, particularly economically developed nations, face this issue, and Russia is unfortunately no exception. Additionally, as you know, we suffer from the effects of two demographic pitfalls, as we call them: the tragic losses of WWII, the Great Patriotic War, and the crisis of the 1990s, which took place just after the collapse of the Soviet Union.

Different countries respond to this demographic challenge in various ways, including the encouragement of uncontrolled, and even chaotic migration to replace the native population, often sacrificing their identity and culture, and, importantly, their internal political stability.

Our choice is unequivocal: we support the family as the fundamental basis of Russian society and aim to protect and preserve genuine family values and traditions, which have united and strengthened our country for centuries.

It is my deep conviction that we can only address the demographic challenge by developing our own demographic potential, by preserving and increasing the number of all native peoples in Russia, supporting large family traditions, and implementing programmes to bring home our compatriots, Russian and Russian-speaking people who form the core of our society.

This approach guarantees our future, preserves the ethno-cultural balance in Russian society and strengthens our sovereignty.

I have said on many occasions that families with three or more children should be seen as a standard and natural way of life in our country. In this regard, internal guidelines, people's beliefs, and their priorities hold immense, sometimes decisive, importance.

According to sociologists, an increasing number of our citizens express a desire to have large families.

In 2005, our citizens believed that a family should have 2.4 children (this is statistical data – the figure may sound strange for the media representatives present here, but statisticians consider this normal) and now this figure is over three children, and this trend is very important.

And one more thing. I believe that you will, most likely, discuss this issue today. Ms Valentina Matviyenko and I have agreed that I will speak and then will leave you to attend to my routine matters, and you will continue working in these wonderful Kremlin interiors under the supervision of Ms Matviyenko. But this is what I would like to say. Ms Tatyana Golikova is focusing on this issue all the time when communicating with her colleagues in the Government, and she persistently revisits this issue when engaging with me – how to provide financial support for families. This is absolutely correct. It is very hard to address demographic issues without this.

But, of course, inner moral values, attitudes and principles are much stronger and more important. Did Russian peasant households earn average European-style incomes? No, they did not, but each peasant family had seven to ten children. Their values and attitudes were different. This is what underlies demographic policy, and this should lie at its foundation.

It is now very important (I believe this is also one of the Council’s objectives) to promote and uphold the internal attitude that I have mentioned, that tendency of the internal attitude that I just spoke about, so that the desire to create a family, to marry and to have many children becomes prevalent in the public mentality.

Certainly, no pressure should be exerted in this sphere. A decision to have a child is, certainly, a private and personal matter of any person, any family. However, we should work jointly and make sure that people (young people, in the first place) would sincerely aspire to a happy motherhood, would aim to effectively raise their children, and that they would feel confident that the state will support them whenever necessary, lend them a helping hand, and that it will do everything possible to prevent living standards from deteriorating following the birth of children but would, rather, raise the family status.

You know, we have already created an entire range of essential tools for providing this support. I am talking about maternity capital, flat-rate benefits for low-income families and low-interest mortgages. I would also like to recall that, from 2025, regions whose birth rates fell short of average Russian levels in 2023 received additional funding for implementing birth rate expansion programmes. In 2025–2030, 41 regions will receive about 75 billion rubles. The family taxation initiative will be launched in early 2026; it will reduce income tax levels to six percent for low-income families raising two children and more.

When formulating support measures, we base them on the real needs of families. What would I like to highlight in this regard? It is clear that large families, whose expenses are always significant, find it more difficult to purchase a larger flat or house on their own. Support measure is therefore available, including a payment of 450,000 roubles from the state to help repay mortgages.

In several regions, local authorities are actively addressing the housing needs of large families. Overall, I would like to reiterate that tackling demographic challenges and supporting families is a shared responsibility, one that involves all levels of government, from federal to municipal. It is essential for regions to take a proactive approach and develop their own solutions. As an example of effective regional policy in this area, I would like to highlight the work being done in the Nizhny Novgorod Region. The governor described this to me in detail during my working visit there. The region’s initiatives include several significant support measures, foremost among them regional family capital, which provides monthly payments to families for three years following the birth of a child – whether it is the first, second, third, or subsequent child. Moreover, every family, regardless of income level, receives support upon the birth of a child.

What else do I think is important to highlight? Young people today – not only in Russia – often postpone having children, believing they should first focus on other goals. But as time passes, it can turn out that the best years for starting a family have been irretrievably lost. Our task is to help young people understand that they do not have to choose one path over another but can successfully combine parenthood with studying or building a career. Yes, it may be challenging, but it is possible, and it is important to balance these responsibilities with raising a child.

Of course, this requires significant effort and hard work, but the state stands ready to provide assistance and support. We must continue to remind people of something that may seem obvious but still needs to be said aloud: fatherhood and motherhood are a source of joy, and there is no need to postpone happiness. That is what truly matters. At the same time, it is also essential that we help young people and families navigate this important stage of their lives.

Several relevant decisions have recently been made.

Pregnancy and childbirth benefits have been increased for full-time students. In some regions, lump sum payments have been approved for pregnant students. Universities are opening baby care rooms and part-day child care groups. We should certainly encourage everything that is being done in this sphere, primarily in the system of higher education but also at secondary education establishments.

I know that the Federation Council helped organise a Festival of Student Families in July, as Ms Matviyenko has told us. I believe it was held at Bauman University.

Federation Council Speaker Valentina Matviyenko: Yes, this is true.

Vladimir Putin: I consider it important to continue to improve support measures for young families, including student families. I also hope that the Demography Council will make a practical contribution to this.

Overall, we must regularly analyse the effectiveness of the measures we are taking in the sphere of family policy, improving the system of social support to make it as transparent as possible, understandable and convenient for families with children. It should be applied proactively and ultimately help people achieve their dreams of a big and close-knit family with many children.

Of course, financial and social support measures, both federal and regional ones, are extremely important. I would like to emphasise that business, our large companies are becoming involved in this work and are implementing corporate programmes for young families.

At the same time, I would like to repeat that the solution of demographic problems begins with each family and, as I have already stated, with the people’s attitude and world outlook. We see that the revival of genuine family traditions has sparked widespread social response. It is not surprising that the Our Family contest has become so popular. It is extremely important for the values of respect for large families with many children and love for children as the nation’s future to become a unifying feature of the rising generations.

I strongly hope that the Demography Council and its professional competence will make a great contribution to the fulfilment of the tasks we face and to the further development of our family and demographic policy for the benefit of our citizens and the country as a whole, of course.

Thank you very much. I would like to wish you success in your efforts.

Valentina Matviyenko: Mr President, first of all, I would like to express my gratitude for your participation in today’s Council meeting and for your unprecedented personal commitment to demographic issues.

When the head of state, amidst numerous other pressing matters, addresses demographic and family policy so systematically and substantively, it serves as a powerful motivator for leaders at all levels of government, business executives, and other sectors.

Most importantly, it is crucial for everyone to understand that this is not a situational programme, nor a temporary or one-off project, but rather a serious, long-term effort – and it is only through this approach that we will yield results. This challenge must be addressed by society as a whole.

I would also like to underscore separately that now, when society is truly consolidated and patriotic, and when our citizens have gained a renewed appreciation for Russia’s value, for family, and for traditions, we have an excellent opportunity to embark on a qualitatively new stage of demographic policy.

Do you still have time, or must you leave?

Vladimir Putin: I must leave, but I will stay and hear you out.

Valentina Matviyenko: Mr President, I will be very brief.

You have already noted that the Council established on your initiative comprises the finest specialists and professionals across various fields. Every Council member recognises their personal responsibility.

Today, you have set new additional tasks, and we will, of course, be guided by them.

Specific working groups and an expert council have been formed within the Federation Council. We are engaging a wide range of experts, with institutions of the Russian Academy of Sciences participating. I am aware that the Academy President is present here today. On October 28, they will hold a dedicated meeting of the Russian Academy of Sciences Presidium devoted to demographic issues. So, as they say, the process is underway across society.

We have established close cooperation with the Presidential Executive Office, the relevant State Council commission, the Government, and regional authorities. Our team has analysed the full range of federal and regional support measures. We have thoroughly studied international experience because, as you rightly noted, this is a challenge for all developed nations – even China now faces this serious challenge.

We have prepared a number of proposals. We hope to formalise them as a list of your instructions, should you agree, so that we receive your instructions to implement following today’s discussion.

The key issue is well known: housing. The family mortgage programme. Of course, thanks to this initiative, millions of families have been able to acquire housing of their own. However, upon closer examination, Mr President, it turns out that family mortgages are increasingly becoming a metropolitan mortgage, as more than half of the preferential loans intended to boost the birth rate are being issued in Moscow, St Petersburg, and the Moscow and Leningrad regions. We believe it would be appropriate to refine this tool. It is necessary to create conditions that allow families with children to improve their housing conditions in the areas where they actually live, on their native land. This would, in turn, give a powerful boost for housing construction across the regions of the Federation, including smaller towns, and would promote planned territorial development.

Given the particular focus on large families, we also propose differentiating the family mortgage rate according to the number of children: the more children a family has, the lower the rate should be.

A model of preferential, affordable rental housing for families with children, as you have also mentioned, requires further development. DOM.RF has already prepared specific proposals in this regard, which Mr Mutko will present in more detail today.

You know, Mr President, dreams are inspiring. Imagine, for example, if a third or fourth child were born into a family and the state were to grant them an apartment or a home of their own. This would, of course, stimulate the development of individual and wooden housing construction. We have vast forest resources for that. It is every family’s dream, and such a measure would certainly serve as a strong incentive to have more children.

We also believe that the time has come to improve the maternity capital programme. It should now be reoriented towards supporting large families – the birth of a third and subsequent children. At present, maternity capital for a second or third child is significantly lower than for the first child. We believed a similar approach should be applied to regional maternity capital payments.

Overall, there should, in my view, be a unified philosophy: all additional support measures, both federal and regional, should be directed primarily towards encouraging the birth of third, fourth, and subsequent children.

Infrastructure. You are, of course, absolutely right to note that the state must provide the necessary infrastructure: schools, educational facilities, clubs, and so forth. Yet this family-centred approach must be applied in all areas: modern playgrounds, barrier-free environments for strollers, and mother-and-child rooms in public institutions. Among the proposals we have received from the regions and public organisations are: the creation of designated parking spaces for large families; exemption of children’s fares in taxis; and separate check-in counters for families with small children at airports, among others.

Our society has a strong, long-standing tradition of special care for expectant mothers and children. Undeniably, this deeply-held value must be translated into practical, everyday benefits for families with children, which does not necessarily require significant budget expenditures. We are ready (and are already acting) to prepare corresponding recommendations for businesses, regions, and federal agencies.

Furthermore, it is crucial that employers actively engage with demographic objectives. As this is a national priority, businesses must also demonstrate their social responsibility by contributing. Progress is already underway: we are collecting information from the regions, and a new national GOST corporate demographic standard has recently been approved. While its application is currently voluntary, we believe companies that implement high standards of demographic support should be encouraged and incentivised and, all other things being equal, be entitled to certain state preferences. This is only fair.

We must also streamline the system of state support, as there are no trivial details in this endeavour. For instance, if a new mother receives a substantial one-time payment from her employer for the birth of a child, this amount is currently counted as income. As a result, she can lose her right to receive a flat-rate child care benefit. We have submitted proposals to the Government, and a resolution is already being prepared to exclude such employer payments from the calculation of average per capita family income. In our view, it would be logical to extend this approach to other demographic support payments, regardless of their source.

Our Council has also uncovered startling situations, such as a working woman receiving no maternity benefits at all. This can occur if her company is undergoing bankruptcy when she goes on maternity leave, leaving no source for the payment. We have rectified this by submitting new legislation, which has since been adopted; in such cases, payments are now made by the Social Fund.

Here is another critical example. A woman may be de facto employed by a company but is formally registered as self-employed – an arrangement some businesses find economically efficient. The consequence is that when she becomes pregnant, she is not entitled to paid maternity leave and is essentially thrust into financial limbo, with no benefits or guarantees. While these issues might seem minor to some, they are in fact vital, critical even, and we are committed to addressing them thoroughly.

Finally, I would like to thank the Ministry of Labour and Minister Anton Kotyakov for supporting the law that increases maternity benefits for new mothers who are university students. These benefits have been raised almost tenfold, Mr President, representing truly significant support.

You mentioned the necessity of placing special emphasis on student families. Considerable efforts have also been made in this regard. A non-reducible standard of support for student families has been established. Specific measures are being implemented by the Ministry of Science and Higher Education, with university rectors and Minister of Science and Higher Education Valery Falkov actively engaged in this agenda – many thanks to him for his commitment.

We are currently preparing legislative amendments that will enable priority placement in nurseries and kindergartens near universities for children from student families.

Moreover, Mr President, this is a highly significant issue – it is widely discussed. We propose considering a more proactive development of nursery networks, both in residential areas and at universities, as well as at large enterprises. Nurseries are absolutely essential for women to balance studies, work, and motherhood. Nearly all regions have fulfilled your instructions regarding kindergarten construction. The programme has been implemented, and there is virtually no shortage; however, nurseries remain inadequate. Women fear being out of work for three years, thereby losing professional skills, and if they have a second or third child, this period extends to six or nine years. Support is needed for these three years before kindergarten. I believe we should implement a nursery construction programme, including private ones, possibly by simplifying requirements for establishing such institutions, naturally without compromising child safety.

We would like to request that you instruct the Presidential Plenipotentiary Envoys to the Federal Districts to personally oversee demographic policy in the regions.

I would like to cite an example – Igor Shchegolev – today, he can truly be called the Plenipotentiary Envoy for Demography, not just a Presidential Plenipotentiary Envoy.

Special thanks must be extended to the governors. They have genuinely excelled, fully embracing their responsibilities. Demographic programmes have been adopted in all regions. I am confident they will begin to yield results.

It is also crucial for the demographic agenda to receive adequate and appropriate media coverage. Several years ago, Alexei Gromov and I convened a meeting with leaders of all media communities: television, film, radio, internet, online and offline cinemas, and so on. We encountered absolute mutual understanding and agreed on many points. There are robust, substantive plans in place. Council member Oleg Dobrodeyev will elaborate on this today.

I think I should conclude here.

Accurate statistics and population surveys reflecting the realities are needed for correct managerial decisions. Our Council has already delved deeply into the topic. It concerns, among other things, measurements of demographic attitudes and reproductive plans of our citizens.

However, we have to exercise utter caution regarding various sociological studies that are unprofessional, unscientific and incorrect. Sociology is a very complicated science.

Objectives studies are currently conducted by Rosstat (Federal State Statistics Service), but regrettably, once every five years, while we need more updated information. This is obviously not enough.

I have laid out just some proposals, my colleagues will add up to them.

We keep analysing family support measures currently in effect, and identifying and scaling-up the most effective of them.

Mr President, we are about to mark the wonderful holiday –National Unity Day. I would like to remind the words of great Russian scientist Dmitry Mendeleyev, who was a great Russian patriot – the power of Russia is in its unity, in the military and the graceful family spirit that multiplies the growth of the nation. That’s what we stand for. We shall do our best for our Fatherland to be strong, independent, sovereign, and, of course, with many large families.

Thank you once again for your participation.

Vladimir Putin: Thank you, Ms Matviyenko.

Once I have stayed here, let me say just a couple of words to comment on your remarks.

You are obviously aware that the Government is trying to preserve all kinds of mortgage loan tools. What has remained of the preferential mortgage is intended to support basically families with children, both the six-percent family mortgage, the two-percent mortgage in some regions of Russia that require our special attention and support for families with children, and so on.

We will definitely keep improving everything, including private housing construction which last year and the year before ensured a good growth of housing construction. This should evidently be also supported. We indeed have a lot of forests, and you have rightly said that some people like and will gladly live in the forest but not everyone. Therefore, apart from forests, we need relevant infrastructure.

Valentina Matviyenko: Mr President, I didn’t mean that. I meant that we have a lot of timber and we can step up wooden housing construction. This clarification is to dispel possible misinterpretations of what I said.

Vladimir Putin: I see your point, but with available timber we need infrastructure. It is not just timber – it is pipelines, roads, communications, transport and other related things.

But this is a very correct idea overall. Mr Mutko will tell us the share of private housing construction in the total housing construction growth. I think it was 50 percent.

DOM.RF General Director Vitaly Mutko: Even as of today, the ratio is 60 to 40, with individual private housing making up 60 percent. It grew by 40 percent. It’s due to preferential mortgage expanded towards private houses purchasing and building.

Vladimir Putin: Indeed, this is the result of expanding preferential mortgage to private housing construction. Do you see how impressive the result is? I mean to say that you have generally expressed the right things, and the Government is attending to exactly these matters.

Now, regarding maternity capital. You know, this idea first came to me and my colleagues in the Government at that time, and it turned out to be a very successful one. Of course, we must now think on how to improve this tool. We are making every effort to support it and to ensure it is regularly adjusted for inflation.

But I would ask you to bear one thing in mind. There is a constant temptation to use maternity capital to resolve various issues. Naturally, families with children always face many of them, they are endless. Yet the most important thing is not to allow these funds to be spent on things that are secondary or insignificant.

Valentina Matviyenko: That’s right.

Vladimir Putin: People are different; they have different goals and interests. Maternity capital must not be allowed to be squandered. Whatever happens, interests of children and women are above all. Although the term “family capital” is sometimes used, I deliberately called it maternity capital – and for good reason. We must prioritise the protection of women and children. Therefore, I ask you to approach this matter with great care. Families have fundamental needs, and that is the principle we must uphold.

Now, as for material support in general – of course, it is absolutely necessary. All our actions are aimed at providing it. But I have already spoken about the ideological aspect of this issue. I think you will all agree with me that demographic challenges appeared in many Western European countries long before they emerged here, even back in Soviet times, despite the much higher standard of living enjoyed by citizens in those countries. Other problems have since arisen. I will not repeat them, but demographers understand this well. Factors such as getting education, post-university education, building a career, other ambitions, and the postponement of the birth of the first child, along with urbanisation and the broader effects of a post-industrial society, have all contributed. People’s consciousness has changed, their priorities have shifted, their values and life orientations have evolved. In general, this is not a bad thing –indeed, it is a sign of development – but it is important that the fundamental values associated with the continuation of life, with the joy of childhood, and with the happiness of motherhood and fatherhood, are preserved. These are things that no amount of money can buy.

Of course, it is essential to create the right conditions. As the saying goes, “we must not breed poverty” – and that is entirely true. But one cannot replace the other. Value-based orientations are important, and for that, joint and concerted efforts are crucial.

And, as I said at the beginning, we must support people’s natural aspirations to have more children. This is absolutely clear. We must do so through consistent, practical actions, both in the material sphere and in social policy.

Ms Matviyenko mentioned baby nurseries. I absolutely agree on this point. Some regions have failed to resolve the kindergarten issues completely but the governors are attending to these matters, and I am sure all the outstanding issues will soon be resolved. Basically, everything has been completed, the programme has been completed. However, you are right about baby nurseries to make sure that a woman does not drop out of a production process and does not lose her professional skills, which means a lot in the modern world as the situation is changing rapidly, the pace of changes is enormous, especially in production. It is crucial in this regard that a woman should have an opportunity to return to her job without losing qualification.

You are certainly absolutely right, we have to address this issue. Ms Golikova, we have repeatedly discussed this matter, and we must give it another thought, but certainly without slacking safety requirements for these child care institutions. The requirements may be changed, they must be up-to-date to embrace modern capabilities and materials, equipment and everything else. Modern technologies allow for resolving many issues of children’s facilities safety in a modern way, and that’s what we must do. Therefore, the requirements must not be slackened but changed in accordance with modern capabilities.

I would like to finish with what I began with and what I repeatedly addressed – the inner motivation, the ideological beliefs of our society and what Ms Matviyenko referred to as respect for the very notion of childhood, fatherhood and motherhood.

Regarding motherhood – I think everyone is perfectly aware of that – yet I will say it again. All peoples of Russia (we have many peoples, the Russian nation embraces over 100 ethnicities, to be more exact,192 ethnicities living here, and we have been communicating with each other for as many as a thousand years) have some beliefs common for all. I mean an attitude to mummy, to mother, which has a special sacred significance for all of us. Even our major traditional religions have the image of mother on icons as the central image. Just look at our basic religious values. What do they look like? A Madonna with the baby, she prevails. In other cultures, for example, in Europe, the main image is that of the Saviour. In our country, you know what is depicted on the icons. Do you get it? This is the first point.

Second, regarding patriotic education – one word is being passed over from generation to generation, which is natural for us – Motherland. In fact, mother and homeland are blended in our consciousness as one general image.

We must definitely support these fundamental value-based attitudes in a talented, vivid and masterful way, including and above all with the active engagement of cultural figures and mass media representatives.

I want to wish you all the best in your today’s work.

Thank you very much.

<…>

Plenary session of the 10th Eastern Economic Forum

2025-09-08T15:32:38+04:00

Vladimir Putin took part in the 10th Eastern Economic Forum.

In 2025 the Forum is held under the motto “The Far East: Cooperation for Peace and Prosperity.”

Taking part in the plenary session were Prime Minister of the Lao People's Democratic Republic Sonexay Siphandone, Prime Minister of Mongolia Gombojav Zandanshatar and Vice Chairperson of the Standing Committee of the National People's Congress Li Hongzhong. The day before, the President held bilateral meetings with each of the three officials.

* * *

Plenary session moderator Maria Rybakova: Mr Putin, honourable guests, good afternoon.

I also extend my greetings to the participants of the forum, the audience and the early risers in the western part of our country who have woken up to watch our plenary session.

Our guests of honour will deliver their statements soon. But first, if you don’t mind, Mr Putin, I would like to steal the spotlight for a moment. Just a couple of minutes to say a few words of explanation.

I should say straight away: I am not an economist. I am a news presenter with a legal education who lives in Moscow. In short, I am oriented towards the humanities. But I also go shopping quite often, and I am someone who pays attention to prices, which, frankly, sometimes surprise me. I really know very little about economics, and you know, sometimes when you are looking for answers, you go on a video platform – which, as you know, now runs a bit slowly in Russia – and there, economists tell you that everything is bad: inflation is rising and the budget has been stretched to the limit. Then you go on another platform, and there, other economists tell you that everything is fine, everything is great, that there are breakthroughs ahead, we will beat everyone, and so on.

Like any other Russian citizen, I have a question: Mr Putin, which of these economists should we trust?

President of Russia Vladimir Putin: You know, I have already answered questions of this kind. Don't take anyone at their word. The truth is, you should proceed from your own experience, rather than seeking the opinions of those who like to voice their views online. Instead, I suggest you consult the opinions of experts if you truly want to get to the essence of the issue that concerns you. I am not saying anything revolutionary here.

But even among specialists, views differ. The questions you have raised only appear simple on the surface. Take prices, for example. Rising prices are, essentially, inflation. The Central Bank is working to curb this inflation and bring it back to the well-known and necessary target of no more than 4–5 percent. But this requires keeping the key rate high, which raises concerns for those engaged in real production. Many people here in this hall will no doubt say: “This is unacceptable, it is impossible, the key rate must be sharply reduced.” But if that happens, prices will only rise further.

So the only thing I can say is this: I want to assure you that Russia’s financial authorities – the Government of the Russian Federation and the Central Bank – are acting professionally. We have always, and I want to stress this, always proceeded from the principle that a stable macroeconomic policy is the foundation for developing the Russian economy and, consequently, the social sphere. We have pursued this course for many years, at least a decade and a half, and it has consistently delivered positive results, creating the conditions for the country to move forward. I am confident this will be the case again.

Maria Rybakova: Thank you very much.

Perhaps my introduction was a little scattered, but the main point I wanted to make is this: today I would like us to talk about the economy not in abstract, highbrow terms, not about institutional economics, but about the economy that matters to ordinary people in Vladivostok, to a typical family. That is the kind of economy that concerns me, and people like me.

Let me briefly explain how we will proceed, what the format will be. I think everyone here is familiar with it. First, we will have the official part, with speeches by our distinguished guests, including Mr Putin. After that, we will move on to the Q&A session. I very much hope it will be a real discussion. I am not sure how it will unfold, because it’s not easy to argue with Mr Putin, but I will do my best.

I will now give the floor to the president of the country hosting this forum. Mr Putin, you have the floor.

Vladimir Putin: Mr Sonexay Siphandone, Mr Zandanshatar, Mr Li Hongzhong, ladies and gentlemen,

Allow me first to address the Russian part of the audience. I would ask you to extend a warm welcome to all our international guests. For my part, I wish to express my gratitude to our foreign colleagues for coming here, showing an interest in working with us, and devoting their valuable time to this forum.

Russia and Vladivostok once again are hosting participants and guests of the Eastern Economic Forum, with representatives from more than seventy countries around the world.

This year, the forum is being held for the tenth time. Let me remind you that the very idea of establishing it coincided with the launch of a new stage in the development of the Russian Far East. This major undertaking is aimed at creating broad opportunities for citizens, for young people, above all for businesses, to fully unlock the resource, industrial and logistical potential of this strategically important region of Russia, and to improve the quality of life for its residents.

Today’s anniversary forum is not only an opportunity to take stock of the joint efforts of government bodies, entrepreneurs and public organisations, but also to outline the next steps – our long-term plans for the Far East. These plans concern strengthening its role both in Russia’s national economy and in international relations, above all in the rapidly growing Asia-Pacific region.

As you know, the development of the Far East and Siberia has been designated as Russia’s national priority for the entire 21st century. This was announced in the Address to the Federal Assembly at the end of 2013.

Subsequently, the legal framework was formed and updated, and a whole range of instruments to support business was introduced, including advanced special economic zones, the Free Port of Vladivostok regime, preferential arrangements for the Kuril Islands, and the establishment of a special administrative district on Russky Island.

Ambitious plans have been rolled out to strengthen transport, energy and utilities infrastructure. Decisions have been made to support housing construction, renovation, and the development of social facilities: schools, kindergartens, clinics and hospitals, and sports complexes.

All these measures are united within the large-scale State Programme for the Development of the Far East. It sets ambitious targets for accelerated economic and technological growth and for improving the wellbeing of the population across the Far Eastern regions of the Russian Federation.

These efforts are delivering results. In recent years, the Far East has taken a leading position across many key indicators – first and foremost economic ones – outpacing Russia’s overall growth rates.

Over the past 10 years, the gross regional product of the Far East has increased more than 2.5 times, from 4 trillion rubles to 11 trillion.

During this time, 20 trillion rubles were invested in the fixed capital of Far Eastern companies and enterprises. A quarter of this amount was channelled into projects with state support in such sectors as mining, oil and gas chemistry, construction and others.

Let me name the leading regions in terms of fixed capital investment over these 10 years: Yakutia, with 4.5 trillion rubles, Amur Region, with 4 trillion rubles, and Sakhalin Region, with 2.6 trillion rubles. Together, these three account for 55 percent of all investment in the Far Eastern Federal District.

The investment dynamics in the Far Eastern regions are such that, in real terms, their volume last year was double that of 10 years ago. For comparison, across Russia as a whole the figure was 1.5 times higher. That, too, is a good result. But still, the Far East has done better.

Per capita, investment in the Far East today is twice as high as the national average.

What does this mean? It means that not only is a modern industrial base being formed, but in fact a new industrial map of the region is emerging. Thousands of new growth points have already appeared, including world-class enterprises such as the Baimsky mining and processing plant in Chukotka, the Udokan Copper project in the Trans-Baikal Territory, the gas processing plant and petrochemical complex in the Amur Region, the Nakhodka mineral fertiliser plant, the Zvezda shipbuilding complex in Primorye, the hydrometallurgical plant in the Khabarovsk Territory, and many others.

The growth of business and entrepreneurial activity, along with the expansion of economic opportunities in the Far East, forms the foundation for the region’s future development. It is important to maintain steady progress in its traditional sectors, in areas that are already on an upward trajectory, to develop infrastructure and logistics links, to ensure reliable supplies of affordable and clean energy, and, of course, resources.

I should also note that the Far East’s resource base and mineral extraction are expanding. Over the past decade, coal and gold production in the region has grown almost 1.7 times. This has been made possible in part by the declarative principle of subsoil licensing, which has enabled greater private capital involvement in geological exploration, significantly increasing the number of newly discovered deposits, including major ones such as the Lugokan gold and copper deposit in the Trans-Baikal Territory and the Roman gold and silver deposit in Yakutia.

I will separately touch on the issue of rare earth metals, which are used in high-tech industries, instrument-making, nuclear technology, electronics and other spheres.

These resources are often accumulated in dumps during the development of deposits, including here in the Far East. There is a system for registering these resources. They can be extracted and effectively used with the development of new technologies. I spoke about the launch of such programmes at the St Petersburg International Economic Forum.

At the same time, we should regularly review these valuable components throughout the production chain, including at the stage of their reprocessing and export in the form of concentrates. In addition, we must introduce advanced technologies for enriching and processing rare and rare earth metal ores. We must also encourage demand for them at new industrial facilities in Russia.

Some months ago, in February, we agreed to approve a long-term plan for the development of the rare earth metals industry. I would like the Government of the Russian Federation to do this no later than November this year.

Next, a meeting on the development of the energy complex of the Far East was held on the eve of this plenary session. Many of you have likely taken notice of it. It is clear that the demand for electricity in the region will increase with the development of the economy and the social sphere. Consequently, we must plan the construction of energy facilities so that they meet the growing demands of businesses, cities and villages, and the people. The focus is on the expansion of gas and modern coal generation, as well as using the huge potential of hydropower generation.

The hydroelectric power plants on rivers in the Far East are a low-impact electricity source, and new ones must be built. Their construction implies modern engineering and technological solutions, and our leading company in this field, RusHydro, has the necessary experience and groundwork. However, it is obvious that the development of hydropower generation calls for major investments.

Relevant instructions have been issued. I hope that the Government and our colleagues in the regions will continue to give special attention to the development of small and large hydroelectric power plants. I would like to emphasise that we are not only talking about the economic aspect. Responsible water use, maintenance of perennial runoff, and flood prevention are integral parts of the development of hydropower generation that have a direct impact on the environment, agriculture and the safety of cities and towns.

Rivers in the Far East are also natural transport arteries connecting territories and ensuring deliveries to cities and towns within the framework of the northern supply.

In this context, a separate issue is logistics. In recent years, the load on the transport system of the Far East has grown significantly. The region’s ties with foreign countries are being strengthened. All of this requires the upgrading of road and rail arteries, the expansion of seaports and the creation of modern transport hubs with automated warehouses and digital cargo processing.

We will continue modernising the Eastern railway network – the BAM and the Trans-Siberian Railway. By 2032, their carrying capacity should be one and a half times higher than at the beginning of this year.

It will also be necessary to further expand the railway links to the seaports of the Far East, which are developing dynamically, primarily through private investment. Over the past 10 years, port capacity in the region has effectively doubled. Today, it stands at almost 380 million tonnes of cargo per year.

According to the current federal project, the Far Eastern ports’ capacity should increase by a further 115 million tonnes of cargo per year by 2030.

In the Far East, transport bridges to China have already been built: the Nizhne-Leninskoye-Tongjiang and Blagoveshchensk-Heihe bridges. Plans also include the construction of new bridges, including one to the Democratic People’s Republic of Korea across the Tumannaya River, which is scheduled to open next year. It is essential to actively develop transport and logistics hubs in the vicinity of these bridges to make full use of their capacity. In addition, border crossings are being modernised. This task has also been set, as it is of considerable importance: a single transport artery is not enough, and appropriate administrative logistics are required.

I would also add that airports in every region of the Far East are being upgraded. They now handle more than 14 million passengers a year, including tourists, who are increasingly visiting these remarkable and beautiful places.

In this context, I would like to note the initiative of VEB.RF. Master plans have been prepared for the development of twelve new all-season resorts in Primorye, Sakhalin and Kamchatka. This will allow the number of tourists visiting these regions to almost double over the next ten years.

I would also highlight such landmark developments as the restoration of flights between Vladivostok and Pyongyang following the COVID-19 pandemic, as well as the launch of direct air services between the capitals of Russia and the Democratic People’s Republic of Korea. The flight on this route took place at the end of July. A month earlier, direct train services between Moscow and Pyongyang were resumed. I am confident that these measures will contribute to the further rapprochement of our countries and the establishment of stronger ties.

Of course, a particularly significant topic for the Far East, for our entire country, and for the whole Eurasian continent is the development of the Trans-Arctic Transport Corridor. It runs from St Petersburg through Murmansk, Arkhangelsk, and the Northern Sea Route, all the way to Vladivostok.

We see that interest in this route is growing, both from Russian companies operating in the Arctic and from foreign carriers. And this is not just about individual, one-off shipments, but about forming a stable cargo base.

We will develop the Trans-Arctic Corridor.

We often speak about the Northern Sea Route. But if you have noticed, I specifically said – and continue to say – Trans-Arctic Corridor, because we have concluded that we need to operate on a larger scale, and that this artery must function as part of a complex system with all the territories adjoining the Northern Sea Route and their capacities.

So, this is a comprehensive system that should integrate maritime, rail and road transport. It will allow us to use the potential of our largest rivers, such as the Ob, Yenisei, and Lena. Everything must work as a single, unified system.

Our task is not only to establish reliable and safe sea routes in the Arctic and enable year-round operation of the Trans-Arctic Corridor. There is also work, as they say, onshore: developing communications and navigation, ship servicing systems, and emergency and rescue infrastructure. And, of course, this includes modernising seaports in the Arctic and the Far East.

Incidentally, just yesterday, the multimodal hub Artyom was opened here, in the Primorye Territory. It handles containers arriving both from abroad and from Russian regions, and it is expected to improve the efficiency of northern supply deliveries.

It is very important that similar modern transport and logistics centres develop in our country, that there are more and more of them, and that cargo delivery and handling become faster and more efficient. And I would like to emphasise that it is precisely at such points, in logistics hubs, that advanced technologies, including unmanned systems, should be applied.

Next, the Trans-Arctic Corridor must primarily operate in the interests of the domestic economy and our regions of the Far East, Siberia, and the Arctic, taking into account cooperation between them and opening new opportunities for business. Here, I would like to underline two potentially significant directions for development.

First, the creation of modern shipbuilding centres. They should be capable of producing the full range of vessels needed for the route, from tugs and supply ships to bulk carriers and ice-class gas carriers, as well as ultra-powerful icebreakers.

Second, to increase the efficiency and resilience of the Trans-Arctic Corridor, we need to provide direct access for cargo from Siberia and the Urals to Arctic maritime routes.

I ask my colleagues in the Government and the Russian Maritime Board to assess the feasibility of these proposals and provide their recommendations.

Back in the day, mechanisms that were advanced and innovative for our country, such as priority development areas (PDAs), gave a strong boost to economic growth and private initiative in the Far East.

As you may recall, the law on PDAs was adopted in late 2014, and the mechanism was launched in 2015. The goal was to create truly globally competitive environment for doing business in the Russian Far East. Therefore, we developed PDA arrangements based on the best business and investment climate practices, including from the Asia-Pacific region.

What benefits does this mechanism provide today? Our colleagues are well aware of them in general, but I would like to go over them for our guests. These are, first of all, low insurance premium rates (7.6 percent for 10 years). The federal revenue tax will be zero for five years. The regional revenue tax will amount to anywhere from zero to five percent in the first five years, and ten percent in the next five years. The subsidised tax rate on mineral extraction is provided. In addition, the PDAs provide for a free customs zone, as well as reimbursement of a portion of the expenses involved in building infrastructure and issuing low-interest loans to businesses.

The reason I am dwelling on the PDA terms in such great detail is because they are unique for business, and not only in our country, but in many other countries around the world as well, for our colleagues and friends from other countries.

PDAs have proven their effectiveness. They have helped launch numerous investment projects, systematically support entrepreneurs and companies at the most important stage during construction, setting up the production cycle, and reaching design capacity. In the Far East, 18 PDAs have been created employing over 300 residents, who have invested almost four trillion rubles and created 95,000 new jobs. The Government has made several decisions to expand the boundaries of specific PDAs to accommodate new projects.

Based on existing successful experience, I propose taking a radical step and, as the saying goes, seamlessly, while keeping the terms and conditions for the existing investors unchanged, launch a single preferential regime for business throughout, I emphasise, throughout the entire Russian Far East and the Arctic. This work must begin on January 1, 2027.

The task is to simplify the use of support measures for entrepreneurs, companies and their new projects. In other words, investors should have access to incentives wherever they take their money, in every Far Eastern or Arctic region, city and town.

I would like to point out that the launch of the single preferential regime will preserve all the terms extended to investors in priority development areas. They do not have to worry that anything will be changed spontaneously. This also concerns the residents of international priority development areas. This instrument stipulates even longer-term profit tax privileges and the so-called grandfather clause – not everyone in the hall knows what it is, so I will explain this term. This clause precludes any changes in the terms of operation for up to 15 years and stipulates an individual approach and support for each investor, including foreign companies.

The legal framework is ready, and international priority development areas will start operating in the Transbaikal Territory, the Amur Region, the Jewish Autonomous Region, and the Khabarovsk and Primorye territories on January 1, 2026. We invite all interested partners to take advantage of this opportunity.

Regarding the single preferential regime for the Far East, I would like to say this: the list of incentives, their precise parameters, deadlines and industry focus will be determined by the Government together with our colleagues in the Far Eastern entities of the federation. But there are some fundamental issues I would like to point out.

Using the results achieved in the mining and processing industries and solid infrastructure, we must start a new development stage in the Far East, shaping an economy of the future, radically improving living conditions in cities and towns, training in-demand professionals and launching high-tech projects. This is the essence of the new stage. We must turn the entire territory of the Far East into a hub for high-tech projects. It is a vast territory with a sparse population and large areas where people can be employed. We must use modern methods for the development of this territory.

National projects to ensure the country’s technological leadership have already been launched. On the basis of each of these, I instruct the Government to prepare and approve an appropriate development programme for the Far East and the Arctic by the end of the year.

For a technological breakthrough, a genuinely bold approach to regulation and the legal framework for business operations is required. These must give the green light to innovation, stimulate the development of cutting-edge solutions, and facilitate their implementation in pilot and subsequently serial production, as well as in the social sphere and everyday life.

For instance, an experimental legal regime is already in effect on Sakhalin. It allows for the accelerated testing of unmanned technologies. I instruct the Government to create conditions for their widespread application on agricultural lands, in environmental protection and natural resource management, as well as at industrial and logistics sites. Why should unmanned technology not be developed in such areas? There are none of the risks that might arise in densely populated regions of the country. Moreover, life itself demands the use of such technologies. Take, for example, forest fires that break out hundreds of kilometres away from the centres responsible for responding to them. Unmanned technology is perfectly suited for use in these vast areas.

There are other opportunities for applying modern technologies across these vast territories. This is precisely where they should be deployed. However, this requires a corresponding workforce. What must be done to ensure such a workforce? Conditions must be created so that people can live here, so that they want to live here. Social infrastructure must be developed, cultural facilities must be enhanced, and so on. Otherwise, there will be no workforce, and consequently, there will be no people capable of advancing these technologies. This is a comprehensive task.

It is evident that such solutions will be in demand not only on Sakhalin but also in other regions of the Far East, including the Amur Region, the Trans-Baikal Territory, Chukotka, and so on.

In this regard, I consider it possible to extend the experimental legal regime for unmanned systems to all Far Eastern regions and expand it primarily to include such areas as the use of digital platforms, artificial intelligence, and data exchange.

In June, at the St Petersburg Economic Forum, I spoke about the importance of leveraging the advantages of electronic marketplaces. Within the framework of the experimental legal regime, I propose utilising the infrastructure of domestic information platforms for state and municipal procurement in the field of education.

There is more to it. The Russian Far East must become an advanced digital development region, especially in data circulation. Of course, this circulation should take into account matters of confidentiality and security. We talk about this all the time. We will definitely revisit this topic at the artificial intelligence forum, which will take place closer to the year end. I look forward to the Government preparing corresponding proposals.

Next up, to develop and master technologies and to establish modern production facilities, at least 100 industrial, business and technology parks with the proper areas and utilities will have become operational in Russia by 2030. At least ten such parks will need to be created in the Russian Far East and the Arctic regions. I am confident that their state-of-the-art infrastructure and capabilities will be popular with the start-up companies that are implementing promising projects and, among other things, planning to manufacture products that are designed to replace foreign analogues, including construction materials, and medical and transport equipment, to name a few.

In order to promote the development of domestic production facilities, conditions must be met for a wider use of the so-called offset contracts, when investments in new factories, workshops, or enterprises are guaranteed by state orders. It is likewise important to expand the practice of interregional offset contracts, under which production facilities open in one constituent entity of the Federation, and products manufactured under guaranteed orders are shipped to more than one region.

Financing innovative ideas and technological projects is a separate issue. Private investors and venture investment have a greater role to play under these arrangements than the state. The Voskhod Fund, which has supported about 40 companies in robotics, medicine, and space technologies, is a compelling example to back up this point.

I am asking our colleagues from the Government to carefully review the experience of this Fund and to help scale up its activities to include our technological leadership projects. Please focus on this.

In general, I believe a transparent, modern, and effective financial ecosystem must be created in the Far East. The Eastern Exchange, which is, for all intents and purposes, a Far Eastern stock exchange, is operational. I suggest working out plans for further expanding it, including financial channels, regulatory framework, and incentives for placing corporate shares.

Colleagues, developing the Far East and the Arctic, and building the economy of the future should improve the well-being of the people, increase their incomes, and lead to structural changes in employment in favour of high-skilled and well-paying jobs. This is the underlying logic and the core meaning of the strategy that we are implementing in these regions and throughout the country. To reiterate, the Russian economy must become an economy of high wages. This is not an empty phrase, not some kind of populist rhetoric. There is economic sense to it.

Over the past ten years, the average salary in the Far East has increased by 2.5 times. As of the end of last year, it exceeded 100,000 rubles per month in nominal value. The unemployment rate in the region went down from 7 percent to 2.4 percent. The poverty rate is down across Far Eastern constituent entities of the Federation. Indeed, in most of them it is still higher than the national average, and there is room for improvement. However, overall, I emphasise, the dynamics are good and positive. On average, the poverty level in Russia decreased from 11.3 percent to 7.2 percent from 2014 to 2024. Among the Far Eastern regions, poverty is below the national average in some regions, namely, 5.3 percent on Sakhalin, 5.9 percent in the Magadan Region, and 4.4 percent in Chukotka.

We remember how, amid economic headwinds and challenges in the social sphere in the late 1990s, people began to leave the Far East. It was a truly threatening trend, and reversing it was a challenge. But we are getting there. Gradually, we are getting there.

I will give you some telling figures. Since 2014, the migration outflow in the Far East amounted to 211,000 people over five years, but it decreased to 109,000 people in the next five years, which is also a lot. But it was down almost by half. Moreover, 2024 saw a migration influx, albeit a small one at 24,000 people. Not many, indeed, but the very fact of trend reversing was a major achievement.

Particularly important is the fact that young people from all over the country headed to the Far East. Since 2015, an influx of young people aged 20 to 24 has been noted for nine years in a row. Last year alone, it more than doubled compared to the year before that.

This means that you can go there to get an interesting profession, find a well-paying job, settle down, solve housing issues, start a family, and raise children. The future of our country is being created in the Far East. Young people sense it, see it, and react accordingly.

We will continue to improve the system of general and higher education in the region, encouraging it to adjust to the personnel demands of enterprises and organisations, and to take into account potential changes in the employment market due to the development of new forward-looking economic sectors.

We have agreed to open university campuses in Yuzhno-Sakhalinsk, Petropavlovsk-Kamchatsky, Yakutsk, Khabarovsk, Blagoveshchensk, Ulan-Ude and Chita, to build the second phase of the Far Eastern Federal University campus and to establish world-class campuses in the Arctic, namely Murmansk and Arkhangelsk. In other words, we will create all the necessary conditions for receiving a quality modern education.

Of course, it is necessary to support not only those who plan to move to the region but also those who were born and are living and working here, making the Far East and consequently, the whole of Russia stronger and better.

We must ensure a sustainable improvement in the standards of living for people and families in the Far East. This is a crucial aspect and the basis for creating an economy of the future.

Regarding housing affordability, urban development, the environment and the social sphere, the standards in the Far Eastern regions must rise above the country’s average within a decade.

As you know, master plans for 22 Far Eastern cities and agglomerations have been prepared with this aim in view. They include the economic development of residential areas and are designed to create a modern and truly comfortable living environment, with renovated housing and utilities, developed public spaces, parks, boulevards, children’s playgrounds and sports grounds, and a modernised social sphere.

These master plans are being implemented. To date, over 160 facilities have been built in accordance with them, including an embankment and a children’s technology park in Komsomolsk-on-Amur, a stadium in Ulan-Ude, and a roofed skating rink in Nakhodka. A shipyard has been modernised, an embankment has been built and a park has been laid out in Yakutsk. The construction of the Kamchatka Region Hospital has been completed.

It is clear that the successful implementation of these master plans depends on interaction between local authorities, including proper regard for governance elements in the urban agglomerations that comprise several municipal areas.

I would like to ask the Government, working jointly with local colleagues, to test the mechanisms of such interaction in the Vladivostok City Agglomeration, with the results of this experience formalised by 2030.

By the end of this decade, within the framework of the Far Eastern and Arctic master plans, more than 600 facilities are to be put into service. In their development, it is important to apply advanced solutions, both in design and in construction.

Next, for the financing of the master plans, we have agreed to create special sections in the national projects specifically dedicated to the Far East and the Arctic, and to allocate 5 percent of the expenditures of relevant state programmes in the social sphere, infrastructure and other areas to master plan initiatives.

I ask the Ministry of Finance to note that these decisions have been made. Yes, there is work to be done, and all of these programmes need to be carefully reviewed. But I ask that 5 percent be allocated here unconditionally, to address the tasks facing the region.

In addition, at the last Forum, I instructed that a separate limit of treasury infrastructure loans be allocated for the master plans of Far Eastern and Arctic cities. By 2030, 100 billion rubles will be directed to these purposes, primarily for the construction and upgrading of infrastructure.

Projects from the regions are already being selected locally and reviewed by the Government. I want to emphasise that resources for them are allocated to the Far Eastern regions in addition to the existing instruments of the so-called infrastructure menu. These include funds from the National Wealth Fund, the issuance of infrastructure bonds, and financing under the Modernisation of Utilities Infrastructure and Housing federal projects. All of this is an important contribution to the development of housing construction in the Far East and to improving housing availability for Far Eastern families.

If in 2015 the region completed the construction of 2.9 million square metres of housing, last year the figure stood at 4.7 million. The Far Eastern Quarter mechanism, with incentives for developers, played a role here. And, of course, the Far Eastern and Arctic mortgage programme with a low rate of 2 percent – originally covering young families, families with children, and participants in the Far Eastern and Arctic Hectare programmes – also contributed.

More than 165,000 loans have already been issued under this mortgage programme. We have extended it until 2030, and expanded it to include participants in the special military operation, employees of defence industry enterprises, doctors, and education workers. Specific age limits have been applied to these categories.

I would like to make an important clarification. The opportunity to receive a mortgage at a 2 percent rate should be available not only to teachers, but, I emphasise, to all employees of state and municipal educational institutions in the Far East and the Arctic. I ask the Government to make the necessary amendments to the regulatory framework. These are funds that, even under current conditions, are quite manageable, and I ask that this be done.

I also propose using the Far Eastern and Arctic mortgage programme for the secondary housing market as well, not just primary market, but specifically in those urban areas without blocks of flats, where developers do not offer anything. Of course, the year of the construction and the condition of the buildings will need to be assessed before a mortgage loan is issued. I am asking our colleagues to have a careful look into that.

We have discussed this in relation to other regions. Subsidised arrangements must definitely be allowed on the secondary market. Well, what if no new housing is built there? Please work it through. This decision must be made.

The housing issue is the key to improving the demographic situation. Families in the Far East are paid one million rubles for the third baby, rather than 450,000 rubles as in the rest of the country, which makes perfect sense. All of that together produces the result that I just talked about. Young people are coming here.

Initially, this support mechanism was introduced in the Primorye Territory, and then in seven more regions. Twenty-five percent more third and subsequent babies are born into Far Eastern families than the national average. It is also a telling indicator. Since this payment of one million rubles is used to pay off mortgage loans, I think the right thing to do is to make the Far Eastern and Arctic mortgage programme available to all families in the region with three or more children. To reiterate, to all large families, regardless of the age of the parents. We had a cap of 35 years. But now women give birth at 35, 40, and even older. God bless them. The more babies we have, the better.

Of course, Far Eastern families, families with children should be provided with social facilities such as outpatient clinics, kindergartens, schools, and hospitals.

Building such facilities at the expense of businesses, or more precisely, strategic partners that carry out major investment projects and conduct large-scale production operations in a particular population centre is a popular approach in remote Far Eastern urban and rural areas.

As a reminder, last year we agreed to create such a convenient mechanism, so that businesses could use their own funds to build social facilities when they are building their production facilities. They would build social facilities concurrently and then transfer them to regional or municipal authorities and have their expenses reimbursed. How will the reimbursement work? By way of future tax deductions when an enterprise becomes operational.

I would like the Government and the VEB.RF corporation – Mr Shuvalov, please note that – launch this tool widely and use budget resources that are set aside to cover investment tax deductions. Without a doubt, public-private partnerships and concessions should be used widely as well.

In this regard, I count on VEB’s energetic participation in further improving concession and PPP mechanisms. I am talking about creating a national standard and financing model in this area, which should ensure transparency and a common understanding of the terms of public/private partnership in socially important projects. This is a simple mechanism, and there is nothing important here. The budget will not be overly burdened by it. It is a quite feasible project.

Colleagues,

The Russian Far East and the Asia-Pacific region as a whole is an area of dynamic change and burgeoning growth. We should maintain high rates of positive change, improve the structure of the domestic economy, increase the technological efficiency of all spheres of life, and more effectively use the resource, production, logistics, and research potential that the Far Eastern regions and the country as a whole possess.

To be able to do this, we need to widely implement bold innovative solutions. All of that must be reflected in the regulatory framework and business environment, as we continue addressing issues that define the quality of life of our citizens. All of that should be done in a timely manner.

Such approaches have proven themselves in the Far East and the Arctic. We will continue developing them and adjusting them to the needs of people and the needs of businesses and regions. We will use them to ensure Russia’s national interests.

Of course, the success of this work largely relies on a systematic and comprehensive approach, the ability to look forward, to see prospects, to set big goals, and to set the plans to achieve them. Based on the outcomes of this forum, I am asking the Government to approve a long-term Strategy for the Development of the Far Eastern Federal District to 2036. Please do that within the next 12 months.

Much is being done in the Far East and the Arctic, and a lot more will need to be accomplished. Importantly, and I want our foreign friends to hear me, we are open to everyone who is willing to take part in this work.

Thank you for your attention. Thank you.

Maria Rybakova: Thank you very much, Mr Putin.

I have a quick question to follow up on that. The Far East will be just fine near-term and long-term as well. We can breathe a sigh of relief.

Traditionally, we have two main economic forums in Russia: the Far Eastern Forum, which has always been oriented towards Asia and the Pacific region, and the St Petersburg Forum, which, I think, has always served as a platform, or a small window to Europe.

If you look at our main symbol – the double-headed eagle – it also looks to the West and to the East. You had quite a fulfilling trip to China for the SCO summit. One can get an impression that the eagle is now looking to the East with its both heads.

A group photo of you, Xi Jinping, and Narendra Modi has made it to tabloids around the world. It was dubbed a new alliance of the elephant, the dragon and the bear. My question is: what place does the bear have in this alliance? What is it in this group?

Vladimir Putin: A bear is a bear.

Maria Rybakova: But bear is a fairly tough animal, Mr Putin.

Vladimir Putin: You just said that our eagle is looking to the East and to West. But there is also South.

Maria Rybakova: Alright, let us say the eagle is looking southeast.

Vladimir Putin: I have discussed this issue with my colleagues many times. What I was saying is that our interaction, our expanded interaction and joint work with our friends from the Asia-Pacific region and the Global South has nothing to do with the current political developments.

Look, President Xi Jinping and I took up this major effort 20 years ago. It has nothing to do with the current circumstances, but is related to our respective national interests. Our economies are complementary, we are neighbours, and we share many common interests, common approaches, and common values. To be sure, traditional values.

We, in Russia, knew the inner workings of the global economy. What are they? The whole world knows well that it is growing at a fast pace featuring new areas of focus and growth points. Naturally, we are guided by this, all the more so as we enjoy excellent neighbourly relations with many countries, including the People’s Republic of China, India, and Indonesia. Please note the pace of growth in these countries: Indonesia has almost 300 million people. That is quite a market.

There are small, but rapidly growing countries, such as Malaysia, Thailand, and Vietnam, with which we have had special relations for decades. Why would we not put all of that to good use? It is a natural thing to do. This is not a pivot anywhere. It is simply an answer to objective processes occurring around the world and in the global economy.

We have never refused to cooperate with those who wish to work with us, including in other countries across Asia. At the moment, I simply do not want to put anyone in a difficult or awkward position. Companies from certain countries that face some problems due to the current political circumstances have not left our market; they are still there, they continue to operate and even seek to expand cooperation.

For political reasons, many European companies have exited – yes, at a loss to themselves. We are aware of this and remain in contact; many are eager to return as soon as political restrictions are lifted. We do not turn our backs on anyone. Contrary to suggestions that we are “looking elsewhere,” we are not… Our foreign and economic policies remain stable and predictable.

In my view, this represents a clear competitive advantage, as stability is crucial for business. We have not turned away anyone or forced anyone out. Those who wish to return are always welcome, but based on the conditions that are developing at the moment.

Regarding the dragon and the elephant dancing together – this analogy was originally made by President Xi Jinping, not me – later the bear was added. The bear, of course, symbolises Russia. But we are staying in the Far East, and here we also have the world’s largest tiger – the Ussuri tiger, which is a Russian tiger.

Maria Rybakova: Continuing with the theme of returns:

Overall, it seems to me that there is a global trend towards protectionism. In other words, it appears that many countries prefer focusing inward, supporting domestic business rather than attracting external competitors. I want to emphasise that this is just my observation and my opinion – I am not an economist and would like to hear your opinion.

What do you think: is this policy, which seems to be actively pursued in some countries, beneficial or not?

Vladimir Putin: This approach is harmful, both to those who adopt it and to the global economy and international trade. It fosters separatism, both regional and national. Nothing positive comes from pursuing such a policy, as today’s world is highly interconnected and driven by possibilities and technological development. Isolating oneself within a purely national framework is difficult and counterproductive, as it inevitably undermines competitiveness.

We proceed from the fact that Russia is open to cooperation with all countries of the world, and above all with those who are willing to work with us, with our friends. At the same time, we are not shutting ourselves off from anyone. I believe the vast majority of those who are present here, if not everyone, will agree with me: such openness is beneficial to everyone who adheres to this point of view and this policy.

Maria Rybakova: Thank you.

Vladimir Putin: As they say in such cases – thank you for your support.

Maria Rybakova: Exactly. Thank you for your support.

Next, I would like to turn it over to the Prime Minister of the Lao People’s Democratic Republic. Mr Sonexay Siphandone, please come up to the podium. You have the floor.

Prime Minister of the Lao People’s Democratic Republic Sonexay Siphandone (retranslated): Your Excellency Mr Putin, President of the Russian Federation.

Ladies and gentlemen.

It is a genuine joy and honour for me to participate in this forum. I was very happy to receive an invitation from President Putin and to come to Vladivostok. This is my first time in this city.

On behalf of the Government and the people of the Lao People’s Democratic Republic, I would like to express my sincere gratitude to His Excellency President Putin and the Government of the Russian Federation for the warm welcome extended to me and our delegation.

I would also like to thank you for the excellent organisation of the 10^th Eastern Economic Forum. I am absolutely sure that this forum is an important driving force in promoting cooperation in the sphere of economy, social development, and cultural interaction. This forum contributes to improving the quality of life in the Russian Far East and in the Asia-Pacific region as a whole.

Our meeting today clearly demonstrates Russia’s leading role as it strives to promote international cooperation within bilateral and multilateral formats. This also applies to political and economic interaction, as well as to promoting innovative technologies and designs.

Today, we have found ourselves in an extremely difficult situation, where changes in the international arena are absolutely unpredictable due to the geopolitical situation, with existing problems, primarily caused by protectionist measures that some countries are introducing in an attempt to compete and even hinder the growth, accelerated growth of other countries.

This is aggravated by a number of other problems, including natural disasters, climate change, exceedingly rapid development of modern technologies, and innovative technological solutions, especially the introduction of artificial intelligence.

We are facing the problem of instability on the energy and raw materials markets. Food also poses certain problems. We are witnessing crises in this area as well.

These problems must be solved in order to ensure global peace, prosperity and stability now and in the future. In order to solve all these problems, we must cooperate. We must use the existing consultative, multilateral and bilateral mechanisms that are based on the principles of mutual respect and compliance with international law. This is an important mechanism that often requires certain reforms in order to properly reflect the current situation and to meet its challenges.

The theme of this year’s forum is “cooperation for peace and prosperity.” This choice is highly relevant in today’s circumstances, because without peace, prosperity cannot be achieved. Conversely, without prosperity, peace cannot be truly sustainable or lasting. That is why we must work together to ensure that the concepts of prosperity and peace go hand in hand.

Your Excellency, ladies and gentlemen,

The Far East brings together a number of countries with enormous potential. We can see that the Russian Federation plays a key role as a driving force for strengthening cooperation in this region, both in bilateral and multilateral formats.

Above all, associations such as BRICS, the Asia-Europe cooperation framework, the SCO, and others contribute significantly to advancing regional economic cooperation. These formats are based on the principles of mutual respect and the independence of their members.

Laos also seeks to promote cooperation within the framework of open and inclusive mechanisms. We believe that only through such cooperation can we find effective solutions to modern challenges. It is essential to make use of international mechanisms that continue to remain relevant in addressing these problems.

For the Government of the Lao People’s Democratic Republic, it is essential to create a more favourable economic environment for attracting investment and expanding trade.

Among other measures, we are working to establish and develop special economic zones and industrial parks across the country. We have also eliminated unnecessary bureaucratic barriers in order to make the process of attracting direct foreign investment as comfortable and transparent as possible.

We have also updated the investment law, introducing a number of provisions that make investing in our country more attractive to both domestic and international partners.

Our focus is on the most promising sectors: agriculture, renewable energy, geological exploration, manufacturing, pharmaceuticals, education, technology, services, tourism, transport, infrastructure projects, and logistics.

I would also like to stress that Laos is the only ASEAN member state without access to the sea. This makes it especially important for us to maximise the advantages of our strategic geographical position. Our goal is to ensure connectivity through land transport routes and thereby contribute to the development of logistics across the region as a whole.

Our government makes considerable investment in infrastructure and the construction of high-speed railroads across the entire country. We also continue to extend transport and logistics connectivity with friendly countries to become a regional hub for investment and trade. Tourism obviously plays a major role in that respect.

It is thanks to such policy and measures that the Lao People’s Democratic Republic has earned trust and recognition at regional and international platforms. I would like to note that Laos held the 2024 ASEAN presidency during which we identified nine priority tracks.

All of them concerned the promotion of greater connectivity and sustainability of the region built around ASEAN’s three major principles. We had a very fruitful ASEAN presidency, and we remain loyal to the declared principles, namely, the principle of ASEAN’s central role.

Today we can safely say that ASEAN is a community which has proved its commitment to peace and regional cooperation, acting invariably in the spirit of mutual assistance, in accordance with the path ASEAN has chosen.

Therefore, the Lao People’s Democratic Republic believes that enhancing ASEAN requires the promotion of economic cooperation and connectivity in the overall region. We will continue to augment regional integration and connectivity.

Your Excellency,

ladies and gentlemen,

The Lao People’s Democratic Republic is open for cooperation with all countries to achieve the goals of promoting peace, stability, prosperity and wellbeing in the region and worldwide.

It is in this spirit that I would like to invite you all to visit Laos so as to learn about our rich culture and beautiful nature as well as to see your potential in fostering cooperation and making investment in our country.

Also, on behalf of the Government and the people of Laos, I wish every success to the 10^th Eastern Economic Forum here in Vladivostok. I hope it will remain a venue for free exchange of opinions, for cooperation and building a future where all countries have equal opportunities.

I would like to express my sincere gratitude to President Putin, and thank and congratulate him on the successful holding of the forum.

Your Excellency, ladies and gentlemen, I wish you all good health and successful performance of all your duties.

Thank you for your attention.

Maria Rybakova: Thank you very much for your kind words. Thank you for the invitation, I will gladly accept it as I have never been to Laos.

In addition to what you have told us now, I would like to separately discuss an amazing thing. You are now the biggest exporter of electrical power. You are even nicknamed as a Southeast Asia battery.

How did you manage to increase it in such amounts so fast? Respectively, we may also learn on your example, the more so as Vladimir Putin said we must also build hydroelectric power stations and increase the fuel and energy complex in every possible way.

I beg your pardon, we have technical issues with translation.

Mr Putin, I will have to ask you then. Yesterday, you had a major meeting, where you discussed the fuel and energy complex in the Far East, and the importance of investing in expanding it.

My main question is where will the money come from? We are talking enormous amounts of funds, the volumes are large, and the goals you have set are, let us say, quite serious.

Vladimir Putin: Money is always important, but not the main thing. The main thing is to properly organise work, to identify priorities, and to establish interaction between various entities that have been assigned a common task.

This common task is for the regional authorities to, on the one hand, come to terms with investors and, on the other hand, investors must guarantee – some of our colleagues present here, for sure, are planning to do something – and these investors must guarantee the consumption of this energy, meaning that those who will produce it must be sure that as they invest money in creating energy capacities and grid facilities, their efforts will not be in vain, and things will not hang up after they spend their money.

The first thing that needs to be done is to organise joint work, and then to look for the latest technologies and investors who are ready to use these technologies in conjunction with the oversight organisations in charge of monitoring the fragile ecosystem of the Arctic and the Far East. This is the common task.

In that case, money will not be a problem, because the invested funds will pay back quickly. Ultimately, this will benefit the budget as well, since it will receive more tax revenue from the effective and competently organised work at new enterprises.

Maria Rybakova: What about supporting the industries? I mean the coal industry which is going through difficult times. You mentioned gas yesterday and said that we may face gas shortages in the Far East and volumes must be increased. How do you see solutions to these problems in these particular industries and who should we start with?

Vladimir Putin: You mentioned coal miners, who, like you said, are going through difficult times. Times are difficult in the sense that our coal mining industry is large, and the situation on international markets has changed, but we must largely focus on the domestic needs and the domestic market. This is my first point.

Second, to reiterate, we possess large amounts of coal in the Far East that will last 900 years. In order for us to use them effectively, we need the latest technologies. This is what we need to focus on in the first place.

If the domestic market consumes the volumes we need, we will be able to use it effectively, and we will simply have no difficulties with the situation on international markets, since it will be irrelevant. We will then be able to regulate the work of all industries, including coal mining, in the ordinary course of business. This is what we should strive for, and this is one of our critical goals.

The situation on international markets matters, no doubt about it, and we must take it into account. But in order to be more flexible and more sustainable, we must rely primarily on the domestic market.

Maria Rybakova: Thank you.

I would like to invite our next speaker. Prime Minister of Mongolia, Gombojavyn Zandanshatar, you have the floor.

Prime Minister of Mongolia Gombojavyn Zandanshatar (retranslated): Esteemed President of the Russian Federation, Mr Putin,

Esteemed Prime Minister of the Lao People’s Democratic Republic Sonexay Siphandone, esteemed Member of the Politburo of the Central Committee of the Communist Party of China Li Hongzhong!

Ladies and gentlemen!

Allow me to extend my greetings.

Mr Putin, I would like to sincerely thank you for your kind invitation to participate in the Eastern Economic Forum, which grows in significance and scale with each passing year. It is a great honour for me to take part in the jubilee tenth Eastern Economic Forum as the head of the executive power of Mongolia.

The regular assembly of the Eastern Economic Forum, along with its discussions on key issues of international and regional economic development, investment, infrastructure, energy, and environmental cooperation, is of great importance for shaping the future trajectories of our countries. This has firmly established the forum as a vital mechanism for dialogue in the Asia-Pacific region. I am confident it will continue to serve as an authoritative platform for meaningful discussions.

This year’s theme – Far East: Cooperation for Peace and Prosperity – is both timely and highly relevant. I believe that our deliberations here will help chart new avenues for joint development.

Amid large-scale political, social, and economic changes on the global stage, our countries are facing complex challenges in the social and economic spheres, including rising prices and persistent logistical and financial difficulties.

I am confident that the Far Eastern region – home to the majority of the world’s population and accounting for one-third of global GDP – will play a decisive role in the future. For this reason, Mongolia is keen to deepen trade and economic ties and to expand investment, particularly with the states of East and Southeast Asia.

Along with our geographical advantages, Mongolia boasts abundant natural resources as well as a young and skilled workforce. The Government of Mongolia has been pursuing consistent policies to harness these assets, attract investment, and foster trade and cooperation, and these efforts are already delivering results. Over the past three years, our economy has grown at an average annual rate of six percent, contributing to the region’s stable development.

The Government will continue its work on diversifying the economy, strengthening macroeconomic stability, creating a favorable business climate, and enhancing the openness of foreign trade.

Ladies and gentlemen,

We are currently celebrating the 80th anniversary of the end of the Second World War, an event that has been ingrained forever in the history of humankind including the peoples of Mongolia, Russia and China.

Our countries, eternal neighbours and strategic partners, keep strengthening and fostering bilateral and trilateral relations, overcoming all barriers, as we are set on expanding mutually beneficial cooperation.

Ten years ago, the three countries’ leaders signed a roadmap of cooperation between Mongolia, Russia and China, and identified the priorities of trilateral interaction. Several days ago – in fact, three days ago – the leaders had a meeting in China to discuss further cooperation plans.

I want to stress that Mongolia is ready to actively participate in the alignment of the Steppe Road Initiative, the Eurasian Economic Union, the Belt and Road Initiative, and also to promote and deepen the implementation of the economic corridor with Russia and China. We will ensure stable and fruitful participation on this track.

The programme of establishing an economic corridor Mongolia-Russia-China designed to develop and enhance comprehensive cooperation within the strategic partnership between Mongolia, Russia and China, will definitely enhance political trust, attract investment and contribute to regional integration. In this context, Mongolia has always had highest regard for the significance of and prospects for the 33 projects of the economic corridor. We believe that laying foundations for mutually beneficial cooperation, especially in road transport, helps attract investment from international banks and financial institutions. Regular trilateral meetings on the implementation of these projects also promote their advancement.

The parties have also agreed in principle on another major project – construction of a gas pipeline across the territory of Mongolia. I would like to declare with full responsibly from this rostrum that the Mongolian government is committed to rendering every possible support to this mega project. We believe this project will unveil new economic opportunities, will be beneficial for the environment and strategically important. It will become a project of great significance for trilateral cooperation.

Esteemed Mr Putin, I express sincere gratitude to Alexei Miller for this project. Thank you.

In addition, our countries are also discussing an upgrade of the central transport corridor connecting our three nations, setting up new railway interchanges and the development of cross border checkpoints which meet international standards. These are all strategically important and economically advantageous projects. We think the implementation of these programmes and projects contributes to expanding trade and transport links between Russia, China, Asia and Europe and also steps up regional cooperation.

An interim agreement on free trade between Mongolia and the Eurasian Economic Union and its member states was signed at the meeting of the Eurasian Economic Commission Supreme Council in Minsk last June. Under the agreement, tariffs were cut on 367 goods and temporary customs duties on some goods were completely scrapped, which was in important step forward in regional economic integration.

Ladies and gentlemen,

The Eastern Economic Forum will help open up new opportunities to fight crises in the Far East, Asia and the Pacific Region, invigorate regional cooperation in the economy and other areas, and also launch new important joint projects and programmes.

We are totally ready to expand cooperation and to advance the development of the region together. Over the past time, we have initiated a multitude of programmes and measures to enhance integration. Stepping up these efforts, filling them with new content will definitely serve our common interests.

I wish all the participants of the Eastern Economic Forum success, achievements in work, and good health.

Thank you.

Maria Rybakova: Thank you very much.

I have a follow-up question. Mr Gombojavyn Zandanshatar, you mentioned the Power of Siberia. Mongolia took an active part in the SCO Summit when a trilateral meeting was held.

I have the following question – I was looking for information which was not available until now – will you buy our gas or will you render transit services only?

Gombojavyn Zandanshatar (retranslated): We are engaged in trilateral efforts to lay that gas pipeline from Russia across Mongolia to China. At present, all technical and economic aspects have been completed, including research.

It is a large-scale trilateral project. The parties agreed in principle on laying this gas pipeline.

I can say with all responsibility that we are fully prepared for the construction. We attach great importance to laying this pipeline in a proper way. At today’s meeting with Alexei Miller we had a detailed discussion of all the relevant issues, how to implement this project efficiently and without any failures, and also to ink a trilateral intergovernmental agreement.

Mongolia is not only a transit country. It can also buy and consume natural gas, connect its big cities to this gas pipeline, that is, build a gas distribution network. It will contribute to industrial development and mitigate environmental disasters such as winter smog in Ulaanbaatar, and will offer new opportunities for Mongolia’s economy. It will become a strategically crucial natural resource to solve current issues. Under the project, 50 billion cubic metres of gas will be transferred by that pipeline annually. It is evidently one of the biggest projects of the century. I believe it will also involve a lot of organisational efforts.

I would like to thank and congratulate everyone on this project.

Maria Rybakova: So are you ready to buy gas?

Gombojavyn Zandanshatar: Research work is currently underway. The devil is in the details, that’s why more research and discussions are needed.

Maria Rybakova (addressing Alexei Miller): I ask you to place it on record, Mr Miller, that I have just reached an agreement, as it appears.

Mr Putin, obviously, the next question is a logical follow-up on our discussion of the Power of Siberia. The memorandum has been signed and caused a stir. Everybody had a sigh of relief, as it seemed to me. The term of the agreement is 30 years. I have not seen the specific price. As I understand, it must be a commercial secret, yet they say that the prices will be lower than in Europe, at least.

There was a Soviet joke that we are giving our oil to Europe through “Friendship.” What do you think, are we going to give the “power” of our Siberia to China?

Vladimir Putin: This is a mutually beneficial project.

As for prices, they are based on the market and are actually estimated using the same formula as for Europe. The formula is the same but its components, the prices of various products, which make up the gas price, they are simply different in different regions of the world. The prices in Europe differ from those in Asia. And the formula to determine the price is the same, it is absolutely market-based.

We had long talks and every time when participants in the economic activity are talking and trying to find a solution – and most of the people here are like those – everybody understands well enough: this is not an easy process yet everybody is striving to reach the result both negotiating sides are interested in.

Gazprom and its Chinese partners have reached such a result in the course of their years-long efforts. I can only congratulate them all once again. It is really one of the major energy projects in the world.

Maria Rybakova: Thank you.

Since we have approached the energy projects anyway, I still want to listen to the story about how Laos managed to make such a stride. I want to ask how you could become the main power source? I understand that our technical issues have now been resolved. Mr Sonexay Siphandone, please tell us the secret of your energy market. How did you manage to achieve such great results? Why does everybody want to connect to your power source?

Sonexay Siphandone (retranslated): Thank you very much for your question.

This is a very important question. We consider the electric power to be a priority area for us, like oil and natural gas. The thing is that we are a country that purchases 100 percent of its oil and gas, and for this reason the electric power is important for us, and it is also green power. Our government encourages a broader use of electric power.

We also regard the development of hydropower engineering as a priority, as we have abundant water resources and many rivers in our country. All this allows us to build a large number of hydroelectric power plants. Ninety-five percent of the energy that we produce comes from hydropower engineering. The total capacity exceeds 12 million megawatts. We plan to increase this figure to 30 million megawatts.

Still, given the climate changes and other calamities, the problem looks still greater for us, especially during the rain and draught seasons. This is why we resort to other, alternative energy sources. Specifically, we use wind and the solar energy.

We would like to thank President Putin, after our President visited Russia at the end of July. During the talks, peaceful use of nuclear energy was discussed, as well as the use of nuclear energy products in medicine. We talked about cooperation in agriculture. I firmly believe that cooperation with the Russian Federation will make it possible for us to develop our energy sector, and it will develop in a more stable manner. Moreover, we will ensure stability in the production and consumption of energy.

Of course, we cannot speak for entire Asia, but given our development priorities, we focus on advancing technology and science. We are creating a network of metadata centres to develop the ICT sector, and all of this requires energy. Therefore, we give priority to meeting domestic demand for energy and then export energy to neighbouring countries.

We are developing a power transmission network in order to cover more Asian countries.

Previously, we exported electricity to Vietnam, Cambodia, and Thailand. We also exported electricity to Singapore and Malaysia. Nowadays, we are beginning the second stage of all these projects. Yes, these are all priority areas for us, but, I repeat, energy must be provided first for our own domestic consumption and also meet the needs of neighbouring countries if we export this electricity there. There are very good prospects for our sector. I have just described them.

Thank you.

Vladimir Putin: We are discussing cooperation in the Asia-Pacific region. You keep bringing me back to cooperation, say, with our friends and allies in the People’s Republic of China. We have not yet talked about India: there are many plans there, too. But the Asia-Pacific region also includes, say, the United States. And there are many interested parties there who want to resume or begin new work with us.

We are talking about the Asia-Pacific region. We have received excellent proposals for working with US companies in Alaska: they have resources there, and we have technologies for extracting and liquefying gas that are much more effective than those that some of our American partners have. They know this, and at the level of economic players, companies are ready for cooperation. It does not depend on us. We are also ready, but if any political decisions are made there, we will move in this direction, and we can work together in the Arctic, too.

By the way, we have already discussed possible work in a trilateral format on some of our Arctic fields with our Chinese friends. In fact, all these options are being discussed, they are on the table. We only need a political decision. This is possible, and cooperation in both gas and oil would be mutually beneficial.

Maria Rybakova: Mr Putin, what do you think is the obstacle now preventing us from starting this as soon as possible? What is putting spokes in our wheels?

Vladimir Putin: This is not a question for me. We are not putting spokes or anything in any wheels.

Maria Rybakova: I see.

Vladimir Putin: Initially, you asked about our eagle, which is one of our symbols. It looks in one direction and in the opposite. Look at the eagle now. Did we turn away from anyone? No, we did not turn away from anyone. The eagle continues to look both ways.

Maria Rybakova: Thank you.

I would like to give the floor to Li Hongzhong, member of the Politburo of the Communist Party of China Central Committee and Vice Chairman of the Standing Committee of the National People’s Congress.

Please, the floor is yours.

Li Hongzhong (retranslated): President Putin, Prime Minister Siphandone of Laos, Prime Minister Zandanshatar of Mongolia.

Ladies and gentlemen, friends,

I am delighted to meet you all in Vladivostok, the pearl of the Russian Far East, at the 10th Eastern Economic Forum.

This year marks the Forum’s tenth anniversary. A decade ago, thanks to the initiative of President Putin and his personal support, the Forum’s remarkable journey began here.

Over the past nine years of dedicated work, the Forum has grown into a vital platform for fostering cooperation in the Far East and advancing regional development.

It has become a powerful driver for unlocking the potential of the Russian Far East and strengthening the economy of Northeast Asia.

Over the past nine years, we have witnessed not only the growth of the Forum, but also remarkable progress and breakthroughs in the history of China–Russia relations. Under the strategic guidance of President Xi Jinping and President Vladimir Putin, political mutual trust has deepened steadily, while comprehensive cooperation between our two countries has continued to expand.

The breadth, depth, and high quality of our bilateral cooperation reflect the vitality of interregional ties and exchanges. In this context, I would like to highlight the strong momentum of cooperation within the Northeast China – Russian Far East framework, made possible by the personal attention and efforts of our two heads of state.

For many years, China has remained the largest trading partner and leading external investor in the Russian Far East. In 2024, trade under the Northeast China – Russian Far East framework reached $105.8 billion, representing 43 percent of total bilateral trade and serving as a key driving force in China–Russia economic relations.

Ladies and gentlemen,

Friends,

This year marks the 80^th anniversary of the Chinese People’s War of Resistance Against Japanese Aggression, the Great Patriotic War, and the world war against fascism. Eighty years ago, in the face of the evil forces of fascism, China, the Soviet Union, and other peace-loving countries and peoples stood firm in defending historical truth and justice, and delivered a decisive rebuff.

China and the Soviet Union, as the principal theatres of World War II in Asia and Europe, endured enormous sacrifices and made a historic contribution to the victory in the world anti-fascist war.

In May and September, Chinese President Xi Jinping and Russian President Vladimir Putin took part in the celebrations of the victory anniversary in Moscow and Beijing. They defended the outcomes of World War II and the principles of international justice while calling on the entire world to remember history and open a path to the future.

Ladies and gentlemen,

Friends,

Today, the world is undergoing profound and accelerating changes. Global challenges are not diminishing, and the lack of global governance is becoming increasingly acute. Many issues transcend the internal affairs of individual states and cannot be resolved by any country alone.

Just a few days ago, President Xi Jinping put forward an initiative on global governance at the SCO Plus meeting. This initiative focuses on the vital question of what kind of global governance system should be created, and how it can be reformed and improved.

This represents China’s vision for effectively addressing global challenges and deepening international cooperation. It reflects the expectations of many stakeholders, demonstrates the responsibility of a major power, and expresses its desire to build a community of shared destiny for humankind.

China and Russia are influential powers and constructive forces supporting global strategic stability and advancing global governance. We are ready to fully leverage the advantages that our two neighbouring countries enjoy, and to strengthen close and united cooperation with all regional partners, including Russia, in the spirit of joint consultations, joint construction, and shared benefit. Together, we can move toward a bright future of peaceful development and mutually beneficial cooperation. In this context, I would like to offer the following opinion.

First – peace and stability contribute to development. Peaceful, stable and prosperous Northeast Asia meets the interests of all the countries in the region and is a common dream of its peoples. China has long been pursuing the path of amicability and establishing neighbourly, partner relations with adjacent nations, supporting the countries of the region in selecting a development path consonant with their national realities. We are ready to deepen mutual political trust and alignment of interests, jointly safeguard the regional stability and respond to common risks and challenges.

Second – openness and tolerance contribute to prosperity. As the Chinese adage goes, ‘Openness leads to progress while isolation – to lagging behind.’ Amid current globalisation, none of the countries is progressing alone. We back up an open, transparent, inclusive and non-discriminatory multilateral trade system and advocate the creation of an open-type regional economy, unlocking the potential of natural peculiarities and the geographical advantages of the world’s countries. We are ready – through joint consultations, joint construction and joint use – to strengthen cooperation in production and supply chains, remove protectionism, assist in the free movement of capital, market and technologies for the sake of economic integration in the region.

Third – reciprocal exchange and assimilation contribute to cementing mutual understanding. Spiritual bonding of nations is a foundation for friendly relations between our countries. Our countries are bonded by common mountains and rivers, our cultures influence each other. Our peoples maintain close ties while our friendship is rooted in the past.

We need to continue this friendly timeline, deepen reciprocal exchanges and training, enhance cooperation in tourism, education, youth affairs, culture and art. We need to make people’s trips easier so as to foster neighbourliness and friendship.

Ladies and gentlemen,

Friends,

A Chinese adage says, ‘When everyone’s efforts are joined, victory is inevitable.’ Peace and prosperity in our region are inseparable from each party’s efforts. China is ready “to open its doors” so as to share new development opportunities with all countries of the world on the basis of the news results of China’s modernisation and China’s greater openness.

We are ready to promote neighbourliness and friendship, strengthen mutually beneficial cooperation for the sake of joint usage of the results of the development of all the region’s countries for our wonderful common future.

I wish all the participants fruitful work. Thank you for your attention.

Maria Rybakova: Thank you very much.

Right after your remarks, I would like to touch upon your meeting yesterday, which focused on Russia’s reciprocal decision to abolish visas. We discussed this earlier, and you mentioned during your visit to China that China introduced a visa-free arrangement for Russians.

My immediate question is this: While expanded tourism will certainly benefit both countries’ economies and cultural ties, the main concern remains, Mr President, which is the matter of payments.

For example, I want to visit China as a tourist, but I don’t have a Visa card, and my Mastercard is blocked here. I got a UnionPay card issued about three years ago, but it no longer works. Today, very few banks can issue such cards, and those that do are ruble-based, meaning payments are made in rubles. The only option is to carry cash and exchange it or find a more creative solution. Unfortunately, I haven’t mastered cryptocurrency yet.

Are there any preconditions for making the system of payments between our countries more transparent and accessible?

I would like to pose the same question, in turn, to Mr Li Hongzhong.

Vladimir Putin: First of all, I would like to emphasise that the decision by China’s political leadership – clearly made at the highest level – allowing visa-free entry for Russian citizens into the People’s Republic of China came as a complete surprise to us. We had no prior knowledge of it, and it was especially welcome.

Naturally, this decision is a strong sign of friendship, which we deeply appreciate. It will undoubtedly lead to a significant increase in mutual travel, create more favourable conditions for businesses, and further strengthen the ties between our two countries. This is simply self-evident.

To travel to any country, including China, an ordinary person usually needs to visit several authorities, submit documents, and go through various formalities. Now, with this visa-free arrangement, one can simply board a plane and fly – no bureaucracy. Right? This will undoubtedly bring our two countries closer together. Naturally, we will respond in kind to this gesture of friendship and adopt the same measures.

Regarding tourist travel, it is true that the system of payments needs further improvement. We are working on this intensively. Our financial institutions of the highest level are attending to this matter, along with commercial banks.

I do not want to make more comments at the moment, so as not to create any difficulties for future decisions. This is also connected with the need to respect the interests of financial institutions operating under sanctions pressure. Nevertheless, possible solutions do exist.

We are perfectly aware that steps must be taken for tourists to have as few difficulties as possible. They can certainly use our Mir payment card, and similar Chinese instruments. These payment instruments can be aligned, third countries’ bank cards can also be used. I assure you that the central banks of both countries are working on this and will find a solution.

The heads of the financial institutions discussed all these issues in my presence and in the presence of President Xi Jinping right now, during our delegation’s visit to the Chinese People’s Republic. They are maintaining a dialogue and keep discussing this matter.

I am confident that decisions are forthcoming.

Maria Rybakova: OK, then we’ll be waiting.

Mr Li Hongzhong, we would like to hear a comment on the matter from the Chinese side.

Li Hongzhong (retranslated): Thank you for your question.

The Chinese Government is introducing a visa-free regime for Russian citizens. These are important outcomes and agreements between our heads of state. It is a meaningful sign of enhanced large-scale progress in the Russian-Chinese relations.

I have attentively followed President’s Putin’s reply. I think President Putin’s answer is very professional and sets benchmarks for further development.

I will not go into detail either, but I think, since our countries will meticulously work out all the issues together, we are sure to remove difficulties and technical issues related to payments. Therefore, we are confident we will achieve our goals.

For example, circulation of Chinese currencies and payments. Of course, we hardly use cash now in China, we use our telephones for payments. This is a hard time for thieves because we do not use cash, it’s just a payment method.

When I arrived in Vladivostok, I also had a good impression because I used my telephone here just like in Beijing. It means we already have good alignment in telecommunications.

We also have to work on financial communications at the next stage. I think that we will certainly reach these goals through joint efforts.

I have just mentioned Russian-Chinese cooperation. I said we need to ensure the free movement of capital, markets and people. I firmly believe that we will definitely solve this issue.

Maria Rybakova: Thank you for the answer.

Well, it looks like my only hope is the QR codes, no other options.

Then, I want to come over from a good and friendly agenda to a not so friendly agenda and travel to the other part of the planet. As a matter of principle, you have answered media questions at the news conference in China just the day before. I mean the Ukraine crisis and everything concerning relations with America, everything happening in the area of the special military operation.

Just yesterday, another meeting of the ‘coalition of the willing’ was concluded in Paris. Basically, I didn’t see any specific decisions taken at the end of it. So far, it's just talk about deploying military forces in Ukraine. But Donald Trump said he would call. First question: has he called yet? And the second question: What do you think about the decisions proposed by the other side?

Vladimir Putin: We have an open dialogue with President Trump. We have agreed to call each other, if need be, and talk. He knows that I am open to such talks, as well as he is – I know it. However, so far, based on the results of these consultations in Europe, we have not had any discussions. Actually, it was difficult for me to do this, as I have just arrived from China and am here now. We have no communication problems here. This is the first point.

Second, regarding possible military contingents in Ukraine. This is one on the basic reasons for dragging Ukraine into NATO. So, if any troops appear there, especially now, during combat operations, we will deem them legitimate targets for destruction.

And if any decisions leading to peace, a lasting peace, are achieved, then I will not see the sense of their deployment in Ukraine, that’s it.

If agreements are achieved, then no one should doubt that Russia will execute them in full. We will observe the security guarantees, which, of course, would be drafted both for Russia and Ukraine. And I will say it again: Russia will observe these agreements. Anyway, nobody has ever discussed it with us seriously, that’s that.

Maria Rybakova: Thus we will be waiting. Time will tell, as they say.

The next question is about peace settlement. You said earlier that you basically see a certain potential in this regard and even invited Vladimir Zelensky to Moscow. However, the Ukrainian Foreign Ministry has officially declined it. Do I take it right – or maybe I am wrong – that we cannot speak about any steps towards peace settlement in the nearest future?

Vladimir Putin: I would like you to stick closer to the topics of the Asia-Pacific economic cooperation. But I realise that without solving such acute problems, cooperation as a whole is burdened, so these are legitimate questions.

What can I say?

First, just recently the leadership of the Kiev regime spoke unflatteringly of us, to put it mildly, and excluded any possibility of direct contacts. Now we see that they are asking for such contacts, at least they are suggesting having them.

I have repeatedly said that I am ready for such contacts. At the news conference in Beijing that you mentioned I said that I do not see much sense in them. Why? Because it will be impossible to come to terms with the Ukrainian side on the key issues. Even if they have political will – which I doubt – there are legal and technical difficulties which are related to the fact that any agreements on territories must be confirmed, under the Ukrainian constitution, in a referendum. To hold a referendum, a martial law must be lifted, as referenda are not held under martial law. If martial law is lifted, presidential elections must be held right away. After the referendum, if it is held, regardless of its results, it must be endorsed by a Constitutional Court’s ruling. But the Constitutional Court is not functioning because, as I see it, after it received enquiries on the legitimacy of the incumbent authorities, the court dodged rulings while the head of the regime ordered the security guards not to let the Constitutional Court Chairman to his office. This is the kind of democracy they have there. Meanwhile the Supreme Court Chairman is in jail on corruption charges. It is common knowledge that corruption abounds in Ukraine. But is not clear why it is exactly the Supreme Court Chairman who should be put behind bars. Although it is clear that they have reached the point of destroying their judicial system as such. This is yet another vivid example of how “democratic” the current Ukrainian authorities are. So this is an endless process leading to nowhere. Nevertheless, we said that we are ready for a top-level meeting.

Look, the Ukrainian side wants this meeting and suggests it should be held. I said, ‘I am ready, please come, we will certainly provide proper conditions for work and security, with a 100 percent guarantee.’ But if we are told, ‘We want to meet with you, but you should go to some place for this meeting,’ I think these are just excessive demands towards us.

Let me reiterate – if someone really wants to meet with us, we are ready. The best place for it is the capital of the Russian Federation, the hero city of Moscow.

Maria Rybakova: Mr Putin, thank you for the answer.

May I ask one more question? And then we will definitely switch to the Far East.

Vladimir Putin: Go ahead.

Maria Rybakova: I would like to go back to the root causes of the special military operation.

Literally, during the same news conference, you said you saw no obstacles and had no problem with Ukraine accessing the EU. That same day, a statement by former Ukrainian President Yanukovich was released. He enjoyed support at the time, and we got along with him just fine. I understood that he also always said that he wanted and looked to the West. Maybe, I misunderstood it. Were you talking about the same thing, or not?

Vladimir Putin: I have no way of knowing how you understood it. I will tell you how things are, and things are as follows. Indeed, Ukraine set itself a goal – and still has it – to join the EU. To reiterate, this is Ukraine’s legitimate choice. It decides how to build its international relations, how to ensure its interests in the economic sphere, and whom to conclude alliances with.

The problem for us when Yanukovich was president was that Ukraine’s integration into the European system of economic relations entailed certain economic issues, because Ukraine was part of the free trade zone, our customs borders were open, and for us this implied certain consequences. Ukraine had to compare, put on the scales and see what it was losing in contacts with us in direct monetary and cooperative terms, and what it was gaining there. This is what President Yanukovich thought about. He ran the numbers and that made him cry, because opening markets to competitive, highly competitive European products was killing the manufacturing industry in Ukraine and shutting down cooperative and trade relations with Russia. That was the problem. As far as I remember, he did not say no to joining the EU, on the contrary, he wanted to join it. I do not know what he said, but I know for sure that he wanted it and was striving for it, but on terms that were acceptable to Ukraine.

It did not concern us in any way other that it affected our interests in cooperation ties. But otherwise, no problem, we have never objected to any integration moves in Ukraine’s policies with Europe.

Security issues are a different matter. President Yanukovich and Ukrainian prime minister were against drawing Ukraine into NATO. This issue directly affected us and continues to affect us from the point of view of ensuring Russia’s long-term security interests.

What happened next? As a result of the coup, they got Yanukovich out of power. They removed the person who was against Ukraine joining NATO, and used a bloody coup in Kiev to bring to power forces that advocated and continue to advocate for Ukraine’s NATO membership. This does not suit us at all.

Even though each country can choose how it prefers to ensure its own security, such issues cannot be addressed without regard for Russia’s security, because there is a general rule included in the European documents: the security of one country cannot be ensured at the expense of the security of another country.

Maria Rybakova: Thank you.

Russia, and especially the Far East – we are going to talk about wealth – naturally boasts enormous natural resources. This also applies to fish resources. Recently, I came across some interesting statistics, which I would like to share with you.

According to the data, in 2024, Russia’s crab exports to China reached a historic high of over 41,000 tonnes. For comparison: supplies of Russian crab to the domestic market over the same period amounted to about 8,000 tonnes. In other words, we have a sort of crab paradox: the crab really does walk sideways, bypassing us and heading instead to Korea, Japan, and China.

Do you think Russia has sufficient processing capacity at its ports to add value through processing, and supply it to the domestic market instead of just catching and auctioning it? After all, live crab is the most expensive product and, as far as I know, all live shipments are currently going in the opposite direction.

Vladimir Putin: It is not about prices, although that is certainly one of the key factors.

In order to improve and expand the supply of this product to Russian regions, the issue of logistics must first be resolved. We transport it by rail, which is costly, or by air, which is even more costly. That is the problem. Seafood – both fish and crab – ends up mainly in expensive restaurants. Why? Because it has to be flown in. If we could organise transportation and build logistics correctly, the situation would change.

However, I should note that fish products from the Far East – not only crab, but seafood in general – account for about 75 percent of the national catch, if I recall correctly. Of this, about 65 percent is also processed here.

Today, logistics is the most sensitive issue. We are working on it. We are giving it serious attention, and we will expand our capacity to distribute seafood, including crab, to all regions of the Russian Federation. This is indeed a problem.

Moreover, according to Ministry of Health standards, we are not yet meeting recommended levels of seafood and fish consumption. If I am not mistaken, the norm is 28 kg per capita per year, while today we are at around 23–23.5 kg. Clearly, there is work to be done here. We are thinking about it, and I hope this issue will be resolved.

Maria Rybakova: Wonderful.

Since we mentioned transport and accessibility, intraregional flights in the Russian Far East are not, of course, a matter of comfort but a matter of survival. There is simply no other way to reach some areas with such long distances.

I would like to tell you a brief story. I have a friend who lives in Khabarovsk. He needed to fly to Vladivostok but there were no direct tickets available. I think everybody who lives here knows how difficult it is to grab an intraregional flight ticket. And you wouldn’t want to drive 750 km. I hear from drivers they travel with two spare tyres just in case. Anyway, my friend bought a connecting flight through Moscow and flew from Khabarovsk first to Moscow, where he spent four hours in an airport, then boarded a plane and flew to Vladivostok. So, he did all that and, as their plane was approaching Vladivostok, due to adverse weather, their flight was diverted to a backup airfield in Khabarovsk. Overall, he spent 24 hours flying from Khabarovsk to Khabarovsk. Clearly, it is an anecdote but I think it explains a lot.

When do you think we can resolve the issue of medium-haul aircraft? Today, I’ve also come across news that the State Transport Leasing Company signed an agreement to lease 50 Baikal aircraft.

Perhaps I have missed something. Is Mr Trutnev here? I can’t see him. We have spoken and he told me that there is no such thing as a Baikal aircraft. They bought an aircraft that does not exist yet. I am a little confused. I don’t know, perhaps there is a reason to stop by the stand of the Prosecutor General’s Office? Do these aircraft exist or not, Mr President? And what are the prospects of intraregional flights in the Russian Far East?

Vladimir Putin: Unfortunately, although there was a rather decent local airline network set up in the Soviet times, it was lost in the 1990s. It was mostly neglected in the early 2000s, so people had to, and still have to, fly from one city, even if major, to another city via Moscow, like your friend. But we have already established a local airline. Of course, the key issue is the availability of medium-haul aircraft in sufficient quantity. The Government, the Ministry of Industry and Trade and our domestic enterprises have many plans in this area.

Unfortunately, I have to agree that this matter is taking longer than we wanted. But there is Baikal and other small aircraft that are to replace Antonov An-2. This is work in progress.

I will be honest, sometimes we argue with some of our responsible parties. They will have to expedite these efforts.

We have plans and specific models ready. They have been launched, and I have seen them in operation. The next step is serial production and supplies to airlines. We will certainly do all we can to speed up the process.

We are aware of this problem and of the fact that it still persists. We will keep on working on solutions.

I will not list everything. We have Baikal and many other aircraft models. I have seen them in operation. But serial production is not yet launched.

Maria Rybakova: Thank you very much.

In your speech, you mentioned investment growth; and indeed, foreign investment has increased over the past four years.

My question is this: if we look at the investment climate as a whole, foreign investment mainly comes from a few major countries, including China.

Also, it seemed to me that in your speech, you placed considerable emphasis on technological progress, underscoring the need to develop knowledge-intensive and complex industries. Yet, and this is no secret to anyone, investment is still largely directed toward commodity sectors such as mining, oil, gas, coal, and the infrastructure that supports them.

So, perhaps a logical question would be: is there a risk of falling into a commodity trap, where we would be perceived exclusively as an investment partner in these areas?

Vladimir Putin: No, there is no such trap or threat of falling into one. That risk would exist only if we did nothing. You paid attention to my speech, and one of my central – if not the main – arguments was precisely that: when it comes to investment, we must make the region as a whole more innovative.

This is not a problem of our partners that they tend to invest into the extraction of mineral resources. It is our problem. We should create conditions for the development of innovative sectors of the economy, and for people with the right expertise to come to work here. In fact, such a trend is already emerging, as I mentioned. Our task is to build the right environment.

I can assure you that our partners will be eager to invest in promising enterprises, provided that their implementation also brings them benefits. That is the only way it works; there is no alternative. I am confident that we can implement all of these plans.

By the way, we discussed these issues with our Chinese partners, our friends, in Beijing. Overall, we should organise our work, calibrating it to high technology economic sectors. This is what we are going to do. This is the only future for our economies and our countries, the foundation of our shared success. This certainly applies to the regions of the Far East as well.

Maria Rybakova: Thank you.

I would like to ask about the economy more broadly…

Vladimir Putin: One more thing about mineral resources – I have just looked at Mr Miller and recalled it – is that the concept that we can just drill a hole, and oil and gas will just pour through it is a primitive one. Mr Mikhelson here knows very well what liquefied natural gas is. The technologies he and his team have adopted do not exist anywhere else in the world. This is a high technology sector. And I say this without exaggeration, without hyperbole – it is the truth. The same applies to the gas sector as a whole.

Gazprom’s cooperation with our Chinese friends and partners is not limited to supply contracts. It is a genuine strategic partnership, which means that people are working together on technology-intensive industries, including gas. And there is plenty of work to be done to ensure the effectiveness and profitability for both suppliers and buyers. An extensive number of advanced technological solutions are necessary.

This work within the framework of strategic partnerships between interested companies has already been established and is underway. The only task now is to extend it to related and promising industries, such as artificial intelligence, and of course, we will do this.

We have agreements in the aviation industry with China as well. I am going to fly to another Russian city soon, where I will talk about engine manufacturing. There are plans to work on aviation, which is, by the way, well-represented in the Far East, including both military and civilian aircraft. Sukhoi Superjet 100 is manufactured here in the Far East. There are areas that can be improved, and the same applies to shipbuilding.

Maria Rybakova: Thank you.

I have a joke. I did not know how this plenary session would go so I checked a job hunt website in Vladivostok. By the way, I did not find a single job opening for a television presenter but I was curious to see what else is offered. What jobs and professions are really in demand here? I have mostly seen driver jobs – with salaries of up to 400,000 rubles, by the way – junior executives or pressing operators. Mr President, I have hardly seen any jobs for IT professionals. Even the most in-demand professionals section did not mention IT. I found one job opening in software development, but this is not much.

According to a SberIndex analysis, businesses in the Russian Far East are growing faster than on average in the country – and you said so yourself. And yet, this is mainly due to building large production facilities and production of mineral resources. The IT sector is lagging behind.

In your opinion, what could solve this problem if employers start seeking IT professionals? Are they to be ‘imported’? How can the Far East attract highly qualified technology professionals and incentivise them to stay here and treat this region as their home rather than a temporary placement?

Vladimir Putin: I have spoken about this at length in my remarks and said that young people do move here as they see prospects. There is a demand for young professionals. This trend is apparent but it needs reinforcement from the government. The region needs support in shaping a new image of local economic development, mainly with the help of advanced technologies.

I do not know what you have seen on websites, but I know for certain, having heard it from top managers of local companies, that there is a shortage of highly qualified workforce. The Zvezda shipbuilding complex that we have mentioned today is building a large-capacity fleet that we have not had before. We also need aviation professionals here.

It goes without saying that we need to develop all modern technologies so that we can go beyond developing the Far Eastern and Arctic mineral resources and can make this region part of Russia’s technology-intensive production in general. It is what we plan to do and it will elevate the region to a new development stage.

Maria Rybakova: Mr President, another aspect concerns the exorbitant wage demands among blue-collar workers as drivers want 400,000 rubles and welders want 500,000, for example. This is another side of the story. How can this matter be resolved in your opinion? Is it appropriate today to seek such high wages?

Vladimir Putin: I believe the more people earn the better.

Maria Rybakova: Certainly.

Vladimir Putin: It does matter. I said that it is an economic category. The higher the wage the higher the spending. The higher the spending the more Russian products are popular in the market because usually, people wish to buy Russian-made goods, and so on. This is another economic factor – and a positive one. Moreover, it makes people’s lives better.

Maria Rybakova: Thank you.

Of course, since we are talking about wages, I would really like to discuss what is happening with the Russian economy in general. Many statements have been made on the sidelines of the forum.

Vladimir Putin: I am not the only one here.

Maria Rybakova: Yes, of course, Mr President. But you see, I have so many questions for you. I will certainly have questions for the other guests. For now, I would like to focus on what is happening in the economy.

German Gref says he has noted signs of technical stagnation in the Russian economy. Do you agree with this?

Vladimir Putin: No.

Maria Rybakova: Mr Gref, there you go.

Vladimir Putin: He knows this well. We maintain constant contact. He regularly participates in our meetings, including those I hold with the Government and the Central Bank. Some members of the Government share his opinion, mainly because the Central Bank is holding the rate high to combat inflation.

You complained about prices in shops. The goal is not only to bring prices in shops down but also to ensure that economic actors also restrain price growth. We can discuss anything but I do not want to give assessments now. I have my own view, of course, but let me refrain from evaluating the Central Bank’s work. Let me note instead that our Central Bank is highly respected across the international finance community. This is first-hand information.

The Central Bank’s policy is deliberate. In 2023, Russia’s GDP grew by 4.3 percent; and in 2024, by 4.4 percent. At the same time, inflation rose, too. We need to address macroeconomic challenges and ensure a soft, smooth landing of the economy to stabilise key macroeconomic indicators and slow down price growth.

Yes, I know the debates very well: we discuss this daily. Just yesterday we were talking about this. Some experts believe that the economy has cooled down, but lending has not stopped. Ask Mr Gref himself: has lending stopped? No. The pace has slowed down, yes.

I know some industries are going through rough times, and people present here also understand this very well. However, everyone also understands that nothing good will happen if inflation spins out of control. It would become impossible to plan anything, not just years ahead, but even ten days ahead. This is a very delicate issue. Take banks, for example. You can ask the Chairman of VTB. He will tell you: yes, perhaps they have overdone it, maybe the economy has cooled somewhat too much.

Maria Rybakova: Mr Kostin often complains about the key rate.

Vladimir Putin: Yes. The Ministry of Economic Development will tell you the same thing. And all of them are right in their own way. But I am confident that we will eventually find a way to maintain the necessary pace of economic growth while keeping inflation to a minimum. I think that’s enough for this discussion format.

Maria Rybakova: Thank you.

My next question is for Prime Minister Sonexay Siphandone. In 2021, Laos and China launched one of the largest high-speed railways. There have been reports that the railway may be subsequently extended to Thailand. It is a major project that requires complex technology and infrastructure.

My question is: is there an opportunity, a chance, or prospects for connecting the railway to Far Eastern ports? And how can this be done sooner? It would expedite both our trade and cooperation. Is this a realistic prospect? Perhaps discussions have already taken place.

Sonexay Siphandone (retranslated): As for transport, we are using a modern railway that is far more advanced compared to the railway we built many years ago.

As I have already said, we are turning from a country with no sea access into a country connected to others. On this project, we cooperate with China.

As you have noted, we cooperate in railway development. We have successfully completed this project. Of course, the coronavirus pandemic was a certain obstacle, but we have managed to overcome these difficulties in our strategic cooperation.

According to the respective initiative, I am completely certain that there is an agreement between Russia and China. If there is also an agreement between Russia, Laos and China, we will be able to transport products from Laos via China to the Far East, including to Russia.

The railway may open new cooperation opportunities for Russia and ASEAN, China and ASEAN, and improve Lao products’ access to the market. I would like to stress that this is an alternative route that is faster and more sustainable.

The government of Laos is considering the possibility of establishing sea routes to Vladivostok through China, potentially via Hainan or a Vietnamese port. We have already agreed on some aspects of this project to date.

It would be an excellent opportunity for us to cooperate with Vietnam. We have no access to the sea but we have made an agreement with Vietnam that would help us reach both China and Russia.

As for Mongolia, we could also use similar transport infrastructure to exchange products. Certainly, there are many advantages to developing the Laos-China railway network.

Thank you.

Maria Rybakova: Mr President, do you have anything to say in response?

Vladimir Putin: No, we are discussing it with our Lao friends, and we talked about it just yesterday.

We are in contact with our partners from third countries, including from Vietnam. Indeed, we are discussing all these logistic options; we are talking about expanding them. I think prospects are good.

Maria Rybakova: As for the railway tracks here, in Vladivostok, I know that it is a vexed question, I mean we want to have more and better railway tracks. The railway logistics still accounts for a large part [of infrastructure] in the Far East. Will it be renovated? You have already spoken this.

Vladimir Putin: Not large – they account for the larger part of the entire infrastructure. This is the so-called Eastern Operating Domain, the Trans-Siberian Railway and the Baikal-Amur Mainline; now a new railway has been built to Magadan, to the Sea of Okhotsk. This is a very good project and the results will be good. We will continue to develop all this.

I, as well as my colleagues, constantly talk about it. This is a key development area for the Far East and the country in general. The shipment volumes have multiplied. Well, what can I say about it? We will develop the Trans-Arctic Corridor – there are things to work on – together with the Northern Sea Route.

As for our friends in the Asian-Pacific region, I very much expect that all our efforts to develop transport logistics in the Far East would benefit – that was the intention – trade and economic relations with our partners, including our friends in Laos.

Maria Rybakova: Thank you. So, welcome as they say.

I want to note that this is my first time in Vladivostok. And, of course, I am very impressed both by its size and by how interesting it is. Really, it is a well-tended and, let us say, an interactive city. There is much to see here, and it has a certain authenticity. But I went on an excursion not far from here and I was, so to say, a bit surprised by the contrast. Central cities and regional centres really do look great, they are being transformed, but, to put it mildly, we certainly will not see a Zolotoy Bridge anywhere near Pevek.

What do you think should be done to make remote towns comfortable, authentic and beautiful, including from the point of view of infrastructure?

Vladimir Putin: Practically, it is all the same everywhere: the centre of the city looks one way, and the suburbs look differently. Thinking about developing our population centres so that people can live a comfortable life in any part of the city is an issue to be addressed by the municipal authorities, primarily regional authorities.

As for small towns, we have a programme to develop population centres. As far as I remember, there over 800 (I think, 804) towns in the country with the population under 50,000 people, or around 50,000. This is a major programme.

As regards the development of Russia’s towns and cities, there are many areas that work quite effectively for small towns. Without a doubt, this work needs to be expanded.

With regard to the Far East and the Arctic, we have a separate programme that includes 22 towns and cities at the first stage. The appropriate resources have been allocated, development plans have been drawn up, and the work has begun. I have briefly mentioned some of the results, but I believe that this is one of the key areas of work. We have just discussed this with our colleagues who stood, so to speak, at the beginning of this road, who initiated this process, which turned out to be very popular and effective.

I have already covered the importance of giving a new boost to economic growth. We need to bring in well-trained specialists to the region, who, of course, need adequate social conditions. There must be kindergartens, good schools, good education, and medicine. All of that should be developed in small towns as well.

To reiterate, there is a properly funded programme that covers 22 towns. Of course, we will expand this work.

Maria Rybakova: Still, we are discussing spending. I am just trying to smoothly segue to the budget deficit. In 2025, it was planned at about 1.2 trillion rubles. In the summer, it grew, according to official figures, to 3.8 trillion. We are only in September now. Clearly, things may change by the end of the year. I even heard a figure of up to eight trillion rubles. Again, I am not an economist, and I have no idea if it is possible or realistic at all.

How do you think this can even out? What mechanisms are planned to be used in the first place?

Vladimir Putin: I do not operate in terms such as “I think,” I can tell you what I believe, and I believe as follows. Indeed, spendings are growing, which is due to the infrastructure development plans, including in the Far East, because they require large financial resources. The Eastern Operating Domain, the Baikal-Amur Mainline, the Trans-Siberian Railway, and so on, the development of port infrastructure, airports, and so on. Spending on education and healthcare throughout the country, and spending in the defence and security sphere, including spending related to the special military operation – these are all spendings.

First, we need to work on the revenue part, and there are things to discuss, meaning, of course, not an increase in the tax burden, but simply an increase in production efficiency. We need to increase labour productivity, introduce the latest technologies, and better organise production processes. Here, I assure you, we have things to address, and the reserves are countless, meaning the opportunities are vast.

However, there are other things that can quite reassure us, and, rest assured, there is nothing scary about it. Some of our colleagues in the Government believe that this deficit can be increased, and it is not a big deal. Why? Because our debt burden levels – external and internal – are not just acceptable but are low. This guarantees the stability of the entire financial credit system, including the budget system.

The budget is built on a balanced basis. This is not an easy thing to do. It is actually a complex and even stressful effort, if I can put it that way, because achieving a balance between different sectors of the economy is a challenging task. The Government is coping with it.

Maria Rybakova: Mr President, I read the other day, and it was discussed during the forum sessions as well, that the Finance Ministry and, I think, Sberbank – (Addressing German Gref.) – is that correct, Mr Gref? – are planning to introduce artificial intelligence for budget work, to have the artificial intelligence somehow help form the budget? If I understood it correctly.

Mr President, how do you feel about the idea of using AI this way?

Vladimir Putin: My view on this is positive. But AI can only be an assistant, at least at this particular moment, at this stage of AI technology development. Today, these tools can only be used to assist the decision-making both at the level of the Central Bank and at the level of the Government.

Maria Rybakova: Then, the ball goes to Mr Li.

China has achieved quite significant success in the field of AI and is now among the leaders. In fact, the American and the Chinese neural networks are probably the two most popular ones. I know that China has been actively developing the platform economy for a long time now. This is a completely innovative type of economic activity. We are actively implementing these processes as well.

I have a question. How do you generally assess this leadership? What does China plan to do to keep cooperation between AI and the state going? What will it look like? What is the plan?

Li Hongzhong (retranslated): Thank you for your question.

You have touched on a critically important topic. AI is a way for all of humanity to achieve progress. AI is a new production force that drives our evolution, and it is very important to develop it. All countries around the world, including China, Russia, the United States and other countries, pay great attention to developing AI and promoting its technologies.

President Xi Jinping said in 2023 that the world will advance just four main principles of AI development: its universal popularisation, its further advancement, and our joint use of human and machine resources, as well as the promotion of these technologies in our everyday lives. These principles have been put forward.

In general, we will be implementing these principles in approximately three areas, such as scientific and technological innovations, and scientific and technological development. Innovation is the central element of developing the AI concept. Increasing the intended capacity, the computing capacity, and creating neural networks and models. This is connected with the development of high technology and the implementation of high-tech development plans overall. This is connected, of course, with the training of specialists and personnel management. This, of course, helps us train personnel.

We are creating new platforms. The United States is, without a doubt, leading here, but nevertheless China is constantly making great efforts to achieve an advantage in this area. For example, artificial intelligence. The level of forecasting and the degree of monopolisation in China in this area has reached 60 percent. We are making progress in matters of monopolising AI technology at a pace of about 20 percent annually. This, of course, is our advantage. We patent these technologies. This is one of the key areas of development.

The second component is that we are implementing our approaches, viewing AI as a path for the development of humanity, as a path to achieving well-being. President Xi Jinping put forward in his speeches the most important concept of a community of common destiny for humanity. We profess these ideas. One of the key components of this concept is an affluent and powerful state, and the promotion of general welfare for all groups of population.

We are steadily following the path of promoting high technologies. Take, for instance, China’s DeepSeek neural network. This model is already widely known. It makes it possible to achieve great results. It is an advanced technology. We were able to significantly reduce the cost value and thus overcome the threshold of achieving great benefits at minimal costs. This is, of course, one of the ways to develop AI.

Increasing the AI compute capacity offers new opportunities. We have discovered completely new areas of using it. Take, for example, technologies such as unmanned control of production processes. Its open source makes it possible to use these technologies efficiently. We can thus reach new heights in our work, simultaneously developing these AI technology and implementing them. Benefitting from the use of AI, we pay great attention to the environment that is necessary for using these technologies.

All this is designed to increase the production and capacity. Already now, the scope of AI use in production is showing exceedingly high growth. Its capitalisation has reached 700 billion yuan representing growth of about 20 percent annually. There are many areas that can help us improve the well-being of our people, develop these technologies across the board, and improve the lives of people in our country, as well as spread these technologies in the interests of industries and enterprises. This, of course, provides us with new advantages. The multifaceted and comprehensive use of such technologies is the key area of our country’s development.

We have opened the gates to the use of AI technology in people’s lives, and we would also like this technology to make progress in Russia, as you, Mr President, and our President, Comrade Xi Jinping, have already jointly stated. We must make the most out of the Russian Far East and our territories in order to develop AI in our respective countries.

Thank you very much for your attention.

Maria Rybakova: Mr President, I am not going to ask you whether it is possible to use AI to run a country.

My question is: Do you think that AI can be trusted with setting the key interest rate? I hope Ms Nabiullina forgives me for asking this.

Vladimir Putin: I have already said, I think, no, take that back, I believe that the capabilities of AI can be used when making any kinds of decisions, and they should be used in making any decisions across all areas, including in matters overseen by the Central Bank. However, decisions of that kind must be made by a specific person that should bear responsibility for them. You cannot hold AI accountable. It is just a tool. Humans should do the actual work.

By the way, our Chinese participant, our friend from China has a high political rank, he is a member of the Politburo of the CPC Central Committee. But we just heard him provide expert assessments in a fairly serious area of AI. Humans should make decisions. And such people should be in China and in Russia. They should use AI and develop these tools.

Maria Rybakova: I hope AI will not replace me or other people who do my kind of work.

Vladimir Putin: Why not? There are neural networks, and I think there are AI-based television presenters as well.

Maria Rybakova: That is it, I'm done for. But the human side, Mr President, will go away if AI were to ask you questions.

Vladimir Putin: Or it will get better with the help of AI.

Maria Rybakova: Thank you.

Ladies and gentlemen, does anyone have anything to add to the questions that have been asked? We are gradually approaching the finish line.

I have one last question left, which is rather philosophical. Mr President, it is about the Far East, but, not entirely about the economy.

Here it goes. For some reason, I thought that the Far East really does live in the future, because it is 5:00 pm here, and it is morning in Moscow. You and I are in the middle of the day, or rather, it is almost an evening.

Overall, the world looks rather strange today. Everyone is talking about it a lot, including turbulence and crises that flare up non-stop, and this is not only about the Ukraine crisis, but Israel and Palestine as well. Flashpoints like that abound.

What do you think of Russia’s future in this world? This is the first question. And the second is do you think the world of the coming decades will be more Western or Eastern?

Vladimir Putin: It will be multipolar.

Maria Rybakova: Thank you.

All that remains for me to do is to thank you for trusting me with asking you questions today.

Also, in closing, I am very grateful to the Far East for such a warm welcome.

As Mr President has rightly pointed out, tomorrow, and some of us today, will be heading west. Therefore, I would like to sum it up and say that, since we mentioned the double-headed eagle at the very beginning, perhaps our uniqueness and strength lie in the fact that we are not choosing but looking in both directions at once. I think this seamlessly fits with the motto of the anniversary forum on cooperation in the name of peace and prosperity.

Thank you very much.

Vladimir Putin: For my part, I would like to thank all the participants, including our foreign guests, my colleagues who are working here with me today, and the audience for their joint efforts, because this is also part of the work, as well as our charming moderator for making such an interesting discussion possible.

Thank you very much.

Maria Rybakova: Thank you. This is the best assessment. Thank you very much, Mr President.

Have a safe flight everyone, at least those who are leaving today.

Statements following Russian-Laotian talks

2025-07-31T20:06:11+04:00

Vladimir Putin and Laos President Thongloun Sisoulith made statements following the Russian-Laotian talks.

Before the leaders made their statements, a ceremony was held to exchange documents signed during the official visit of the President of Laos to Russia.

* * *

President of Russia Vladimir Putin: Mr President, friends.

This official visit of the President of the Lao People’s Democratic Republic to Russia makes vivid the fact that Russian-Laotian relations are moving along at great strides. Both sides are sincerely committed to making this cooperation even more substantive and productive.

Russia and Laos are united by time-honoured traditions of friendship and mutual assistance. October will mark 65 years of bilateral diplomatic relations.

Our country has done its best to support the establishment of Laotian statehood, to enhance its defence capabilities, and to promote its national economic growth. With the involvement of Soviet specialists, major industrial facilities, critical transport infrastructure, hospitals, and educational institutions have been built in Laos. Many remain operational today, benefitting the Laotian people.

Russian-Laotian cooperation is multifaceted and mutually advantageous. The President and I have held productive and constructive talks.

Bilateral trade is growing dynamically. Last year, trade increased by 65 percent, and growth rates this year stand at about 20 percent.

In light of rising bilateral cargo flows, we are exploring options to expand maritime container shipments from Laos to Vladivostok via Vietnamese ports. Our plans include organising rail freight transit across the territory of friendly China.

Good prospects exist for enhancing energy cooperation. Agreements on peaceful nuclear energy signed during the talks lay the groundwork for supplying Laos’ economy with affordable and environmentally safe energy. Our Laotian friends also expressed interest in non-energy use of nuclear technology, such as in medicine, agriculture, and personnel training.

Russian companies are involved in developing deposits of ferrous and precious metals in Laos. Opportunities for cooperation in bauxite mining are being explored as well.

Bilateral cultural and humanitarian cooperation is highly important. Festivals of Russian cinema and performances by Russian artistic groups are regularly held in Laos. Last October, Days of Moscow were held in the Laotian capital, and this February Days of Vientiane were held in Russia.

The interest of Laotian citizens in learning Russian is particularly satisfying. Russian is taught at several educational institutions in the country, including the National University of Laos, where Russian teachers work. Plans are in place to build a joint Russian-Laotian school in the capital, offering a full educational cycle under a shared curriculum.

Notably, the President of Laos graduated from the Herzen Teacher Training Institute in Leningrad and holds an honorary doctorate from that university. This made it possible to conduct a portion of today’s talks, including face-to-face discussions, in Russian.

Over 8,000 Laotians have received education in Russia, and 159 Laotian students are studying here now.

We maintain extensive cooperate internationally. In May, a Laotian delegation participated in the events marking the 80^th anniversary of Victory in the Great Patriotic War. We remember the parade unit from the Lao People’s Army marching on Red Square.

We will continue upholding the principles of international law, sovereignty, and non-interference in other nations’ internal affairs.

In closing, I would like to express my appreciation to the President for our productive interaction and for accepting our invitation to visit Moscow.

Undoubtedly, today’s talks will strengthen the entire scope of Russian-Laotian relations for the benefit of our peoples.

Thank you.

President of Laos Thongloun Sisoulith: Mr Putin, President of the Russian Federation, members of the media, ladies and gentlemen.

It is a great honour for me to lead the high-level delegation of the Lao People’s Democratic Republic on an official visit to the Russian Federation at the invitation of the President of the Russian Federation.

This visit marks an important milestone in strengthening the long-standing relations of friendship and cooperation between the LPDR and the Russian Federation, including our security strategic partnership in the Asia-Pacific region, which will continue to be reinforced on the basis of trust, mutual understanding, and mutual benefit.

This visit also symbolises the celebration of the 65^th anniversary of diplomatic relations between the LPDR and the Russian Federation.

The meeting between President Putin and my delegation was held in an atmosphere of friendship, mutual understanding, and candid exchange of views. Today, we agreed to continue strengthening and expanding bilateral cooperation in many areas. I fully concur with all points made by President Putin.

Both sides reviewed and acknowledged the longstanding cooperation between the LPDR and Russia. The parties agreed to continue maintaining and strengthening political relations based on mutual understanding, trust, and support at regional and international forums, underpinned by our steadily growing security strategic partnership in the Asia-Pacific region.

The parties highly praised and agreed to further develop cooperation in the political and security spheres, particularly in areas of outstanding practical collaboration which is evidenced by regular delegation exchanges, assistance in training military personnel of the Lao People’s Army, including military-technical aid, and joint military exercises.

In particular, the LPDR expressed profound gratitude to Russia for assistance in conducting joint armed forces exercises.

I especially wish to thank Russia for its humanitarian assistance in clearing unexploded mines in Laos which impede the livelihoods and development of the Lao people and continue to threaten lives.

The parties will continue working together to further strengthen cooperation in the economy, trade, investment, transport, culture, social affairs, and tourism.

During this visit, dozens of cooperation documents across various fields have been signed.

On behalf of the Government and people of Laos, I thank the Government and the people of Russia for providing 100 annual scholarships to Laotian students at various educational levels. The parties agreed to further expand Russian language instruction at Laotian secondary schools and collaborate on establishing a Laotian-Russian public school in Vientiane.

We deeply appreciate the warm hospitality extended to our delegation. We will continue cooperating in areas of mutual interest that foster understanding and benefit both nations.

We hope to host Mr Putin, President of the Russian Federation, in Laos some time in the future.

Vladimir Putin: Thank you.

Gala reception on behalf of the President of Russia to mark Victory Day

2025-05-09T15:04:23+04:00

Vladimir Putin addressed an official reception held to mark the 80^th anniversary of Victory in the 1941–1945 Great Patriotic War.

President of Russia Vladimir Putin: Friends, colleagues, ladies and gentlemen,

I am delighted to welcome you to the Kremlin for the official reception marking the 80^th anniversary of the Great Victory.

First of all, I would like to express gratitude to the heads of state and government and the heads of foreign delegations and organisations that are with us today. We highly appreciate your decision to visit Moscow on May 9 and to share with our people the joy of this sacred holiday, which we hold infinitely dear.

The event marking Victory Day has invaluable significance for the world. But in Russia and the other countries of the Commonwealth of Independent States it is part of the history of virtually every family. This direct bond determines our particularly warm attitude to this holiday and our position of principle regarding truth about the Great Patriotic War and its heroes, our predecessors, who have come through and withstood extreme challenges and achieved Victory.

I am confident that these feelings are shared by those whose relatives fought against Nazism and militarism, for freedom in Europe and the Atlantic region, in the Pacific Ocean, in Asia, Africa and everywhere where the Second World War battles raged. We in Russia remember the equipment and food we received. We bow before that great generation, no matter where they live and what language they may speak now. They will forever remain part of our family. We are one big family of the victors.

We know how vitally important solidarity and support — support from our allies, friends and comrades-in-arms — was for the fighting people of the Soviet Union. We will forever remain grateful to all our friends and comrades.

I consider it important that today we have come together to celebrate the anniversary of the Great Victory and remember those who gave all their strength for the freedom of their native land and the entire world, those who sacrificed themselves in the name of saving humanity.

This solidarity and fortitude in attaining a common goal is an example of invaluable importance. This example is especially important for us now as we again have to address the issue of sovereign rights of states and peoples to their identity and independence, to the very possibility to live in accordance with the historical, cultural and spiritual traditions of their forefathers, and to create a system of security and international relations based on the principles of real equality and respect for each other’s interests.

As time takes us further away from the events of World War Two, it becomes all the more important for us to preserve the values that were upheld by the Great Victory and to pass to future generations the truth of how and in the name of what it was won, as well as our conviction that solidarity of the people in their support of the ideals of peace, freedom and justice is of unlimited power. Our commitment to this is growing ever stronger.

I would like to once again congratulate you on Victory Day. I propose a toast to the great generation of the victors, to the triumph of truth and justice, and to the prosperity of our countries and peoples.

The Arctic: Territory of Dialogue international forum

2025-03-28T17:03:57+04:00

Vladimir Putin addressed a plenary session of the 6th International Arctic Forum, The Arctic: Territory of Dialogue.

International Arctic Forum is a key platform to discuss current issues regarding the comprehensive development of Arctic territories, establishing effective mechanisms for the joint use and exploration of the Arctic region’s abundant resources at various levels.

In 2025, the forum’s events are being held in Murmansk on March 26–27 under the motto “To Live in the North!”

* * *

President of Russia Vladimir Putin: Colleagues, friends, ladies and gentlemen.

I welcome the participants and guests of the 6^th International Forum, The Arctic: Territory of Dialogue. For the first time, it is being hosted by Murmansk – the capital of the Russian Arctic, a Hero City, which is developing dynamically today, as are our other northern cities and regions, while launching landmark projects for the entire country.

Russia is the largest Arctic power. We have consistently advocated for equitable cooperation in the region, encompassing scientific research, biodiversity protection, climate issues, emergencies response, and, of course, the economic and industrial development of the Arctic. We are prepared to collaborate not only with Arctic states but with all who, like us, share responsibility for ensuring a stable and sustainable future for the planet and are capable of adopting balanced decisions for decades to come.

Regrettably, international cooperation in northern latitudes is currently facing significant challenges. In the past few years, numerous Western nations have opted for confrontation, cutting off economic connections with Russia and ceasing scientific, educational, and cultural exchanges. Discussions on safeguarding Arctic ecosystems have come to a standstill. Politicians, party leaders, and even the so-called greens in some Western countries address their citizens and electorates about the significance of the climate agenda and environmental conservation, yet in practice, their policies are entirely contradictory.

As a reminder, the Arctic Council was set up to cooperate in addressing environmental issues, to prevent emergencies above the Arctic Circle and to jointly respond to them if they emerge. However, this tool has degraded by now. Meanwhile, Russia did not refuse to communicate in this format – it was the choice of our Western partners, Western nations. As they say in such situations: Don’t do it if you don’t want it. We will work with those who want it.

Meanwhile, the role and importance of the Arctic for Russia and for the entire world are obviously growing. Regrettably, the geopolitical competition and fighting for positions in this region are also escalating.

Suffice it to say about the plans of the United States to annex Greenland, as everyone is aware. But you know, it can surprise someone only at first glance. It is a profound mistake to treat it as some preposterous talk by the new US administration. Nothing of the sort.

In fact, the United States had such plans as far back as 1860s. As early as that, the US administration was considering possible annexation of Greenland and Iceland. However, the idea did not enjoy support in the Congress then.

Let me remind you, by the way, that by 1868, the purchase of Alaska from Russia was ridiculed in the American press – it was called “madness,” “an ice box” and “President Andrew Johnson’s polar bear garden”. Therefore, the Greenland proposal failed.

But that acquisition, I mean the purchase of Alaska, is probably viewed very differently in the United States today, just as President Andrew Johnson’s actions are.

Thus what is happening today is not really surprising, particularly since this story only began back then, and it went on and on. In 1910, for example, a trilateral land swap deal was negotiated between the United States, Germany and Denmark. As a result, Greenland would have gone to the United States but the deal fell through then.

During World War II, the United States stationed military bases in Greenland to protect it from Nazi takeover. After the war, the United States suggested Denmark should sell the island. This was quite recently in terms of world history.

In short, the United States has serious plans regarding Greenland. These plans have long historical roots, as I have just mentioned, and it is obvious that the United States will continue to consistently advance its geo-strategic, military-political and economic interests in the Arctic.

As to Greenland, this is an issue that concerns two specific nations and has nothing to do with us. But at the same time, of course, we are concerned about the fact that NATO countries are increasingly often designating the Far North as a springboard for possible conflicts and are practicing the use of troops in these conditions, including by their “new recruits” – Finland and Sweden, with whom, incidentally, until recently we had no problems at all. They are creating problems with their own hands for some reason. Why? It is impossible to understand. But nevertheless, we will proceed from current realities and will respond to all this.

I must emphasise: Russia has never threatened anyone in the Arctic. However, we are closely monitoring developments in the region, formulating an appropriate response strategy, enhancing the combat capabilities of the Armed Forces, and modernising military infrastructure facilities.

We will not tolerate any encroachments on our country’s sovereignty and will steadfastly safeguard our national interests. By upholding peace and stability in the Arctic region, we will ensure its long-term socio-economic development, improve the quality of life for its residents, and preserve its unique natural environment.

The stronger our positions and the more substantial our achievements, the greater our opportunities will be to launch global international projects in the Arctic involving partner nations, friendly states, and perhaps even Western countries – provided, however, that they demonstrate a genuine interest in cooperative efforts. I am confident that the time for such projects will undoubtedly come.

Friends,

The Arctic Zone accounts for over a quarter of the Russian Federation’s territory. Nearly two and a half million our citizens live and work here, making a significant contribution to the nation’s progress. Current estimates indicate that the Arctic generates 7 percent of Russia’s gross domestic product and approximately 11 percent of our exports. At the same time, we see enormous potential for the region’s further comprehensive development. A critical priority is strengthening the Arctic’s transport and logistical framework.

Let me note that this year marks the 500^th anniversary of the first historical records mentioning the daring concept proposed by Russian seafarers and Pomor trappers: a prospective trade route through the northern seas to the East, reaching China via the so-called Northeast Passage – the precursor to the Northern Sea Route.

Over the past decade, cargo traffic along the Northern Sea Route – spanning from the Kara Gates Strait to the Bering Strait – has substantially increased. In 2014, a mere four million tonnes of cargo were transported via this corridor. By last year, that figure had risen to nearly 38 million tonnes – five times the Soviet-era record. We anticipate, with confidence, that volumes will reach 70–100 million tonnes by 2030.

Yet our plans – in terms of cargo volumes, geographical reach, and expansion of the Arctic fleet – are far more ambitious. The Northern Sea Route is poised to become a pivotal segment of the Transarctic Transport Corridor, stretching from St Petersburg through Murmansk to Vladivostok. This corridor is designed to connect global industrial, agricultural, and energy hubs with consumer markets via a shorter, safer, and more economically viable route. This is widely acknowledged – experts across the East and West recognise its significance.

Cargo shipments along the Trans-Arctic Transport Corridor are set to increase on the back of growing minerals production and the advanced processing of these resources right here in the Arctic, and due to rising international transits. I would like to stress the importance of linking this Trans-Arctic corridor with our domestic railway network everywhere from the northwest to Russia’s Far East, reaching all the way to the Baikal-Amur Mainline and the Trans-Siberian Railway.

By the way, even today the concept of building the Trans-Siberian Railway, which stretches across the entire country to the Pacific, exemplifies a strategic, forward-looking vision for us. It addressed not only the country’s immediate needs and circumstances but also took into account our national interests within a horizon of several centuries. We must be guided by this approach as we develop the Trans-Arctic corridor.

What are the priority objectives in this regard?

First, Russia already operates the world’s biggest icebreaker fleet. We must consolidate our leadership in this sector by building new-generation icebreakers, including nuclear icebreakers. Today, only Russia has them – no other country has a nuclear icebreaker fleet.

Four of these icebreakers belong to the latest Project 22220, and are already operating in the Arctic. Three more nuclear icebreakers from the same series – Chukotka, Leningrad and Stalingrad – are currently under construction. There is also the mighty 120 Mw icebreaker Rossiya. It will allow for more efficient year-round icebreaker support to large-tonnage ships in high latitudes.

Let me emphasise that icebreaker support costs and shipping costs for the Trans-Arctic Corridor in general must be competitive and acceptable to the market. This is a major prerequisite for guaranteeing that this route is relevant for businesses and creates added value for them. My colleagues from the Government and I have recently discussed these matters, and I fully agree that this offering must be competitive on the market.

Second, Russia is a sovereign nation, and as such it needs a merchant fleet of its own in the Arctic, including cargo, search and rescue ships for operating shipments in northern seas, as well as within our internal waters in the Arctic. We must recognise that for now we cannot rely exclusively on our domestic shipbuilding capabilities.

In this connection, we must work on all fronts by building and ordering ships that have already been built, working with manufacturers around the world and developing the domestic shipbuilding industry based on the strategic objectives we have.

Of course, this message is primarily intended for the Government: we must support our shipbuilding corporations and shipyards in their efforts to upgrade and expand their capabilities and build international manufacturing chains. I also ask the Government to review opportunities for building new, cutting-edge, advanced, high-technology shipyards in Russia.

Third, Russian shipping companies that transport petroleum products and liquefied natural gas are already successfully operating in the northern seas. Now we need to create enabling conditions for effective domestic operators who will be shipping containers, coal, bulk and other goods across the Arctic. We are also open to create joint ventures in this segment. International logistics operators could make profitable investments in such companies. Moreover, in addition to capital and technology, they could contribute part of their merchant fleet to such projects.

Fourth, plans are in place to increase the capacity and turnover of our northern ports through the introduction of innovative and environmentally friendly solutions, including unmanned and automated cargo handling equipment. This will happen soon enough. For example, the capacity of the Murmansk transport hub should be amplified at least three times over in the next few years due to the construction of new terminals and the expansion of railway links.

I would like to add that our partners from Belarus, China, the United Arab Emirates and other countries are showing keen interest in this project and in the development of the Arctic transport infrastructure in general. It is a very interesting undertaking from a business point of view.

We plan to create large multimodal hubs to operate as key logistics centres of the Trans-Arctic Transport Corridor. Not only will these hubs serve as ports where convoys of ships are formed or Russian and foreign cargos are handled; they will include industrial facilities for the production of manufactured goods.

To improve the logistical stability of the Trans-Arctic Corridor, I ask the Government to draft plans to expand the capacity of existing seaports in the Arctic, and decide where on the Arctic coast new ports should be built, and how soon the adjacent infrastructure needs to be developed. I am primarily referring to the links between the sea harbours and the national railway network.

In this regard, fifth, we will need to develop the Arctic Operating Domain – similar to the Eastern Operating Domain, which includes the Baikal-Amur Mainline and the Trans-Siberian Railway. The project must include the modernisation of the Northern Railway in the Komi Republic and the Yamal-Nenets Autonomous Area.

We are aware of the situation at Russian Railways today; we know what challenges the company is facing. However, we need to think about what I just said, about the development of the Northern Railway – and we need to start today.

What opportunities will this open? The regions of Siberia, the Urals, and Russia’s North-West will receive direct access to the North, to the Arctic ports, which will lessen the load on the Trans-Siberian Railway and promote effective use of sea transport. In addition, there will be new points of access to the Arctic from the North-South corridor, which connects us with Central Asia and the Gulf states.

And of course, the potential of the Arctic’s inland waterways, our great rivers – the Lena, Yenisei, and Ob – must be unlocked at a new technological level to develop the Trans-Arctic route. This will help, among other things, to enhance the Northern Supply Haul system so as to ensure a reliable supply of foodstuffs and other goods for Arctic residents.

I want to stress specially that the resources of the state, regions, and businesses, including both state-owned and private banks, must be combined to pursue these and other major initiatives. The capabilities of the domestic stock market must also be utilised to attract capital to the Arctic infrastructure.

Infrastructure projects are indeed complex, costly and have a long pay-back period. But it is these projects that provide Russia’s real transport sovereignty at a new level. And I am confident that if our foreign partners join these projects, it will guarantee them long-term investments with good returns. Therefore, we cannot put off these projects for later, we must launch and start pursuing them now, as soon as possible.

Apparently, it is important to resort to flexible approaches here, to attract both Russian and foreign investors, as I have just mentioned. In this regard, I propose that we consider creating a special project office under the auspices of our leading development institution, VEB, which will provide support for transport, logistics, and infrastructure projects in the Arctic, as well as urban development projects in the region. It will also become an entity where potential investors can address directly and receive support they need. I ask the Government to prepare respective proposals.

In addition, I instruct the Government to join hands with Rosatom, VEB and the State Council’s dedicated commission to endorse the financial, economic and organisational model for the development of the Trans-Arctic Transport Corridor by August 1 of this year.

Colleagues,

Currently, deposits of oil and gas, metals and other minerals are being developed in the Russian Arctic. We will continue massive geological exploration there, primarily within the framework of the Geology: Revival of the Legend federal project.

Concurrently, the task is to launch enterprises of deep processing of raw materials in the Arctic regions using the powerful resource base there; to create high value-added production facilities in petrochemistry, natural gas conversion, rare earth metals, and other industries related to machine building, production of sophisticated machinery and industrial equipment, while preserving the unique nature of the Arctic.

By way of example, I would like to mention the Centre for the Construction of Large-Capacity Offshore Structures in Belokamenka, where technologies for natural gas liquefaction are being localised and the most up-to-date domestic solutions are being utilised.

I’d like to draw the attention of colleagues in the Government and regional authorities to the following: it is essential not only to propose but also to effectively refine tools for supporting investment and business activity in the Arctic. This includes tax incentives, administrative privileges, infrastructure preparation of land plots, and other measures.

In particular, I remind colleagues of the need to strictly fulfil plans for the gas infrastructure coverage of the Murmansk Region. This must be completed by 2030. I emphasise: this objective remains in force.

Of course, we should also develop promising areas such as tourism. The North and the Arctic are unique concentrations of natural, historical, and spiritual landmarks. The region boasts an extraordinarily rich cultural mosaic. Over a million tourists visit the Arctic annually to explore its landscapes, witness the northern lights, engage in Arctic fishing, ride dog sleds, or journey to polar archipelagos.

The number of tourists is growing. Consequently, new initiatives in this sphere are emerging, such as an Arctic tourism centre with a ski resort component in the Yamal-Nenets Autonomous Area or an aqua-thermal spa and year-round hotel complex in Karelia. I request that both the federal Government and regional authorities support such initiatives, which reveal new facets of the Arctic and help heighten interest in the region.

I also propose considering the inclusion of White Sea tourism infrastructure development in the Five Seas and Lake Baikal federal project.

To make the Arctic accessible for mass tourism, transport connectivity is crucial – from the repair and construction of roads to the development of air travel.

I reiterate that we have extended subsidised airfare rates for flights to Arctic cities. Last year, approximately 800,000 passengers utilised this opportunity. This year, subsidised tickets are available for over 70 air routes.

At the same time, Far Northern airports, particularly smaller ones, require modernisation. In the coming years, under the relevant national project, we will upgrade 16 airfields in the Arctic Zone, including those in Salekhard, Arkhangelsk, Naryan-Mar, and Vorkuta.

Overall, our objective is to maintain an extensive airport network in the Arctic – from large and medium-sized airfields to small landing strips. This is also vital to ensure year-round accessibility of residential areas and the operation of air ambulance services.

Friends,

The key and overarching goal of Russia’s efforts is to improve the quality of life for people living in the Arctic, to ensure modern conditions for study and work, leisure, and the upbringing of children in this harsh region that still lures people with amazing force. I have talked to these people many times. Those who were born in the north, as well as those who have come here, have all said that the north is like a magnet since people develop a sense of belonging to these latitudes, and to this land.

As you know, we have already drafted master plans for the Arctic urban centres, which include not only major cities like Arkhangelsk or Murmansk, but also cover towns like Kirovsk, Apatity and Monchegorsk in the Murmansk Region, Kem and Belomorsk in Karelia, Vorkuta in the Komi Republic, Bilibino and Pevek in Chukotka, Naryan-Mar in the Nenets Autonomous Area, Salekhard, Labytnangi, Novy Urengoi and Noyabrsk in the Yamal-Nenets Autonomous Area, as well as Tiksi and Naiba in Yakutia, and Norilsk, Igarka and Dikson in the Krasnoyarsk Territory.

On a separate note, I would like to thank the VEB.RF and DOM.RF corporations for their involvement and contribution to drafting these master plans.

A master plan is a comprehensive strategic and territorial planning document that sets forth long-term socioeconomic and spatial development visions for cities, towns and villages. They provide for the introduction of the latest urban planning solutions while also ensuring that these settlements retain their unique cityscapes based on suggestions and proposals from local residents and civil society organisations, including associations of Northern ethnic minorities.

I would like to draw the Government’s attention to the need to be more responsive in its efforts to approve a timeline for carrying out these Arctic master plans and ensuring that they receive the funding they need. As I have already mentioned, this includes, among other things, introducing the Arctic agenda as a separate item into our national projects, while also launching mechanisms for engaging businesses and strategic investors working in the Arctic or those who are willing to work here in carrying out these master plans.

In addition, I ask the Government to think about setting up dedicated competence centres for providing urban planning and development training to municipal and regional officials and teaching them best practices in urban planning.

Moving on, we launched a national contest for creating people-friendly urban spaces. Winners will receive budget funding for their projects. I suggest allocating an additional sum from the federal budget as part of this contest. My colleagues from the Government and the Finance Ministry and I have just discussed this matter. I will not give you any final figures, but we need to earmark this disbursement and provide this kind of assistance so that colleagues working on the objectives I have just mentioned have more opportunities for improving embankments, pedestrian areas and playgrounds, building parks, gardens, and so on.

On a separate note, I would like to ask the Government to extend the programme of renovating military settlements, the closed administrative territorial units in the Arctic where our military personnel live with their families. This renovation programme should continue at least until 2030, with the annual federal budget support of at least 10 billion rubles. I would like to emphasise that this is connected with the strengthening of our military presence in the region, where the number of our military personnel will be increased.

One of the tasks of our master plans and the renovation programme is to determine where new enterprises and jobs should be created, including those linked to the Trans-Arctic Transport Corridor, and where schools and kindergartens, outpatient clinics and hospitals, roads and communications, as well as housing are to be built. The defence and construction ministries are to work together with the regional authorities to coordinate plans for each facility, so as to determine the amount of resources needed for implementing this task and the allocation deadlines.

It is a specific Arctic feature that structures are built in conditions of perpetually frozen ground or permafrost, which explains the special requirements for building designs, structure and reliability. At the same time, we should take the dynamics of climate change into account to forecast potential risks. I propose establishing a special research centre to monitor perpetually frozen ground with contribution from the leading federal and regional institutes. Their research projects will provide the scientific basis for the technology of adjusting Arctic infrastructure to the melting of permafrost.

I know that a register of best Arctic construction practices has been compiled. This regional experience should be expanded. I hope that it will incorporate the idea of multipurpose Arctic centres, where social and administrative offices, sports centres and service facilities are located under one roof, in the same building.

Of course, we must always take the opinions and requests of those who live in the North into account. For example, people openly complain about the shortage of the so-called service economy in Arctic cities and towns, meaning recreation facilities, including those for families and children, as well as cultural and educational venues. We must develop this segment and encourage the relevant business initiatives.

We have a special support programme for small and medium-sized enterprises in the Extreme North. Its efficiency must be upgraded. I would like to ask the Government to adjust the parameters of this programme, in particular, to expand the list of sectors with access to this programme and to create additional subsidised loan opportunities for these companies.

I would like to say a few words about healthcare. The accessibility of medical services in the North is objectively limited compared to central Russia; the situation is even worse in remote communities. I ask the Government to prepare a special mechanism for financing medical care in these areas.

In addition, healthcare in the northern regions must be enhanced with the introduction of digital technologies. The residents of these regions must be served by mobile paramedic stations equipped with artificial intelligence tools, which can conduct physical check-ups both remotely and at the scene, diagnose certain diseases and provide recommendations for treatment.

Next, the environment remains a sensitive issue for the Arctic and its residents. Let me remind you that at our first forum, which was initiated by the Russian Geographical Society, we announced the launch of a “general clean-up” of the Arctic, to remove scrap metal, remnants of fuel and lubricants and other waste.

The project, launched by the Russian Geographical Society and supported by the Ministry of Natural Resources and Environment, brought together thousands of volunteers and public organisations. We will certainly continue this effort. We will also ensure comprehensive environmental protection of Russia’s Arctic zone, in particular by clearing Arctic waters of sunken ships, which is a pressing problem that needs to be addressed. Predictably, everything requires funding, so the relevant government agencies will need to work on all these issues, including to earmark the necessary funds year by year.

We will remove technological waste and reclaim land, focusing on bringing Arctic cities and towns up to standard. We will carry out the so-called revitalisation of abandoned areas, buildings and lands, to return them to circulation to serve the interests of local residents.

In fact, we are repaying our debt to the Arctic. We cannot afford to accumulate more debt to its unique nature. With all the plans in place for the region’s economic development, it is essential to maintain a balance between the use of its natural resources and nature conservation.

A new polar station will be built in the Yamalo-Nenets Autonomous Area, in the Polar Urals, to test new environmentally friendly technologies. The new scientific research and educational station, Snowflake, will be established by the end of 2028. An international team of researchers will use it to test green technologies being developed for the Arctic, with applications ranging from essential services, telecommunications, and medicine to new materials.

Colleagues,

The Arctic is a territory of great opportunities for specialists in various fields, for entrepreneurs, for young people, and for families who have lived here for generations or have only recently moved and are planning to settle, buy or build a home here.

We have already extended the Arctic mortgage programme until 2030. It offers an annual interest rate of two percent and lowers the requirements for borrowers. This includes cancelling the requirement for teachers and medical workers to have an employment history in the North before applying for a housing loan. Participants in the special military operation can also benefit from these Arctic mortgages along with people working for defence manufacturers.

Substandard and hazardous housing has become an extremely urgent issue for people in the North. I instruct the Government to draft a targeted action plan by September 1, 2025. It must address this issue and cover at least a ten-year period.

Moving on, the Accessible Rentals programme has been launched in Russia’s Far East, as you know. It offers affordable rentals to young people coming to the Far Eastern regions, graduating there or taking a job there. This programme consists of using regional and federal funds to subsidise rental payments.

I suggest that we expand this programme to include the key Arctic communities. This way, we will make rentals more accessible for people starting their careers in this region, as well as those who want to live and work there. This programme must cover the Arctic in 2026.

We have agreed to extend the Muravyov-Amursky 2030 training programme in public administration to cover the Arctic regions. We have already done this. I am certain that this kind of training will help many talented administrators jump-start their careers and would benefit the Arctic and the country in general.

There is one more thing I would like to mention. The North has always attracted brave people and true leaders. Outstanding researcher, polar explorer and scientist Artur Chilingarov was one of them. I suggest that in his memory we establish a special grant programme for supporting youth initiatives as part of environmental, educational and research projects in the Arctic.

Friends,

Efforts to explore and develop the Russian North and to overcome the challenges related to its harsh climate while enabling the state to reach new promising horizons – all these objectives have inspired many generations of our ancestors, including medieval sailors and Novgorod merchants, those who pioneered Arctic exploration in the 16^th and 17^th centuries, industrial leaders of the 18^th and 19^th centuries, researchers, polar explorers, engineers, Soviet workers, and companies in present-day Russia which launched major Arctic projects in the early 2000s.

Today, the North has become central to our development efforts. This is a sovereign and historical choice for us. This means that the objectives we set for and address in the Arctic, and the projects we undertake here must match this historical scale and have a horizon spanning decades, if not centuries.

We will do everything to consolidate Russia’s leadership in the Arctic despite all the challenges and travails we face today. We will provide for the region’s comprehensive development and create a solid foundation for future generations.

Thank you for your attention.

Expanded meeting of the Prosecutor General’s Office Board

2026-03-19T16:41:25+04:00

The President addressed the expanded meeting of the Russian Federation Prosecutor General’s Office Board.

President of Russia Vladimir Putin: Mr Krasnov, colleagues,

Today, at this expanded meeting of the Prosecutor General’s Office Board, you will review the key outcomes of 2024 and prioritise problematic areas requiring heightened focus.

I would like to note that over the past period, prosecutors at all levels have undertaken substantial work. Statistics confirm this: appeals, statements, and complaints to prosecution authorities increased by ten percent, as did citizen engagements during personal appointments. This data must be utilised and utilised comprehensively.

I urge you to conduct a thorough analysis of the most acute, systemic issues affecting citizens and submit your proposals for their comprehensive resolution. This is important for all levels of power in order to respond competently, efficiently, and promptly to public concerns.

Naturally, each case requires meticulous attention. In this context, I emphasise that in many instances, your decisive interventions have restored violated rights and compensated damages. Substantial efforts have also been made to protect the interests of the state and society.

I want to express my gratitude to Russian prosecutors for their professionalism and dedication in carrying out their duties. A special acknowledgement to the officers working in Donbass and Novorossiya, as well as the constituent entities of the Russian Federation in close proximity to the combat zone. Despite the challenging conditions, you fulfil your duties with dignity and courage, providing vital assistance to those in need.

I would like to point out that it was decided on both federal and regional levels that assistance will be provided to citizens who suffered from the actions of the Kiev regime. These measures include compensation for lost property, housing certificates and other financial assistance.

I urge prosecutors to keep a close eye on the situation so that people get the aid they are entitled to in time and in full, and so that temporary and permanent housing is provided to them as fast as possible. I also ask you to pay special attention to protecting the rights of children and teenagers, as well as the elderly, who have had to endure terrible ordeals.

Another fundamental point: as we are all aware, our forces recently conducted a series of rapid, daring, and effective operations, culminating in the defeat of almost all enemy force groupings in the Kursk Region. Let me reiterate: under Russian law, all Ukrainian military personnel, especially foreign mercenaries who entered our territory and committed crimes against civilians, shall be, and are, legally classified as terrorists.

Their atrocities must be identified, documented, and meticulously investigated. I instruct prosecution bodies, including military prosecutors, to fully deploy this work in liberated territories – in Sudzha and other localities – in coordination with relevant services. These criminals, punishers, and those who issued unlawful orders and abused civilians must be identified and brought to justice.

I would like to note that prosecutor’s offices and their employees of all ranks should consider it their professional and moral duty to support defenders of the Fatherland, Great Patriotic War veterans and those who have fought in conflict zones, as well as against international terrorism and, of course, participants in the special military operation. I would like to emphasise that the results of inspections and supervisory activities of prosecutors’ offices in this sphere should be constantly analysed and summarised. Of course, this practice exists, and it should be expanded.

Various regions of the Russian Federation and prosecutor’s offices have already supported initiatives to provide essential benefits without prior applications. They have resolved discrepancies in regional legislation concerning the status of members of volunteer units. In turn, social security agencies now need to obtain various certificates, including military service records.

I would like to note that officials of military prosecutor’s offices actively help address the problems faced by service personnel, including those involved in combat operations. I would like to urge military prosecutors to step up this work and to continue enhancing military discipline as a vital factor in the high combat readiness of military units.

Coordinated anti-crime operations remain a key task for prosecutor’s offices. And here, as we agreed at last year’s board meeting, it is essential to actively implement additional crime prevention measures, including among young people. Despite a decline in juvenile crime rates, the overall number of such offenses remains quite high.

As before, we need to prioritise issues of countering extremism and terrorism. I noted at a recent meeting of the Federal Security Service Board that the number of terrorist crimes has increased considerably, and it is important to protect industrial and transport infrastructure facilities, as well as public spaces, more effectively.

We must combat extremism, attempts to destabilise the socio-political situation in our country and public calls for terrorism and the creation of radical groups in the same principled, resolute and determined manner.

Colleagues,

You must step up your work in all areas that directly impact the quality of our people’s lives. First of all, I refer to the protection of social, housing, labour and other rights guaranteed by law.

Health protection is undoubtedly one of these crucial areas. As you know, significant progress has been made in recent years, including as part of the corresponding national project and other programmes. Your task is to continue overseeing the legality of procedures for purchasing equipment for clinics and hospitals, ensuring the uninterrupted supply of medicines and provision of quality medical care, and, of course, to respond immediately in case of violations.

Our people require the prosecution agencies to act more effectively to protect the environment and nature. The two tankers that sank in the Black Sea causing an oil spill at the end of last year showed the serious consequences for people, nature, and the economy that can result from neglecting safety regulations. I would like to note that it was the Prosecutor General who was the first senior official to propose introducing a federal emergency regime immediately after the accident. Ultimately, that was the necessary course of action.

Let me emphasise the need to work systematically through the environmental prosecutor’s office and other regulatory and law enforcement agencies, to jointly eliminate shortcomings in regulation and, in case of violations, take measures to compensate for environmental damage.

The work carried out by the prosecution agencies yields tangible results. For example, prosecutors have made a significant contribution to preventing illegal logging and timber smuggling.

Much work is being done to protect our nature reserve areas, including Lake Baikal, and wildlife. In particular, serious efforts were undertaken to establish order in the sphere of catching, keeping, and exporting marine mammals.

There are important tasks related to protecting the rights of entrepreneurs and domestic businesses. This issue is essential for our development, as well as for strengthening economic sovereignty and increasing the incomes of millions of citizens employed in industry and in small and medium-sized businesses. As you know, and I hope you saw this, we talked about this yesterday at the RSPP congress.

Let me remind you that, since January 2025, supervisory authorities, including the prosecution agencies, have completely shifted to a risk-oriented approach. We must work clearly and consistently on this practice, together with the business community eliminating the remaining administrative barriers that hinder the development of the economy and businesses, while also caring for the protection of consumer rights; these are two sides of the same coin.

We must fight corruption just as effectively, focusing more on how the funds allocated for national projects, state defence order, and the implementation of large state and regional development programmes for the country are spent.

I believe that the Russian prosecutorial corps understands the full extent of its responsibility and the historical significance of the tasks facing us and will make every effort to ensure these tasks are fulfilled precisely and effectively.

I wish you further success.

Thank you very much for your attention.

<…>

Vladimir Putin: Mr Krasnov, colleagues,

Before coming here, I once again reviewed the draft resolution of the Board of the Prosecutor General’s Office. All of it is important; it is simply impossible to single out just one point. No matter which page you open, everything is significant.

I will mention some basic points, but which I believe are of fundamental importance. I want to remind you that the Prosecutor General’s Office’s main task – just as it has always been in the history of our country – is to uphold the law and to ensure that it is adhered to by everyone: citizens, legal entities, organisations, and, most importantly, officials.

Our people view this as a guarantee of justice, which in turn ensures the unity of Russian society and the stability of the state. This is always important, but today it is vital. In this sense, your role and your work are crucial – they are always very important, but especially so today.

I am counting on you and I wish you success.

Thank you and all the best.

Plenary session of RSPP Congress

2025-03-19T10:27:06+04:00

Vladimir Putin took part in the annual congress of the Russian Union of Industrialists and Entrepreneurs.

The agenda includes key aspects of collaboration between businesses and the state, as well as the business community’s initiatives aimed at achieving national development goals and implementing national projects.

The congress brings together about 1,300 participants, including leading entrepreneurs, representatives of small and medium-sized businesses from across the country, heads of ministries and agencies, and key political figures for Russia’s economy.

* * *

President of the Russian Union of Industrialists and Entrepreneurs Alexander Shokhin: Mr President,

Thank you for finding time in your busy schedule to talk with the delegates and guests of the 34^th annual congress of the Russian Union of Industrialists and Entrepreneurs.

We know that today you have a very important telephone conversation to make, on which a lot depends not only with regard to developing Russian-American relations, but also settling the conflict in Ukraine and resolving many other geopolitical issues.

Before you came, we discussed a fairly wide range of issues, above all how to walk the thin line between the controlled contraction of the Russian economy in order to suppress inflation and preventing the overcooling of the Russian economy. In this regard, many of my colleagues spoke about the criteria for selecting investment projects that cannot be abandoned.

These are projects that are at an advanced stage of implementation, or aimed at national projects, including national technological leadership projects, or those where there is a maximum multiplier and for every invested ruble you can get a 5.7 ruble return.

We would like these additional criteria formulated right now to be used in our dialogue with the Government, and there will be no need to handpickg projects. Though thanks in part to our meetings with you we have created or renewed platforms, such as the sub-commission of the Government Commission on the Stability of the Russian Economy that resumed work in January, and the situation in certain industries is discussed there several times a month jointly with businesses. We have also established a working group with the Central Bank, where we discuss situations in industries and individual borrowers in order to prevent chains of non-payments and pre-bankruptcy conditions among other things. That is, the work is underway, although we understand that much depends not only on specific decisions, but also on systemic measures.

Personnel shortage is the second big issue. Many of my colleagues, both from the Government and businesses, spoke about this. On the one hand, we can see that there are possibilities for an expansion of the worktime fund by lifting a number of restrictions on part-time work at the main place of employment and by streamlining migration flows. In particular, it would probably be right to place additional emphasis on the rotational method of recruiting migrants from non-visa-free countries through the mechanism of organised recruitment. We know that the Government is drafting a corresponding law, and we are ready to add companies’ experience to the process.

But obviously the key is still labour productivity growth, including such well-known methods as lean production, and such ways as production automation and robotics. Apparently, we cannot do without investments here. And here we also need to find a way to keep this topic in focus, even with limited budgetary resources, especially since we have additional requirements of technological leadership as well.

An important topic that we have discussed in the context of personnel policy is the system of vocational education, both secondary vocational education and higher vocational education. Hundreds, if not thousands, of Russian industrial partners are involved in such projects as Professionalitet and Advanced Engineering Schools.

We believe that such projects shall be expanded. The Government supports this idea. However, it is equally necessary to expand them, not just to engage new colleges or universities, but, in particular, to direct the same Professionalitet project to retraining adult population as well. This is especially important for retraining, occupational retraining and upskilling of the special military operation veterans, who are returning and who need some kind of career prospects, given that they are already, so to speak, people with a rightful claim to more than what they had before joining the special military operation.

The topics that we discussed also include those that we raised at the previous congress, and during our meetings with you last December in particular, and at the last year's congress, both in a public format and in the format of a meeting with the RUIE bureau members. I would like to remind you of some of the topics that have remained in the works, as it is called.

In particular, we mean our social partnership expansion. The Constitution has got the concept of social partnership as a major principle. A year ago we raised the issue of mandatory membership of leading companies, socially and economically significant organisations in one of the employers' associations, be it regional, sectoral, inter-sectoral, all-Russian, and so on, and you supported this idea. And also, setting up such an interconnected system of employers' associations.

A year has passed since that congress. To be honest, we have not made much progress so far, although we have prepared the relevant draft laws. And it turns out that major companies say that this is a big burden for them, including paying fees to organisations. Frankly speaking, it might possible to somehow help them.

The second issue concerns the procedure for Regulatory Impact Assessment (RIA), which does not apply to tax and fiscal legislative initiatives. When the RIA mechanism was introduced 15 years ago, we consistently advocated from the outset that fiscal amendments should undergo this assessment. However, the Ministry of Finance has always maintained that businesses oppose any tax amendments unless they are explicitly in their favour.

Nevertheless, a year ago, we found a balance of interests and reached compromises. The modifications to the tax system that came into force on January 1 this year demonstrate that businesses have not exactly welcomed but approached these changes with understanding. Moreover, they stand ready to refine certain aspects to enhance effectiveness.

We therefore believe it would be appropriate to continue moving in this direction. Even the public platforms that the State Duma is prepared to provide – such as expert forums or parliamentary hearings – could be utilised. Frequently, draft documents marked “Not For Public Use” are issued during preparatory stages, leaving insufficient time for substantive discussion prior to adoption. While the Legislative Commission exists – with many of my colleagues represented at deputy head level – I personally participate to ensure no opportunity is missed to articulate the business community’s position.

A critical matter – apologies, Mr President, I realise I may have overextended on this topic – is the protection of bona fide property acquirers’ rights, including within privatisation transactions.

You have emphasised that purchasers should not bear liability for errors committed by federal or regional authorities. Having thoroughly analysed multiple aspects of revising privatisation outcomes, we believe procedural norms could feasibly be established to systematise this process. Specifically, we propose applying statutes of limitation and preclusive time bars under the Civil Code. Privatisation transactions are commercial in nature, and the Civil Code should govern them accordingly. Furthermore, it cannot be asserted that errors committed during privatisation constitute a violation of intangible rights of citizens, in respect of which, as is commonly known, no statute of limitations exists or may apply.

I believe this issue can be resolved, particularly given the active involvement of the Presidential Council for Codificationand Enhancement of Civil Legislation.

I am confident that today’s congress outcomes and the forthcoming open discussion will advance these matters.

One final request, Mr President. Given the numerous statements today from both business and government representatives: If we formalise these proposals – including those stemming from the 19 forums of the Russian Business Week held in February – and ask you to instruct the Government to review them jointly with us, this would significantly facilitate resolving all outstanding issues within a year. We would greatly appreciate this.

Thank you.

President of Russia Vladimir Putin: Mr Shokhin, friends, colleagues,

Mr Shokhin has mentioned my schedule. Indeed, the Russian Constitution grants broad presidential powers. However, I would like to emphasise that your work remains critically important regardless of constitutional authority, because you represent vast workforces and bear responsibility for the social and economic well-being of millions of workers.

There are always many pressing issues. Mr Shokhin has just spoken about protecting the interests of bona fide purchasers and matters related to privatisation. We have discussed this extensively, and rightly so. These discussions must continue until a final resolution is reached. At the same time, Mr Shokhin noted that not all major businesses and corporations are eager to join the Russian Union of Industrialists and Entrepreneurs and suggested that perhaps they need some encouragement. Even within your community, philosophical contradictions – as scholars might say – sometimes emerge. But we will continue our work, engage in discussions, and, I hope, find solutions.

I am delighted to welcome all participants of the plenary session, which brings together leading Russian companies – true market leaders, including those on a global scale.

First and foremost, I want to thank the members of the RSPP for their commitment to the national development agenda and their active role in shaping measures that strengthen our economy and sovereignty. Their efforts contribute to making Russia’s investment and business climate more favourable and aligned with entrepreneurs’ needs. This work helps Russian enterprises and their employees to gain a clear understanding of long-term prospects, develop growth strategies and make informed decisions that benefit both individual companies and entire industries.

Hopefully, I will be able to answer some questions outlined by Mr Shokhin. If not, we will have a meeting with the RSPP Bureau. We will have an opportunity to discuss certain issues behind closed doors, as they say, and in an absolutely frank manner.

In fact, there are many challenges in this regard, including the need to upgrade the real sector’s legislative framework, remove excessive barriers, and generally improve the regulatory environment for businesses. In a word, we are talking about a complex, multifaceted cooperation that, regrettably, is not without hitches. Regretfully, some papers get stuck somewhere, there are protracted coordination procedures (as has been mentioned right now), or problems and uncertainties arise, which could not be envisaged, problems that impede the common effort.

It is quite right that you directly outline these problem areas. I am confident that your colleagues from the Government will cooperate with you in promptly addressing these issues and will interact with you in the interests of the state and the entrepreneurial community. Let me note that the Russian business community has faced significant challenges over the recent years. We are well aware of this. These include a powerful sanctions pressure, primarily restrictions on international settlements and transactions on external markets. As a whole, these and other challenges are undermining the freedom of trade and investment in the world economy. I will also say a few words about this as an aside.

Importantly, Russian entrepreneurs have learned to work under sanctions during this period. They have adapted to sanctions, inventing and launching alternative mechanisms for cooperation with foreign partners – those who want to work with us. Besides, sanctions have become an additional catalyst of sorts to positive structural changes in the Russian economy, including in finance and technology, and in many other key spheres.

I know that the business and expert communities are actively discussing the future of the illegitimate sanctions against Russia, Russian companies and citizens: whether they will be lifted, remain in force, intensify, etc. Friends and colleagues, I suggest that we proceed from the following considerations.

Indeed, these considerations lie on the surface.

Sanctions are neither temporary nor targeted measures; they constitute a mechanism of systemic, strategic pressure against our nation. Regardless of global developments or shifts in the international order, our competitors will perpetually seek to constrain Russia and diminish its economic and technological capacities.

Moreover, whereas the so-called Western elites previously attempted to cloak this confrontation in propriety, they now evidently seem to no longer feel the need to be concerned about appearances, nor do they intend to be. They not only routinely threaten Russia with new sanctions but churn out these packages incessantly. One gains the impression that even the architects themselves have lost track of the restrictions imposed and their targets.

Here, the Ministry of Finance has tallied them. I state with confidence: 28,595 sanctions against individuals and legal entities. This exceeds – by a significant margin – all sanctions ever imposed on all other nations combined.

Even if there is some gesture from their side – say, they propose to lift or ease something – we can expect that another way will be found to exert pressure, to throw a spanner in the works, as was the case with the well-known Jackson–Vanik amendment. The Soviet Union, against which it was originally introduced, no longer existed, and relations between Russia and the United States of America were at their absolute best, as good as they could possibly be. Yet the amendment continued to remain in force. And when it was seemingly repealed, it was in fact simply replaced with another restrictive instrument against Russia. Recall this: repealed, then supplanted.

I reiterate: sanctions and restrictions are the reality of the existing new stage of development that the entire world, the entire global economy, has entered. The global competitive struggle has intensified, assuming increasingly sophisticated and uncompromising forms.

Thus, literally before our eyes, a new spiral of economic rivalry is unfolding, and under these conditions, it is almost embarrassing to recall the norms and rules of the World Trade Organisation, once zealously promoted by the West. Once… When? When these rules advantaged them… As soon as they became disadvantageous, everything began to change. And all these negotiations stalled. And, in fact, no one needs them anymore.

This is evident, and I have emphasised it repeatedly: a return to pre-existing conditions is impossible. We should not anticipate fully unfettered trade, payments, or capital flows, nor rely on Western mechanisms to safeguard investor and entrepreneur rights. Yes, Alexander Shokhin referenced this, and I opened with it: we have our own systemic problems related to privatisation, to the protection of the rights of bona fide acquirers. My stance is known. Some matters are still stalled, but jointly, we will ensure that this issue is finally resolved.

What do I want to say? Our challenges exist, but theirs are also abundant. We must acknowledge that even in the past, these mechanisms faltered. I am referring to those proposed by our so-called Western partners. And now the façade, as they say, has collapsed: it has become clear to everyone what the various high courts in European capitals are worth, the Western jurisdictions that many sought out to hide themselves and quietly conceal something. That’s it. None of that exists anymore. And there are no opaque jurisdictions left.

In these conditions, it is important for Russian businesses to show flexibility, explore new markets, design their own technological solutions, and establish cooperation with reliable partners, there are many of them in the world. Of course, the Government and the regions must provide, and are providing, the required support here. For my part, I will do everything possible to support this process.

Russia is strengthening its sovereignty in all areas that would ensure the operation of businesses, such as the development of transport, logistics, and financial and payment infrastructure. We are already doing this and will definitely keep dong it.

I know and understand the challenges you are facing, but we will do everything to help you. Let me stress: only those countries that can ensure real, full sovereignty become stable in general and resistant to external pressure, and can progress dynamically in the interests of their people.

Let me give you a clear example. In fact, it is well known, but I will nevertheless use the occasion to say it again. We can see that most European countries have lost their sovereignty, and as a result they have faced serious problems both in the economy and in the security sphere. As for the economy, all of them have near-zero growth rates or are even entering a recession. On the contrary, the BRICS countries and those that wish to join the association understand the benefit of combining potentials, and in recent years they have been leaders in global growth, creating a high benchmark for economic dynamics.

Let me remind you that the GDP growth of the Eurozone was 0.9 percent in 2024, I mean of the “Big Seven” (Why is it big? It is not clear. What is big about it? Wherever you look, you can’t find any of them on the map.) that has the growth of 1.9 percent, while the BRICS has 4.9. In Russia, it was 4.1 for two years in a row – last year and the year before. (Applause.) I know, and I’ll talk about this now, of course. By the way, you applauded to yourselves; these are your results, thank you. I will applaud you. (Applause.)

We were just talking – Mr Shokhin did – about the cooling of the economy. Of course, we need to proceed with a great deal of caution in this regard. Clearly, this is unavoidable, and the Government and the Central Bank mentioned it, too. It seems a general agreement has been reached. We need to make sure that things in practice turn out as planned, and we do not let things cool down too much like in a cryotherapy chamber. Things should go smoothly and slowly. I am not going to now, the figures are known. The Central Bank has its own figures, and the Government and the Ministry of Economic Development have their own. It is not 4.1 percent, but 2 to 2.5 percent. But we need to make sure things do not collapse or freeze too much. It's a fine line to walk, but I hope we will cope with it.

We can get back to it later. However, I suggest that we do not start a discussion right now, because if we do we will be talking through the night, I know that.

Yesterday – or was it already today – Mr Oreshkin and I sat until 2 am. Or, rather 3 am. So, we really talked until the morning. I hope we will eventually go down that path, tread lightly, and get the result we need.

The so-called Western dominance slipping away, and new global growth centres taking the centre stage is a long-term trend, and I want to emphasise that. Yes, of course, we are fully aware of the advantages offered by our so-called Western partners, such as advanced technology and production process organisation. They have that, it is true. They have achieved a lot. We should respect that and use their best practices, but not copy them.

We should keep in mind that growth rates in various regions of the world will remain stable over the next several decades. And the fact that we have, to a certain extent, refocused our priorities (not through our fault, by the way) due to a number of circumstances may be a good thing. We are shifting our focus to global promising markets. All things that we need we will get one way or another.

Of course, this long-term trend will remain unchanged. It will be bolstered up by, among other things, the BRICS development platform that is currently taking shape. It will include resource, technology, personnel, finance, trade and investment components at a whole new level with the use of cutting-edge digital solutions, which will maximise the platform’s effectiveness and keep negative outside interference at bay.

I very much count on Russian businesses taking an active part in these joint projects with our BRICS partners and future BRICS members.

Colleagues, I will address another crucial issue that concerns domestic businesses and pertains to Russia’s relations with overseas states. Let me reiterate: this concerns the return – the possible return – of foreign companies that exited our market in 2022 and thereafter.

I have previously noted that Russian businesses skilfully capitalised on this opportunity, occupied vacated market niches, invested funds, created jobs, and dedicated considerable time and effort to developing technologies.

Now, certain departed companies are indeed contemplating a return – we are aware of this, though I will refrain from elaborating further to avoid interference. However, our enterprises that have assumed their positions are at various stages of the investment cycle. Some have already made capital investments and established production, while others are only commencing projects and initiating construction despite the high interest rate. Naturally, we have no right to undermine these plans or nullify the efforts and funds invested.

The interests of Russian companies, enterprises, and their employees will always remain a priority. It is from this standpoint that we will approach the question of overseas businesses returning to our market.

I would emphasise that among foreign companies which left Russia under political pressure from the so-called elites of their countries, some have retained personnel and technologies while transferring management to Russian executives. Effectively, they continued operating in our market under a different brand. We recognise that such investors took significant risks, potentially incurring negative repercussions from their governments, yet they made an independent and responsible choice – a choice we unequivocally respect and will continue to honour in our dealings with such partners.

However, there were other companies that made a demonstrative exit, opting to sell their Russian operations – often at a steep discount – and proceeded accordingly. Worse still, some began sabotaging operations, thereby jeopardising entire teams, their Russian clients, suppliers, and contractors. Incidentally, these companies are well-known to us, and we were compelled to introduce interim administration in their case.

I acknowledge that some Western owners were intimidated and lacked the resolve to oppose their political authorities – this explains their conduct. Yet, anticipating a shift in the political winds, they preserved a loophole: retaining buyback rights through prearranged options.

I instruct the Government to closely monitor this situation and similar transactions to prevent scenarios where owners sold their Russian businesses at knockdown prices – effectively abandoning them – only to now seek repurchasing these assets at equally trivial sums. This cannot be permitted; such practices are untenable.

Market conditions have shifted: companies have strengthened, increased their capitalisation, and now command entirely different valuations. Consequently, each such transaction will evidently require individual, thorough consideration.

To reiterate, we did not ask anyone to leave. Those who left our market chose to do so themselves under pressure from the elites of their respective countries, or without such pressure, it does not really matter. In any case, we are talking about seasoned businessmen who analysed risks and were clear about the consequences. If the Western companies’ niches have now been taken by Russian business, then, as I said before – and we have a popular saying to that effect – this train has left the station, and there will be no privileges or preferences for the returning companies.

At the same time, Russia remains an open country. Whoever wants to return are welcome to do so on a competitive basis in accordance with our law. I am asking the Government to update the list of foreign companies that have stopped working in Russia, and to develop a procedure for coordinating their return with mandatory guarantees of good faith and conscientious business practices in our country. Of course, this process must be as transparent as it gets.

Colleagues, Russia is carrying out large-scale and long-term development plans, launching major infrastructure, industrial and transport projects, developing vast unparalleled territories in the Far East, Siberia, the Arctic, and other regions of our country, and strengthening promising and mutually beneficial ties with the vast majority of countries around the world.

Transitioning to a sustainable trajectory of balanced growth is the main challenge for the national economy. I want to emphasise the balanced growth trajectory. We will need to ensure high-quality and intensive dynamics in the real sector by upgrading production facilities and increasing productivity (better yet, it should be done through the use of innovative technologies rather than intensive approaches), and to increase the output of goods and services across the broadest possible range, thus forming a supply-side economy.

At the same time, it is important to avoid unbalancing of individual industries and skewing key macro parameters. This is our most important objective. Among other things, we must contain inflation and bring unemployment down. This is a common task facing both the Government and businesses. Not just major businesses that are part of the Russian Union of Industrialists and Entrepreneurs, but small and medium-sized businesses as well.

Based on the entrepreneurs’ demands, we will continue to align the mechanisms of the entire state economic policy, including monetary policy, to make sure that these mechanisms work primarily to increase Russia’s production potential, to put new enterprises into operation, and to strengthen the country’s technological and financial sovereignty and its human resources potential.

The Government is currently preparing a corresponding plan that includes additional measures. I count on active participation of the Russian Union of Industrialists and Entrepreneurs, as well as other business associations in our country, in this work. And of course, I wish everyone success for the benefit of Russia.

Thank you.

Alexander Shokhin: Mr President, thank you very much for your substantive address on key issues that concern both business and government.

Indeed, you concluded by saying: “for the benefit of Russia.” As evident, our slogan here reads: RSPP: Uniting Business for the Benefit of Russia.

Vladimir Putin: I read it.

Alexander Shokhin: Thank you. Then our efforts were not in vain.

Mr President, I would like to inform you that two years ago from this rostrum, you instructed the RSPP to establish the Leaders of Responsible Business award together with relevant government agencies, other business associations, and social partners, mandating its presentation to laureates at our annual congresses.

For your information, we held this awards ceremony today. The winners include PhosAgro, Metalloinvest, Severstal, and Norilsk Nickel. Laureates comprise Russian Railways, Gazprom, SIBUR, RUSAL, and perhaps the less widely known company Pigment. Several other winners were recognised in specific categories of socially responsible corporate conduct. Overall, over two years, this award has proven effective in mobilising not only large corporations publishing non-financial reports – a criterion you emphasised two years ago – but also medium-sized enterprises now emulating this practice. We will compile the two-year experience of administering this award and possibly adjust certain provisions to broaden corporate participation, then report our findings to you. Next year’s laureates may include more entities unfamiliar to you.

At this point, Mr President, I would like to thank you, particularly as Dmitry Peskov indicated that you have a conversation scheduled with Donald Trump until 6 PM.

Vladimir Putin: Never mind – that’s his job.

Alexander Shokhin: I don’t know. We’ll have to see how Trump reacts to this remark – he enjoys interviews and may respond promptly.

Vladimir Putin: I referenced Peskov, not Trump.

Alexander Shokhin: He will note our discussion.

But given your exceptionally packed agenda today and in coming days, I would indeed like to thank you and conclude this public portion of our conversation, resuming discussions later with RSPP bureau members and aligned major enterprises not yet affiliated. Perhaps RSPP membership should serve as an entry ticket?

Vladimir Putin: Do RSPP members receive privileges?

Alexander Shokhin: Well, we organise the congress. A longstanding tradition holds that after the public session, a meeting with the RSPP bureau follows. We have 30 bureau members in total. Do you know how many are attending today? Nearly 90 people.

Vladimir Putin: So, no need to depart? (Laughter in the hall.)

Alexander Shokhin: These are the aligned ones. (Laughter.) Thus, there are effectively no privileges except the sense of responsibility towards their employees and the Constitution, where social partnership is enshrined.

In truth, beyond formalities, genuinely responsible companies are present here – those envisioning not only their own future through financial growth metrics, etc., but also contemplating the nation’s future. This aligns with your remarks today about Russian businesses successfully filling vacated niches, pursuing technological sovereignty and leadership, while implementing social programmes.

By the way, redomiciliation, i.e. the process of the Russian companies returning to Russian jurisdiction from abroad, from the offshore areas, was a hot topic two years ago. This process is now almost complete thanks largely to our discussions and the effective work of our colleagues from the Finance Ministry, the Ministry of Economic Development, and the State Duma. In this sense, there is no other place to invest but Russia. Thanks, as you pointed out, also go to those who are imposing sanctions on us.

Vladimir Putin: No, investing elsewhere is okay. The world is vast, and you should make investments that are lucrative for you and Russia. The rates of return are high, and investments are reliably protected. There are many regions like that around the world.

We have colleagues in this audience who invest in Africa and Asia. They need to make investments elsewhere to support the production here. Some companies invest, while others relocate their production facilities, because it is easier for them to work on the global markets from there.

I know quite a lot, since we meet regularly. There are investment opportunities. There are countries that, as you are aware, have so much money in all kinds of funds that they do not know what to do with it. The main character in Kalina Krasnaya film famously said that the inordinate amount of money he had on him was “burning his leg.” Remember? That is a problem for them. The funds in their possession are huge, enormous, sky high piles of money. So, what is this money doing stashed somewhere out there, in these, pardon the language, lame jurisdictions? What is there to do with this money, what will become of it? Everyone is pondering it, everyone is thinking hard about it. You are well aware of it. Everyone is thinking about the future of the funds that are kept in Western banks. Everyone is thinking about it. Well, of course, this sent a message that reverberated across the global economy. We need to look for investment opportunities which abound. Of course, the state must ensure the interests of Russian businesses. This is true. However, the economy of our country, Russia itself, must be this safe haven. Of course, we still have a lot to accomplish.

I know, they are not saying it now. We will probably meet as a small group, although 90 companies is not really a small group. We also need to work with law enforcement. You may have heard me say at every meeting with the boards – tomorrow, I think, I will speak at the Prosecutor’s Office – that it is imperative to protect the interests of the Russian business, and to do our best to make sure that our legal system encourages businesses to come here without second thoughts, and that the judicial system is independent and efficient. We need to accomplish a lot more. I understand everything. Believe me, we will do everything to make this happen.

What is good about the way things are abroad? They freeze everything and take everything away rudely in a manner that is not civilised at all. I am not even talking about legal systems which simply do not exist, and even if they do they only serve their own interests. That is what this is all about, you see?

By the way, I took note of that in the political sphere a long time ago. I will not name any names, but here is a situation: they are discussing a political issue and say we will do this, this, and that, and you think to yourself what the heck? Sometimes, I would point out that it cannot be done that way because it contradicts this and that…” They would then tell me, “Well, it is okay, it does, but it is a viable solution.” That is all. These approaches have been applied in politics for a long time now. Now, these practices are rife in the economic sphere as well.

So, we cannot trust, but we need to create such a political system and to build such a legal and law enforcement practice in our country. We need to work on it as a team in order to make it a solid, stable and reliable system. I think the way this work has been unfolding between the business community and the Government in recent years sets a good example.

Join the RSPP! (Laughter in the audience.)

Alexander Shokhin: Friends, I propose concluding the public segment of the meeting on this optimistic note.

Thank you, Mr President, for your participation and your kind words.

Vladimir Putin: Thank you for inviting me.

Ceremony to present state decorations

2024-12-12T21:20:45+04:00

The President presented the highest state decorations of the Russian Federation at the Kremlin’s St Catherine Hall.

The recipients of orders, medals and honorary titles included representatives of public and religious organisations, government officials, journalists, teachers and mentors, prominent actors and composers, as well as healthcare, industry and agriculture personnel.

* * *

President of Russia Vladimir Putin: Good afternoon, colleagues.

First, allow me to congratulate all of you and all the people of Russia on Constitution Day. Adopted by popular vote more than 30 years ago, it has largely defined Russia’s destiny, its statehood and offered a foundation for building our national legal framework, while also setting forth the key values and tenets which guide us as a society and a nation.

In its updated version, the Constitution included substantial amendments. They too expressed the will of millions of Russians who set our Fatherland on a clear path towards its development, outlined our shared aspirations and goals, the way we respond to the challenges of our time, and highlighted our readiness to defend our priorities, rights and freedoms, traditions and unique identity. We hold all these tenets as sacred and will always follow them.

Strong, courageous people who have been sincere, honest and diligent in accompanying these events have found themselves on the frontlines of these struggles. This is the way Yevgeny Poddubny has acted when making his reports. He has worked in the so-called hotspots many times, and I mean “hot” literally, since he risked his life and suffered severe, and I would like to emphasise the severity, wounds. Today, he is fulfilling his professional duties with honour and dignity in the special military operation zone. A true frontline correspondent, he receives the Hero of Russia title, which is happening for the first time in present-day Russian journalism.

I would like to thank all the members of the Russian media, including those who are in this room and those who are now on the frontline, in the cities of Donbass and Novorossiya at war, who are with the people in the Kursk and Belgorod regions, and in other regions of our vast and united country. Thank you for your work and for your impartial and unbiased reporting, and for believing in Russia.

Here in this room we have State Duma deputies, leaders of parliamentary parties and major socio-political groups, whose policymaking efforts, well-needed initiatives and projects determine our country’s development for years to come.

The Hero of Labour titles have been conferred on Gennady Zyuganov and Vladimir Resin, as well as the head of the Rostov Helicopter Plant Pyotr Motrenko. This aircraft building company makes an enormous contribution to ensuring Russia’s technological sovereignty. It manufactures helicopters that are in demand in military and civilian applications, and implements social programmes that are important for its employees. I would like to thank everyone working in Russia’s industry and agriculture, who help build up our research and manufacturing capabilities and ensure Russia’s food security.

I cannot fail to mention composer Alexandra Pakhmutova, who is truly the nation’s favourite. Mrs Pakhmutova, your songs are relatable and dear to millions of people of different generations. They bring us together. I would like to repeat once again: you are the nation’s melody. Alexandra Pakhmutova, too, was awarded the title of Hero of Labour of Russia.

Musician and composer Igor Krutoy, singer Nikolai Baskov and many other remarkable artists continue to carry on the best traditions of Russian pop music today.

Nikolai Tsiskaridze, a widely acclaimed ballet dancer, has also demonstrated impressive managerial and teaching talents. For more than ten years, he has been successfully heading the Vaganova Academy of Russian Ballet.

Fostering skilled professionals is an extremely difficult and painstaking job. This is not only about providing them with relevant knowledge and expertise. It is important to educate young people as good citizens, to provide them with moral guidelines, to instil a sense of duty and responsibility for the country in the younger generation. The education system plays a huge role here. I congratulate the representatives of our universities and other higher education providers on their state awards. School teachers also have an exceptional influence on the younger generations. Some of the teachers who are with us in this room today have brought up Heroes of Russia: fighters and volunteers who earned this high title by defending their homeland in the special military operation.

A better future for the country and its citizens’ well-being cannot be imagined without progress in medicine and incessant search for new opportunities, effective and timely treatment of patients. I would like to note prominent physicians, researchers and healthcare organisers – Andrei Kaprin and Konstantin Kotenko – who have devoted many years to this activity. I also congratulate Maryana Lysenko, a representative of the advanced school of Moscow medicine, on her award.

Friends,

Our country lives, works and grows, with your professional and creative achievements promoting this growth and changing life for the better. From the bottom of my heart, I wish you every success and new achievements. I congratulate you on your high state awards.

Thank you for your attention.

(Awarding ceremony.)

<…>

Vladimir Putin: Friends,

Allow me to say a few words as we conclude our ceremony.

One of the recipients, a doctor, remarked that medicine does not yet offer absolute protection against certain ailments – no body armour, as it were. Indeed, perhaps not yet, but we are making strides. As others have noted, many of the feats that once seemed implausible and fantastical are now becoming reality in practice, in daily life.

It is a profound honour for me to bestow these awards upon all of you, especially those who, I believe you will agree, have for decades epitomised our nation and achieved feats that we have all cherished and taken pride in. I am referring, for instance, to the work of Alexandra Pakhmutova, or our exceptional hockey players.

You know, my family was not particularly sporty, except for myself. I engaged in regular practice, but my parents, certainly not. Yet, Boris Mikhailov, a member of the USSR national hockey team, was my mother’s hero. Remarkable, isn’t it? I recall this now, and these are not just hollow words: it is a tremendous honour for me to award such individuals today here in the Moscow Kremlin.

Regarding protection, in terms of armour – our nation indeed possesses such armour. This armour is found in the character, courage, heroism, and unity of the people of the Russian Federation. You, undoubtedly, play a significant role in fortifying all the elements that propel our country forward.

Thank you ever so much. Congratulations to you all!

#WeAreTogether award ceremony

2024-12-06T10:44:21+04:00

On International Volunteer Day, the President took part in a ceremony for presenting the #WeAreTogether International Award.

The President awarded the 2024 Volunteer of the Year statuette to Maria Karpenko, the head of the Vtoraya ZhiZn (Second Life) volunteer movement, and the Order of Courage to Fyodor Gerashchenko, the head of the Archangel Tactical Training Centre.

Ahead of the ceremony, Vladimir Putin spoke with volunteers participating in the #WeAreTogether International Forum of Civil Participation.

As per tradition, the head of state also took part in the Russian national charity event, the New Year Tree of Wishes. The President chose three balloons bearing cards with New Year’s wishes from children who found themselves in a difficult life situation: 10-year-old Margarita Rutsinskaya from the Belgorod Region dreams of being a pilot on a flight simulator; 15-year-old Arina Porkhal from the Donetsk People’s Republic wants to visit St Petersburg; and 12-year-old Taisiya Leonova from the Moscow Region dreams of attending a rehearsal of the Igor Moiseyev Folk Dance Ensemble.

* * *

Speech at #WeAreTogether International Award Ceremony

President of Russia Vladimir Putin: Good afternoon, friends,

I am delighted to welcome you all in Moscow. We have only recently begun to celebrate this day – Volunteer Day. I was about to say “holiday,” but somehow the word “holiday” does not quite capture the essence of what you do, because it is well known that your work never stops: whether it is a holiday or just a weekday, you are always there, whenever and wherever your help is needed – thank you for that.

Since 2017, there have been significant, unmistakable changes in society. What do I mean by this? Two-thirds of our citizens are now involved in volunteering. When you reflect on this, a simple thought comes to mind: this is not something new, but rather a revival of the age-old traditions of the peoples of our country.

For centuries, mercy and support for those in need have always been at the heart of our people, across our vast Motherland. And the fact that young people are now carrying on this tradition is especially significant, all the more so as it means that the younger generation is inheriting from our ancestors – our grandfathers, grandmothers, great-grandfathers, and so on – a deeply important legacy. This strengthens our country from within.

I have also noticed that the people standing behind me today have themselves endured great trials in our new, or our historically old regions. They have faced difficult moments in their own lives and in the lives of their families, friends, and loved ones. And when the situation in our border regions became just as challenging, they went there to make use of their experience in providing assistance and support to others. You know, it is crucial that real help is provided, but equally important is the substance of these efforts, the help itself. It demonstrates that we are all part of one large, powerful, united family – and this unity is the key to all our successes, including on the frontlines.

It is delightful that you are doing this almost in all areas. Of course, supporting our military in the combat zone, on the line of battle engagement, is of special importance today. First, I know that this is dangerous and bow low in memory of those who gave their lives while performing their duty as volunteers. Unfortunately, this can happen during the work you are doing.

It is very important that your activities have a great impact on the attitude of society, including little children, towards the moral support of our military. As you know, these more than three million letters written by children and sent to the combat zone are kept by soldiers near their hearts. I was just told that little children send videos to support our guys at the front, but they also receive feedback from our soldiers, which is very good. Families should always be taken care of and never forgotten.

But you are doing much more. Our country is large. Like any large country, it has many issues and challenges that require attention and support from caring people like you. I mean ecology, help for homeless animals, and support and help for people who need medical care. Are there many issues like these? There is a flood of them. It is always very important for any person who needs support to feel that there are caring people around who are willing to offer help and support, to feel this elbow-to-elbow connection, as they say in the army. Therefore, it is crucial that you are doing this, inspiring hundreds of thousands, and maybe even millions of people with your work.

I know that this year, International Volunteer Day coincides with Volunteer Day that we mark within the Commonwealth of Independent States. I would like to greet all our CIS friends and colleagues. Soon, we will have an informal CIS summit, which has already become a tradition ahead of the New Year holidays. We will definitely discuss this topic and think together on what should be done to support your work and your efforts.

I was indeed surprised by the geography and the number of participants in the volunteer contest: there were 50,000 applications from 142 countries, including those in North America, Latin America, Europe, Africa, and Asia. Many people took part in this contest. This goes to show that the noble mission you are carrying out knows no borders. This is what unites the entire world. I would like to thank you for this, too, and welcome all participants in this contest without exception.

Now, let us move on to the most important moment: award ceremony for the winners.

Thank you very much and good luck.

<…>

Vladimir Putin: In my speech, I have just addressed words of gratitude to those volunteers who risk their lives and health to provide assistance to others.

Fyodor is one of them. He has just recalled his loved ones who are waiting for him. This was the right thing to do, because, as I said many times, and you all understand this perfectly well, everything comes from the family.

From the first days of a person’s life, parents instill in their little child the fundamental principles on which his or her entire life will be based.

When I said that people risk their lives, I would also like to mention what happened to our award-winning hero. When on a mission to provide assistance, the three of them came under fire, and two of his comrades were killed, and he was seriously wounded.

Of course, Fyodor did the right thing recalling his family. I would like you to never forget those guys who are not here today, as well as their families. A deep bow to them.

It sounds very mundane at the level of the Government and the Russian regions, but still it is important. I want the families of Fyodor’s comrades, those guys with whom he performed his duty, to not be forgotten by either federal or regional authorities. Once again, I bow low to them. Sincere gratitude to all the people who perform their duty to our Fatherland.

I congratulate you on Volunteer Day. Thank you for your work and all the best.

Meeting of the Council for Strategic Development and National Projects

2024-12-20T17:08:24+04:00

Vladimir Putin held a meeting of the Council on Strategic Development and National Projects in the Kremlin.

The main subject of the meeting was the National Development Agenda of the Russian Federation for 2025–2030. Prime Minister Mikhail Mishustin delivered the keynote report.

* * *

President of Russia Vladimir Putin: Good afternoon, colleagues,

As per tradition, at the end of the year we hold a meeting of the Council for Strategic Development and National Projects to analyse the progress of the key nationwide programmes and outline further steps together with members of the Government, heads of regions, and representatives of business, scientific and public associations.

As you know, this year we are concluding the current national projects. They have brought substantial changes to the economy and the social sphere, and they have improved the quality of life for our citizens.

A large-scale modernisation programme began for cities, towns and villages. Since 2018, almost 95,000 public spaces and residential courtyards have been improved. The All-Russia Contest to Create Comfortable Urban Environment was launched, with 800 winning projects already implemented.

We are taking care of the road network. The roads in many cities have become objectively better in the past six years. As we agreed, by the end of this year, 85 percent of the roads in the biggest metropolitan areas must meet regulatory standards. When it comes to regional motorways, we expected that the share of standard-compliant roads will reach 50 percent. However, we can see that the actual progress will be over 54 percent. We are ahead of schedule, even if only slightly.

Under the Environment national project, 60 regions have eliminated 242 objects of accumulated harm to the environment, including 157 major landfills that literally poisoned people’s existence. Now, these objects have been eliminated and their territory reclaimed, bringing comfort and safety to over 20 million people. I must emphasise, particularly to those who are centrally involved in this work and to the heads of the regions: there is still much more work to do than has been done. Colleagues, I want to draw your attention to this. However, the environmental sphere is changing for the better. Similarly, Russian healthcare is also changing.

In the course of primary care modernisation, more than 1,000 outpatient clinics have been built or renovated, and 174,000 pieces of modern medical equipment have been purchased in the past four years. Much has been done to increase the accessibility of medical care, particularly in small towns and villages where 10,000 paramedic centres, outpatient facilities, and so on, have been built and renovated.

As part of the Demography national project, 246,000 places in childcare facilities for children under the age of three years have been created, and nearly 1,700 new kindergartens have been opened.

Positive changes have also been made in the general education system. Since 2019, almost 1,400 new schools have been built, enrolling 850,000 children. By the end of the year, an additional 150 schools with over 100,000 new places will be opened.

We have also initiated a large-scale school renovation programme, focusing on upgrading classrooms, internal infrastructure, and the overall appearance of school buildings. By the end of this year, 4,800 buildings will have been renovated. In total, 7,346 buildings are scheduled for major repairs between 2022 and 2026.

In terms of transportation, direct air connections are being enhanced through airport modernisation and the expansion of the route network. The share of flights that connect cities without a stopover in Moscow – a situation we often discussed in the past, where traveling to a nearby region required a stopover in Moscow – now exceeds 50 percent. While there is still work to be done, significant progress has been made. This improvement means domestic flights are becoming more convenient and faster, and I hope this will help curb the rise in ticket prices.

Over the past six years of implementing a comprehensive plan for modernising and expanding key infrastructure, we have significantly increased the volume of work on the Eastern Operating Domain. The carrying capacity of the BAM and the Trans-Siberian Railway, our main routes, has been notably enhanced.

What is particularly significant is that in recent years, we have built a strong construction complex in infrastructure, including roads, railways, and ports. This includes multidisciplinary companies with skilled personnel, expertise, and equipment, all of which are ready to construct new industrial and logistics facilities. In the coming years, it is crucial to maintain the pace of infrastructure development to fully engage this entire capacity created.

What I have outlined so far is by no means all that has been accomplished through national projects in recent years. I would also like to highlight the valuable experience gained from the collaboration between government bodies, the business community, and civil groups in achieving national development goals.

To systematise this experience and provide an objective assessment, I ask the Accounts Chamber to analyse the implementation of national projects from 2019 to 2024 and to draw appropriate conclusions and recommendations. I ask the Government to consider these findings when implementing new national projects, which are designed to address the current challenges facing our country and to tackle tasks of strategic importance for Russia’s long-term development, essentially, until the middle of the next decade. Of course, we must also examine what remains undone, identify the reasons behind it, and determine what actions are necessary to ensure full implementation.

Colleagues,

All our actions, plans, and programmes rely on the actual state of the economy, reflecting objective trends in employment, industry, finance, services, and other sectors. These factors shape the resource capabilities of the state, businesses, regions, and specific localities, specific territories.

To expand these opportunities, a sustainable platform for national development is needed. This platform must encompass our own technologies, a modern education system, the removal of bottlenecks in infrastructure, logistics, and communications, building capacity of the financial sector, and the provision of accessible resources and energy to businesses, organisations, cities and towns.

We certainly have all the necessary elements to build a national development platform, and we frequently discuss this with you. We will continue to strengthen it, including through strategic partnerships with friendly countries. I am confident that such partnerships will only increase, and we can already see this process unfolding.

I want to emphasise that success cannot be achieved by relying solely on external sources. We must be strong, confident, and self-sufficient, securing all forms of sovereignty – economic, social, state, and technological.

This was outlined in the Address to the Federal Assembly at the start of the year and later reinforced in the May executive order, which set forth national development goals for the country. These goals focus on crucial areas such as demography, improving citizens’ well-being, addressing environmental challenges, enhancing the quality of life, and creating favourable conditions for business and personal self-realisation, enabling individuals to pursue interesting, well-paid work. Additionally, achieving technological leadership for Russia and widely implementing digital solutions in governance, the economy, and social sectors are key priorities. While much remains to be done, we are making significant progress, and we must continue building on these achievements to move forward.

The primary tool for achieving these goals will be new national projects, which will serve as a roadmap for their realisation. These projects will be launched next year and are set to be completed within six years. The Government has already prepared the necessary documents. Today, as part of our meeting, I suggest we revisit and evaluate the decisions and approaches outlined in these plans. Allow me to start by sharing a few general, systemic thoughts.

To begin with, the targets of our national projects must be objective. They must be based on the real state of affairs, as I have pointed out on numerous occasions, and ensure continuity from the previous national projects.

It should be noted that this cannot be said about all the indicators at present. For example, it is estimated that air mobility, that is, the number of people travelling by air, will remain unchanged at the 2023 level over the next five years. But this is an obvious underestimation. Over the first 10 months of 2024, air transportation increased by more than six percent, which means that the year-end result will exceed the 2023 level. All of us here are aware of the situation in the aviation industry, or at least those engaged in this professionally are, and we understand the situation with our aircraft fleet. But the upward trend in the sphere of transportation is here to stay. Therefore, this matter must be addressed. We cannot pretend that this is not happening. Why lie to ourselves?

I would like to ask our colleagues to once again analyse all the indicators of national projects so that they can be promptly adjusted. In the future, I suggest discussing and making such amendments only at Council meetings. I would like to repeat that we must not be guided by the bureaucratic logic, which implies adjusting indicators downwards to simplify our jobs and ultimately report good results. This should not be done; it is unacceptable. Why lie to ourselves?

I would like to add that the indicators of our national projects must reflect the planned results, showing how much any given socioeconomic development parameter will be improved in reality, such as the urban environment and ecology, what additional opportunities will be created for small and medium-sized businesses, and so on.

In this context, we should inform our citizens about the goals, tasks and indicators of national projects in detail and in understandable terms. As I said, all these projects are focused on the interests of our people, on the interests of Russian families.

With this in view, I propose compiling a special reference book, which will not be written in bureaucratese but will tell people in simple terms about the concrete stages ahead of us and the results and positive changes in their lives which they will see and feel following the implementation of national projects.

I would like to ask the Russia National Centre to compile such reference book and the Government to render the necessary assistance.

Next. Spending on national projects will become a federal budget priority for the coming years. All project events and actions must be fully funded. Funds must be allocated and translated into specific projects, construction sites, facilities; and this must be done actively, as scheduled.

I want to emphasise again: it is not only about the amounts of funding and budget discipline, which, of course, is very important too. The main thing is that they help achieve tangible results: new kindergartens and schools, which I have just mentioned, repaired roads and utility networks, upgraded hospitals and outpatient clinics, advanced production facilities created from scratch, and eliminated landfills, among other things.

In this context, I would like to add that we agreed that the new national projects would be ready by September 1, which means before the federal and regional budgets are ready. Unfortunately, this work took a little longer than expected, and we were not able to fully synchronise the budget process and planning of national projects. As a result, the regions do not have a full picture yet regarding how, in what volumes, and in what timeframes federal resources will be allocated. If I do not understand something here, if I am mistaken, let my colleagues from the regions correct me. However, it seems to me that there is still a risk that practical work on national projects may stall at the beginning of the year. This cannot be allowed, colleagues.

I hope that heads of the regions will speak about this separately in their reports. I would also like to ask the Government to address the issues we have outlined during the days left before the New Year celebrations and, if need be, even work additionally during the lengthy festive season, so that the regions have both the funds and clear understanding of the tasks at hand.

By the way, writing off part of the state debt, as well as allocation of additional targeted loans for infrastructure renovation and improvement of the situation in the housing and utilities sector will be a good financial support for the regions.

At the moment, the Government, together with the State Council commissions, is in the last stage of developing these mechanisms. I ask you not to delay this work and finalise all the details in the near future.

Meanwhile, special attention should be paid to the Arctic and Far Eastern regions, as well as regions with a low fiscal capacity and, of course, those regions where individual socioeconomic development programmes are being implemented. The decision to continue these programmes has been made.

Let me remind you that, following the Eastern Economic Forum, an instruction was issued to include action items of master plans for Far Eastern and Arctic cities in the national projects and provide funding for them. These localities are of strategic importance for Russia, so they require special attention. Moreover, the Infrastructure for Life, Efficient Transport System, Family, Long and Active Life, and Youth and Children national projects must feature separate sections with action items of these master plans. They must be aligned. As of today, this has not yet been fully implemented. I expect that all shortcomings will be eliminated within a month. I am asking you not to delay this work.

Overall, it is necessary to make the work of project committees and the entire national project management system planned and thorough. In general, this work has been organised. I would like to ask you not to lose anything in quality and pace in order to confidently, step by step, achieve the set goals. This means that documents must be prepared and discussed in a timely manner. I would also like to ask the meeting participants to speak out on this topic.

I repeat: it is important to get moving and set a high pace and quality of the overall work. In this regard, I suggest evaluating the launch of national projects, their progress, and the first results at the next meeting of our Council in June.

Of course, it is important to use up-to-date digital and platform solutions here and conduct big data analysis. The Government has already mastered this practice. It must be actively and widely applied.

At the same time, we must always receive feedback from people and uncover problems on site in order to adjust and amend national projects in a timely manner, based on the actual situation.

Let me repeat: it is people’s opinion that plays the key role here. National projects must address real problems of Russian families and result in improving the quality of people’s life in all regions.

In this connection, we will assess the effectiveness of the Government’s performance on national projects not only in terms of achieving key indicators, but also using opinion polls, based on feedback, including via the channels of the Russian Popular Front and political parties, primarily those represented in parliament, which communicate directly with their voters.

The latest surveys show the following: according to people, the most tangible results of national projects have been reached in the area of preschool education, that is, the availability and operation of nurseries and kindergartens, in creating conditions for people’s self-realisation, as well as in repairing and building motor roads, and improving the quality and convenience of public services.

What is no less important, surveys also show low-performing areas, where people are not content with the situation, and accordingly, these issues require increased attention. I mean the level of medical care, housing availability, and, in general, the creation of conditions for more children to be born in families. As we understand, this is not only about child benefits, but also about additional opportunities in the area of education, healthcare, sports, culture and leisure, tourism and recreation. In short, all those areas of life that are important to people and should be as comfortable as possible, as well as focused on the needs of large families with children.

I have just mentioned these areas, but this does not mean that nothing is being done in this respect. On the opposite, a lot has been done. But I am not talking about this now. I talk about how people perceive this, which is the main indicator. We know that we have achieved record high results in housing construction; we have never had results like this. I think the Soviet Union never saw such rates of construction we have now, thank God. But what I talked about is people’s reaction. You know, earlier I mentioned the transparency and accessibility of information for people. We are talking about mortgage, especially family mortgage, which we preserved at the rate of two percent. This is good. However, nobody knows that the Ministry of Finance has limits on this family mortgage at two percent. Let us tell people openly, I understand that we have to fight inflation, but we need to tell them honestly that for this and that reason we are giving a family mortgage at two percent, but there is a limit to this, so whoever wants it should hurry up, as the limit will end in the middle of the year or by November or December. We just need to be honest about it, and it will be clear. Such as things are today, people go to take out a mortgage, and they are rejected because the limit has been reached. What limit? Nobody knows about this, but people need to know. Then there will be a normal dialogue with society; everything will be clear. There is nothing special about it, no need to hide anything. This is better than a situation when people come to get a mortgage only to find out that there is nothing for them to get.

I would like to repeat once again. I ask the Government, together with the regions, to thoroughly analyse each area of concern within existing national projects, determine the regions with the most complicated situation, and propose all the necessary solutions for and adjustments to future national projects. Overall, I would like to ask my colleagues from the Presidential Executive Office, the Government, and the regions to set target indicators for the future that are not lower than the current level of 2024.

I would like to once again draw our colleagues’ attention to the fact that national projects are not of a departmental or industry-specific nature. They must yield an overall effect for the country’s progress, which means they should bring together all government authorities and all levels of power, the public, and all responsible and creative forces of our society.

The Russian Academy of Sciences and business associations are assigned a special role in drafting and implementing national projects. In this connection, I suggest we set up a special working force on the platform of our Council to further coordinate the actions of development institutions within the framework of national projects. It will also involve the department heads of the Government’s financial and economic bloc. I ask Igor Shuvalov to head this work, to organise and lead it. We have discussed that in broad terms. I think that VEB, of course, is ready for this; it is a good tool for coordinating this kind of work.

Colleagues,

As is customary at the end of the year, I would like to elaborate on the key tasks we are facing in the coming year 2025.

Firstly, the main challenge for the Russian economy now is a transition to a balanced growth trajectory, with low unemployment and moderate inflation. I spoke about this yesterday at the VTB forum, both during my brief address and later in the discussion.

I would like to reiterate that reaching a sustainable trajectory of balanced growth is a joint task of the Government and the Central Bank. It is crucial to be aware of that and to build the mechanisms of the entire state policy, including monetary policy, accordingly.

Secondly, we will continue to ramp up Russia’s production potential, thereby developing the supply-side economy. We will employ such business support measures that can produce a maximum effect on increasing the output of goods and services in those sectors where it is most needed.

I ask the Government to further fine-tune the regulatory framework for the real sector, improve regulatory environment and remove administrative barriers for manufacturing businesses. We are constantly doing this and yet we constantly see that such work is nevertheless needed.

I would like to make it clear: colleagues, do not think that we can keep urgent decisions on the backburner. We need to act here and now, while taking into account the objective factors that affect businesses. I am referring to the need for human resources, vocational job professionals, the supply of materials, equipment and technological solutions to enterprises.

In this regard, the third point. The coming year will be a key year for launching a new stage of technological development of our country. Just a few days ago, the Government discussed these issues, very substantively, and our colleagues looked into this matter in detail, discussing how to ensure Russia’s technological leadership.

I repeat, we are not talking about producing everything domestically. This is neither necessary nor possible. We need to achieve global competitiveness of our own technological solutions, enter the world market with them, and on this basis consolidate our leadership in certain areas. Now, unfortunately, national projects lack a block of such systemic tasks.

I would like to add that, while enhancing technological sovereignty, it is imperative to assess the situation in industries in general instead of assessing the state of their individual elements. Otherwise, it could appear that the objectives of relevant national projects have been formally achieved or even exceeded, yet in reality, independent and competitive sectors have not been developed.

I want to underscore one more important point. When advancing priority technological domains, wherever feasible, of course, it is essential to synchronise the efforts undertaken in the civilian domain with those in the defence sector. This coordination is crucial to avoid overlapping efforts and the dilution of resources. Additionally, I believe that shortly, in the near future, it will be necessary to address the diversification of the defence industry and individual enterprises, and we must lay the groundwork for these opportunities today.

I will address the rocket and space industry separately. I am aware that our colleagues are working on a dedicated national project. Within the framework of this project, we must ensure a systemic approach so that rocket and space industry gets clear-cut long-term comprehensive development plans and retains its status as a technological leader in our country, something we have agreed upon at Rocket and Space Corporation Energia’s venue in October of last year.

Fourthly, due to external restrictions and barriers, Russian enterprises encounter fewer opportunities to use Western logistics, insurance, and payment infrastructure. We are actively progressing in this domain, developing our own solutions, including in collaboration with our BRICS partners. These services are being developed on a modern technological basis, which means that they will be more efficient and reliable than their Western counterparts.

Furthermore, it is imperative to guarantee convenience and low costs for using the ruble in international transactions, thereby enhancing the role of the national currency in such exchanges. Crucially, there is a demand for this, and colleagues are eager to collaborate.

Moving forward, given the global demographic crisis that has also impacted Russia, supporting families and the birth rate is a crucial area of the government’s focus.

Next year, it is essential to create conditions conducive to a breakthrough in the demographic situation, acknowledging that these are exceedingly challenging tasks and, due to objective circumstances, not everything is within our control. Nonetheless, we must exert every effort within our capacity to achieve consistent growth in the birth rate in our nation, ensuring a positive trend in the future.

In this context, addressing the issues faced by families, particularly those with children, should be a central theme running through national projects. At our previous Council meeting in May, we discussed this, and a corresponding instruction was issued to the Government. I ask the State Council’s relevant commissions to continuously monitor the measures within all national projects aimed at enhancing the well-being and quality of life for families with children.

Moreover, we will soon discuss this matter at a State Council meeting, where we will sum up the results of the Year of the Family.

Thank you for your attention.

<…>

Plenary session of Russian Energy Week International Forum

2024-09-26T20:25:19+04:00

Vladimir Putin and President of the Republic of Equatorial Guinea Teodoro Obiang Nguema Mbasogo took part in the plenary session of the Russian Energy Week International Forum.

This year, the 7^th edition of REW, themed Energy Cooperation in a Multipolar World, brought together over 4,000 participants from more than 50 countries.

* * *

President of Russia Vladimir Putin: Ladies and gentlemen, friends, colleagues,

I am delighted to welcome you all to Moscow, to the 7^th Russian Energy Week.

This forum has long become a permanent fixture in the business schedule of the global energy sector, once again bringing together the heads of leading companies and industry organisations, government officials, prominent specialists, experts, and journalists.

This year, more than 4,000 participants from over 50 countries will be discussing the most important issues on the energy agenda, and the challenges that both producers and consumers of energy resources are facing around the world.

In addition, this forum is an excellent opportunity to establish new contacts, make deals and exchange views on the long-term prospects of the fuel and energy sector.

Modern energy is one of the key sectors enabling global development. Its smooth operation based on transparent and predictable rules, when deposits are developed and resources are extracted, processed and supplied to the market without interruption, creates a solid foundation for economic growth, social progress, and improvement of the people’s living standards.

Unfortunately, this truism is being increasingly disregarded by those who resort to illegal sanctions, believing that such tactics can give them benefits and advantage in the energy market.

What are we talking about here? Historically, the main elements of the supply infrastructure of the global energy market happened to be consolidated in the West. I am referring to innovative mining solutions, logistics, insurance of resource supply, and the system of payments for these operations. Taken together, this constitutes a global energy platform on a par with technologies.

The Western elites believed that they could close access to these services for the countries they regard as inappropriate politically, thereby pushing them to the curb of progress, or more precisely, squeezing them out of the market. I believe that many would agree with me that all these instruments are being used above all for unfair competition.

The reason for this is obvious: the West does not want competition because it cannot handle it, because it loses the competition if it plays fair, which is why it resorts to discrimination presenting it as so-called Euro-Atlantic solidarity, the protection of human rights, and the like. There are many other pretexts.

What does this lead do? By closing access to its platform, the West has only encouraged the development of alternative solutions, alternative logistics, insurance and international settlement systems, as well as technological innovations. Of course, it is not a simple process, and it involves hard work by those involved, but the process is going on progressively.

I would like to emphasise that these solutions are mostly immune to external influence. And since they are being gradually shaped on a fundamentally new technological basis, they are becoming more effective by the day and, which is even more important, more widespread, first of all in the countries that are gathering momentum and demonstrating a high economic development pace.

I have said many times that the modern world has entered an era of fundamental and irreversible changes. A multipolar development model is emerging, starting a new wave of global growth for the rest of the 21^st century. And this growth will be concentrated not in Europe or North America. Of course, the European and the US economies rely on a very solid and powerful foundation, and of course, they will keep running, and it will be quite a while before they run out of steam completely. That said, Europe and North America will no longer operate as the main growth drivers. They are gradually losing their weight in the global economy. This growth will shift to BRICS countries and the states that are willing to join our association and view equal cooperation with due respect for national interests as the promising way to proceed.

I have already said this before but let me repeat it for this audience one more time. These are objective, international data. In 1992, the G7 accounted for 45 percent of global GDP, while BRICS had just 22 percent. As of the end of 2023, the G7’s share declined to 30 percent, while BRICS increased its share to 36 percent. And this trend is gaining traction.

Let me note right away that, according to international experts, several BRICS countries, including the People’s Republic of China, the Russian Federation, the United Arab Emirates and Saudi Arabia will enjoy positive, albeit quite modest, economic trends. Once again, this is what experts have been saying, including international experts. At the same time, the countries of what we call the Global South will lead the pack in terms of – I would like to stress it − economic growth rates. For now, their per capita GDP is quite low, and so is the share of people living in cities, but they have a high birth rate. This group primarily includes countries in South and Southeast Asia, as well as Africa, including Equatorial Guinea, whose President, His Excellency Teodoro Obiang [Nguema Mbasogo] is taking part in this plenary session. I would like to ask you to greet him. (Applause.)

To reiterate, BRICS – and Russia is chairing this organisation this year – sees its mission as combining economic capacities and creating a broad space of opportunities for everyone who is interested in harmonious and mutually beneficial cooperation. I would like to emphasise that it is mutually beneficial, that is, cooperation that benefits the interests of all our nations.

We intend to build an effective development platform for countries that are promising growth centres now or will become ones – a platform free from malign outside influence, with unimpeded access to resources, technology, personnel, finance, trade and investment. In particular, I am referring to the energy sector, which, as I said, is crucial for economic growth and social progress.

Russia, despite the challenges it is facing – everyone knows what they are, and in fact, everyone is facing challenges, so we have our own, too, and they are serious enough – nevertheless, Russia remains one of the leading participants in the global energy market. Over the past two and a half years, Russian companies have successfully redirected their exports of oil, petroleum products, and coal. Previously, the Asia-Pacific region accounted for about 39 percent of our energy exports, but by the end of last year, its share exceeded 60 percent.

In general, friendly countries account for over 90 percent of Russia’s energy exports today. At the same time, in physical terms, with the exception of natural gas (it is also clear to experts why), they have practically remained at the 2021 level.

Russia is expanding the geography and scale of its energy cooperation. New routes are being created to connect to fast-growing receptive markets, including the countries of the EAEU, the CIS, and southern Eurasia. Gas exports through the Power of Siberia pipeline are increasing, and LNG exports continue to grow.

In fact, LNG from the Russian Arctic has become one of the anchors, the main type of cargo shipped via the Northern Sea Route. We will definitely continue to develop our own LNG services and technologies, create centres for its transhipment, storage and trade. We will ensure enough tankers for our LNG projects; we will definitely augment the capacity of our Arctic and Eastern seaports, improve communications and enhance the Northern Sea Route infrastructure.

My Russian colleagues know what I am talking about – how they are being roadblocked in what they do. Indeed, this partially hinders the implementation of our plans, but they will be implemented, nonetheless.

In general, we are expanding international transport corridors. Freight traffic on these routes is scheduled to increase by at least 50 percent by 2030 compared to 2021.

In particular, we are further developing the Eastern Operating Domain. The throughput capacity of the Baikal-Amur Mainline and the Trans-Siberian Railway, which is nearly 180 million tonnes this year, will grow to 270 million tonnes in ten years, which will allow us to transport large volumes of fuel and energy products and refined products from our regions in Siberia to markets of the Global South.

Financial infrastructure, or more precisely, the system of payments for Russian exports, is a separate matter. There are certain difficulties here. To resolve that problem, we are switching to settlements in national currencies, which is of great interest to our partners. There are many problems in this sphere as well, which we are aware of, but we are gradually settling them. For example, the share of the ruble in our foreign trade transactions is approaching 40 percent. Between 2021 and 2023, the share of the ruble in export payments has grown nearly threefold to 39 percent, and the figure reached 39.4 percent in the first six months of 2024.

At the same time, as part of our cooperation with BRICS countries, we are involved in the creation of our own payment configuration that will provide conditions for servicing all foreign trade efficiently and independently.

I would like to add that Russian energy exports help friendly countries restrain the growth of import prices, maintain their energy security and economic stability, as well as compete more successfully in the global market.

We are resolved to continue to move forward, and we will not limit cooperation to trade in resources. Russia is ready to help strengthen the technological sovereignty of its partners in the energy sphere by creating comprehensive scientific and production chains. This is what we are doing in terms of cooperation in the peaceful use of nuclear technology. Rosatom is building nuclear power plants abroad and simultaneously training local personnel – engineers, workers and managers for the new facilities. In fact, we not only build power plants but, as Rosatom says, create new power generation and economic sectors for our partners.

I am confident that this combination of intellectual and resource potentials of different countries and our advance to new levels of international cooperation will create additional opportunities for the national school of research and for developing engineering, services and, of course, the entire energy sector in Russia.

Colleagues,

Last year’s energy consumption in Russia again set a new record that exceeds the Soviet-era indicators. You are well aware that growing energy consumption is the most unmistakable sign of economic growth.

At the same time, our energy system, one of the world’s largest, not only meets the growing demand from businesses, the economy, and the social sphere, but also is in the process of qualitative transformation. Over the past 15 years, the total capacity of the Russian power industry has increased by 18 percent, while the power plants themselves have undergone an in-depth overhaul, becoming more advanced, effective, and environment-friendly.

For example, natural gas, an ecologically clean and effective hydrocarbon, accounts for 48 percent of Russia’s energy balance and for over 85 percent, if we throw in the nuclear and hydraulic power industries that have a minimal carbon footprint.

What I mean is that our energy balance is one of the “greenest” in the world; this is an absolutely obvious fact. Unlike certain Western countries that use the climatic agenda to promote their essentially neo-colonialist interests, we are implementing a fair and orderly energy transition in practice, a transition that takes into account our natural conditions, the socioeconomic development of our cities and the entire national territory, as well as the structure of this country’s energy and fuel balance.

We will continue to follow this approach in the future. We will continue to upgrade and strengthen our energy system, which has entered upon a stage of retooling and conversion to new technological solutions.

Among other things, we are creating a substantial scientific and practical potential in a number of promising areas, such as renewable energy sources, small nuclear power plants, thermonuclear fusion, as well as hydrogen generation and production of motor vehicles, ships, and rail transport burning this kind of fuel.

True, research and technologies are at different stages of implementation in this regard. But to reiterate: it is important to be aware of this outlook and make plans for the future.

As you know, I have instructed the Government to extend the planning horizon for Russia’s energy strategy until the middle of this century. This strategy sets forth an ambitious and comprehensive plan to expand our generating capacity at a national scale. All these undertakings imply long cycles, and we must be forward-looking when working on them, and this is exactly the way we have been treating them.

Major, system-wide projects with long investment cycles will define these efforts, including, as I have already said, projects to master new technology, develop deposits and build the necessary infrastructure, power stations and grids.

I would like to remind my colleagues in the Government that we will need to draft a revised Energy Strategy in the coming months, and then carry it out, one step at a time, by focusing on our priority long-term objectives to develop Russia’s fuel and energy complex. As far as I know, the Government is currently in the process of coordinating these parameters among the agencies.

I talked at length about these priorities a year ago, during the previous Energy Week. Let me remind you that our key priority is to satisfy demand on the domestic market and to ensure stable and affordable power supplies to our regions, cities and companies. Let me put a special emphasis on the fact that the fuel and energy sector must play its role in ensuring that all the 2030 national development goals are fulfilled.

According to the available estimates, power consumption will grow at an [annual] rate of two percent until the end of this decade, which is about the same level as for the rest of the world. During this period, we intend to launch 27 gigawatts of new power generating capacity, including thermal, hydro and nuclear power plants.

We will promote connectivity between the power grids in the Urals, Siberia and the country’s east, while paying special attention to supplying power to Russia’s Far East. Power consumption there has been growing at a rate exceeding the national average, and it is expected to increase even more as manufacturing expands and as new housing, infrastructure and social facilities are built. Our energy sector must be able to meet this demand, including by using modern coal power generation, with low environmental stress.

I have already issued instructions to draft a long-term development programme for the Far Eastern Federal District’s energy sector. Just like the national Energy Strategy, it will cover a period until 2050. I would like to ask the Government to fast-track the approval procedures for this document.

Increasing the reliability of power supply to the regions is a separate matter. This year, we have applied a fundamentally new approach: we have introduced territorial grid organisations. Starting in 2025, these organisations will operate in each region of the country and will be responsible for power supply. They will also take over abandoned facilities (unfortunately, there are some) and address the consequences of accidents on networks, among other responsibilities.

I would like to ask the Government, together with the heads of the Russian regions and energy companies, to analyse the effectiveness of territorial grid organisations on a regular basis and to draw up a plan for increasing the reliability of power supply for each region, with transparent financing sources developed in advance. All tools must be used, from regulatory agreements and infrastructure loans to concession mechanisms and service contracts.

I would also like to mention the gas industry, which is undergoing serious changes. It is not only reorienting exports from the west to the east but also significantly increasing supply to the domestic market, including under the social gas supply programme launched in 2021, which is progressing at a good pace. I would like to thank the Gazprom management for this. Of course, our largest gas company, Gazprom, plays a leading role in this.

I would like to ask the company and its management, together with the Government, to prepare a ten-year plan, the implementation of which will ensure the corporation’s sustainable development and the creation of infrastructure necessary to change the geography of supplies. Let me reiterate, it must take into account our extensive plans to supply gas to all Russian regions and increase gas processing within the country.

We all understand what I am referring to when I discuss redistribution of routes. Those who were once our buyers have decided to give up our relatively inexpensive energy resources and switch to a more costly alternative. Well, that is their choice; let them rely on this expensive resource.

Next, the growth of hydrocarbon processing volumes at Russian plants and complexes is another priority task for the domestic fuel and energy complex. It is crucial to provide a raw material base and the necessary resource extraction. We have already identified special tax incentives for this.

Thanks to state support measures, offshore fields, such as Prirazlomnoye in the Arctic and projects on Sakhalin, are being developed. Hard-to-recover reserves are being developed: the Palyanovskoye oil field in the Khanty-Mansiysk Autonomous Area and the Yuzhno-Neprikovskoye field in the Samara Region. New oil and gas provinces are being introduced in Eastern Siberia and the Arctic. I mean large projects, like Vostok Oil in the Krasnoyarsk Territory, and the Utrenneye and Shtormovoye fields on the Gydan Peninsula. The coal mining centre in the Far East is expanding its capacity. The Pacific Railway will also start operating next year. It is a private railway going from the Elga field in Yakutia to the port of Elga in the Khabarovsk Territory.

Let me repeat, it is essential that the exploration of Russia’s unique reserves makes it possible to develop domestic processing enterprises, creating maximum added value right here, in Russia.

We have launched a state programme to upgrade oil refineries. Its goal is to provide the economy, cities, all populated areas and people with high-quality fuel, lubricants, bitumen, and other products. I would like to ask the Government to closely monitor how this programme is implemented and to work specifically on every enterprise, on the timing of repairs, and renovation of production.

Special focus must be placed on the development of oil, gas, and coal chemistry. According to estimates, the demand for these products will only grow both in Russia and around the world. Moreover, these sectors are highly profitable. The price from raw materials to final goods in the chains can grow up to 12 times.

Russia implements projects in this sphere, which are large even by global standards. The country’s largest petrochemical plant, ZapSibNeftekhim, is operating, and the Amur Gas Chemical Complex, which will become the most powerful Russian enterprise for the production of basic polymers, is being built. There are other large projects as well. It is important that there be more such projects, that new production facilities are opened in various regions and modern, well-paid jobs are created. I have already drawn the Government’s attention to this and would like to repeat it again: these business initiatives must be supported.

Furthermore, it is clear that, under current conditions, the reliable operation of production fields, pipelines, refining facilities, and power plants, as well as the fuel and energy complex in general, is dependent on the availability of our own specialists, technologies, and competencies in the equipment used for producing and delivering resources, power engineering, and so on.

A national project to be launched next year will serve as a major system-wide instrument of support for domestic initiatives. It is called New Nuclear and Energy Technologies. This national project will set ambitious goals, namely, to consolidate Russia’s global leadership in the nuclear sector. It aims to consolidate that leadership, as our current standing is indeed global. This is evident from the volume of work that Rosatom, our leading company, is doing.

Ensuring the country’s technological sovereignty across all spheres of the fuel and energy complex is the goal of this new national project. I ask my colleagues in the Government, together with our business and academic communities, to elaborate all the details of this national project with a view to launching it without delay.

Colleagues,

Russia’s fuel and energy complex is a modern, dynamic industry. It successfully meets current, including global, challenges and strengthens the raw materials, technological, and industrial sovereignty of our country; it supports and develops trade and cooperative ties with responsible foreign partners.

Russia is fulfilling its obligations to supply energy resources to the world market and plays a stabilising role within it, participating in such authoritative formats as OPEC Plus and the Gas Exporting Countries Forum. Incidentally, we cooperate with the country represented by our guest in both organisations, and we will certainly continue this collaboration with our partners.

I am confident that the strategic and long-term tasks facing our energy industry will undoubtedly be accomplished. This means that our energy companies, their workforce, and the industry as a whole will be provided with stable and reliable work for many years to come. They will make a significant and tangible contribution to achieving Russia’s national development goals and improving the quality of life for our citizens. And, of course, they will continue to contribute to balancing the world energy markets for the sake of sustainable global development.

Thank you.

President of the Republic of Equatorial Guinea Teodoro Obiang Nguema Mbasogo (retranslated): Your Excellency President of the Russian Federation Vladimir Putin,

Your Excellencies heads of delegations and representatives of the organisations present in this audience,

Ladies and gentlemen,

It is a great honour for me to speak at the 7^th Russian Energy Week International Forum themed “Energy Cooperation in a Multipolar World.”

We are grateful to the hosts for inviting Equatorial Guinea to participate in this exchange of experiences and best practices to address challenges in the energy sector and to expand international cooperation, being mindful of the important role that the energy sector plays in the national economies.

I would like to express my deep gratitude to the Government and the people of the Russian Federation, as well as to my good friend President Vladimir Putin, for the warm welcome and hospitality extended to us the moment we arrived in Moscow, a wonderful city with a long history.

Your Excellency, ladies and gentlemen,

This forum is taking place in an international setting marked by economic and financial crises sparked by a decline in hydrocarbon prices and the repercussions of the COVID-19 pandemic, which we must address as a team and stand together as we seek solutions.

Indeed, we live in an era of major changes and challenges. We are faced with the realities of a world in transition in terms of the structures that bolster our economy. In this context, the energy sector plays a crucial role as a pillar supporting our state. Considering this, our current positions will have long-term consequences for generations to come.

Equatorial Guinea is determined to deepen energy cooperation with Russia and other friendly countries. Our country is rich in natural resources, such as oil and gas, and is open to forging strategic alliances with willing partners.

We strive to build a future where our respective economies will benefit from genuine cooperation based on mutual trust and shared benefits, which will be advantageous for our societies.

This is why we encourage Russian companies and companies from other friendly countries to cooperate with us not only in energy production, but also in the exploration and development of our oil and gas resources. Such partnerships should not be limited to the production of resources but should include knowledge transfer, technological training, and the promotion of modern energy infrastructure development.

Our goal is clear: we want Equatorial Guinea and our partners to streamline the use of our respective energy resources while using the latest technologies available in this sector.

Your Excellency,

Ladies and gentlemen,

While discussing the energy sector’s progress, we cannot overlook one of the most pressing problems facing the world: energy poverty. Millions of people do not have reliable access to energy. To address this, the Republic of Equatorial Guinea is cooperating with its African partners, working as part of the strategic partnership and the Central African Pipeline System finance committee. We invest in building energy infrastructure to stimulate the economy and improve the living standards of our societies.

Equatorial Guinea believes that energy cooperation should be guided by a fundamental principle: to ensure the stability of energy markets, protecting the most vulnerable segments of the population from market volatility.

On the other hand, Equatorial Guinea strongly supports strategies and efforts to stabilise global energy markets. In this regard, we call on all international stakeholders to work together to reduce uncertainty and promote appropriate market policies. Energy should not be a weapon that divides us, but a means to achieve common prosperity. It is our collective responsibility to ensure that the least developed countries are safely protected from fluctuations in energy prices and are not excluded from the benefits of energy and advanced technology.

In addition, while, as oil producing countries, we all share the same markets, not all of us enjoy the same advantages. To address this, the national oil company of Equatorial Guinea, GEPetrol, took over the management of several oil projects that were previously managed by ExxonMobil. The new arrangement enabled GEPetrol to spur the country’s hydrocarbon sector and begin shipments of crude oil from those projects in July this year.

Your Excellency,

Ladies and gentlemen,

Today, there is an ongoing debate about the phase-down of fossil fuels. The idea behind decarbonisation is to reduce our carbon footprint. However, it should be noted that Equatorial Guinea is not among the countries with the highest carbon dioxide emissions. On the contrary, our emissions have almost no impact on climate change.

However, meeting the global decarbonisation targets is a major challenge for the Republic of Equatorial Guinea. Nevertheless, we are required to switch to carbon-free sources. Furthermore, Equatorial Guinea does not possess the same kind of advanced technology supporting decarbonisation that more developed countries have access to. Therefore, we cannot accept or support the energy transition that leaves the least developed countries behind.

It is necessary to acknowledge and accept the fact that the pace of adaptation to new market conditions will vary across the globe.

Your Excellency, ladies and gentlemen,

Ensuring a prosperous future for energy is our shared responsibility, which implies collaborative efforts – efforts that Equatorial Guinea is calling for – that are based not just on energy production, but also on a shared resolve to promote stability in energy markets. This will lead all of us to a fair technological transition.

Cooperation is impossible unless it seeks to achieve common goals and is based on mutual benefits. More than that, it is impossible to talk about cooperation without a consensus based on considering each other’s interests and respect for other countries.

I would like to close by wishing the 7^th Russian Energy Week International Forum, just like all the previous ones, every success. May the outcomes of the discussions and your proposals lead to a world free of injustice in the energy sector.

Thank you very much.

Vladimir Putin: Friends, colleagues,

You have a full working week ahead of you. A week of contacts and meetings during which you will sit down and discuss the issues that brought you to Moscow. Without a doubt, your work during the forum and, more broadly, your current efforts are impacted by the political developments around the world.

Politics and the economy are closely intertwined, especially in a critical and fundamental economic sector such as energy. This link can be traced to the early days of human history. It is obvious. Now, it has become clear to the point where even those who are not involved in the economy or politics are aware of it.

However, we have here the people who are accustomed to doing concrete things, rather than telling others what they should be doing and how. We have businesspeople in this audience. The outcomes of your work will have a significant impact on both the economy and politics.

I wish you success in this joint event and hope that your efforts will be as free of politics and as pragmatic as possible. I wholeheartedly wish you success.

I would like to thank our foreign guests for coming to our country, Russia’s capital, Moscow, in these challenging times.

I wish you all the best, every success, and prosperity. Good luck.

Thank you.

Meeting of the Military-Industrial Commission on Special Purpose UAVs

2024-09-19T20:13:31+04:00

Vladimir Putin held a meeting in St Petersburg, via videoconference, of the Military-Industrial Commission on Special Purpose UAVs on Gunsmith Day.

Opening remarks by the President

President of Russia Vladimir Putin: Good afternoon, colleagues.

Before we get down to our agenda, I would like to extend my best wishes to the retired and current defence industry employees on their professional holiday, Gunsmith Day, and to thank them for their diligent work, commitment to their profession and strong performance.

Our country has always taken pride in its defence industry – our designers, engineers, workers, and managers who have always helped our troops defeat the enemy and made a significant contribution to Russia's security and defence capabilities by creating unique weapons and equipment.

Our defence industry sector continues to work steadily and efficiently, supplying modern weapons, equipment, munitions and gear to our forces taking part in the special military operation.

Thanks to their work, the production of high-demand products has increased severalfold and their combat characteristics have been improved and adjusted to combat specifics.

I would like to make special mention of the defence industry workers who not only repair equipment and return it to the battlefront as soon as possible, risking their health and lives alongside our military personnel in the zone of hostilities, but also apply their unique knowledge to propose design improvements, particularly concerning range, accuracy and other factors. I would like to acknowledge this and express special gratitude for that.

It is extremely important that the efforts of our powerful defence companies have been complemented by the so-called “people’s defence sector.” We have representatives of that sector with us today. These talented young engineers and other professionals come from small and medium-sized businesses.

Once again, I extend my greetings and best wishes to the defence industry personnel on their professional holiday.

Colleagues, comrades,

Our agenda today includes a range of issues related to the development of special-purpose unmanned aircraft systems. This is an important and in-demand issue, as we all know, and it is becoming increasingly clear that it is of the essence for ensuring the country’s security. Drones of various classes have become an integral part of modern warfare. Unmanned systems can be effectively used for various purposes on the battlefield, as the special military operation has confirmed.

I have just been shown some of the cutting-edge domestic defence industry products here at the Special Technology Centre. My colleagues present here and I saw unmanned aerial systems with payloads and special software, some of it AI-enabled, as well as other weapons and equipment.

These products are manufactured using advanced technologies and new engineering solutions, which gives our units an advantage on the battlefield. I would like to express my deep gratitude to the company’s management and employees for high-quality and reliable equipment.

Many other defence industry companies are working in the same vein, and their products have shown their worth during the special military operation. About 140,000 unmanned aerial vehicles of various types have been delivered to the Armed Forces in 2023. This year, the production of UAVs is to be increased many-fold — specifically, almost tenfold. In addition, we are broadening the range of available unmanned systems, creating unmanned boats – we also saw them today – and multi-purpose robotic platforms. Most of these will be sent to troops at the contact line.

I would like to emphasise that we need to fully meet the needs of the Armed Forces, and to do this, we need to consistently increase the output of drones, improve their combat performance (including by introducing AI components, which I mentioned), and constantly modernise them based on combat experience. I have just discussed with my colleagues that we see almost weekly updates, and whoever responds faster to these challenges on the battlefield wins.

Alongside improving drones, we also need to upgrade counter-drone capabilities, including electronic warfare and firepower systems. This will save the lives of our servicemen and civilians, and will have our military equipment and civilian infrastructure, as well as critical facilities, better protected.

As I have said on many occasions, a key task is to produce a long line of UAVs and to especially start their mass production of these promising systems as soon as possible. Of course, we must also lay the groundwork for the future, trying to forecast what goas UAVs could be set tomorrow.

It is noteworthy that the so-called people’s defence sector is working alongside our large companies and concerns to manufacture UAVs in large quantities. Moreover, their products are often on apar with those produced by large companies in terms of reliability and efficiency.

I know that the Defence Ministry and the Popular Front have done a great deal to unlock the potential of the people’s defence sector, expanding the test system to check the quality and performance capabilities of new models. The Technical Council is working on a regular basis, taking decisions to promptly organise the supply of the high-demand models through the Defence Ministry and the Popular Front.

I would like to express gratitude to our volunteer organisations, which deliver reconnaissance drones and electronic counter-drone equipment to our units that are taking part in the special military operation.

It is vital to continue to develop this interaction, helping people’s defence sector put their designs into production and lifting barriers that may hinder the supply of drones to our forces.

I would like to note that this year we launched the Unmanned Aviation Systems national project, which is designed to run through 2030. Its priorities include assisting the design and production of domestic components and materials for unmanned aerial vehicles. It is a key to our technological sovereignty in this vital sphere.

Some of our colleagues have told us how this is happening in practice, which is truly good news. However, far from all goals have been achieved, and so all of us must get actively engaged in this sphere. It is obvious that small and medium-sized enterprises cannot tackle some projects, which calls for synergy between large research centres, major companies and small businesses.

The design, testing and mass production of drones will carried out at special research and production centres. We intend to establish 48 such hubs in different regions by 2030.

Let us talk about all these issues.

Let us begin. Mr Belousov, please.

<…>

Opening of infrastructure facilities in Moscow

2024-09-08T12:15:39+04:00

Vladimir Putin marked Moscow’s City Day by taking part via videoconference in the opening of several educational, cultural, and transport facilities in Moscow.

The opening ceremony was also attended by Mayor of Moscow Sergei Sobyanin.

The new campus of the Bauman Moscow State Technical University is located in the immediate proximity to the university’s historic buildings on the Yauza. Specifically, it comprises research and educational clusters, Quantum Park multifunctional complex with state-of-the-art laboratories, and dormitories. The campus has become the first facility of this kind in Russia to be built as part of the federal project Creating a Network of Advanced Campuses.

With the effort to create the Moscow cinema cluster already underway, the Moskino Cinema Park is expected to become one of its core elements. Its first stage has been completed: there are 18 filming grounds, four pavilions and six infrastructural facilities on its territory of 180 hectares. The cinema park will accept guided tours and hold special events in between filming sessions.

Troitskaya is a new, 16^th metro line on the city map. Launching its first 8.3-kilometre section with four stations – Novatorskaya, People’s Friendship University, Generala Tyuleneva and Tyutchevskaya – will improve transport services for more than 800,000 people and reduce the burden on the Kaluzhsko-Rizhskaya and Sokolnicheskaya metro lines, as well as on the adjacent street and road network: Leninsky Prospekt, Vernadsky Prospekt, Profsoyuznaya Street.

* * *

Mayor of Moscow Sergei Sobyanin: Mr President,

As usual, you are attending the opening of several sites and facilities on Moscow’s City Day.

One of such projects is the campus of the Bauman Moscow State Technical University, a leading technical university that plays a pivotal role in ensuring the country’s technological independence.

In keeping with your instructions, we built the new campus in three years. Last year, we reported in your presence that six buildings out of 14 were completed. This year we launched the second stage.

What kind of buildings are they? They include the Nature Protection Technologies cluster, the Digital Materials Science cluster, the Digital Transformation cluster, the congress centre and innovation hub, the federal testing centre, the Quantum Park multifunctional complex, and a dormitory – or should I say a student palace with everything you need for living, for sports and for study. We have constructed a footbridge for the students to comfortably walk to teaching buildings. We are opening it today too.

If you do not mind, we will invite our colleagues to join this conversation so that they can report on the readiness of the new campus.

President of Russia Vladimir Putin: Yes, of course.

(Vladimir Yefimov, Head of Moscow Construction Complex, and Mikhail Gordin, Rector of the Moscow State Technical University, presented their reports on the new campus of the Bauman Moscow State Technical University.)

Vladimir Putin: I want to congratulate all the students, faculty members and professors on this remarkable occasion.

The Bauman University is almost 200 years old, right? On July 1, 1830, Tsar Nicholas I signed a decree establishing this institution, which grew into a major higher education institution in our country, and probably in the world as well. It evolved as one of the most important centres for training engineers.

A lot has been done for the Bauman University. I am very much looking forward for the Bauman University, like in previous years, to work effectively on delivering on the tasks that our country is facing.

You have invited me to visit the university. I will do it with pleasure as soon as I get this opportunity. Moreover, the institutions like the Bauman University– just as Mr Sobyanin was telling me on the way here –can be counted on the fingers of one hand around the world.

This is, naturally, a great achievement in strengthening our position in this most important and promising area of activity, because science and education are major economic growth drivers, just as we have been saying all along. The factor of science and education will undoubtedly play an increasingly important role.

Congratulations! I wish you all the best and every success.

Sergei Sobyanin: Mr President, there is one more project from a different sector which stands out among city projects. We are talking about the film industry.

In recent years, the Russian cinema industry has increased the scale of both filming and distribution many times over. If you remember, two-thirds of the films on our screens were foreign films, and today we have two-thirds of Russian films on our screens. Of course, this a major breakthrough.

On the other hand, making so many movies requires a new film industry, new platforms – high-tech, state-of-the-art, world-class.

On your instructions, we in Moscow – given that it is a leading city where a huge amount of content is produced and tens of thousands of people work in the film industry – are implementing a project called the Moscow Film Cluster, which includes the Gorky Film Studio. You issued an instruction to hand it over to the Moscow Government.

We are using two old platforms to implement a large construction and renovation programme. We have added another platform under the aegis of the Gorky Studio, which is much larger than the historic platforms. This studio used to have a floor space of just 22,000 square metres, but today there are already 53,000, and there will be 445,000 down the road. Building all this is expected to take three or four years. I am certain that we will fulfil these plans.

Moskino cinema park is a key infrastructure project. It provides for creating filming locations. In fact, this project can be traced all the way back to 1938 when Stalin received a proposal to build a big platform of this kind, similar to what we are doing today. Thе cinema industry was rapidly developing at that time, and it was called to deliver on formidable tasks, but the war upended these plans.

Vladimir Putin: They competed against Hollywood.

Sergei Sobyanin: You are absolutely right. They were in fact competing against Hollywood. This is what we are doing today too. Our goal is to create a world-class facility. Today, this is one of the world’s best sites among film sets, their number and quality.

This is just the first stage, and there will be two more construction stages, one scheduled to be completed in 2027, and the other in 2030. Today, there are 18 filming locations, and there will be 20 more in the project’s second stage, and 26 for stage three. Overall, this will be a very big filming studio, and it enjoys very high demand.

Over the past year, this platform served about fifty cinema projects of all kinds here. Just to give you an idea of what I am talking about, let me mention the Red Square for the Peter I project. It was shot here. There is also the film titled GDP – the German Democratic Republic. They shot it here and it has already been released. Then there is the film titled Olga of Kiev. The historical buildings and views were shot here, and the filming of this period drama continues.

There are also many war films, including War and Music. Moskino built defensive structures for producing films about the two world wars and the special military operation. Its latest projects included building a guerilla camp and it looks quite natural. In fact, many films dealing with military-related topics were shot here. This is a war-time film in a cityscape, in old Moscow. This is another project underway at Moskino. There is also the Heart’s Calling, a patriotic film.

Yuzovka is an interesting location. This project is devoted the history of Donbass from its origins to the present. The filming is underway. Moskino recreated a railway station and an airport for this project. These pavilions have become a hit among Moskino customers.

There is also an interesting project for Vladivostok, a city in Russia’s Far East. I am talking about filming Arsenyev. The filming is in full swing, and the location they chose for it is quite interesting. There are several other projects too.

(Sergei Sobyanin went on to give the floor to Natalia Sergunina, who oversees the project to create this cinema park. She talked about the project’s progress, followed by Channel One CEO, television and cinema producer Konstantin Ernst, and film director Igor Ugolnikov. Artistic Director of the State Theatre of Nations, theatre and cinema actor Yevgeny Mironov asked the President to declare the Moskino cinema park’s first stage open by saying the words – Camera, Action, which have been commonplace among professional cinematographers.

Vladimir Putin: Camera, action!

Mr Sobyanin has told me a great deal about this project. It goes without saying that this is a landmark project, and a very interesting one too. In addition to this, I have been informed that there are people specialising in making products they concocted here in Russia. They have been very popular and enjoyed a lot of demand across the country.

As far as I know, Russian films have succeeded in increasing their availability in the box office. It goes without saying that we are very happy about it. This is something that matters for this interesting and creative sector, as well as in terms of content. In fact, our filmmakers focus on our history and what brought us here, making us who we are, and how our country became what it is today. After all, we are not dealing with foreign producers here. Of course, there are very talented, interesting and creative people overseas too. However, they can hardly demonstrate the same kind of awareness and insight when it comes to dealing with our history, our spiritual values, while Russian cultural figures are much better at dealing with tasks of this kind.

As far as I understand, Moskino offers Moscow residents and guests to visit this park and discover the filmmaking process. Therefore, there is no doubt that this park will attract a lot of tourists. I am certain about this, since everyone is eager to discover the world of cinema from within in order to understand the filmmaking process. I strongly believe that this will be the case.

Of course, I was impressed by what you and Mr Sobyanin said regarding the development plans. In fact, this site can well become and will probably become one of the most revered, respected and one of the biggest and the most effective film studios in the world. This is the goal the Mayor has set, and the Government supported this vision. This is how we will proceed.

By the way, the Sobornaya Square location does look very natural here. Let me note that whenever you have a film sets in this location, you can reach out to us directly, and we will help you. We can always make some room for you and use less space, if you need it. We can reallocate the funds you spend on recreating buildings that still exist and use this money for renovating the Kremlin.

Of course, you are the ones calling the shots here. You know better how to work on these matters. However, please keep in mind that we are ready to support you not only by investing municipal or federal funds in the projects designed to make these plans a reality, but also by working with you.

Please accept my congratulations and my best wishes.

Sergei Sobyanin: In addition to such complex locations, we have created a special filming platform, where any directors, producers, who want to make a film, can come, and we prepare shooting locations in the city in advance: on streets, squares, in parks, and so on. That is, this segment has not been forgotten either. You are absolutely right, not everything has to be built, not everything has to be filmed using artificial set-ups – there are a huge number of films being shot on the streets of the city. We streamlined this procedure as much as possible, so that it would be, as people say nowadays, customer-orientated. And now dozens of projects are shot on the streets. But since you are inviting filmmakers to the Kremlin, I think that my colleagues will also be happy to do so.

Thank you, friends.

By the way, I must say that the Cinema Park was visited by people from about 50 countries already, four countries entered into agreements to carry out joint undertakings on this platform. I hope that it emerges as a platform for undertaking on only Russian, but also international projects.

Vladimir Putin: It will of course be so; they will use it.

Sergei Sobyanin: Thank you, friends.

Vladimir Putin: I congratulate you.

Sergei Sobyanin: And there is also a traditional issue related to urban construction: development of the transport system, Mr President. You are well aware of all the stages of its development, we have already built 119 metro stations and the Moscow Central Ring, increased the length of the metro 1.8 times, and built the Moscow Central Diameters. Today, the Moscow Central Ring has 156 million trips a year, the Moscow Central Diameter had 513 million trips last year, and the Big Circle Line, which we opened on City Day last year, had 348 million trips a year, which are huge amounts.

But nevertheless, there is a demand for transport infrastructure development, the city is developing, so we continue to implement major projects. One of such projects is the construction of the Troitsk metro line, 43 kilometres, 17 stations, it goes from ZIL, from the middle part of Moscow, the Moscow Central Ring, crosses the Big Circle Line and goes all the way to the science city of Troitsk.

Vladimir Putin: Is the ZIL territory being developed too?

Sergei Sobyanin: Yes, the ZIL territory is also being renovated. You know, there are essentially abandoned workshops there, and we have tried many times to approach and restore them, but nothing has worked. As a result, we had to come up with (I think, maybe it’s for the best) a comprehensive development project. Before the renovation, about a thousand people used to work there, and these people mostly being created on the ZIL territory, on this site, so this project goes far beyond building housing and helps create new jobs.

We have gone to great lengths to develop new Moscow territories. We wanted to strike a balance between housing and jobs, so that instead of simply building residential neighbourhoods, these districts take on an important role in the city’s economy.

Today, we are ready to launch the first section of a new metro line. It includes several stations: Novatorskaya, People’s Friendship University, Generala Tyuleneva, and Tyutchevskaya. About 800,000 people live close to these stations. We intend to complete this line in several stages.

(Mosinzhproyekt CEO, Sergei Zhukov, reported on building the Troitskaya metro line. It is the 16^th metro line in Moscow which will be over 43 kilometres long and include 17 stations.)

Vladimir Putin: Friends, first, I would like to congratulate the people of Moscow, including those of them who will use this line. It goes without saying that it will change their lives, and we understand this very well. Moscow has made great strides in expanding its metro network, and the credit for these efforts goes to those who work in this sector. It plays a pivotal role in the municipal economy.

As I congratulate the people of Moscow, I cannot fail to express my gratitude to those who have made all this a reality, primarily metro construction workers and all those working in this sector which has so much importance for Moscow.

I would like to wish you every success in your future undertakings. I do know that this is just the first section of this line, just as Mr Sobyanin has reported, and that there will be more sections down the road. Is that so?

Sergei Sobyanin: Indeed, it will be 43 kilometres long.

Vladimir Putin: A distance of 43 kilometres – this is what people dream about when creating families and settling in these districts. I would like to wish you every success in your future undertakings. Thank you. Happy City Day!

Everything you do has its own meaning and importance, just as we have been saying.

The Bauman University Rector and the Moscow Mayor have mentioned the dormitory. Mr Sobyanin went as far as claim that it was more than just a student dorm, since it is part of a state-of-the-art campus. This is a very important point. As far as I know, and if I am not mistaken – and the rector is here to check me, 60 percent of first-year students come from outside Moscow. Is that so?

Moscow State Technical University Rector Mikhail Gordin: Yes.

Vladimir Putin: It is essential that young people benefit from cutting-edge facilities for a better educational process. This goes far beyond simply offering them accommodation. And all this matters.

All this matters for every citizen of Russia, including for our cultural figures, especially when they can work in a favourable environment for making quality products.

It is instrumental for Moscow and those who come here that we develop the city’s transport infrastructure. It goes without saying that the metro forms its backbone.

Let me offer you my congratulations on City Day and wish you every success. Thank you very much.

Sergei Sobyanin: Mr President, on behalf of Moscow residents and on my personal behalf, I would like to congratulate you on Moscow City Day. Thank you so much for your support.

Vladimir Putin: Thank you for your efforts.

Sergei Sobyanin: Thank you.

Vladimir Putin: Goodbye.

Plenary session of the St Petersburg International Economic Forum

2024-06-25T21:55:56+04:00

Vladimir Putin took part in the plenary session of the 27^th St Petersburg International Economic Forum.

Other session participants included President of the Plurinational State of Bolivia Luis Alberto Arce Catacora and President of the Republic of Zimbabwe Emmerson Dambudzo Mnangagwa.

Sergei Karaganov, a political analyst, historian and Academic Supervisor of the Faculty of World Economy and International Affairs at the Higher School of Economics, moderated the discussion.

The St Petersburg International Economic Forum has been held annually since 1997. The event has become one of the world’s leading platforms for discussing key issues of the global economy.

The 2024 forum’s key theme is ‘The Formation of New Areas of Growth as the Cornerstone of a Multipolar World. More than 12,000 people are attending the forum, including shareholders and top managers of major corporations, recognised experts and analysts, political and public figures, and government officials.

* * *

Plenary session moderator Sergei Karaganov: Good afternoon, presidents.

Colleagues and friends.

I was offered a huge honour and great pleasure to host this session. We have a brilliant and strong group of speakers, so the session promises to be interesting.

Allow me to start with Mr Emmerson Dambudzo Mnangagwa. He is a legendary figure, the last leader of an African country who has been fighting for almost all his life – a significant part of his life, with arms in his hands – defending his home country’s independence. He spent ten years in one prison and two in another. He survived, then he was sentenced to death penalty twice. After he became president, he abolished capital punishment in his country.

We would really appreciate it if Mr Mnangagwa could share his experience with us. Zimbabwe has been under sanctions for many years because they dared to nationalise white colonisers’ property.

Mr Luis Arce is an outstanding economist and a descendant of the people who fought alongside the great Simon Bolivar for the independence of their homeland. His fate is slightly less dramatic but nevertheless brilliant, eventful and triumphant.

Mr Arce was Bolivia’s minister of economy and finance for 15 years. Over those years, his country increased its GNP [gross national product] by 250 percent and reduced the number of people below poverty line by more than 50 percent. He carried out remarkable and most noteworthy reforms, including nationalisation of a significant part of foreign companies’ property, and natural resources. He also successfully introduced import substitution. Certainly, we would love to hear about his experience.

I believe Vladimir Putin needs no introduction and for me as a citizen of the country where he is president, it is inappropriate to sing him praises. But I will say only one thing. I clearly remember 1998 and 1999 when our country was on the edge, or rather, beyond the edge, of collapse. It was completely tragic. I remember myself and my fellows fighting desperately, almost without hope. And finally, there was a time when God had mercy on us.

Now, Mr President, your challenge is difficult as never before. Not only do you have to win but also to save the world from heading for and being pushed to a world war. Although today we will speak about something else.

President Putin, the floor is yours.

President of Russia Vladimir Putin: Good afternoon, friends and colleagues.

Mr Arce. Mr Mnangagwa. Friends. Ladies and gentlemen.

I am delighted to welcome all of you to the 27th St Petersburg International Economic Forum.

More than 12,000 people from more than 100 countries are taking part in the forum this year. They include shareholders and top managers of major corporations, recognised experts and analysts, political and public figures, and public officials.

Traditionally, the St Petersburg forum not only provides an opportunity to establish business contacts, agree on cooperation or launch promising projects, but also facilitates open discussions on topical trends in global and regional markets. It allows participants to examine the processes that are dynamically developing in today’s world through the prism of economic relations.

We can see that a real race is beginning between countries to promote their sovereignty at three key levels: the state, cultural values, and the economy. At the same time, countries that until recently were leaders in global development are striving to maintain their elusive role as hegemons, using any means necessary. In reality, there is nothing unusual here, when a country or a person tries to maintain or strengthen their positions in life, but resorting to lies for this purpose is unacceptable. Strengthening positions honestly is commendable, but doing so through lying is not.

Of course, it is evident that China currently holds the position of the world’s number one economy by a significant margin from the second place. India is the third largest economy in the world and a global leader in terms of development dynamics.

The voices of South Asian and African countries are becoming increasingly prominent, with their high birth rates and a low level of urbanisation so far, as well as rapid, catch-up economic growth. According to expert assessments, these countries will shape the global economic landscape closer to the middle of this century.

It is worth noting that today the world is undergoing explosive technological growth in almost all areas of life. This growth is transforming management, production processes, and even entire industries. It is evident that countries that not only produce new solutions, but also ensure their rapid and advanced implementation will be able to fully take advantage of technological progress.

Russia has demonstrated its high level of readiness and receptiveness to technological change. We can see how our financial sector, e-commerce, transport services, and public administration system have already undergone significant changes. Similar processes are now beginning to unfold in the Armed Forces, where a high rate of technological renewal is also required. This is the most important and defining issue for our country.

I am sure that at present, as much as in the long run, the role, weight and, I daresay, even the future of states depends on how effectively they are able to respond to global challenges, to use their potential, capabilities, and their competitive advantages, and work around their weaknesses, and maintain and strengthen partnerships with other countries.

Last February, I outlined the priorities for Russia’s development in my Address to the Federal Assembly; since then, a comprehensive programme of economic transformation has been formed, through the end of this decade and beyond.

The format of this forum warrants a focus on the economic aspect of our development, on the qualitative and structural changes that are taking place in our country, and which we intend to vigorously and purposefully support by directing financial, human and organisational resources at the federal, regional and municipal levels to this end, and through implementing national projects, which we discussed at length at the recent meeting of the Council for Strategic Development.

What kind of changes am I talking about?

First, in view of the international status of this forum, I will start with foreign economic relations, the presence that Russia strives to gain on international markets, and our plans for restructuring our exports and imports.

Despite all the obstacles we are facing and the illegitimate sanctions imposed against us, Russia remains one of the key participants in global trade and is rapidly expanding the new logistics and geography of cooperation. We are strengthening ties with the countries in Asia (a growth of 60 percent from 2020 to 2023), the Middle East (100 percent), Africa (69 percent) and Latin America (42 percent). I assume that my colleagues, the guests of this forum, the presidents of Bolivia and Zimbabwe, will touch on this subject in their remarks.

Today, the countries that are friendly to Russia – and as we can see, these are the countries we should primarily focus on, the rapidly growing economies that will determine the future of the global economy – account for three-quarters of our trade.

We continue to work productively with our EAEU partners, ensuring a balance of interests of all parties. Last year, the EAEU’s total GDP grew by 3.8 percent, and mutual trade, by 4.7 percent. Moreover, its structure has qualitatively improved, namely, the supply of finished high-tech products has grown. We will continue to actively support non-resource and non-energy exports from Russia. By 2030, these exports should grow by at least two-thirds compared to 2023.

Again, this is not just about scaling up exports in terms of tonnes, cubic metres or units of finished products, but about high-value-added goods. It is about bigger changes than Russian companies’ expansion to new regional markets and greater geography of cooperation. All of this is important, but today, it is not enough.

With regard to other countries, we are willing to come up with an offer of creating full-fledged technological or industrial partnerships that include the provision of a full-life cycle for goods and services replete with training of national staff, localising production, and providing engineering support, as well as technical service, insurance, and so on.

Such approach to cooperation that relies on equal partnership and technology and competency transfers rather than market control makes it possible to establish stronger ties between the countries, improves our companies’ sustainable positions on the global market, and enables them to establish lasting partnerships with their foreign partners. This is exactly how one of our leaders, Rosatom, the undisputed leader of the global nuclear industry with broad horizons and plans for the future, operates.

Clearly, foraying into new markets is hard without strong transport links. The Eastern Operating Domain is our key project with regard to China, and the countries of the Asia-Pacific region. Its third phase of upgrading was approved in April. By 2030, the Eastern Operating Domain’s capacity is expected to have increased to 210 million tonnes, and to 270 million tonnes by 2032.

We will keep a close eye on the southern direction. Plans for developing the North-South international corridor and the Azov-Black Sea corridor have been approved.

The Northern Sea Route is on track to become a global artery that enjoys high demand. Last year, it carried 36 million tonnes of cargo, and this number is projected to increase to over 150 million tonnes over time. To get there, we will continue to expand the Northern Sea Route infrastructure, and to build access roads to the Arctic ports. The leaders of the northern constituent entities of the Federation are to play a special role in this work. In this regard, we will form a State Council commission on the Arctic regions and the Northern Sea Route.

The cargo volume carried along international transport corridors across the Russian territory is expected to increase by 50 percent in 2030 compared to 2021, primarily due to increased competitiveness and the ease of use of these routes for businesses and carriers.

Development of the cross-border payment infrastructure is a separate issue which is important both for the exporters and importers. It is no secret that the reliability and trust in Western payment systems have been fundamentally undermined, by Western countries themselves. In this regard, I would like to note that last year the share of payments for Russian exports in the unfriendly states’ so-called toxic currencies was halved. At the same time, the share of the ruble in export and import transactions is growing. Today it is approaching 40 percent.

Over 2021–2023, the share of the ruble in payments for Russian exports almost tripled, went up to 39 percent. Tripled.

Together with our foreign partners, we will increase the use of national currencies in foreign trade payments and improve the safety and efficiency of these operations. Among other things, BRICS is working to establish an independent payment system that is not subject to political pressure, abuse and external sanctions interference.

Let me remind you in this context, that new participants have joined the BRICS activities this year: Saudi Arabia, Iran, the United Arab Emirates, Egypt, and Ethiopia. Thus, the share of our association in global GDP increased to 36 percent, and in the planet’s population to 46 percent. That said, BRICS has great potential for the accession of new members. Of course, we welcome and support this intention of interested partners to develop contacts with BRICS on different continents.

We will continue to develop relations within BRICS not only in the economic and finance sector, but also in security, humanitarian and cultural cooperation, and other areas. We will act considering global challenges and objective trends and, I want to emphasise this, the growing capabilities of national economies.

In this regard, let us talk about the second significant structural change. This is the achievement of a new quality and content of economic growth in Russia, and a change in the sectoral structure due to an active supply-side economy policy.

As you know, at the end of last year, Russia’s GDP growth amounted to 3.6 percent, and in the first quarter of this year, it amounted to 5.4 percent, so our rates exceed the world average. It is especially important that these dynamics are ensured primarily by non-resource sectors.

Let me also add for reference, that in 2023, 45.5 percent of economic growth was ensured by basic industries, as I said. What are they? Manufacturing, construction, logistics, telecommunications, agriculture, electricity and other housing and utilities services. And 61.6 percent was ensured by providing industries, which are trade, hotels and restaurants, financial and other services).

We have set the goal of ranking among the four largest economies in the world. By the way, according to certain information, including assessments by the World Bank – it made additional calculations the previous week and put Russia in fourth place. We are ahead of Japan now.

Russia is placed fourth by GDP and by purchasing power parity. As I said, ahead of Japan. But I’d like to stress the following. Of course, the point is not the GDP estimation and calculation system, not even the formal fourth place achievement. We are close by: Russia, the Federal Republic of Germany and Japan. The difference is small. Russia is ahead, but the difference is small. Given this, we do understand that leadership positions have to be permanently proven and consolidated. Other countries are not standing still either. It is important for us to ensure consistently high rates and quality of growth for a long term. This is our goal today. And it is not just the economies of Germany or Japan, which are next to us on the scale. The point is that other countries are moving forward too. Indonesia is close on everybody’s heels. The population is growing, the economy is growing. We should never forget it.

The solution to this challenge requires stronger financial, technological and personnel sovereignty, building up of production capacities and higher competitiveness of Russian products both in foreign markets and our own domestic market.

The development of such a model of supply-side economy should result, among other things, in the reduction of imports to 17 percent of GDP by 2030. Our dynamics are quite good. Look: in 1999, the share of Russia’s imports reached 26 per cent of GDP, and in 2023, it was 19 per cent of GDP, or 32 trillion rubles. That is, as I said, the dynamics are absolutely clear and positive.

I make it a point that the share of imports should be reduced, certainly not at the expense of administrative and prohibitive barriers but thanks to our own competitive production facilities, which are ready to satisfy domestic needs in the products of the manufacturing industry, agriculture, services, IT and many other sectors.

There are many successful examples of such strategy. For example, we have created a modern meat industry in the agro-industrial sector. Its capacity has almost doubled over 15 years. Today, Russia ranks fourth in the world in meat production and is increasing the supply of these products to foreign markets. By the way, Russia has reached 100 percent self-sufficiency in meat products. Meat consumption last year, in 2023, updated its record and exceeded 80 kilograms per person. For comparison, the world’s average is 42–43 kilograms per person.

I would like to repeat: Our country can and will produce more consumer goods, machine-tools, equipment, vehicles, medicines, and so on. To this end, we need to launch new projects, create modern jobs, and do it everywhere, in all regions of the country.

By 2030, investment in fixed capital should be up by 60 percent in real terms compared to the level of 2020. Everyone here is a knowledgeable specialist and is fully aware of what investment in fixed capital means, what it leads to, and what kind of prerequisites it creates for future growth in the medium and longer term.

I would like to emphasise that, in general, we have done pretty well in this most important area in recent years. In 2021, the planned investment growth stood at 4.5 percent, but was 8.6 percent in fact. In 2022, the plan was 9.5 percent, the actual figure was 15.9 percent. In 2023, the plan was 15.1 percent, but it actually turned out to be 27.2 percent, which is almost double the initial plan which is good.

Of course, investment activity should be properly funded. I have earlier said that we will set aside additional funds for industrial mortgage programmes and almost double the size of the Industrial Development Fund.

We will also increase the capacity of the Project Finance Factory at the VEB-operated Development Institute. Projects worth over 2 trillion rubles are being implemented under this programme. I suggest incrementally expanding the limits of the fund. At the first stage, we will increase it to 600 billion which will allow us to additionally support real sector projects worth up to 6 trillion rubles.

Increasing the volume of bank lending for technological sovereignty projects is important. We will fine-tune the taxonomy of such projects, i.e. line up the priorities for supporting and increasing investment in key industries and technological projects aimed at structural changes in the economy. We will increase the number of projects under this system, which will make it possible to attract additional funds which will go into implementing them.

The state is willing to share risks with investors. For example, the Foundation of Funds for Advanced Industrial and Infrastructure Projects is now operational. We have been discussing its parameters for a long time. The Government debated it, and we tried to coordinate it with the business community. People who were involved in this are here with us today.

Private investors are heavily investing in the Russian economy alongside the Russian Direct Investment Fund which is another area of our work.

The State Duma is considering draft laws that will expand the public-private partnership mechanism to include industries and the space sector. Please have these regulations adopted as soon as possible.

And another thing: to support investment activity, we naturally need to develop the capital market, increase its capacity and appeal for businesses and investors, and, of course, pay special attention to the safety and profitability of people’s funds invested in these assets.

Today there are almost 30 million so-called retail investors in our country – these are our citizens. The total volume of their assets increased by 50 percent over the year and totalled more than nine trillion rubles. At the same time, the demand for the shares of Russian companies has steadily exceeded the supply.

The goal has already been set: by the end of the current decade, the capitalisation of the Russian stock market should approximately double and make up two thirds of the gross domestic product.

I ask the Government, together with the Central Bank, to propose additional measures to encourage companies to list their securities on the stock exchange. Among other things, we should think about compensating the costs of initial public offerings for small technology companies.

This is an appeal to the Ministry of Finance and the Central Bank. The companies’ costs, including those related to bank posting, placement and so on, should be reduced as much as possible. And of course, it is necessary to ensure the inflow of so-called long money into the financial market, including long-term savings of citizens.

I would like to remind you that starting January 1 of this year, a special programme to support voluntary long-term savings of citizens has been launched. Now they are insured and co-financed by the state and can also be tax deducted. The programme has only recently been launched and is still lagging behind its targets. I propose to fine-tune it, namely, to increase the period of co-financing of citizens’ savings. Now it is three years. I believe it is right and reasonable to extend it to at least ten years.

At the same time, I ask the Government, together with the Central Bank, to consider additional incentives for businesses so that employers could also co-finance their employees’ savings under this programme. Now, given the shortage of labour, this would be appropriate and would even benefit the enterprises themselves, which would retain employees.

I would like to add that a new instrument – a savings certificate – will be introduced this year. It will make it possible for citizens to place funds in banks for a period of more than three years and at a higher interest rate than on ordinary deposits, although even now the deposit is quite solid, and our leading financial institutions are pushing this bar higher and higher. I don’t know whether this is justified or not, but it is certainly a bonus for deposit holders, so much is clear. But I would not like you, Mr Gref, along with Mr Kostin, to suck everything out of other banks like a vacuum cleaner. We will talk more about this later.

On January 1, 2025, contributory life insurance will be launched. What is it about? People’s insurance premiums can be invested in more profitable assets, such as shares, and bring benefits to the insurance buyer. That is, the principle of classical insurance and investment is combined, and in order to further guarantee the return of these funds, I propose providing state insurance in the amount of 2.8 million rubles, like for long-term savings.

Next, today there is an investment tax deduction mechanism in the regions. Thanks to it, companies that invest in development can decrease their income tax. Starting this year, the deduction is tied to projects of technological sovereignty and structural adaptation of the economy. This makes it possible to manage the quality of investments and stimulate capital expenditures in priority areas.

I am asking the Government to make sure that the deduction can be applied not only within one company, but also within a group of companies, and also to provide additional resources for the financing mechanism to replenish the tax deduction.

In this regard, I will remind of the decision that has been made: regions will be able to use part of the funds released after writing off budget loans to cover their shortfall in income due to the investment tax deduction. The Ministry of Finance has taken this step. I think it is justified in today’s conditions and will help all active participants in economic activity. I will elaborate on this later. In addition, I am confident that the regions will also support investors directly through their budgetary capabilities, which are also growing there.

Let me emphasise: what I have said is about the investment tax deduction in the Russian regions. In addition to it, a federal deduction will be introduced as part of a reconfiguration of the tax system, aimed at encouraging business investment in development, achieving greater social justice, and reducing inequality between citizens. In the near future, it is necessary to determine the parameters and volumes of the federal investment deduction together with business associations, so that it becomes an effective, widely used tool.

Going back to the regions’ efforts to support business activity, I would also like to note such mechanism as the regional investment standard. Its purpose is to ensure uniform principles for attracting investors throughout the country, based on businesses’ requests and recommendations, that is, to create a universal investment ecosystem in each region and a clear algorithm of actions for businesses to locate production facilities in.

Of course, these support measures are available to all of us and are in high demand. Today, the regional investment standard has been introduced in all the regions, and relevant specialists responsible for interaction with investors have been trained.

Colleagues, friends.

I would like to say words of gratitude to regional teams and business associations, as well as the Government, for their efforts. I am aware that there is a proposal to enshrine the investment standard in legislation. I suggest that the Government discuss this with the business community and the regions.

Importantly, our primary goal is to get this mechanism rolling and to use it widely in real life. This is our immediate goal. I believe the top-performing teams should be incentivised at the Government level.

Notably, launching the regional investment standard enabled many constituent entities of the Federation to make a leap in the investment climate national rankings. As is customary, its results are presented on the platform of our forum. I will say more about them later.

Over the past year, the exchange of experience and replication of leadership practices made it possible for 74 Russian regions to improve their integral index which is significantly more than last year. The republics of Buryatia and Mordovia, as well as the Lipetsk, Ryazan, and Arkhangelsk regions are among the regions with the best dynamics. I congratulate our colleagues on their top performance results and wish them every success as they go forward.

On top of that, we will focus on improving the national investment climate rankings, including sharing advanced solutions in this area with our BRICS partners. In addition, at a recent meeting of the Supervisory Board of the Agency for Strategic Initiatives we agreed to finalise the ranking compiling technique and to build it on the basis of the national model of targeted conditions of doing business. This is our improved and more objective answer to international rankings.

Colleagues,

The new quality of the labour market is the third major structural change that we are looking for. Unemployment in Russia was at a record low of 2.6 percent in April. Importantly, we have brought down its structural component, meaning that youth unemployment and unemployment in the regions and localities where it was historically high is significantly down.

Fifteen to 20 years ago, the main question was how to find employment whereas now it is where to find employees. Given the circumstances, it is important to reconfigure the vocational education system to meet the labour market demands, to train specialists with up-to-date and sought-after skills, and to open opportunities for employees to advance their professional skills throughout their career.

For this purpose, we are making a forecast of the staffing needs of the national economy. We will transform the system of vocational training and development based on the forecast. By the end of the current decade, the share of qualified employment, i.e. specialists working in industries with high added value and, therefore, higher wages, should increase in our labour market. Let me reiterate: the objective of the human resource development system is to ensure this transformation.

The Professionalism federal project plays a major role here. It has already made it possible to start upgrading the material and technical base of colleges and technical schools, update educational programmes for aircraft- and ship-building, pharmaceuticals, electronics, defence and other industries. By 2028, about one million specialists in vocational professions will have to be trained for these sectors. We have already talked about this on many occasions, and I just want to remind you of it today.

As for higher education, in the next ten years Russia will have 40 university campuses with advanced conditions and opportunities for students to study, research, live and work. I would like to emphasise once again: we will assess the work of higher education institutions, Russian universities, colleges and technical schools by how much their graduates are in demand and how their salaries are growing.

At the same time, our economy needs not only young personnel, but also experienced, knowledgeable specialists who are competent in their profession and can teach their young colleagues a lot and become real mentors for them. In this regard, it is important to support the aspirations of people who have reached retirement age to continue working and do good. Their knowledge, skills and competences are an important resource for the economy and social sphere.

What are we talking about? We are talking about the level of wages for working pensioners. We have been discussing this topic for a long time. We just talked about this at a meeting with the governor of St Petersburg [Alexander Beglov], just before our meeting.

I want to talk about a decision that has been raised more than once during my meetings with citizens. Due to financial and budgetary constraints, pensions for working pensioners were not adjusted for inflation in previous years. During this time, this issue, which concerns millions of our citizens, has come to a head, and today we have the resources to begin to resolve it to meet people’s interests.

I propose resuming the practice of adjusting the pensions of working pensioners for inflation starting next year. (Applause.) Effective February 1, 2025 onwards, pensions will be increased annually not only for those who have already retired, but also for those who continue working. This will be truly fair.

I ask the United Russia Party together with the Government to prepare a relevant bill and pass it in the spring session. I know that all the other parties represented in parliament will certainly support this.

Further. The fourth structural change is directly related to higher economic efficiency. This indicator until the end of the current decade has been set in the May executive order. Given the demographic challenges that we have faced, the real personnel shortage, the most important condition for achieving high rates of economic growth is an increase in labour efficiency. This is the main resource.

Today I have already said about the need to increase investments and upgrade our enterprises. It is important to do this on a qualitatively new technological basis with the broad use of automation. Thus, Russia must be among top-25 countries of the world in terms of robotic process automation in the short period of time. It means installation of over 100,000 robots. That said, their production must be developed at an accelerated rate in our country based on our own technology, and no doubt, we have such an opportunity.

At the same time, it is also important to improve the efficiency of the existing equipment and technological processes. The key tool here is the adoption of prudent production methods. Such work is being carried out as part of a relevant national project. More than 6,000 enterprises and over 120,000 specialists are already involved in it.

This year is the final year for the current national project. It is necessary to extend the federal projects included in it within the framework of the new national project Efficient and Competitive Economy. Moreover, this practice should be expanded in order to involve in the projects of increasing labour productivity no less than 40 percent of medium-sized and large enterprises in the core non-resource sectors as well as all government and municipal organisations in the social sphere by 2030. For enterprises and companies, this will mean an increase in production, higher quality of services and more comfortable labour conditions and, of course, higher salaries for their employees. Let me remind you that in the next six years, they must grow at a rate higher than the gross domestic product.

The fifth structural change is a genuine digital platform revolution. In today’s environment, labour productivity is directly linked to digitalisation, to the use of artificial intelligence technologies. By 2030 we are to create digital platforms in all key sectors of the economy and social sphere. These tasks will be addressed under a new national project – the Data Economics.

I will add that within six years no less than 80 percent of Russian entities in the key economic sectors should switch over to Russian-made software in production and managerial processes. To support the IT industry, we will stipulate a number of measures, including taking into account the costs of domestic digital solutions with an increased coefficient when calculating profits tax, as well as establishing a reduced corporate profits tax rate of five percent for Russian IT companies. It will be effective until 2030, inclusive.

I ask the Government to elaborate additional steps to support domestic software designers, including identifying the level of purchases by companies partly owned by the state from small technology companies and start-ups. I repeat, this should be a guaranteed level. Purchases may not be lower than this level. We are already using this tool, and it works quite effectively. We need to continue using it.

And of course, it is important to actively apply digital solutions in the construction and housing and utilities sectors, using them to reduce the time and cost of projects. I would like to point out that over the past five years, the duration of the investment construction cycle has almost halved due to the elimination of administrative barriers and clearly excessive requirements. I will not list everything that has been done. Quite a lot has been done. Yet there is still much to work on. We will continue relevant efforts so that more roads, bridges, factories and plants are built in Russia and, of course, more comfortable affordable housing with high modern parameters of energy and resource efficiency.

In this regard, the housing and utilities sector and road construction have enormous potential, including the use of recoverable resources, the application of so-called smart solutions and ‘green’ standards based on advanced technologies.

In this connection, the sixth structural change is the accelerated, advanced saturation of economic sectors with modern technologies and innovations. This is one of the priorities. In six years, we plan to become one of the world’s top ten leaders in terms of research and development. Domestic expenditures for these purposes should increase to at least two per cent of GDP.

In this logic, a number of new national projects will be launched in the field of technological sovereignty in such key areas as production and automation equipment, new materials, chemistry, advanced space services, energy technologies and a whole range of others.

These projects will aim at a whole range of solutions: from popularisation of science and personnel training, support for research and starting serial production to the creation of guaranteed demand for high-tech products. I would like to emphasise that the projects will identify so-called backbone colleges, universities and research institutes. They should become the foundation for a rapid growth of new industries in our country.

Of course, legal base must be improved for the work of businesses and for companies to feel confident when investing in knowledge-intensive initiatives with a long horizon. I would like to note that we have enormous intellectual and creative potential, and it is important for us to fully realise it; and positive trends, of course, are emerging. For example, over the first four months of 2024 alone, almost 8,000 applications for inventions and 3,500 applications for utility models were filed in Russia, primarily in areas critically important for our country: metallurgy, energy, transport, and engine building.

It is critical to ensure that our developers’ intellectual property is protected, along with their solutions’ commercial effectiveness, so that their inventions are not shelved but go through the entire chain, from procurement to embodiment in a specific product. In particular, it is necessary to provide for the possibility of transferring patents for specific research results (as some experts believe) from the customer to their creators, as well as to small innovative enterprises and technology companies that know how to commercialise inventions and are ready to do so. However, as someone with basic legal education, I understand perfectly well where the “roadblock” is, and legal arbitrariness cannot be allowed. If someone pays for a certain invention, he or she is the owner, this is obvious. But it is necessary to create a soft market mechanism for using these inventions so that they are not shelved. Of course, we should all think about this together with the parliament and the Government.

In this context, the seventh critical structural change is a transformation to strengthen the role of small and medium-sized businesses in economic development. Today there are about 6.5 million small and medium-sized businesses in Russia. When six years ago we set a goal to increase the number of people employed in this sector up to 25 million, it seemed very difficult. Let me remind you that some of our colleagues laughed and said that this was an unrealistic task. Today we can say with confidence: this goal has been achieved ahead of schedule.

Our entrepreneurs, including the younger generations, are steadily gaining momentum, occupying the market, and launching manufacture of products that often surpass foreign analogues in their characteristics.

In addition, Russian businesses are aware that one’s own trademark is a token of quality and a solid economic asset. The number of applications for trademarks is growing for clothing and footwear, software, pharmaceuticals, household chemicals, perfumes and cosmetics, confectionery, and so on. Last year, more than 143,000 trademark applications were filed, twice as many as in the pre-Covid 2019.

Incidentally, the trademark registration process in Russia is one of the most convenient and fastest in the world, it is fully digitised. The application review period is 4 months, and following that period an electronic protection certificate is issued.

Importantly, distinctive regional local brands are increasingly being registered. This is, of course, a tribute to the culture and traditions of our peoples, evidence of entrepreneurs’ pride in their homeland, the region where they do business. And of course, businesses see that people want to buy domestic goods produced in Russia.

By the way, many of the regional brands belong to the so-called creative industries. More than half of the Russian regions are doing a lot to promote their development. I ask that as early as the spring parliamentary session, we adopt a federal law that will set a clear legal framework for creative industries, and in the future will make it possible to establish common standards for their support.

We will create every condition for small and medium-sized companies in our country to grow even faster. We will improve the effectiveness of existing support measures, and we will offer new ones in addition to them.

I would like to point out that so-called marketplaces play a significant role in the development of emerging small businesses. Together with Russian Post, they build a modern infrastructure, a kind of circulatory system for the delivery of domestic products, allowing companies even in remote towns and villages to gain access to the large market of Russia and the entire Eurasian Economic Union.

I ask my colleagues in the Government to lay special focus on the development of such commodity flows when implementing the updated strategy of Russian Post and, in general, when shaping national projects.

I would like to add that to help domestic businesses promote their products, a nationwide ‘Know Our Own’ competition has been launched. This year, the number of applications for the competition has increased by 150 percent, and they came from all regions of the Russian Federation. In short, the competition is growing and has proved to be a real business lift.

Importantly, such successful practices should be actively applied at the regional level. I draw the attention of my colleagues, regional governors, to this.

I would like to highlight one more point. Virtually all of the competition participants and, in general, many domestic entrepreneurs support the servicemen and veterans of the special military operation, their families, relatives and friends of our heroes, sending their products to the military units, buying things and equipment, and helping hospitals. Such a high awareness of their social mission, responsibility, patriotism in the best sense of the word is certainly very valuable and deserves great respect. Thank you.

Colleagues,

The next, eighth most important structural change is related to unlocking the potential of Russia’s regions. This is about a new geography of development, the creation of growth points in cities and towns across the country, opportunities for people not only in the capital cities, but also in small towns and villages to acquire a profession, find a well-paid job or run their own business, fulfil themselves, live and raise their children in comfortable and modern conditions.

Next year, new national projects and state programmes will be launched to develop the education and healthcare systems, sports and culture, and to improve the environmental well-being of our towns and villages.

We obviously need an economic base for all our measures in the social sphere and demography, for the implementation of federal and regional programmes. It is formed locally, in Russian regions. We will be enhancing the economic capacities of the regions.

In this regard, plans are being discussed, including in the Government, to move the head offices of our largest corporations and state-owned companies to the regions of the Russian Federation. The idea undoubtedly requires elaboration, but it deserves consideration and support. There are positive examples of this. For example, RusHydro’s relocation from Moscow to Krasnoyarsk.

And of course, it is important to concentrate resources on promising growth points. This is exactly the approach envisaged in the master plans for the Far Eastern and Arctic regions. We have agreed to approve similar programmes and documents for another 200 towns and cities. These will include all regional centres, as well as cities that play an important role in strengthening Russia’s technological sovereignty.

To ensure the regions’ vigorous and long-term development, it is essential to eliminate limitations in the energy sector and in the transport system, and to build and repair roads, engineering and utility networks. The Russian regions receive infrastructure budget loans for the implementation of such projects. As I have already said, their volume will be increased next year.

This portfolio will grow by at least 250 billion rubles annually, and in total, by the end of 2030, the amount of infrastructure budget loans issued will amount to 2.5 trillion rubles. Moreover, the funds will be distributed not only based on caps for each region, but also based on the results of the competition of regional and inter-regional projects.

There is one more decision. It has already been taken, and it will support regional finances. We are about to write off two-thirds of the previously issued budget loans. Importantly, the constituent entities of the Federation will need to use the freed-up funds to support investment, including the creation of industrial parks and the infrastructure in the priority development areas, as well as infrastructure, namely, to renovate housing and utilities, to build roads and bridges, to upgrade public transport and to relocate residents of the structurally deficient housing, to fund master plan events, and so on. I would like the Government to work out the details of this mechanism in a dialogue with the regions, and do so soon.

Next, in addition to breaking through the infrastructure bottlenecks, it is necessary to widely bring inefficiently used land plots with abandoned and unfinished buildings back in the economy. There are tens of thousands of such sites in the country. With a proper approach, they will serve people and bring profit to business. According to the General Prosecutor's Office, there are over 181,000 derelict and abandoned buildings and structures in Russia. More than a third of them are not officially registered, and only a fifth of them have titles.

Sometimes, abandoned territories are used as dumps which are usually illegal, and municipalities have no budget to liquidate them. I propose the following solution. If an entrepreneur is willing to liquidate such a dump at his own expense, we can think about giving him a land plot free of charge for use or ownership.

I would like the Government to hold appropriate consultations with the constituent entities of the Federation and to review which ones are owned by federal agencies and which ones are abandoned and unused. It is important to work through every detail and avoid creating bureaucratic barriers, to prevent abuse or “stealing” land plots from cities and towns. Of course, this needs to be thought through, but we absolutely need to do something about it.

I am positive that an effective solution to this issue will not only improve the urban environment and make life more comfortable, but will also directly contribute to increasing capitalisation of urban assets and attract small and medium-sized businesses, as well as developers with interesting residential development projects.

In this regard, I’d like to say a couple of words about mortgage loans. As you know, we have extended the family mortgage programme until 2030. All Russian families with children under six are eligible for a preferential loan with a six percent interest.

I propose additional special solutions in the social sphere for families who live or want to buy housing in small towns or in regions where housing construction is still insufficient. There, families with two children will be able to take advantage of a six-percent family mortgage regardless of their children’s age. The only condition is that at least one child in the family must be a minor at the time of the mortgage formalisation.

And one more point. The same preferential mortgage terms will be in effect in all Russian regions for each family set to build a house. This is particularly important for big families with many children.

I ask the Government to launch these programmes starting with July 1 of this year.

I should add that in order to improve the look of our cities, we will continue the nationwide competition of best projects of a comfortable urban environment. This programme is really popular, and people offer a good feedback. We will also launch a programme for construction and improvement of embankments and parks.

Restoration and reconstruction of cultural and historical heritage sites will be a separate track. By 2030, at least a thousand of such sites across the country must be put in order, given a second life, so that they serve people, serve to preserve and promote our identity, make towns and villages more beautiful, and increase their tourist attractiveness.

The development of domestic tourism is one of the priorities in our long-term strategy. In six years, the share of the tourism industry in the gross domestic product should increase to 5 percent, and the number of trips across the country with hotel accommodation should grow to 140 million people. We will create comfortable and affordable conditions for holidays, including the construction of hotels and small campsites, ski resorts and amusement parks.

Our economic and social policy measures must be not only effective, but also fair. And in this sense, the next, ninth structural shift is to reduce poverty, reduce inequality, and increase the incomes of Russian families, which, in turn, has a direct effect on the quality of people’s life, on increasing domestic demand and the domestic market capacity. All instruments, including payments to families with children, tax deductions, and social contracts, should be used to deliver on this objective.

Without a doubt, as I said earlier today, the main tool is to ensure that salaries grow at a rate that exceeds inflation. There is an important decision that concerns adjusting the minimum wage which, as of now, exceeds the subsistence minimum, as the Constitution says, and we will tie its adjustment in with the overall growth of wages in the economy as we move forward.

Starting next year, we will introduce a ratio of the minimum wage to the median wage received by the majority of the employees in our economy. In 2025, the minimum wage will amount to 48 percent of the median wage, thus exceeding 22,000 rubles per month, meaning that it will grow by about 15 percent more. Then the ratio with the median wage will increase so that, as agreed, the minimum wage will amount to at least 35,000 rubles a month by 2030.

Finally, the tenth structural change, which is essentially integral, is about improving the quality of life of Russian families. This was discussed in detail in the Address to the Federal Assembly. To reiterate: all areas are critically important in this regard. That includes supporting child birth and large families, protecting motherhood and childhood, increasing the availability of long-term care for the elderly and people with disabilities, improving the education and healthcare systems, and the quality of life.

These changes should manifest in longer life expectancy, with an emphasis on active and healthy life and, of course, forming equal opportunities to help younger generations rise to their full potential and thus improve the standard of living of Russian families.

Colleagues, friends,

The global economy has entered an era of major changes. A multipolar world with new growth centres, investment and financial ties between states and companies is taking shape. Russia’s economy is responding to these challenges and is also changing dynamically, as it gains more strength and stability.

To a great extent, the credit for this goes to our workers, engineers, managers and, of course, entrepreneurs, who are increasing investment in growing their companies, enterprises, cities and regions, and bringing to the fore values such as responsibility, trust, and service to their people and their country.

We will increase the support for positive changes in society and the economy. Our long-term systemic plans to strengthen the financial, technological and human resources sovereignty of our country and to improve the business climate are focused on achieving national development goals. In this work, we are open to the broadest possible cooperation with all interested partners, including foreign companies, countries, and integration associations.

I thank you for your patience and wish you every success.

Thank you very much.

Sergei Karaganov: Thank you very much, Mr President, for this brilliant speech. I think that it really inspired this audience, as well as everyone who tuned in to listen to us from across the country. This also goes for our men on the frontlines who are there to fight yet another Western aggression. You said it right.

I now have the privilege to give the floor to President of Bolivia Luis Arce so that he can deliver his remarks.

President of the Plurinational State of Bolivia Luis Alberto Arce Catacora (retranslated): Thank you very much.

I wish everyone a nice evening.

I would like to welcome my colleague President of Russia Vladimir Putin. Thank you for the invitation to this important forum.

I would like to welcome the President of Zimbabwe and our moderator, and all those present in this hall today. I would like to extend to you warm greetings on behalf of the Bolivian people whom I am proud to represent here.

I would like to thank the organisers for their hospitality and the wonderful invitation to participate in this major international forum in the historic city of St Petersburg on the Neva River, home to the first socialist revolution in the world where fascism was defeated years later. The siege lasted three years and was broken.

I am sure we all believe that the world order is moving today towards a more just and a more balanced state based on multipolarity and multilateralism. We certainly expect that there will be different discussions on the transition to a new multipolar model of the global economy, in which we will undoubtedly be able to learn valuable experience from the Russian economy and see the serious role it will play in the new world.

This exchange is very important for all, especially for the countries represented here. Many of them have fallen victim to an economic model that is divided into centres and periphery.

As a result, we have become a deindustrialised country that produces and exports only one group of goods. That is why the Bolivian economy has become dependent and has become an enclave, basically, an import market.

Today, we have a large number of miners who extract minerals and supply them to world markets. But state-building in Bolivia was unable to change that situation because neo-colonialism was unfolding its networks. Therefore, our government, within the framework of the new plurinational state, heeded our people’s demands and aspirations and began the process of industrialisation to achieve national sovereignty and liberation.

Industrialisation and import substitution have been an essential item on our country’s agenda since the 19^th century, and we must gain a true economic independence and a political sovereignty to achieve that goal. We see that there is a big number of challenges we face.

This is the reason Bolivia thinks that the possibility of joining BRICS is an excellent chance for our country to carry out transformations and reforms in our country alongside with accelerated industrialisation.

By getting together, the economies of this successful association have been able to undermine the hegemony of the United States. They are the hope for the development of cooperation and complementarity between countries.

As we all know, today’s world reflects the crisis of capitalism with many dimensions. It is a financial, climate, energy, food, water, macroeconomics crisis as well as the crisis of institutions. We see this in international organisations. One of the features of this multidimensional crisis is that today a climate has been created that is at variance with the development of the world.

To confront this international environment and speaking of a development model different from a canonical one, we are developing in Bolivia our own model of economy, the communitarian productive socioeconomic model. It is a model that differs from what neoliberalism has tried to impose on us, because we have very serious social protection and support measures.

We are building on our basic, fundamental values that are indigenous and, of course, we focus on production which is a mechanism for increasing wealth. This model was developed based on characteristics that are typical of our Bolivian economy and our society. It is valid and active.

First and foremost, this model is based on economic growth and development, it is based on the use of natural resources for the benefit of our Bolivian people. It is a model that aims to industrialise and increase production.

Since colonial times, enormous natural resources have been discovered in Bolivia. We can think of Cerro Rico de Potosí, for example. It is a silver deposit, the biggest, largest silver deposit we have had. We also have the largest lithium reserves on the planet, deposits of gold, zinc, gas, silver, copper, rare earth metals, and so on. All of these strategic sectors of our economy will help us achieve better development, and they certainly serve the purpose of distributing the benefits to the members of society, given the programme that our governments are pursuing and the emphasis on those sectors of the economy that raise the incomes of our people and provide jobs.

This process is not only aimed at a more equitable distribution of income and reducing inequality which is very common in many countries. We also want to invest in other sectors of our economy, diversifying the economy, creating jobs, raising incomes and ensuring sustainable development and growth with a broad-based economy.

In our case, our ambitions include import substitution, attracting tourists, developing tourism and increasing productivity in agriculture, always in harmony with Mother Earth. Therefore, our model pursues diversification of the economy on a broad foundation and improving our population’s quality of life. The ultimate goal of this entire process is, of course, eradicating poverty and reducing inequality.

Bolivia started implementing its socioeconomic development model in 2006. We have achieved serious economic and social results and good progress. For example, Bolivia’s GDP has grown from US$945 million in 2006 to US$45.46 billion in 2023; GDP per capita has grown from US$1,037 to US$3,736 by 2023. In December 2023, we had more than six million employed citizens, which amounts to the highest employment rate in history, or 75 percent.

We managed to reduce poverty from 71 percent in 2005 to 36 percent in 2023 and extreme poverty, from 38 percent in 2005 to 11.9 percent in 2023. The Gini index went down from 0.6 to 0.43 in 2023. The economic model has thus achieved serious economic success and social progress.

In the context of the global economic slowdown and lower growth rates across many developing economies, along with rising poverty and inequality in many countries, Bolivia’s model of mutually supportive socioeconomic development is an alternative for developing countries. This model has shown that it is possible to stimulate steady growth that would be less susceptible to fluctuations, unlike in the countries that support a free market.

Additionally, our model for developing the Bolivian economy serves the purpose of reducing inequality and poverty thanks to the distributive policy and price stability. We can see that inflation continues to hit new highs in the rest of the world.

Also, in view of the global economic challenges, we have noted growing logistics expenses and international interest rates. We can see that these factors are destabilising the situation in many countries. Meanwhile, we demonstrated a 3.1 percent growth last year, which is the second highest result in South America and is also above the forecasts that international organisations made for Bolivia.

This model and its socioeconomic effects are evidence of the fact that there may be more than one vision of developing the economy and society. Different development frameworks may co-exist on our planet and, certainly, this comes from countries’ sovereign decisions. They are responsible for their own decisions regarding their economic and political systems, and this must be the leading idea across the globe.

We see our model as an alternative to dollar-based neocolonialism, where economies depend on the dollar, and neocolonial powers undermine multilateralism by imposing a unilateral world order. Bolivia’s economy guarantees socioeconomic inclusion of the population.

We have reduced inequality and succeeded in creating a more homogeneous society, thereby proving that a country can grow faster when revenue is distributed more evenly across the economy.

And today, we see that we need to work to eliminate inequality in a multilateral and multipolar world. The truth is that emerging economies are trying to strengthen their domestic markets, boost incomes, and reduce inequality.

But our model stands out because we have been able to become one of the fastest-growing economies in Latin America over the past two decades.

Another aspect of a multipolar world is cooperation and technology exchange between countries. Countries that are still developing need to build up their technological potential. Bolivia and the Russian Federation share the concern that today, technology is not allowed to actually serve humanity. Technology should serve humanity rather than companies, multinational corporations, or specific countries.

Paradoxically, development in the poorest countries is the most expensive today. In any project, the cost of infrastructure requires a bigger budget in order to meet the environmental standards that developed countries are imposing on us.

We deem it necessary to maintain cooperation, exchanges and technology transfers in healthcare as well. This became evident when the world was confronted with the COVID-19 pandemic. In the same way, we may have to fight new pathologies and new diseases in the future. At the same time, we are fighting for a healthier society that has embraced the values of our thousand-year old traditional cultures. I am referring to indigenous cultures, in which there is no place for the principles that are currently being implanted across the globe in unilateral world of capitalism.

We see that today, a multipolar world is being created, and in this world, we must promote our own currencies for financial settlements between countries. We must not allow any one country to become the world’s central bank and determine monetary policy around the globe. Those times are gone, because the structure of the economy and finance has changed dramatically.

We also follow countries’ socioeconomic development while respecting their sovereignty, without interference from outside. All peoples, all nations and their sovereign decisions regarding the use of their natural resources must be respected. Therefore, Bolivia has been consistently in favour of multipolarity, which is part of the historical destiny of humankind.

However, building a multipolar world is exposed to risks and threats. For example, it is necessary to guarantee there is enough food for the population, which continues to grow. We have already mentioned that one of the serious problems of modern capitalism is the food crisis, and this problem must certainly be addressed within the multipolar paradigm. We need to create cooperation programmes aimed at producing food around the world. It goes without saying that to achieve this, we need to exchange technologies that will increase agricultural productivity. This should also be one of the pillars of economic development in a multipolar world.

Today, unfortunately, many countries see high rates of poverty, malnutrition and lack of public services. We see that a large amount of money is directed to the arms race and building bases in other countries, that is where the country hosting these bases is not the one building them. We, like Russia and the BRICS countries, are also concerned about the threats of a hybrid war across many dimensions, which harms our development and industrialisation.

What we see today is an oligarchy that serves other people’s interests; we discuss this at academic and security conferences. For example, Bolivia’s lithium is a strategic resource that can facilitate industrialisation in Russia, China and other developing countries. With the existing threats to the stability of our government, further industrialisation, and our economic development model, our political project could be eventually curtailed.

We have immense stocks of priceless natural resources, and we seek to extract these resources with the least possible harm to the environment and for the benefit of humanity. This should certainly involve mutually beneficial cooperation. No country should rely on growing one crop species or mining one mineral only.

What we are saying is, today, we are shifting to a multipolar world concept, moving to create new blocs such as BRICS. We need to promote the development of such alliances as soon as possible in order to advance the goals of this forum. They also align with Bolivia’s national goals.

We must join forces and arrive at a multipolar world. This is the road that guarantees stability, peace, development and happiness of our nations, in balance and harmony with Mother Earth. We must live happily on our planet.

Thank you.

Sergei Karaganov: Thank you, Mr President, for sharing your insightful and instructive remarks. In your speech, you demonstrated that the economy as a research discipline cannot be nationalised or viewed as a science. It is an art, and every country must be free to pick its own economic model.

In this context, I have a question for President Putin.

Mr President, may I suggest that we make up our mind so that you instruct us to work with economists like Luis Arce to devise our own economic model? We are clearly up to something here, although it is just as obvious that we have yet to decide what exactly we are up to. Moreover, we have embarked on an effort to expand defence manufacturing, and have been quite successful, even if this has so far been more of a hit-and-miss situation for us. I do not think that there is any general outline or master plan guiding these efforts.

What do you think about establishing a permanent structure within this economic forum or somewhere around it with the primary purpose of using our own intellectual capacity by reaching out first and foremost to those who work on the ground, the practitioners? Unfortunately, most researchers in economics have been sticking with an obsolete model, and I know what I am talking about, since I used to be one, even if we it is true that the once an economist, always an economist.

Mr President, we would like you to instruct us, the St Petersburg Forum to set up a working group for devising this new model. This group can hold its meetings on the sidelines of this forum or somewhere around this place. Maybe we can come up with something new and interesting to have a better idea of where we are headed.

Vladimir Putin: I feel that we will have a debate rather than a conversation here. The Government of the Russian Federation as well as other government bodies may well take offence at what you have just said. You said that we are up to something, but I spent an hour spelling out what exactly we are doing. (Laughter). You have probably dozed off while I was speaking, and we may have heard you snoring, so you missed what I talked about. I spent an hour explaining what we were going to do, about the ten-point programme we have.

In fact, we are not simply up to something. We are working on a new development strategy. We have it, and it took us a year to draft it. We were not alone in these efforts; we reached out to the brainpower you mentioned, I mean the business community and their associations, by holding regular meetings with them. This has always been an inclusive effort for us.

You suggested establishing a corresponding structure of some sort. But we already have them – the Government of the Russian Federation, the Central Bank, as well as the Presidential Executive Office.

As for what you said about creating a working group within the St Petersburg International Economic Forum so that it can do something on its sidelines, you know, there is a famous saying, and we know who coined it: if you want something to fail, set up a working group.

I have to say that we have so many working groups that I can hardly understand which ones of them I must chair. When I am told that there is yet another group and I must chair it, I say fine, I will think about it. You can well meet on the sidelines [literal meaning in Russian – “in the fields”] of this forum, but please do this in summer, since it may get too cold here in St Petersburg out there in the open in winter.

Overall, generally speaking, the country knows you not just as an economist, but also as a political scientist, and quite a brilliant one too. You have been quite proactive and assertive when working on several major issues. Listening to people like you is always quite interesting, and I am not saying this to flatter you. Moreover, I must confess that sometimes I read your writings and listen to what you say. Therefore, I do not reject your offer. We are open to engage in any debate as long as it benefits our economy.

Sergei Karaganov: Of course, I agree with my President, but I have a small question: Do we know what model we are building? I would say that authoritarian social capitalism would be ideal for Russia, so that we know where we are headed, because we are allegedly moving along the right-wing path, and before that we moved along the liberal path. I do not understand this.

Of course, the Government is up to something, and we are proud of what it is doing or has started doing, thankfully. However, it has only started doing it when the rooster crowed, because nothing happened before that.

Vladimir Putin: We will east the rooster, because it is not doing its job anyway. What do we need such a rooster for?

As for the development model, I have recently said at a meeting with the heads of international news agencies that we should look at what is taking place in the world. What exactly did I say? For example, many experts regard the Chinese economic model as more effective than any before it, including the North American and European models. It is true that it is more effective, and you have said approximately the same just now, because it combines the elements of a planned economy and a market economy. The Chinese have done it in their conditions, which is an assessment I share, and we can see that this is so from their economic growth figures. It is an objective fact. But this model is effective for Chinese society and the Chinese economy.

Do you know what I would agree with? When you summed up the remarks by my colleague, you said that the economy is a science but it is also an art, to a degree. This is probably true. Such models can be rigid. When they are applied to different countries living in different conditions, at different development stages, such rigid models are ineffective or do not work well. Therefore, we must always proceed from reality, from the realities in our country. Everything is important here: our history and culture, the situation in our society, and the objective development level is extremely important as well. We must know what is effective in our society and what is not.

There are certainly basic elements. We take them into account. Rooster or no rooster, but a 3.4 or 3.6 percent of [GDP] growth last year – the final figure has not been calculated so far – is a good figure. And a 5.4 percent growth in the first quarter of this year is a god figure too. But it is the result of the joint efforts of the Government, the business community and, to a degree, of the Central Bank and the Presidential Executive Office. It is the result of our purposeful actions.

I have said just now about the foundation of our model that we are building it. We continue to take decisions related to the adjustment of our economic model.

Sergei Karaganov: Like any other citizen of Russia, I am happy that over the past two years we got down to business in connection with our special military operation. Before it, we moved along with the currents. That is why I am speaking about the need to come up with a clear understanding of where we are moving. In principle, we will talk about this later.

And now, let us listen to Mr Emmerson Mnangagwa. Please, let us listen to your experience. Your country has been developing in extremely difficult conditions. How many years has it been living under sanctions? Nearly since its establishment, hasn’t it? Nevertheless, you have survived and even started developing. How did you do it?

President of Zimbabwe Emmerson Mnangagwa: Your Excellency Vladimir Putin, the President of the Russian Federation,

Your Excellency Luis Arce, President of the Plurinational State of Bolivia,

Distinguished guests, ladies and gentlemen,

Allow me to extend my heartfelt appreciation to our gracious host, my dear brother, His Excellency Vladimir Putin, for the warm hospitality and for creating this platform for us to discuss critical issues that affect us in today's global landscape.

Your Excellency, may I, on behalf of the people and the Government of Zimbabwe, and on my own behalf, personally congratulate you once again on your re-election as the President of the Russian Federation. Your commitment to the welfare and the prosperity of your people and the defence of independence, peace, security and territorial integrity of the Russian Federation is unparalleled. Zimbabwe is confident that your continued leadership would accelerate progress and development of your Motherland, the Russian Federation.

Your Excellencies,

It is regrettable and unacceptable, but the collective West continues to pursue hegemonic tendencies that blatantly violate sovereign equality of nations, justice and fairness as embodied in the United Nations Charter. There is general consensus that unipolarity has no place in modern global politics and international economic relations. The reality points to a redistribution of power among nations, as well as the emergency of multiple centres of economic growth, innovation, and cultural influence. We recognise that a multipolar world is the panacea to both opportunities and challenges that confront humanity today.

The old geopolitical global order, dominated by a select few, resulting in the perpetual marginalisation of most of us in the Global South is no longer acceptable. A situation where some Western countries try to dictate to us who our friends are and who our friends should be will also never be tolerated by us in Zimbabwe.

Advancing and embracing multipolarity has great potential for us is Africa and the developing Third World, to realise balanced inclusive development, modernisation and industrialisation, as for the Second Republic in Zimbabwe. Zimbabwe is guided by the philosophy that we are a friend to all and enemy to none. We are convinced that mutually beneficial cooperation, partnerships and investments, encradled by complementarity are a more sustainable foundation for a multipolar world and the formation of new areas of growth.

To this end, we welcome the transformation of the global economic relations in the geopolitical landscape, through BRICS, with additional new members, along with other emerging economies.

In these efforts, the role of Africa remains critically important not as a major supplier of raw materials, but as a dependable global partner in every facet of human endeavour and development. As we pursue new areas of growth, the abandoned subsoil assets of Africa should be a leverage to drive shared sustainable development and economic prosperity. The new global supply chains demand that Africa be accorded the requested support with regard to value addition and beneficiation. Further, there is need to enhance the productive capacities of Africa. This is more urgent in view of Africa’s vast natural resources in critical green minerals, large tracks of arable agricultural land, and youthful population with robust entrepreneurial spirit coupled with the united market presented by the Africa continental free trade area. All this leads to the right mix for shared growth under a fair, just and mutually beneficial multipolar global order.

In our case, this of Zimbabwe, we call for the removal of illegal sanctions, which you have mentioned. They have held back our economic development and growth for the past 24 years. What is our crime? The crime of the people of Zimbabwe was that they demanded their land to be united with the people and the people to be united with their land.

As all other nations have the same goal and the status, but how for Zimbabwe to achieve that with sanctions imposed on us? To this end, strategic investments in the key areas and sectors of our economy are essentially to unlock our potential. These include infrastructure, education, science and technology, renewable energy sector, and the climate change adaptation.

Your Excellencies,

Zimbabwe is open for business and welcomes investments, partnerships, and collaboration in all sectors of the economy. Technology and innovations serve as catalysts for growth, possessing the capacity to build bridges, grow new industries, and revolutionise our economy.

For us, to leapfrog the development of our economy, we do not need to invent the wheel. As a result, we are embracing the digital revolution investing in science, technology, and innovation, ecosystems, and promoting education with digital literacy at all our state universities.

Our aspiration is to leapfrog Zimbabwe into an upper-middle income country by 2030. In this regard, we actively seek partnerships and collaboration to realise this vision. As a nation, we are leveraging our strategic geographical location at the centre of southern Africa, as well as skilled and educated workforce, abundant resources, and manufacturing expertise to harness the opportunities presented by new prospects for growth and increased trade.

We once again extend a cordial invitation to our brothers in the Russian Federation, investors, to explore business opportunities which are abundant in Zimbabwe.

Your Excellencies,

In a multipolar world, solidarity and cooperation among nations are indispensable. The challenges we confront in the sphere of peace and security, climate change, pandemics, and economic inequalities, among others, demand collective global action and cooperation. This should remain rooted in our shared desire for peace, unity, and development that leaves no one and no place behind.

In this respect, Zimbabwe considers the Russian Federation as a consistent global ally. To harness the opportunities presented by a multipolar world, it is necessary to shift the paradigms in our approaches to cooperation, synergies, investments, and partnerships. Zimbabwe is committed to play its part in this transformative process.

As we embark on this journey together, let us remain mindful that strength lies in our unity, adaptability, and innovation. Together, we can forge a multipolar world that is more just and inclusive and prosperous for all.

Zimbabwe, in spite of 24 years of sanctions by the West for the crime of claiming our land, which every country has done… Sanctions have been imposed on us for the last 24 years. However, because of resilience, peace prevailing in the country, Zimbabwe’s GDP has grown during the Second Republic, from $26 billion in 2018 to now $69 billion in 2023, despite of the sanctions imposed on us.

We also embrace the policy, as a people living under sanctions, to move on with everybody of our people, with the philosophy that a country is built, developed, defended and prayed for by its own people.

As a small country in the southern hemisphere, Zimbabwe has abundant land for agriculture. And with the modernisation and mechanisation of agriculture, we can easily become the basket of food security in our region. And to that end, we seek assistance of those in the first world, in developed world to assist us to leapfrog in the modernisation and mechanisation of agriculture.

As I conclude, allow me, Your Excellency, my dear brother President Putin, to thank you on behalf of the people and the Government of Zimbabwe, and indeed on my own behalf, for the generous and timely donation you have given to our country in the critical time of need.

I also appreciate, Your Excellency, for availing, through Uralchem and Dmitry Mazepin, a vessel for the transportation of fertilisers to Zimbabwe. We are grateful that we received it correctly, at the time we needed it in terms of the tropical season for agriculture.

This, however, my dear brother, is a demonstration of your commitment to support small and developing countries like Zimbabwe. And, in your endeavour for the consolidation of our relations, we in Zimbabwe look upon you as a dear and trusted friend of the people of Zimbabwe, who for the last 24 years suffered under sanctions.

There is no light that can be removed. In spite of that, my dear brother, our economy has grown, and it is the fastest growing economy in the region now in spite of the sanctions imposed by the West. Therefore, as a demonstration of your commitment to support small countries like Zimbabwe, we have achieved food security, as you supported us in fertiliser acquisition.

May I, on behalf of my country, my people and myself, cherish your consistent support to a country under sanctions. And in that regard, I wish to promise you, Your Excellency, that we are better off with the continued imposition of sanctions, because they cause trade to survive.

For that, my dear brother, I thank you.

Sergei Karaganov: Thank you very much, Mr President.

We are proud of you, but we are also proud of ourselves to some degree, because we are contributing to your success in the time of ordeal. Now we will get down to formal discussion.

In fact, all states’ development is based on three factors: the factor of military power, the factor of ideas, spirit, and will, and, finally, the factor of the economy.

For many years, we believed – like a certain president of a very large country – that everything is decided by the economy. Do you remember everyone saying, “It’s the economy, stupid.” The stupid one was the person who said this, because in fact all these three factors play a role.

Of course, now, at a geostrategic turning point, military strength and the strength of spirit, the power of ideas, come to the fore. Nevertheless, the economy is essential: there will be no strength without the economy, and without the economy, without bread, the spirit of the people will be undermined. We have already been through it – in particular, in the 1980s. Therefore, let us begin with economic and political issues.

Mr President, I am turning to point eight of your programme. Though you have not said where we are going, all points are great. Point eight of your programme is about territorial development, though you did not list one area that I find strategically important.

We have completed our journey to the west, which was very useful and gave us a lot. It is completely clear that in the current global circumstances, we need to shift the centres of our spiritual, economic and partly political development towards Siberia and the Far East, as well as because of the long enmity with the West – God willing, it will not go completely violent – but most importantly, due to the fact that we have turned to another world that is emerging.

At some point, you proclaimed “a turn to the east,” but this turn happened initially only because of the Far East; later the Northern Sea Route was added. In your speech at the 2019 forum, you said it was necessary to develop large scientific and production centres in Central Siberia. After that, the coronavirus outbreak happened, followed by the special military operation, and this idea plunged into oblivion.

Perhaps we should go back to it. We really need to move the entire country there, “siberialising” Russia. You have mentioned the Minusinsk Basin. Perhaps we should create new industrial centres for the deepest processing of non-ferrous metals and new energy, especially new power engineering there, as well as centres to produce all wood-chemical products closer to Lake Baikal. Maybe we should still develop a new strategy for the development of the entire Siberia: the “Siberialisation” of Russia. Why don’t we dare to do this? Of course, we had a project for the development of the Siberian (Federal) District. I studied it, and, as far as I know, you did not like it either. However, I believe that the development of the entire Siberia must begin as soon as possible.

Vladimir Putin: I agree that we need to develop our eastern regions such as Western Siberia, Eastern Siberia, and the Far East.

We started with what was not only the most relevant but also the most urgent thing in terms of territories preservation and development; we started with the Far East. There was a drastic decline in population, and we could not allow this process to continue. I hope that the efforts taken over the past decade to develop the Far East are obvious. I am not going to mention them all now; we have a fairly comprehensive programme.

The same applies to Siberia in its entirety – once again, both Western Siberia and Eastern Siberia. The former has traditionally developed since the Soviet era, given its [vast] mineral resources that our country still uses. But gradually, these centres of economic development are shifting to the east and north. To quote a famous saying of the past (and we remember who said it), “Russia’s power will grow with Siberia.” Now, we can say that Russia’s power will grow with the Arctic as it appears to have major mineral resources; they are still complex and expensive to develop – yet, the prospects are vast.

Essentially, this is what we are doing now. I just mentioned the development of the Eastern Operating Domain’s railway network. But we started this work there a while ago. When did Russia actually start building it? Was it during the construction of the Trans-Siberian Railway? It was even prior to the Russo-Japanese War, and then during the Baikal–Amur Mainline construction in the Soviet era. In our recent history, we have also set the goals of achieving progress in this regard.

We made certain miscalculations by thinking the load would not be as severe, as the Government believed, so we slightly shifted the development of the Eastern Operating Domain to later dates. But it went on anyway, although not as extensively as we initially planned. We will certainly work on this.

But in today’s conditions it cannot be implemented the way it used to be done in the Soviet era. And it even cannot be done the way it was carried out under Stolypin. He simply distributed strips of land, which was the main means of production at the time. But today, the main means of production is brains. We need to develop technologies, build universities, and train the professionals we need. And these are the efforts we are taking as well.

When I spoke about campuses at 40 universities and mentioned advancement of science and education, as well as the need to use robotic devices and AI, what I meant was that this all will largely develop in Siberia. This is what we are doing; we will have our respective major companies relocated there. Also, unfortunately, this cannot be done through a solely administrative way.

I mentioned RusHydro, a company that already operates in Siberia, one of the world’s largest, if not the largest, hydroelectricity company. Also, when appointing head of the company, I asked him, “Do you accept it on the condition that you move to Siberia and the headquarters move to Krasnoyarsk?” He said, “I accept.” And when I asked whether his family would travel there with him, he said they would do so.

You know, it is not as easy as simply constructing a building; you have to employ professionals. He was ready to move there right away. But hiring professionals is not easy; you need to do it on location. Some people are willing to move, while others aren’t; some are simply indispensable. This is a process that should occur naturally. But this is certainly our goal, and I totally agree with you on it. We need to eventually move in that direction. I mean that the centres of global development are located there, and obviously, we need to get closer to them.

Long ago, Peter the Great opened the window to Europe. He did so because major development processes were occurring there, which is understandable. Today, centres of global development are shifting to Asia, there is no doubt about it. And, obviously, we need to move towards these development centres. So you are right.

Sergei Karaganov: I have a quick question that I have prepared a long time ago. Peter the Great made history by opening a window to Europe, thus strengthening Russia. Back then, it was the most promising market. Why don’t we establish a third capital and finally stand on three pillars? It could be located near one of the major cities. Young, energetic individuals would flock there, rejuvenating the elite. By your order, several ministries could be relocated there. You said earlier that it is impossible to relocate something using administrative resources, but it is feasible. Many companies would be willing to relocate if incentivised by competitive salaries. It’s all up to your decision.

Are you willing to repeat Peter’s feat? After all, he succeeded.

Vladimir Putin: Peter the Great is a historical figure who served as the Tsar of All Rus and later as the Emperor. However, the conditions, the state of society, and goals during his reign were vastly different from today’s.

In the contemporary world, it is crucial to employ tools that will be effective today. While our inclination may be to make swift administrative decisions, we must also consider the implications of our actions and what we offer to society in a spontaneous manner in the form of an order.

In my opinion, it is essential to prioritise capturing people’s interest in progressing forward. By fostering conditions conducive to development, the centres of economic activity will naturally shift towards those areas.

As an example, let us consider the Far East. Many years ago, I visited a shipyard near Vladivostok. It was in a state of disrepair. I told them, “We won’t just restore this place; we will create new competencies, we will build new ships.” I had to face the scepticism of the workers and engineers who surrounded me. I must say, it took tremendous effort to establish the cluster that is now being built there.

It is not just about the money, which was consistently embezzled – I have to admit this unfortunate reality. We attempted to revive the project two or three times. Eventually, Igor Sechin, the current head of Rosneft, took charge and launched there impressive large-tonnage shipbuilding – a huge enterprise. However, it required tremendous effort; it is not easy to accomplish all of this.

Why am I mentioning this? Because qualified personnel emerged there. As salaries increased, people began relocating there. This led to higher wages, improved technological culture, and the emergence of cooperation with neighbouring countries in this field of activity.

Now, VTB and Mr Kostin, who sits across from me, are leading our shipbuilding industry. I am delighted that he has embraced this endeavour as if he were always involved in shipbuilding, despite his background as a financier. But what am I trying to convey? We are currently choosing the location for another enterprise, possibly near the ocean or close to it.

This is the natural progression – forgive me if I may seem to challenge your imperial mindset – in a market-oriented manner. And in this case, success awaits us. Certainly, it is challenging work, but it will be meticulously executed.

When I referred to Stolypin, yes, it was all spontaneous, we remember everything associated with it, including “Stolypin’s neckties” and so forth. However, at that time, it was the primary means of production, and it made economic sense to implement Stolypin’s approach: distributing the primary means of production, i.e. land, to the people and creating favourable conditions for them. Back then it worked. Now it is merely an order… I believe that my proposal will be more comprehensive, leading us to success along this path.

Overall, you are absolutely right. We need to move in this direction.

Sergei Karaganov: Mr President, I don’t consider myself more of an imperialist than you; it is just that I am more strongly in favour of this idea. However, I do know one thing: we have studied this extensively. The countries that relocated or established new capitals invariably experienced significant economic advancement. This is an undeniable truth. Therefore, we must bear this in mind, and I believe we shouldn’t overlook the possibility of a third capital.

Vladimir Putin: All right, thank you very much.

Sergei Karaganov: Let’s move on now to a broader issue. We can see that the old global economic system is in a state of collapse. It is collapsing due to many reasons. One of the main reasons is that first the Soviet Union and then Russia cut the ground from under the system, the ground of the Western 500-year domination in the world economy, politics and culture, its military supremacy. We began to cut it, the system yielded, then stopped for a while, then we flopped, and now we have risen up and started cutting out this superiority again, and the system has crumbled. It's going to fall apart endlessly and for quite some time. This is good, but it is also bad, because there are virtually no new regulatory mechanisms emerging. There is no master plan about what to do.

Our Chinese friends are painting something with very broad strokes, and someone else is also doing something. Have you thought about Russia taking the initiative to create a masterplan for a new world economic system (gathering brains from new countries, and maybe, after a while, good brains from old countries will also come)? To set up, say, in St Petersburg, next to the Forum, on the Forum's site a think-tank, which would create a new world economic and financial system, its outlines.

The Bretton Woods is dead or practically dead. What about creating a St Petersburg system? They will not be afraid of us, by the way, like of the Chinese. If the Chinese take it up, everybody will be afraid of them, and the Indians will not fit. Both Chinese and Indians will come to us. We see that our African friends will also be happy to participate. I think that the Latin American friends will also work with us, and we will be able to use their experience for our domestic construction as well. Could we engage in such work? This is not an imperialist idea. (Laughter.)

Vladimir Putin: They want to create such system. (Laughter.)

Look, the Bretton Woods system died a long time ago, in 1976. It was succeeded by the Jamaica Accords.

The Bretton Woods system was based on the gold equivalent. In 1976 (when decisions were still being made), the United States decided to depart from the gold equivalent, and the Jamaica Accords appeared. It detached the dollar from gold. What is the basis of this Jamaica system that is still in place today? Trust in the US economy.

Look what is really happening today: there is no other collateral, that is, except trust in the American economy, in today's world financial system.

It goes without saying that the United States is taking advantage of its monopolistic status on the global financial market and is making serious money in the process. According to publicly available data, the United States owes the global economy a contingent debt of US$54.3 trillion.

Here is what this figure is made up of: US$12.6 trillion is what individuals keep in their bank accounts and their pockets, or under the mattress, as we say, outside the United States. The US companies account for another ten trillion which adds up to a total of US$22.6 trillion that are backed by nothing else but faith in the US economy. The remaining amount is what people from other countries have invested in the US companies, and their investment in the US companies is secured by reliability of those companies and their market value. Eventually, their reliability also depends on the US economic system.

Here is what is happening around the world in this regard. The US economy is shrinking and its foundation is occasionally becoming cracked. It is not just their debt, which is through the roof, but also the fact they are not always meeting their inflation targets. They have their inflation target set at two percent, but they are cutting through this limit, as they did most recently during the pandemic, all the way to 7.8 percent, which undermines credibility of the US economy.

What is the economy backed by if it is shrinking? It is backed by nothing, and that is a problem. It is an unconditional problem for everyone who holds the US dollar.

Since it is shrinking, and its share in the global economy is shrinking as well, it means we are witnessing an absolutely natural movement towards the creation of multipolarity in the global economy and finance.

We can, no doubt about it, come up with all sorts of systems, but the value of a particular currency depends on the value of the underlying economy.

So, what are we doing now? We are building this joint work with our BRICS partners, and Russia’s role can be quite substantial. We have created the New Bank, and we are in the process of creating our own currency instruments. The whole world, well, not exactly the whole world, but a significant portion of the participants in international economic activity is switching to payments in national currencies. I mentioned earlier that 90 percent of our trade with China is regulated in yuans and rubles. In the post-Soviet space, the share of the ruble is nearing 70 percent, meaning that our role here is significant. However, we must join our efforts to make it more robust.

What are the US financial authorities up to now? My colleagues and I discussed today’s session and potential topics late into the night yesterday, and we came to the conclusion that the US authorities are acting like the Luddites in England who were destroying the tools that they used in their work. Today’s US authorities are breaking their “tools of greatness.” The dollar is one of the few instruments of today’s greatness of the United States. They are pushing the global economic agents away from the dollar with their own hands. It will happen anyway due to the shrinking of the US economy, but they are accelerating this process.

Naturally, new instruments are emerging, such as financial instruments of the central banks, which we discuss within BRICS.

There are other angles to consider as well. Our colleague from Zimbabwe mentioned attracting investment. Indeed, it can be done, and not only in relation to Zimbabwe. It can also be done with regard to other African countries, South Asian and Asian countries in general, fast-growing developing economies. However, these instruments should provide safety guarantees for this investment and return on the investment. What is the best asset to guarantee that if not gold? The quality of the proposed investment projects? If we ensure the quality – the quality and stability of the political regimes – and we will need to do so as a team, then we will be able to develop a payment system which will be almost volatility- and inflation-proof. It can be done. I discussed this with my friend and colleague President Xi Jinping during my visit, and I will discuss this with other BRICS leaders. This is a critical area of joint work.

Sergei Karaganov: That is comforting to know. But we are running a little late. We keep talking about the basket of Euro-Asian or BRICS currencies for eight or nine years now, but there is no progress, because, as you are aware, competition is rife.

Vladimir Putin: Well, there is some progress.

Sergei Karaganov: But it is still moving slowly.

Vladimir Putin: Payments are made in national currencies.

Sergei Karaganov: I am talking about creating SDR. Well, never mind.

I think if we assume some kind of perhaps not even true leadership, but at least get some serious work underway, we will help all of us, primarily, our small economies. I am almost certain that Mr Arce and Mr Mnangagwa will agree with me saying that if Russia starts coming up with concrete solutions, they will join in these efforts.

Vladimir Putin: You are right, we need to move faster.

Sergei Karaganov: We will all benefit from their advice.

Vladimir Putin: You are right. We need to speed things up. I agree.

Sergei Karaganov: Good. I have one more question related to the economy.

Currently, there is a significant increase in military spending and a rise in the military economy. This development is encouraging as it signals a return to our roots. As one insightful historian from St Petersburg remarked, Russia historically thrived and expanded as a military organisation of its people. When we lost sight of this, we began to decline.

As we strengthen ourselves, especially given the circumstances, there is an issue that warrants careful consideration. Presently, eight percent of our GNP is allocated to defence. This pales in comparison to the purported 13 percent during the Soviet era. However, it is challenging to ascertain the exact military spending in the Soviet Union since there was no comprehensive tally for such expenses. Moreover, substantial funds were channelled towards supporting socialist and socialist-leaning states, significantly inflating the country’s foreign policy and military budget.

However, drawing parallels with the Soviet era raises concerns. Sooner or later, we must emerge victorious from this war. From my perspective, the sooner, the better, ideally within two years, by employing the most resolute measures, which we can discuss later. Concurrently, we are already formulating conversion plans in collaboration with enterprises, responsible individuals, and business strategies. I recall the harrowing ordeal of the early 1990s, when we found ourselves trapped in similar circumstances, witnessing the erosion of high-tech industries and the exodus of millions of skilled workers and intellectuals to the streets or elsewhere.

Are we currently devising partial conversion plans to ensure that they are readily available once we start scaling down military production?

Vladimir Putin: In the 1990s, we not only wasted this potential, but also destroyed it.

Sergei Karaganov: Of course.

Vladimir Putin: I am well aware and remember vividly, especially since I worked here in St Petersburg. Back then, 70 percent of the city’s economy relied on defence industries, and much of it was dismantled, if not all of it. However, starting from the early 2000s, we had to focus on rebuilding, and we have achieved a lot on a foundation of modern technology.

We have always recognised the need to consider conversion. It is not just about conversion; we must also think about the modernisation of these facilities.

What do I mean? Companies all over the world that manufacture specialised equipment and weapons at the same time produce civilian goods. This combination of two aspects creates a positive synergy and makes it possible to attract investment as well as high technologies. On the whole, we are managing this successfully.

We have a relevant plan in place and we are consistently implementing it. In 2022, civilian goods accounted for approximately 25.1 percent of defence industry enterprises’ output, and this share reached almost 30 percent (over 29 percent) last year. Therefore, this process is ongoing.

Of course, we must continuously align our defence spending with current requirements and our economic development levels. We cannot rely on and exploit others, as the United States does.

Every year, the United States has a US$1 trillion trade deficit. What is this? I believe everyone present here will understand what I mean. This is a modern version of neocolonialism. By using the dollar’s monopolistic status, the United States consumes US$1 trillion more annually than it produces. It extracts these resources from other countries.

We spoke about the pandemic period earlier. What did they do? I do not recall the exact amount of money the United States printed, but it totalled over US$5 trillion. By the way, Europe printed an estimated 3.4 trillion euros. What did they do next? They circulated all these banknotes domestically and then started buying foods on the global food market. They absorbed all these resources within their country, acting like a vacuum cleaner, and for the first time in many years, they became net food buyers and importers, rather than exporters. As a result, global food inflation skyrocketed.

However, we cannot behave in the same way, and we do not monopolise the global currency market, the way the US dollar is doing. We have never acted like colonialists or neo-colonialists. In this case, we should, of course, rely on our economic potential and assess it realistically, which is what we are doing. Naturally, we are considering diversification in order to balance the current industrial situation, the real economy and the future situation. This is how everything is developing.

Sergei Karaganov: I will ask one more question on the economy because I know it is of great concern to a considerable part of the audience, not as much to me, but still, I also sense these concerns.

Currently, the country is undergoing partial nationalisation. It is said that this is being done, among other reasons, to correct the huge mistakes made during privatisation. Those reforms were indeed foolish; we established capitalism without protecting private property. This led to rampant corruption because property could only be protected by turning either to the state, which in turn led to corruption, or to criminals, or simply by transferring funds abroad.

Now we are witnessing a reverse adjustment – a de-privatisation. But where are the limits? Perhaps, we can determine them after all? The point is that if we are talking about rectifying the mistakes made in the 1990s, then there were mistakes all the way during that time, since everything we were doing was illegal and done unlawfully, with violations in each case.

I was involved in the economic processes at that time, because research could not provide an income, and I had to support the institutes. So, I know what was happening at the time. This is why, in principle, it is now possible to de-privatise everything.

However, this would undermine the foundation of our success. We have seen that private capital, even in our challenging military conditions, is quickly adjusting to fill new niches, creating a more flexible economy for us than it would have been if it were solely state-owned.

Can we stop at some point? Let’s declare, for example, that the unused mineral resources go to the state, we prohibit the export of capital and declare property to be sacred after a certain limit. And the level of protection for private property will serve as a basis for the KPI of all governors and other leaders.

Vladimir Putin: Regarding mineral resources, they belong to the state as it is. We only allow our companies to produce them, but they remain the property of the state. This is the first point.

Second, you mentioned the unwise, misguided or criminal privatisation of the 1990s. Though it might be painful for many people in the country, I still would not use such words. Why? Because I do not think that it was a deliberate criminal plan. Yes, it was largely an unwise decision based on the opinion of world-famous economists, including Russian ones, who said that everything should be privatised as quickly as possible, and the price does not matter, even if it is only one dollar. The main goal was to hand these assets to effective owners, which the state cannot be.

Reality has shown that in our country, under the conditions we lived in and are living in now, it was a wrong method, to put it mildly, to achieve the best possible result and maximum efficiency. It turned out that the state can be an effective owner, and it has demonstrated that in many cases, especially in industries that depend on large-scale investments.

At that time, nobody made any investments. It was a period when fraudulent schemes were used, when money was borrowed from banks for that pseudo-privatisation or more precisely, the theft of government property, which was bought for a song and the products it produced were used or not used to repay loans to state-owned banks. It was fraud.

Therefore, I would not do anything about economically incorrect but nevertheless legal decisions related to privatisation. The prosecutor’s offices only address cases of criminal privatisation of state property.

However, you said correctly that reasonable limits should be set for such actions. We are discussing this issue with our business community. I believe that a decision should not be formulated as a presidential executive order or a government resolution, but as a law. We are discussing this issue with our colleagues in the business community, and I think that we will find a solution.

Sergei Karaganov: Thank you.

Let us move on to more political matters. You always say you want to hold talks to settle the conflict with the West in Ukraine. Of course, this intention is commendable and positive.

But with whom could you hold talks? Our Western partners have deceived us numerous times and are violating all the agreements we make with them. The Kiev regime is morally, politically and even legally illegitimate, even from the perspective of the failed state that exists there.

How can we possibly hold any talks with them without first defeating them. achieving their complete surrender and holding a nuclear gun, so to speak, over our Western opponents, so that they do not resist any further? In fact, right now no agreements will be implemented until they are defeated. They are illegitimate and unreliable partners.

How can we deal with that?

Vladimir Putin: Well, yes, but as Josef Stalin said, “I have no other writers.” He said this about the USSR Union of Writers back when [Lavrenty] Beria came to denounce them once again. He said: “I have no other writers.” It is the same with our partners. So should we fight with all of them?

Of course, we need to reach agreements and conditions that align with our interests and are as dependable as possible. You are right in saying that it is very difficult to negotiate with people like this, who deceive us at every turn. They say one thing and then do another. It is unfortunate, but all military conflicts eventually conclude with peace treaties. However, as a former leader of a major European country told me, these agreements can be based on either military defeat or victory. Of course, we will strive for victory.

Of course, there are concerns about the legitimacy of those we have to negotiate with, because a preliminary or even superficial analysis of Ukrainian legislation reveals that the current executive authorities have lost their legitimacy.

Article 103 of the Constitution of Ukraine states that “The President is elected for a five-year term,” while Article 83 of the Constitution of Ukraine, stipulates that under martial law, the powers of the Verkhovna Rada can be extended, but there is no mention of extending the president’s powers.

There is a law on the martial law, which states that presidential elections are not held under martial law, but it does not mention the extension of the term. As a graduate of St Petersburg University’s Faculty of Law, I understand the significance of this point. If it is not explicitly stated, then it does not exist.

The Criminal Code includes articles on the usurpation of power, which seems to be the case here. Nevertheless, talks can still be held because, in accordance with articles 109, 110 and 111 of the Constitution, powers are transferred to the speaker of the Rada. So, if there is a wish to engage in talks, there is someone we can speak with.

We are ready for these talks, but only, I repeat, on the terms that we agreed upon when we started these negotiations in Minsk and later in Istanbul, not on some arbitrary terms. Even if we take the Istanbul agreements as a basis, we must still proceed from today’s realities. These are the general terms.

Sergei Karaganov: Mr President, it is commonly asserted that all wars end in negotiations, but this is a misleading maxim imposed upon us. In reality, most wars end with the defeat and surrender of the enemy. This is the only way to bring an end to this war.

Now I move on to the next question, which concerns the fact that in the current circumstances, when America finds this war advantageous, they will continue it, driving Ukrainians to slaughter and finishing them off. Now they will drive Europeans to slaughter as well. Without accelerated movement towards nuclear escalation, it will not be possible to end this war in the near future. That is the first point. .

Secondly, the tectonic plates of the global system have shifted apart. It is inevitable that numerous conflicts will arise objectively. Previously, there was a nuclear deterrent, the fear of nuclear weapons which has now significantly weakened. Do we understand the enormous responsibility upon us not only to achieve victory in this war – which requires us to escalate much more forcefully and be prepared to use [nuclear weapons] –but also to restore this nuclear deterrent to the international system to prevent a surge of conflicts? Who else will do this besides us? Who else besides you?“

You bear a tremendous responsibility. If we continue to ascend this ladder so slowly, even though there is progress, I fear we are somehow evading this responsibility. However, I understand the gravity of the moral choice.

Vladimir Putin: Regarding nuclear escalation, we never initiated this rhetoric. I cannot recall the name of that lady, the former Prime Minister of the United Kingdom, who, when asked about this upon assuming office, said she was ready to press the nuclear button.

We have never made such statements. This is how it all began. . We simply responded that this should be taken more seriously, and immediately they began to claim that we are brandishing nuclear weapons. We are not brandishing them. That is the first point.

Secondly, we should clarify what constitutes the or non-use, as well as specific scenarios in which they can be used. We have a nuclear doctrine, and everything is laid out there. I discussed this yesterday with the heads of news agencies. It states clearly: nuclear weapons can be used only in exceptional cases – when there is a threat to the sovereignty and territorial integrity of the country, in exceptional circumstances.

I do not believe that this moment has come – there is no such need. However, this doctrine is a living instrument, and we are closely monitoring developments in the world around us, and we do not rule out the possibility of making changes to this doctrine.

Now this is also connected with the testing of nuclear weapons. In the past, we signed and ratified this document; the United States signed it but did not ratify it. Under the current conditions, we have withdrawn our ratification. However, if necessary, we will conduct such tests. Currently, there is no such need, as our information and computing capabilities allow us to conduct this entire process in its present-day form.

Now, concerning speed and outcomes. You mentioned my big responsibility, and indeed, it is substantial. Can we expedite the resolution of the challenges before us? Yes, it is possible, but it correlates directly with potential losses. Despite this responsibility, my approach aligns with the recommendations put forth by the General Staff and the Ministry of Defence. While speed is crucial, prioritising the safety and well-being of our service people on the front lines is paramount.

Combat operations continue. In my understanding, since the beginning of this year, approximately 47 communities totalling 880 square kilometres have been liberated. We are steadily pushing the enemy out of the Donbass and surrounding areas. The General Staff and the Ministry of Defence have devised plans for achieving our objectives, and we are proceeding according to these plans. I am confident that we will successfully execute all of them.

Sergei Karaganov: However, we are fully aware that accelerating the nuclear escalation process can potentially save numerous lives by imparting a sense of caution to our adversaries, who have exploited our relatively permissive doctrine.

I am confident that it will be revised, and I hope it happens soon, granting you the formal right to respond with a nuclear strike to any attacks on our territory, which is a sovereign necessity. I anticipate that such a declaration will be incorporated into our doctrine sooner or later, which will likely deter our adversaries and ultimately safeguard our soldiers.

Certainly, it may be premature to escalate to nuclear options at this moment, but we should proceed in that direction to deter our adversaries. Especially the Europeans seem to be going mad, considering they are heading towards war for the third time in a century. Unlike the Americans, who are much more cautious, they dispose of Ukrainians and push them while being more cautious themselves.

I am experienced in hunting and understand animal behaviour well. When faced with a pack of wild dogs or hyenas, if you only have a stick, you might manage to scare them off. However, they will likely tear at your trousers and then will kill you if you tire out. But if you have the chance to take down a couple of them, they will flee, I guarantee it.

President Mnangagwa understands the behaviour of hyenas well. Would you agree with me, Mr President, that this is how hyenas can be scattered?

Emmerson Mnangagwa:

Vladimir Putin: We have a lot of our own.

Sergei Karaganov: In Europe.

Again, I emphasise this question, I bring it to the forefront. If we do not proceed more decisively up the escalation ladder, will we not provoke divine wrath? After all, the Almighty once showed us the way when he destroyed Sodom and Gomorrah with fiery rain for their decadence and depravity. Humanity remembered this lesson for many years and acted cautiously, but now it seems to have forgotten about Sodom and Gomorrah.

So perhaps we should recall that lesson and attempt once more to instil some reason into humanity, or at least into that part of humanity that has lost its faith in God and its sanity?

Vladimir Putin: Maybe without me? You will really turn up the heat there! They are already scared.

Although, of course, one might consider: when talking about Europeans, any logic seems possible. If, heaven forbid, it comes to some sort of strike, everyone should understand that Russia has an early warning system, a missile attack warning system. The US has it. There is no such developed system anywhere else in the world. We have it. Europe lacks such a developed system; in this regard, they are more or less defenceless. That is the first point.

The second issue is the power of the strikes. Our tactical nuclear weapons are four times more powerful than the bombs the Americans used against Hiroshima and Nagasaki, by three to four times. We possess significantly more of them – both across the European continent and even if the Americans were to deploy theirs from the US – we still maintain a substantial advantage.

If, God forbid, it comes to that – which we sincerely hope it does not, then, instead of what you said about “minimising the victims,” in reality, casualties could potentially escalate indefinitely. That’s the first point.

Second, the Europeans must also consider: if those with whom we engage in such conflicts cease to exist, will the Americans participate in this conflict at the level of strategic weapons or not? I have serious doubts about it, and Europeans should reflect on this as well.

Nevertheless, I firmly believe that such a scenario will never materialise, as we do not foresee such a necessity. Our Armed Forces continue to gain experience and enhance their efficiency, while our defence sector consistently demonstrates its effectiveness. I have stated this multiple times, and I will say it again: our ammunition production has increased by over 20 times, our capabilities in aviation technology far surpass those of our adversaries, and our superiority in armoured vehicles is significant. There is no need to dwell on this matter. Therefore, I kindly ask everyone not to mention such things unnecessarily.

Sergei Karaganov: You demonstrate such responsible behaviour and speak with such responsibility, but we are engaging with partners who exhibit absolute irresponsibility and have lost their sense of reason.

Vladimir Putin: You are a scary person.

Sergei Karaganov: No, you know… You have observed these partners from an external perspective, like most of us, but I grew up within that system; so it happened in my life. I have known them since I was young, and I assure you, I have valid reasons for saying what I do.

While I understand and support your reluctance, because it is a terrible decision that should only be made as a last resort, if they know you are not prepared to make this choice, they will continue to challenge and harm us endlessly.

And at the same time, they are not just fighting against us, they are also opposing our friends in the Global Majority, as we form the military-strategic foundation of this majority. If they succeed in undermining us, they will likely resume suppressing our allies. I wonder if the esteemed presidents would agree with this assessment.

Vladimir Putin: Allow me to make one remark.

The decisions made by both myself and my colleagues, with whom I collaborate in this field, are not based on hesitation. There is no room for hesitation in our approach. All our decisions must stem from a thorough analysis, a genuine, objective assessment of the present circumstances. That is our practice.

Sergei Karaganov: The day before yesterday, you had a meeting with the heads of international news agencies, where you said an interesting thing: that we are ready to send our long-range weapons to the countries that are enemies of our enemies. It made me happy because we should have done this long ago. Will we send both precision and hypersonic weapons to them, together with our technical personnel? This would seriously improve the global situation. For example, aircraft carriers, which have become useless instruments in current conditions, would depart from the global stage, and countries will stop spending huge amounts of money on them.

So, what will we send? How will we do it, and when? Of course, I understand that we must not do this without being asked first, or at least we must say that we are not doing it.

Vladimir Putin: Regarding aircraft carriers, you said that they are useless. No, they are only useless strategically in a global conflict. But they can be useful for addressing geopolitical tasks, as a geopolitical instrument, for approaching the territories which the Americans, French or British plan to fight against or intimidate into doing something. However, they are becoming useless, in a way, now that Russia and China have modern hypersonic weapons. You say that they are not worth spending money on. Let them spend their money. Why did you say that? Let them do it.

Sergei Karaganov: I said this for our Chinese and Indian friends. They are wasting their money.

Vladimir Putin: And I said that there could be geopolitical considerations. They are like non-strategic weapons. They have become useless as strategic weapons, but they can have other applications. Let other countries spend money on them, why not?

As for exporting weapons, we have not exported these weapons so far. But we reserve the right to send them to the countries or even legal organisations that are facing pressure, including military pressure, from the countries that are sending weapons to Ukraine and urging it to use them against us inside Russia. If they send weapons to the zone of hostilities and urge [Ukraine] to use them against targets inside Russia, why cannot we do the same? Why cannot we respond in kind?

I am not prepared to say that we will start doing this tomorrow, because such deliveries are in any case associated with a range of conditions that affect certain parts of the world in one way or another, and we must certainly consider this.

Sergei Karaganov: Let us wrap up this unpleasant military discussion for now. At the moment, to advance, if we find ourselves rapidly escalating in the near future – which I am advocating for but believe we can negotiate as we proceed – there may be a need for partial mobilisation at least. Do you think it is possible to defeat the enemy without mobilisation, or will mobilisation still be necessary?

Vladimir Putin: If we proceed with your suggested recommendations and aim for swift execution, our current forces are insufficient. However, our strategy remains focused on driving the enemy out of the territories we aim to control. Therefore, there is no need for mobilisation; it is not part of our current plans.

We mobilised 300,000 people. However, in the past year, without any mobilisation, over 300,000 patriotically minded persons voluntarily came to the military commissariats and signed contracts with the Armed Forces. (Applause.) Since the start of this year, more than 160,000 people have voluntarily signed contracts at military commissariats. Every day, over a thousand people continue to volunteer for service.

When we witness the strength of the Russian character and the resolve of our citizens, we draw inspiration. With this, we believe that ultimate victory does not require nuclear weapons. (Applause.)

Additionally, I should mention the forced mobilisation happening in Ukraine. It is evident that the age for mobilisation is decreasing. According to Ukrainian sources, the Americans have made reducing the age requirement for mobilisation – possibly to 25, 23, 20, or even 18 – a condition for ongoing support. This matter is beyond our control; let them handle it and perhaps change the current leadership in Ukraine, as I have previously mentioned.

But what matters to us? It is that they might have gained 30,000, 50,000 or as I believe, even 70,000 people recently. This number is likely to decrease. What does this indicate? It suggests that the newly mobilised personnel will only suffice to compensate for their losses. There might be a marginal increase, so to speak. We can interpret this in various ways; the numbers are known to us, though I will not mention them now.

However, in this situation, when our people voluntarily step forward to defend their Motherland, there is no need for mobilisation to be discussed.

Sergei Karaganov: Mr President, I understand your arguments, but I am well aware of our country’s history. I remember 1916, when we were winning, but the people were exhausted. Therefore, there will come a time when we must accelerate. In 1917, we let victory slip from our grasp.

Now, thankfully, because we initiated this operation, albeit perhaps later than ideal, we have seen a significant surge in the nation’s morale. It is clear that the economy has begun to function again, as it can only operate under such conditions. Traitors and fifth column elements have fled, and our Western adversaries will deal with them. These are all positive factors. However, this state of affairs must not continue indefinitely. Therefore, I urge you not to disregard the arguments regularly communicated to you by me and my colleagues.

Vladimir Putin: We consider everything carefully; thank you for your recommendations.

Sergei Karaganov: And now I go over to the issue (we'll come back to the global economy later) that you’ve already raised.

We all, including me and you, are fed up with the single communist ideology, so, of course, we do not want a communist ideology. But a state, a great state, cannot exist without a national ideology, without a great idea. States that lost their national idea, their national ideology, inevitably collapsed. The world is full of graves or shadows of such states. By the way, we collapsed twice, too: once when we lost faith in the Tsar and the Fatherland, and the second time when we lost faith in communism. And we are now resisting the introduction of a rigid state ideology.

It is clear that such an ideology is very easy to formulate; you yourself have already partially formulated it in your speeches. It is clear that such an ideology should not probably be mandatory, but it should be mandatory at least for those people who want to be the leaders of the country, who want to be the elite of the country. It is a code of honour.

This code of honour is easy to formulate, we know it. By the way, we are working on it, it is very close to the ideal of a Confucian superior man. We have discussed it with religious figures, our Orthodox and Muslim ones. They all agree on one thing – this code can be formulated.

Why are we formulating a code not for everyone? These people want to live an ordinary life – let them live, and that's fine. But if you want to lead, if you want to succeed in society, you have to follow absolutely clear rules, and these rules must be formulated. I'm not going to formulate them now, so as not to take up the audience, because it comes in quite easily. But why are we still afraid? We don't need to change an article of the Constitution. Why are we afraid of introducing a single state ideology that is mandatory for all those who want and are ready to serve the state and society?

Vladimir Putin: We are not afraid of anything.

Sergei Karaganov: Yes, we are.

Vladimir Putin: We have the Constitution, which you mentioned, and it says that we must not have a dominant ideology.

We had a dominant ideology during the Soviet Union, as you mentioned. However, this ideology did not prevent the collapse of the Soviet Union; things did not work out.

Of course, a multiethnic country needs a unifying idea. You noted that we first lost faith in the Tsar and the Fatherland, and then in communism. It is important to clarify that faith was lost in the Tsar, but not in the Fatherland. That’s point number one

Point number two. People continued to believe in the Fatherland, but their understanding of what was good or bad for it differed. This is a separate issue, and indeed, new ideas are necessary. Many lost faith in communism, but not all; otherwise, we would not have the Communist Party of the Soviet Union, a legitimate political party with numerous supporters. This is a fact, and I believe it deserves respect.

But you are right; we need unifying ideas. Today’s events demonstrate that patriotism, in its truest and most genuine sense, can serve as such an idea. People who voluntarily go to the front, risking their lives and health, exemplify this patriotism. However, it is essential that this idea is communicated and presented properly, thoroughly, beautifully and clearly. Please assist us in this. We would be very grateful.

Sergei Karaganov: With pleasure. This is indeed necessary. I remember how communist ideology faded away, and I did not regret its passing. However, its demise created a vacuum that led to the country’s collapse. We need to fill this vacuum with concrete ideas. Just give the order, and we will make it happen. However, it must be presented to society and the elite and made more or less mandatory for it to be effective. This is how communist ideology worked for us: it was mandatory for everyone, it drove our country forward for many years and enabled us to win a terrible war. This is why a unifying ideology is essential.

Vladimir Putin: I suggest we do not escalate our discussion. I am happy to debate these issues with you, but let us not focus solely on communist ideology, even though it played a significant role in Victory in the Great Patriotic War. If it were the only factor uniting a multinational people, then…

But then why did they fly over Moscow with icons? Why was the church later legalised, and the patriarchate restored? As our soldiers say today, there are no atheists in the trenches. It was the same back then.

Certainly, communist ideology played a role. People stood up and marched forward for the Motherland and for Stalin. But the Motherland always came first. Let us not forget this.

Sergei Karaganov: Of course, but many countries have collapsed when they lost their ideology. That is for sure.

Here is another peaceful, important question. As you know, our country is currently engaged in a major discussion about migration issues. Unfortunately, there are also chauvinistic sentiments, which pose a threat to our multiethnic nation.

At the same time, the police department is addressing migration issues. Whether this is positive or negative is debatable. However, their objective is to limit migration. I believe that we should take a stricter approach to limiting the negative aspects of migration.

In my opinion, we face not only the task but also an opportunity to start actively seeking and attracting skilled migrants from abroad. Climate migration will begin, value-based migration is starting to occur, and crisis-related migration will also happen, it is already underway.

By the way, we missed the opportunity to welcome a wave of very interesting people from Afghanistan who could have come to our country after they fled theirs due to the actions of the US.

Do we need to modernise our migration policy concept? I read it some time ago and found it to be amazingly unrealistic and liberal. The police department is allegedly engaged in implementing it. Perhaps you should establish a government agency to regulate these issues, develop a modern migration policy concept, and attract migrants while also implementing stricter measures to control their influx? We currently lack such a policy.

Vladimir Putin: I have no objections. You are right.

However, we should think about allowing interesting people from Afghanistan to come here. Today, many interesting people are coming here from other countries.

But you are certainly right in saying that we have not yet developed a well-thought-out migration policy. We had a single agency in the past, but it later merged with the Interior Ministry for security reasons. It is worth questioning whether this division is functioning effectively or underperforming. I have discussed this with my colleagues. I have instructed the Government and the Security Council to re-examine this issue as soon as possible.

It is undeniable that there is a problem. We need to attract migrant workers, as this is crucial. With minimal or zero unemployment, a shortage of workers hampers economic growth.

You are also correct in stating that we need individuals with specific skills, education levels, fluency in the Russian language, knowledge of our traditions, and more, rather than just any migrants. Our colleagues from countries that provide the majority of migrants also recognise this. We are discussing how to collaborate and teach these individuals Russian, our traditions and culture and our laws, so that they can feel comfortable in Russia. Most importantly, we want to ensure that local residents do not face any issues in the employment market or their daily lives. Where do migrants usually settle? In places with active economic life. And what are these places? These are Moscow, the Moscow Region, St Petersburg, and a few cities in Siberia that offer high wages. I wholeheartedly agree with you that there is much work to be done in this area.

Sergei Karaganov: We simply fail to use our guests’ excellent experience, and I want to ask President Arce the following question. You have said a lot of interesting things, and we will incidentally distribute your speech as a teaching guide. I will ask my colleagues to distribute it to universities, because it is a wonderful guide. Thank you, because it is an alternative to what is still being taught in most of our universities. And you are a living example that there is an alternative correct and effective economic policy. However, my question is a little bit different.

Your country is relatively well-off, you need to attract investments, and you also have plans of a transcontinental canal. Do you think that you still can turn to the International Monetary Fund, for instance, or to the World Bank for such funds? Or such times have gone and some other instruments are required? What instruments you see? We are establishing the BRICS Bank, there is something else in place.

What is ideal from your, efficient economist’s, point of view; what an ideal international system should be like to enable independent development,? What should be developed in it?

President of the Plurinational State of Bolivia Luis Alberto Arce Catacora (retranslated): Thank you very much for the question.

Actually, Bolivia’s only wish is to see development in utilising our natural resources. In this sense Bolivia is open to direct foreign investments following the model with foreign investment making up the biggest part. If it concerns natural resources, then it primarily should go to Bolivian state-owned companies and the state.

But there are absolutely different sectors like tourism, agriculture, etc, where natural resources are not so much involved. Here, of course, any foreign investor can participate, unless these are strategic natural resources for our country, where the state must have at least a 50-percent stake.

So, for example, for lithium, we held bidding rounds, and more than seven companies came to this bidding to participate in lithium mining. In Bolivia we already have three companies working with us, two Chinese companies and one Russian company. We issued a new invitation for new companies again at the end of last year, and in August we will finalise this procedure. We have the largest lithium reserves in the world, so of course, there is an opportunity for many foreign companies to develop these deposits. We have certain investments in the mining industry but evidently lithium production is the most important area for foreign investment.

More opportunities to invest may be available to those who see eye to eye with our economic model. We can create from the perspective of the state, providing certain conditions for sustainable development and revenue. Of course, BRICS, the New Development Bank, offers an excellent opportunity, because we are anticipating a kind of financing that is not conventional, as in the case of the IMF or the World Bank, because they have their own terms and conditions and they, of course, pursue their own objectives when providing loans. Regional organisations, such as the Inter-American Development Bank in Latin America, or other Latin American banking associations, offer financial resources. Or let’s say, there are associations of five countries of the region with better lending terms, and of course, international alternative solutions such as, for example, the BRICS Bank. It offers an excellent opportunity to bring onboard foreign investment and foreign investors for them to participate in such investment projects. Our Government uses caution when it comes to using our natural resources. We are open to private foreign investment, primarily, in other sectors.

Sergei Karaganov: Thank you.

Mr Mnangagwa, I also have a question for you, which I think is quite important. As a BRICS summit host country in which three African countries have confirmed their participation, our Government is drafting a programme. I think there will be other countries as well. What do you expect from BRICS? What direction should BRICS be heading from your perspective? What institutions should it create, let’s say, to help and then, maybe, to bring onboard countries like Zimbabwe? Maybe it should be a BRICS food facility or a BRICS fertiliser programme, maybe a BRICS emergency relief agency? An agency like that does not exist anywhere in the world at this point, and our countries can, perhaps, pool resources. Speaking of which, we will not need additional resources to do so. Could it be something along these lines? What would you like BRICS to do?

President of Zimbabwe Emmerson Mnangagwa: Thank you very much.

Currently, Zimbabwe is going to host SADC, which is an original body, in August this year. And to achieve that, we are building a new city which, we believe, will be completed by the end of August and September. We will host SADC nations in Harare.

With the BRICS countries, we are currently not aware of any intention to hold a BRICS summit in Zimbabwe. What I am aware of is the SADC summit of the heads of state in Zimbabwe. This [summit] rotates among SADC countries. We do so in order to, first, give every single SADC member the opportunity to host the SADC heads of state. But in the process, we create facilities – because it is necessary for holding a summit of that nature that facilities are created.

So, Zimbabwe is currently busy 24 hours. We do not sleep, creating a new city where the SADC heads of state are going to host the SADC summit in August.

After that, we are going to have facilities available for future international and regional conferences in Zimbabwe. We are not like the big boys here who have facilities that have been established for a very long time. We are growing up and I am happy that we are likely to be able to achieve the standard required to host a regional conference. And it means that in the future, a Zimbabwe-Russia summit could be held in Zimbabwe because we are creating such facilities. It is necessary, of course, for our region or, in fact, countries in Africa and maybe the world, to make sure that they create conditions to promote summits to come into their jurisdiction because that also brings technology. You cannot host a summit of this nature if you don’t have communication equipment or the facilities required for such a summit.

So, we in our region are, in my view, standing up to the challenge of hosting not only a regional summit but continental summits. We should be able to do so. For instance, now you have a Russia-Africa summit, you have a China-Africa summit, you have a Spain-Africa summit. I think in the future, we should have a Zimbabwe-Russia summit where we host the Russian Federation, or a Zimbabwe-China summit where we host China in Zimbabwe. We are conscious of that possibility.

And what is important is to be focused. Yes, we need external support, but it is critically important that, as a nation, we must also make sure that we develop primarily based on the domestic resources that are available and only be supported where we feel fully deficient. That way we become focused, and we become proud that we have created such institutions and such facilities.

So, I am looking forward to a day when I hold a Zimbabwe-Russia summit and my brother will come and attend a summit in Zimbabwe with all the facilities that I see here. As I look at them, I believe that, when you build after [somebody], you build better. So, we are likely to create better facilities for my brother because I have seen what you are doing. Thank you.

Sergei Karaganov: Thank you very much.

I will reach out to you with a letter later and ask you to elaborate on what you expect from the BRICS summit in particular. Perhaps, you have suggestions? We would be interested to find out. We are collecting such requests, because BRICS is gathering momentum. We need to identify the proper course of action to ensure its further development.

I am being signalled that we have to wrap it up. I had many interesting questions, you shouldn’t do that. (Laughter.) But if they say so, let it be.

Then my last question is for you, Mr President. You are a Russian European, born in St Petersburg, a city loved by many Russians, including myself. The European journey undertaken by [Tsar] Peter is over. You are completing it now with a certain delay. But there is one problem: our European genes are too strong. Europe has become part of our identity. How can we preserve them, avoid scattering them en route, as we do quite often in Russia when we toss the baby out with the bath water?

Could we perhaps make St Petersburg the centre of real European culture, hold festivals there for real Europeans, and declare at last that we are Europe? We are Northern Eurasia, of course, and primarily a civilisation of civilisations, but let us make St Petersburg the centre of European national culture. This is one question.

Here is another question to follow up on the first one. I think that our friends from Africa and Latin America will be glad if we start turning St Petersburg also into the centre of global culture. There was Paris – now it is on its way out. New York has changed as well. Could we perhaps make St Petersburg the centre of world culture? It already has all the infrastructure. What needs to be done here is to create a few festivals and – excuse my English – happenings. These events will attract huge crowds of people. St Petersburg residents will profit from them, while everyone in the Global Majority and in the Europe we are leaving will find them useful.

Vladimir Putin: As for the likely loss of some elements of European culture, or, say, genes of the European culture in Russia as we are turning towards the East and Asia, [I would like to say the following:]

First, we are not making a pivot for considerations of momentary advantage. This pivot is taking place in the world at large in connection with the growth of new centres of development. We started this work long before the current tragic developments in Ukraine.

I said at the very beginning – the economy is shrinking as does the impact the world development centres that have been active so far have on the global economy. The combined GDP of the BRICS countries is higher right now than the total GDP of the so-called Group of Seven. These trends not only persist but grow stronger and faster – I am talking about the economic growth today and in the short term. This is an inevitable development, and nobody can do anything about it. Whatever happens, this trend will persist.

Of course, as we have just discussed, long time ago, Peter the Great hacked a window through to Europe because Europe was the centre of economic development, prospects, markets and technologies. As an example, he would hang his boots outside that needed stitching, like they did in Holland or elsewhere. But the world is becoming more diverse, and we must react to this diversity, which is what we try to do.

As for elements of European culture, it is not us who are losing these genes and elements of European culture. Where is this culture in the part of Europe that is called Western? There will be nothing left of it quite soon. Only architecture will remain. But culture mainly means cultivating people. Lately, this effort has been poisoned by today’s global liberals who place utmost importance not on the interests of their own people and their own cultural code but on their ideas associated with global liberalism that are out of touch with reality. In my opinion, this is the key problem.

By definition, we are becoming centres of traditional European culture and traditional European values that, if we look a little further into history, are based primarily on Christian culture even for non-believers.

For us, for Russia, a multifaith country – you said (I don’t know who originally said it) that before anything, it is the military machine of the Russian people – whoever said that, I do not agree because Russia was originally formed as a multifaith state. Let’s remember the order from Catherine II or other, as we would say these days, leaders – tsars and emperors. When acquiring new territories, they would always say: respect the local population, their traditions and beliefs. This is how Russia came to be.

And of course, European culture represents a significant part of Russia’s culture, and we are becoming carriers of this culture, the one that is being killed in European countries today. However, realising this, many Europeans are now striving for their further development to be driven by their traditional values. Whether they succeed or not will become clearer when we see the results of the European Parliament election. But in our country, we will certainly promote further development guided by our historical traditions, which have shaped it as a multiethnic and multifaith state; this certainly can and must be done.

You mentioned the role of St Petersburg, and I agree. This is what we are doing – expanding our cultural activities here across the board, also cooperating with our friends and partners around the world: from Europe, from Asia, from Latin America, from Africa.

You spoke about St Petersburg. I am looking at the picture on my left and the picture on my right. Look at the one to my right: we see St Isaac’s Cathedral in the middle, the Senate and Synod to the right, and the Admiralty to the left. This is the view from the university where I studied, from the side of the Twelve Colleges, which housed the first Government of Russia. Further to the right is the Menshikov Palace. In the picture on the left is the Strelka, the spit of Vasilyevsky Island, the Rostral Columns, the Exchange, and St Isaac’s Cathedral again. This is a view from the Hermitage.

If we cross to this side and look backwards, at the Twelve Colleges or the Hermitage, the view will be just as beautiful. Why? Because the planning was guided by the most important principle and law, which is called ‘harmony.’ This is the principle we will be guided by in building our policy. Russia will certainly be part of this harmonious multipolar world. It is natural for us to also rely, to a large extent, on European principles, on European culture, because the Russian people are bearers of those as well, but we will treat with no less respect the culture and traditions of other ethnic groups of the Russian Federation. This unity is our strength. (Applause.)

Thank you! Thank you very much.

Sergei Karaganov: Thank you very much, friends, colleagues.

This was a very lively, intense, intellectual and political event. I hope that it has kept our audience interested.

Thank you, Messrs Presidents.

Vladimir Putin: I would like to thank our guests and our moderator.

Thank you very much.

Opening of the Russia-China EXPO and the Russia-China Forum on Interregional Cooperation

2024-05-18T13:51:44+04:00

Vladimir Putin took part in the opening ceremony of the 8^th Russia-China EXPO and the 4^th Russia-China Forum on Interregional Cooperation together with Vice President of China Han Zheng.

The President of Russia has also toured exhibition stands presented by Russia and China.

The 8^th Russia-China EXPO is taking place in Harbin on May 17–21, 2024. Held since 2014 as an annual exhibition, its venue alternates between the two countries. The EXPO emerged as a major trade and manufacturing platform focusing on expanding and diversifying Russia-China partnerships.

The EXPO has a tradition of holding a large-scale exhibition. In 2024, it presents innovative solutions and joint Russian-Chinese projects in machine engineering, metals, as well as solutions for the energy and IT sectors, manufacturing financing, logistics and other domains. Russia placed a special emphasis at the exhibition on presenting its potential as a tourist destination.

There are 16 regions representing Russia at the EXPO: Moscow, Bashkortostan, Tatarstan, Yakutia, Udmurtia, Primorye, Khabarovsk, Kamchatka and Trans-Baikal territories, Chelyabinsk, Sverdlovsk, Amur, Arkhangelsk, Tula, Vladimir and Tver regions.

This year, the 4^th Russia-China Forum on Interregional Cooperation is taking place as part of the EXPO with 28 constituent entities of the Russian Federation taking part in it.

* * *

Remarks at the opening ceremony:

Han Zheng (retranslated): Mr Putin,

Esteemed guests, ladies and gentlemen, friends. Good afternoon!

I am delighted to see you in Harbin and to join you at the opening ceremony of the 8^th Russia-China EXPO. I would like to welcome all the participants and congratulate them on behalf of the Chinese Government on holding this exhibition.

First, I will read out a message from President Xi Jinping.

“I offer you my best greetings on the occasion of the 8^th China-Russia EXPO.

China and Russia have been working together to achieve steady progress in their relations, making one step forward after another, and people in our countries have reaped the fruits of this cooperative effort.

This year, we are marking the 75^th anniversary of diplomatic relations between our countries. Having reached this new milestone, we have new historical opportunities opening up ahead and ever growing potential.

Ever since its founding all those years ago, the China-Russia EXPO has established itself as a major platform for promoting bilateral trade and economic cooperation.

I hope that this platform will enable our business communities to hold meaningful discussions and expand their contacts so that they can work together to promote our mutually beneficial cooperation and provide a new impetus to developing the comprehensive strategic partnership between China and Russia.

I wish the 8^th China-Russia EXPO every success.

President of the People’s Republic of China Xi Jinping. May 17, 2024.”

I will now make a statement on my own behalf.

Yesterday, the heads of our states held talks in Beijing. Together, they outlined a new plan for developing the comprehensive strategic partnership between China and Russia and set new benchmarks for further strengthening our practical cooperation.

Today, President Xi Jinping sent us his message of greetings, and Vladimir Putin is here with us and will deliver his remarks. I believe that our cooperation will yield even more tangible results under the strategic guidance of our heads of state and with the contribution from all stakeholders.

This year, we are marking the 75^th anniversary of our diplomatic relations. Over these years, we have made steady progress in forging deeper ties. The same goes for the way we view our trade and economic cooperation. In 2023, our mutual trade totalled $240 billion. China has been Russia’s biggest trading partner for 14 years now. We must also note that mutual investment has been on the rise, and there has been positive momentum in carrying out strategic projects in energy, chemical industry, aircraft manufacturing, space and transport. We have every reason to affirm that the mutually beneficial cooperation between China and Russia serves the interests of both our nations and injects positive momentum into efforts to further expand our ties.

Ladies and gentlemen, friends,

Over the past 10 years, the China-Russia Expo has become an important venue for establishing interregional ties and business contacts. The main theme of the 8th Expo is Cooperation, Mutual Trust and Opportunities. We are ready to continue promoting business cooperation, acting jointly with our Russian colleagues and based on our leaders’ instructions.

In this connection, I would like to highlight the following priorities.

First, we should bolster the dynamic growth trend in trade, utilising the untapped potential and expanding the range of commodities, trade in services and e-commerce. It would be practical to upgrade cross-border infrastructure, increase the freight-handling capacity of checkpoints and create favourable conditions for the movement of cargo and people.

We are giving priority attention to agriculture. We must increase access to agricultural markets. Food security and quality foods are a common goal for us.

Second, we must revitalise interregional ties. Interregional cooperation is a major driver of our countries’ interaction. It is symbolic that over 40 Chinese and Russian regions are represented here. It is very important for our regions, with their advantages and benefits for promoting trade and investment, to connect with each other.

The China-Russia Years of Culture were officially launched yesterday. We propose coordinating an engaging programme involving many regions and, of course, people.

Third, we must work together in new spheres. Our countries have common goals when it comes to national development and people’s well-being. Therefore, we propose applying our future efforts in new fields, such as smart cities, research and technological innovations, the digital economy, green development and healthcare, in order to enrich our relationship.

Ladies and gentlemen, friends,

As the saying goes, seek and you shall find. I have no doubt that high-level political and economic ties provide a solid foundation for helping our businesspeople find reliable partners.

Cooperation with Russia has always been a priority for the Heilongjiang Province, which keeps its doors open to its neighbour. I hope that the Expo participants are looking for and will find ways to expand their businesses.

In conclusion, I would like to wish success to the 8th China-Russia Expo.

Thank you.

President of Russia Vladimir Putin: Friends, colleagues.

I am delighted to welcome you to the opening ceremony of this major joint exhibition, the 8^th Russia-China EXPO, as well as the 4^th Russia-China Forum on Interregional Cooperation, which is taking place as part of the EXPO.

The fact that Harbin is hosting these two important events is highly symbolic, since Harbin is one of China’s biggest centres for research, education and innovation. This is the first time I am visiting this city, and I have to say that it is very impressive. What a modern, beautiful and vibrant metropolis! At the same time, it has its own unique identity, rich history and traditions.

Since its founding in the late 19^th century, Harbin has been a symbol of the close ties linking Russia and China and their intertwined destinies, and the mutual enrichment of their cultures and traditions.

By the way, as we drove through the city centre, it was immediately apparent that the historical district has a distinct Russian feel. Russian engineers and scientists played a significant role in the city’s economic development at the time, and to building its production base, major plants, factories and infrastructure facilities.

Harbin is a city that commemorates our nations’ brotherhood-in-arms. More than 12,000 Soviet fighters perished in the battles to liberate Northeast China from Japanese invaders. It was Harbin that on September 16, 1945, hosted the joint Victory Parade to commemorate the end of hostilities on the Pacific Front and of World War II. More than 300,000 people took part in the ceremony. It was a joyful celebration of the long-awaited peace and unity of the two peoples.

We have just laid flowers at the memorial to Soviet soldiers and officers. I am extremely grateful to the people of Harbin and the Chinese officials for preserving the memory of our liberators and our shared history of military glory. They have taken great care of our shared historical, spiritual and cultural heritage.

Building upon the glorious traditions of neighbourliness, friendship and cooperation, we can confidently look forward and embark on ambitious projects together, charting and implementing our grandest plans. President Xi Jinping and I discussed in detail the prospects of developing this close and multi-dimensional cooperation during our talks last night.

I believe we can take pride in the products of Russia-China economic links and cooperation.

Just a few years ago, a turnover of $100 billion in bilateral trade was considered a major success. Today, we have exceeded $200 billion. Chinese data shows $240 billion, to be more precise. And we can go even further.

The inseparable partnership between Russia and China directly contributes to the growth of both economies, ensuring our energy security, creating new production facilities and high-paying jobs, and ultimately improving the wealth and quality of life of our citizens.

I am confident that our strategic alliance in the energy sector, which serves as a key pillar of the entire global energy market, will continue to grow stronger. Russia is ready and able to provide the Chinese economy, companies, cities and towns with sustainable, clean and affordable energy, electricity and heating as a reliable and failsafe supplier.

We also have large-scale joint projects in industrial cooperation. Chinese automobile manufacturers are actively entering the Russian market. We are promoting the programme for developing a wide-body long-range aircraft and a heavy-lift civilian helicopter.

I want to stress: not only does Russia welcome Chinese businesses’ interest in localising their production in our country, but we are ready to provide investors from China with economic incentives, support and assistance. They will have access to Russia’s unique technology base and highly qualified personnel.

In a world on the cusp of the next technological revolution, we intend to consistently intensify bilateral cooperation in high technologies and innovations to harness our scientific and research potential. This is essential for us to secure leading positions and bolster the competitiveness of Russia and China in the global economy of tomorrow.

I would like to emphasise the dynamic development of our shared transport infrastructure that closely links our two countries. For example, in 2022, we opened two border bridges over the Amur River – a motor and a rail bridge – which already carry substantial passenger and freight traffic. Reliable and high-speed logistic corridors are crucial for both businesses and individuals in the border regions of Russia and China. We are committed to modernising border checkpoints and reducing the processing time for cargoes and vehicles at the border.

Our two countries are working jointly to diversify bilateral trade by providing incentives to a change in its structure. In particular, we are building up Russian agricultural exports to China. President Xi Jinping and I discussed this in detail yesterday. These agricultural products are distinguished by their high quality and environmental friendliness.

Russia supplies to China growing amounts of fish and other seafoods, as well as grain and pork. In effect, we are nearing the creation of a strategic Russian-Chinese production partnership similar to our close cooperation in energy.

Traditionally, the EXPO exhibition provides an excellent opportunity to promote industry-specific ties. Russia and China have taken turns in hosting this event for a number of years, and each time it attracts the keen attention of a growing number of participants, representatives of business and public circles, and regions of our two countries. The 8^th EXPO, which opens in Harbin today, is no exception in this regard.

Russia is represented at the EXPO by the CEOs of its major companies and industry leaders, such as Rosatom, Rostekh, Russian Railways, and many others. The spectrum of economic sectors represented is extensive, ranging from mineral production and the petrochemical industry to construction, iron-and-steel, the light industry, and digital technologies.

The numerous EXPO events, panel discussions, workshops and roundtables are designed to familiarise the Russian and Chinese participants with both countries’ vast economic potential, help them find new opportunities for commercial partnerships, investment, and technology exchanges. Moreover, these evets facilitate the negotiation of new joint projects and agreements, which, I am sure, will be supported in every way by the governments of Russia and China.

In keeping with our Chinese friends’ wishes, a Made in Russia trade fair has been organised on the EXPO sidelines, whose visitors will be able to taste or purchase high-quality Russian products from more than 1,000 brands.

The highlight of this year’s exhibition is a Russian-Chinese forum on inter-regional cooperation. It is worth noting that now a vast majority of Russian regions maintain ties with their Chinese partners. Similarly, this cooperation involves nearly all provinces and administrative entities on the Chinese side. Over 300 cities and municipalities in both countries have established twin-city relations. Russia’s network of direct contacts and inter-regional agreements on trade and economic cooperation and on cooperation in humanitarian areas with China are more extensive than with any other country in the world.

The forum is attended by delegations from 25 regions of the Russian Federation, 17 of them led by the highest-ranking officials.

Moscow, Tatarstan, Bashkortostan, the Tula, Nizhny Novgorod, and Amur regions, and the Khabarovsk Territory will present plans to create new mutually beneficial partnerships to their Chinese colleagues. These Russian regions have thoroughly studied their initiatives in depth and made them industry-specific. The Kaluga Region, for example, intends to promote cooperation in car manufacturing and create a cluster of plants to produce building materials.

It goes without saying that we believe there is great potential in fostering ties between the Russian Far East and Northeastern China.

I would also like to take this opportunity to invite our Chinese friends to the 9^th Eastern Economic Forum, which will be held in Vladivostok in early September. There, we will be able to continue our detailed discussion of opportunities for cooperation with Russia, including in territories of priority socioeconomic development, where convenient preferential regimes are being established for foreign investors.

In conclusion, dear friends, I would like to wish the organisers, participants and guests of the EXPO, this large and important forum, productive work, useful and constructive discussions, and all the best.

Thank you for your attention.

Thank you.

Vladimir Putin has been sworn in as President of Russia

2024-05-07T15:09:00+04:00

Vladimir Putin has been inaugurated as President of Russia in a ceremony that took place at the Kremlin.

The ceremony opened as the National Flag, the President’s Standard, the Russian Constitution and the President’s Badge were brought into St Andrew’s Hall of the Grand Kremlin Palace.

In accordance with Article 82 of the Russian Constitution, Vladimir Putin took the oath to the people of Russia in the presence of Federation Council members, members of the State Duma and judges of the Russian Constitutional Court. Constitutional Court President Valery Zorkin officially declared Vladimir Putin as the new President of the Russian Federation.

Afterwards, Vladimir Putin, the President of Russia and the Supreme Commander-in-Chief of the Russian Armed Forces, reviewed the Presidential Regiment on Cathedral Square to mark his inauguration. The President congratulated the Presidential Regiment on its 88^th anniversary.

Patriarch Kirill of Moscow and All Russia held a thanksgiving service at the Annunciation Cathedral in the Kremlin.

* * *

Speech at the inauguration ceremony as President of Russia

President of Russia Vladimir Putin: Citizens of Russia, ladies and gentlemen, friends,

In these solemn and crucial moments of assuming the office of the President, I would like to extend my heartfelt gratitude to the citizens of Russia across all regions of our country, as well as those living in the historical territories of Russia who have won their right to stand united with our Motherland.

I humbly honour our heroes, the participants in the special military operation, and all those who are fighting for our Fatherland.

I would like to thank you again for the trust you have placed in me and for your unwavering support. These words are directed to every citizen of Russia.

I have just taken the oath of office of the president. The words I spoke convey the essence of the supreme mission of the head of state: to protect Russia and serve the nation.

I understand that this is a tremendous honour, a major responsibility and a sacred duty. These have always been the guiding principles of my work in the past. I assure you that the interests and security of the people of Russia will continue to be my foremost concern.

The consolidated will of millions of people is a tremendous force, as well as evidence of our shared firm conviction that we will determine the fate of Russia ourselves, and only ourselves, for the sake of present and future generations.

You, the citizens of Russia, have confirmed that the country is on the right course. This is of great importance right now, as we face serious challenges. I see this as your deep awareness of our common historical goals, and unwavering resolve to defend our choices, our values, our freedom and Russia’s national interests.

I am confident that we will pass through this difficult pivotal period with dignity and emerge even stronger. We will undoubtedly accomplish everything we have planned for the long term, all the far-reaching projects aimed at achieving our development goals.

Our top priority is the preservation of the people. I am confident that the support of centuries-old family values and traditions will continue to unite public and religious associations, political parties, and all levels of government.

Our decisions regarding the development of the country and its regions must be effective and fair and must promote the prosperity of Russian families and improve their quality of life.

We have been and will continue to be open to strengthening good relations with all countries that view Russia as a reliable and honest partner. Indeed, those constitute the global majority.

We are not rejecting dialogue with Western states. The choice is theirs: whether they intend to continue trying to contain Russia’s development, continue the policy of aggression, the relentless pressure they have been exerting on our country for years, or seek a path to cooperation and peace.

To reiterate, we are open to talks, including on security and strategic stability, but not to negotiations from a position of strength. We are open to a conversation without arrogance, conceit or exceptionalism – a dialogue on an equal footing and with respect for each other’s interests.

Together with our partners in Eurasian integration and other sovereign development centres, we will continue to build a multipolar world and an equal and indivisible security system.

In this complex, rapidly-changing world, we must strive to be self-sufficient and competitive, opening up new horizons for Russia, as we have done many times throughout our history.

But we must also remember its lessons and never forget about the enormous price we paid for internal unrest and troubles. Therefore, our state and socio-political system must be strong and resistant to any threats and challenges, ensuring the progressive and stable development, as well as the unity and independence of our country.

However, stability is not equal to inflexibility. Our state and social systems must be flexible, creating conditions for renewal and progress.

We can see that the atmosphere in society has changed, and how much we now value reliability, responsibility, sincerity, integrity, generosity and courage. I will do everything in my power to ensure that those who have displayed these admirable human and professional traits, and who have proved their loyalty to the Fatherland through their deeds, achieve leading positions in state governance, the economy and all other spheres.

We must ensure reliable continuity in the development of our country for decades to come and bring up new generations who will strengthen Russia’s might and develop our state based on interethnic accord, the preservation of the traditions of all ethnic groups living in Russia, a civilisational nation united by the Russian language and our multi-ethnic culture.

Friends,

I will do everything its takes, everything I can, to justify your confidence in me, using the powers granted to me as the head of state by the Constitution. At the same time, I would like to emphasise that the success of this endeavour depend above all on our unity, integrity and our desire to serve our Fatherland, protect it, and work to the best of our abilities.

Today, we must answer to our thousand-year-long history and our predecessors. They attained seemingly insurmountable heights because they always put the country first. They knew that truly challenging goals can only be achieved together with the country and its people, and they created a great power, our Fatherland, leaving a legacy of glorious achievements from which we continue to draw inspiration today.

We look forward with confidence and plan our future by outlining and already carrying out new projects and programmes, which are designed to inject even more momentum in our development effort and make it even stronger.

We stand as a united and great nation. Together we will overcome all obstacles and ensure that everything we conceive becomes reality. Together we win!