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Citizens of Russia, members of the Federation Council,

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State Duma deputies,

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I would like to begin my Address with words of gratitude to the Russian 

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servicemen who are fighting international terrorism.

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Today here in the St George’s Hall,

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a historic hall of Russian military glory,

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we have combat pilots and representatives of the Armed Forces who are 

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taking part in the anti-terrorist operation in Syria.

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Gelena Peshkova and Irina Pozynich,

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who lost their husbands in the war against terror,

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have joined us too. My deepest respect to you 

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and the parents of our heroes.

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I would like us all to honour the memory of the soldiers who gave their 

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lives while doing their duty, and the memory of all Russian citizens 

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who fell at the hands of terrorists.

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(Moment of silence)

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Colleagues,

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Russia has long been at the forefront of the fight against terrorism.

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This is a fight for freedom, truth and justice,

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for the lives of people and the future of the entire civilisation.

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We know what aggression of international terrorism is.

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Russia faced it back in the mid-1990s, when our country,

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our civilian population suffered from cruel attacks.

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We will never forget the hostage crises in Budennovsk,

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Beslan and Moscow, the merciless explosions in residential buildings,

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the Nevsky Express train derailment,

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the blasts in the Moscow metro and Domodedovo Airport.

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These tragedies took thousands of lives.

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We still grieve for them and will always grieve,

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along with the victims’ loved ones.

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It took us nearly a decade to finally break the backbone 

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of those militants. We almost succeeded in expelling terrorists from 

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Russia, but are still fighting the remaining terrorist underground.

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This evil is still out there.

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Two years ago, two attacks were committed in Volgograd.

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A civilian Russian plane was recently blown up over Sinai.

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International terrorism will never be defeated by just one country,

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especially in a situation when the borders are practically open,

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and the world is going through another resettlement of peoples,

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while terrorists are getting regular financial support.

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Terrorism is a growing threat today.

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The Afghanistan problem has not been resolved.

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The situation there is alarming and gives us no optimism,

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while some of the yet recently stable and rather well-doing countries 

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in the Middle East and North Africa – Iraq, Libya and Syria –

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have now plunged into chaos and anarchy that pose a threat 

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to the whole world.

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We all know why that happened.

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We know who decided to oust the unwanted regimes 

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and brutally impose their own rules.

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Where has this led them? They stirred up trouble,

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destroyed the countries’ statehood, set people against each other,

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and then “washed their hands”, as we say in Russia,

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thus opening the way to radical activists, extremists and terrorists.

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The militants in Syria pose a particularly high threat for Russia.

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Many of them are citizens of Russia and the CIS countries.

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They get money and weapons and build up their strength.

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If they get sufficiently strong to win there,

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they will return to their home countries to sow fear and hatred,

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to blow up, kill and torture people.

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We must fight and eliminate them there, away from home.

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This is why it has been decided to launch a military operation there 

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based on an official request from the legitimate Syrian authorities.

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Our military personnel are fighting in Syria for Russia,

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for the security of Russian citizens.

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The Russian Army and Navy have convincingly demonstrated their combat 

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readiness and their increased capabilities.

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Modern Russian weapons have proved to be effective,

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and the invaluable practice of using them in combat conditions is being 

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analysed and will be used to further improve our weapons 

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and military equipment.

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We are grateful to our engineers,

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workers and all other personnel of our defence companies.

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Russia has demonstrated immense responsibility and leadership 

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in the fight against terrorism.

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Russian people have supported these resolute actions.

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The firm stance taken by our people stems from a thorough understanding 

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of the absolute danger of terrorism, from patriotism,

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high moral qualities and their firm belief that we must defend our 

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national interests, history, traditions and values.

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The international community should have learned from the past lessons.

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The historical parallels in this case are undeniable.

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Unwillingness to join forces against Nazism in the 20th century cost us 

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millions of lives in the bloodiest world war in human history.

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Today we have again come face to face with a destructive and barbarous 

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ideology, and we must not allow these modern-day dark 

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forces to attain their goals.

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We must stop our debates and forget our differences to build a common 

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anti-terrorist front that will act in line with 

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international law and under the UN aegis.

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Every civilised country must contribute to the fight against terrorism,

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reaffirming their solidarity, not in word but in deed.

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This means that the terrorists must not be given refuge anywhere.

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There must be no double standards.

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No contacts with terrorist organisations.

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No attempts to use them for self-seeking goals.

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No criminal business with terrorists.

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We know who are stuffing pockets in Turkey and letting terrorists 

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prosper from the sale of oil they stole in Syria.

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The terrorists are using these receipts to recruit mercenaries,

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buy weapons and plan inhuman terrorist attacks against Russian citizens 

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and against people in France, Lebanon,

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Mali and other states.

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We remember that the militants who operated in the North Caucasus 

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in the 1990s and 2000s found refuge and received moral 

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and material assistance in Turkey. We still find them there.

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Meanwhile, the Turkish people are kind,

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hardworking and talented.

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We have many good and reliable friends in Turkey.

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Allow me to emphasise that they should know that we do not equate them 

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with the certain part of the current ruling establishment that is 

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directly responsible for the deaths of our servicemen in Syria.

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We will never forget their collusion with terrorists.

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We have always deemed betrayal the worst and most shameful thing to do,

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and that will never change.

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I would like them to remember this –

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those in Turkey who shot our pilots in the back,

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those hypocrites who tried to justify their actions 

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and cover up for terrorists.

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I don’t even understand why they did it.

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Any issues they might have had, any problems,

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any disagreements even those we knew nothing about could have been 

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settled in a different way.

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Plus, we were ready to cooperate with Turkey on all the most sensitive 

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issues it had; we were willing to go further,

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where its allies refused to go.

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Allah only knows, I suppose, why they did it.

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And probably, Allah has decided to punish the ruling clique in Turkey 

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by taking their mind and reason.

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But, if they expected a nervous or hysterical reaction from us,

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if they wanted to see us become a danger to ourselves as much 

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as to the world, they won’t get it.

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They won’t get any response meant for show or even 

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for immediate political gain. They won’t get it.

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Our actions will always be guided primarily by responsibility –

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to ourselves, to our country, to our people.

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We are not going to rattle the sabre.

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But, if someone thinks they can commit a heinous war crime,

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kill our people and get away with it,

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suffering nothing but a ban on tomato imports,

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or a few restrictions in construction or other industries,

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they’re delusional. We’ll remind them of what they did,

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more than once. They’ll regret it. We know what to do.

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We have mobilised our Armed Forces,

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security services and law enforcement agencies to repel 

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the terrorist threat.

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Everyone must be aware of their responsibility,

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including the authorities, political parties,

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civil society organisations and the media.

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Russia’s strength lies in the free development of all its peoples,

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its diversity, the harmony of cultures, languages and traditions,

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mutual respect for and dialogue between all faiths,

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including Christians, Muslims, Judaists and Buddhists.

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We must firmly resist any manifestation of extremism and xenophobia 

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while defending our ethnic and religious accord,

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which is the historical foundation of our society 

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and the Russian statehood.

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In 2016 we will hold elections to the State Duma.

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I would like to remind party leaders,

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all participants of the upcoming election campaign and all the social 

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and political forces about the following words of our famous historian,

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Nikolai Karamzin: “Those who have no respect for themselves cannot hope 

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to be respected by others.

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That does not mean that love for our homeland must blind us into saying 

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that we are better than all others in everything we do.

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But Russians must know their value.”

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Yes, we can debate ways to solve this or that issue.

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But we must remain united and remember what is most 

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important for us: Russia.

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The election campaign must be honest and transparent and respect 

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the law and the electorate.

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At the same time, it must be conducted so as to win public trust 

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in the election results and legitimacy.

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Colleagues, I expect that a considerable part of the parliamentary 

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candidates’ election programmes will be devoted to the issue 

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of corruption, which is a major concern for society.

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Corruption is hindering Russia’s development.

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Officials, judges, law enforcement officers and deputies at all levels 

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are obliged to submit their income and expense declarations and declare 

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their property and assets, including outside Russia.

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From now on, state and municipal officials will also have to disclose 

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information about the contracts they plan to sign with the companies 

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of their relatives and friends.

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Situations with a possible conflict of interest will be closely 

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monitored by the regulatory and law enforcement 

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authorities, as well as civil society.

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Just recently participants in the Russian Popular Front’s project 

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For Fair Public Procurement told me about the instances of abuse 

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and blatant violations they have uncovered.

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I ask the Prosecutor General’s Office and the law enforcement 

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authorities to promptly react to this information.

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The law must be hard on those who are guilty of premeditated crimes 

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against human lives and the interests of society and the state.

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But the law must be lenient to those who have slipped up.

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Today, nearly half of the criminal cases brought to court concern petty 

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crimes or misdemeanours, but those who committed them,

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including very young people, go to prison for them.

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A prison term and even a prison record usually have a highly negative 

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impact on these people’s lives,

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often creating a situation in which they commit new crimes.

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I ask the State Duma to approve the Supreme Court’s proposal that some 

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offences in the Criminal Code are decriminalised and that misdemeanour 

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is reclassified as an administrative offence,

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with an important reservation: a repeated offence must be 

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classified as a criminal act.

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We must also work to enhance the independence 

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and objectivity of our courts.

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In light of this, I suggest strengthening the role of juries 

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and expanding the list of crimes that can be submitted to them.

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It’s not always easy to find 12 jurors,

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and although I know the position of human rights organisations,

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which insist on 12-member juries,

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forming such juries is not easy and it is also expensive.

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Therefore, I suggest cutting the number of jury members from 12 to 5–

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7, on the condition that they take their decisions 

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autonomously and independently.

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Colleagues, last year we faced some serious economic challenges.

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Oil and other products we traditionally offer for export fell in price.

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The access of Russian financial institutions and companies to global 

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financial markets was restricted.

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I know that many people are experiencing hardships today.

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These economic issues are affecting incomes and the general 

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quality of life. I understand very well that people are wondering when 

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we are going to overcome these hardships and what needs 

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to be done in order to accomplish this.

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The current situation is complicated but,

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as I have said before, not critical.

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In fact, we can already see some positive trends.

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Industrial production and the national currency are generally steady.

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There is a slight decline in inflation.

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00:17:53.628 --> 00:17:59.912
We can see a significantly lower capital flight as compared to 2014.

232
00:17:59.912 --> 00:18:03.529
However, this doesn’t mean that we just calm down and wait 

233
00:18:03.529 --> 00:18:06.416
for everything to miraculously change,

234
00:18:06.416 --> 00:18:09.158
or that we can just sit quietly in expectation of rising oil prices.

235
00:18:09.158 --> 00:18:11.643
Essentially, such an approach would be unacceptable.

236
00:18:11.643 --> 00:18:18.535
We must be prepared for low commodity prices and external restrictions 

237
00:18:18.535 --> 00:18:23.906
to last much longer. By changing nothing,

238
00:18:23.906 --> 00:18:28.143
we will simply run out of reserves and the economic growth 

239
00:18:28.143 --> 00:18:31.519
rates will linger around zero.

240
00:18:31.519 --> 00:18:33.518
This is not the only issue to consider.

241
00:18:33.518 --> 00:18:36.889
Busy with the immediate tasks, we must not overlook general 

242
00:18:36.889 --> 00:18:38.550
global development trends.

243
00:18:38.550 --> 00:18:41.435
The global economy is rapidly changing shape.

244
00:18:41.435 --> 00:18:44.202
New trade associations are forming.

245
00:18:44.202 --> 00:18:45.715
We are experiencing a period of radical change 

246
00:18:45.715 --> 00:18:47.526
in the sphere of technology.

247
00:18:47.526 --> 00:18:50.731
This is a crucial moment when countries need to compete to secure their 

248
00:18:50.731 --> 00:18:53.251
roles in the global division of labour for decades ahead.

249
00:18:53.251 --> 00:18:57.002
We can and must become one of the leaders.

250
00:18:57.002 --> 00:19:00.402
Russia has no right to be vulnerable.

251
00:19:00.402 --> 00:19:04.478
We must have a strong economy, excel in technology 

252
00:19:04.478 --> 00:19:06.323
and advance our professional skills.

253
00:19:06.323 --> 00:19:09.679
We must fully use our current advantages,

254
00:19:09.679 --> 00:19:12.188
as there are no guarantees that we will have them tomorrow.

255
00:19:12.188 --> 00:19:15.502
Clearly, the authorities must hear the public out and explain 

256
00:19:15.502 --> 00:19:17.759
the nature of the problems people face and the reasons behind 

257
00:19:17.759 --> 00:19:20.855
the government’s actions, treating civil society 

258
00:19:20.875 --> 00:19:24.216
and business as equal partners.

259
00:19:24.216 --> 00:19:27.702
What areas should we focus on?

260
00:19:27.702 --> 00:19:33.179
First, competitive manufacturing is still concentrated mostly 

261
00:19:33.179 --> 00:19:36.682
in the commodities and mining sector.

262
00:19:36.682 --> 00:19:41.157
We’ll only be able to achieve our ambitious goals in security 

263
00:19:41.157 --> 00:19:45.350
and social development, to create modern jobs and improve the living 

264
00:19:45.350 --> 00:19:48.221
standards of millions of our people if we change 

265
00:19:48.221 --> 00:19:50.652
the structure of our economy.

266
00:19:50.652 --> 00:19:55.250
Importantly, we do have effective industrial and agricultural 

267
00:19:55.250 --> 00:19:57.716
operations, as well as small and medium-sized businesses.

268
00:19:57.716 --> 00:20:00.095
Our goal is to have the number of these kinds of companies 

269
00:20:00.095 --> 00:20:02.931
grow fast in all sectors.

270
00:20:02.931 --> 00:20:08.757
Our programmes for import substitution and export support,

271
00:20:08.757 --> 00:20:12.287
manufacturing retrofitting and professional training should 

272
00:20:12.287 --> 00:20:14.376
be geared to achieving this goal.

273
00:20:14.376 --> 00:20:18.744
Second, we need to bear in mind that a number of industries are now 

274
00:20:18.744 --> 00:20:24.071
at risk, including primarily the construction, automotive,

275
00:20:24.071 --> 00:20:27.684
and light industries, as well as railway engineering.

276
00:20:27.684 --> 00:20:29.650
To address this, the Government will need to come up with 

277
00:20:29.650 --> 00:20:31.876
special support programmes.

278
00:20:31.876 --> 00:20:35.111
Financial resources for this purpose have been set aside.

279
00:20:35.111 --> 00:20:39.594
Third. It is imperative to support low-income households and socially 

280
00:20:39.594 --> 00:20:43.926
vulnerable groups of citizens, and finally adopt fair principles 

281
00:20:43.926 --> 00:20:47.462
of providing social assistance that is made available 

282
00:20:47.462 --> 00:20:51.365
to those who really need it.

283
00:20:51.365 --> 00:20:55.385
In particular, it is necessary to take into account the individual 

284
00:20:55.385 --> 00:20:57.733
needs of people with disabilities,

285
00:20:57.733 --> 00:21:04.810
and focus on their training and employment.

286
00:21:04.810 --> 00:21:07.790
We have done a lot to improve demography, education,

287
00:21:07.790 --> 00:21:12.083
and healthcare. The key benchmarks in these areas were outlined 

288
00:21:12.083 --> 00:21:14.617
in the corresponding executive orders of May 2012.

289
00:21:14.617 --> 00:21:20.337
Of course, life is ever changing, and, given current complications,

290
00:21:20.337 --> 00:21:24.963
our responsibility for people’s welfare only increases,

291
00:21:24.963 --> 00:21:28.034
so I’d like to ask you to take these executive orders 

292
00:21:28.034 --> 00:21:31.800
seriously. We must strive to fulfil them.

293
00:21:31.800 --> 00:21:36.472
Fourth, it is imperative to achieve a balanced budget.

294
00:21:36.472 --> 00:21:38.656
This, of course, is not an end in itself,

295
00:21:38.656 --> 00:21:41.437
but a critical prerequisite for macroeconomic stability 

296
00:21:41.437 --> 00:21:44.381
and our financial independence.

297
00:21:44.381 --> 00:21:49.408
As you may recall, by the end of the 2016 federal budget year,

298
00:21:49.408 --> 00:21:52.980
the deficit should not exceed 3 percent,

299
00:21:52.980 --> 00:21:56.397
even if revenue is lower than expected.

300
00:21:56.397 --> 00:22:00.194
Please take a note of this, colleagues,

301
00:22:00.194 --> 00:22:04.428
members of the State Duma and the Federation Council,

302
00:22:04.428 --> 00:22:08.013
the Federal Assembly in general. This is important.

303
00:22:08.013 --> 00:22:11.750
I just mentioned that financial stability and the independence of our 

304
00:22:11.750 --> 00:22:15.904
country are completely interrelated.

305
00:22:15.904 --> 00:22:21.733
Please keep these basic considerations in mind.

306
00:22:21.733 --> 00:22:25.869
Budget planning, in fact, planning each budget cycle must begin with 

307
00:22:25.869 --> 00:22:28.194
a clear identification of priorities.

308
00:22:28.194 --> 00:22:31.018
We must make government programmes play the decisive role 

309
00:22:31.018 --> 00:22:32.231
in this process again.

310
00:22:32.231 --> 00:22:36.475
It is essential that we tighten our control over public funds,

311
00:22:36.475 --> 00:22:40.741
including federal and regional subsidies to industrial 

312
00:22:40.741 --> 00:22:42.254
and agricultural enterprises.

313
00:22:42.254 --> 00:22:45.343
I believe that they should be transferred to the end user 

314
00:22:45.343 --> 00:22:48.627
only through treasury accounts.

315
00:22:48.627 --> 00:22:52.611
Government revenue must be used strictly as planned.

316
00:22:52.611 --> 00:22:56.871
”Grey“ schemes used in paying customs duties, excise taxes on alcohol,

317
00:22:56.871 --> 00:23:01.577
tobacco, and fuels and lubricants siphon off hundreds of billions 

318
00:23:01.577 --> 00:23:05.082
of rubles from the budget annually. This is outright theft.

319
00:23:05.082 --> 00:23:10.907
I propose forming a single system for administering tax,

320
00:23:10.907 --> 00:23:13.993
customs and other fiscal payments.

321
00:23:13.993 --> 00:23:15.679
There are a variety of options to go about this,

322
00:23:15.679 --> 00:23:18.984
and we have discussed them on many occasions.

323
00:23:18.984 --> 00:23:22.525
I expect the Government to submit specific proposals.

324
00:23:22.525 --> 00:23:26.330
Here again, I would like to emphasise that the tax environment 

325
00:23:26.330 --> 00:23:30.670
for business should remain unchanged in the coming years.

326
00:23:30.670 --> 00:23:34.780
Fifth. We need to further strengthen trust between the Government 

327
00:23:34.780 --> 00:23:38.448
and business, to improve the business climate in Russia.

328
00:23:38.448 --> 00:23:42.898
This year we have mostly completed the plans outlined in the national 

329
00:23:42.898 --> 00:23:45.349
entrepreneurial initiative.

330
00:23:45.349 --> 00:23:51.721
The dynamics are good, but we certainly shouldn’t stop yet.

331
00:23:51.721 --> 00:23:55.084
The Government, together with the Agency for Strategic Initiatives 

332
00:23:55.084 --> 00:23:57.075
and leading business associations,

333
00:23:57.075 --> 00:24:00.360
should continue their systematic work to improve the conditions 

334
00:24:00.360 --> 00:24:04.157
for doing business, constantly monitoring how laws are 

335
00:24:04.157 --> 00:24:06.688
carried out locally.

336
00:24:06.688 --> 00:24:10.861
I believe free enterprise to be the most important aspect of economic 

337
00:24:10.861 --> 00:24:13.020
and social well-being.

338
00:24:13.020 --> 00:24:18.177
Entrepreneurial freedom is something we need to expand to respond 

339
00:24:18.177 --> 00:24:22.069
to all attempts to impose restrictions on us.

340
00:24:22.069 --> 00:24:26.662
That is why we have given such a broad authority to the newly created 

341
00:24:26.662 --> 00:24:29.842
Federal Corporation for the Development of Small and Medium Business.

342
00:24:29.842 --> 00:24:32.641
I would like to ask all ministries, departments, governors,

343
00:24:32.641 --> 00:24:36.927
heads of all Russian regions, state-owned companies and banks 

344
00:24:36.927 --> 00:24:40.660
to provide all the necessary assistance to it.

345
00:24:40.660 --> 00:24:44.863
Polls show that businesses see no qualitative progress 

346
00:24:44.863 --> 00:24:47.574
in the regulators’ work.

347
00:24:47.574 --> 00:24:49.196
Yet, all the necessary instructions for this have been 

348
00:24:49.196 --> 00:24:51.567
issued, even more than once.

349
00:24:51.567 --> 00:24:54.066
We repeat ourselves and our attempts to reduce their powers.

350
00:24:54.066 --> 00:25:00.374
We reduce them in one area – they simply grow again in another.

351
00:25:00.374 --> 00:25:03.003
A whole army of inspectors continues to hinder 

352
00:25:03.003 --> 00:25:04.468
the operation of good businesses.

353
00:25:04.468 --> 00:25:06.506
I am not saying that control is not necessary.

354
00:25:06.506 --> 00:25:08.614
Business does require regulation.

355
00:25:08.614 --> 00:25:11.270
But I ask the Government Commission for Administrative Reform to work 

356
00:25:11.270 --> 00:25:13.701
out, together with business associations,

357
00:25:13.701 --> 00:25:18.131
proposals on eliminating redundant and overlapping functions 

358
00:25:18.131 --> 00:25:22.646
of regulatory agencies, and submit them by July 1, 2016.

359
00:25:22.646 --> 00:25:26.896
I would like to cite some figures supplied by one of our 

360
00:25:26.896 --> 00:25:28.684
business associations.

361
00:25:28.684 --> 00:25:34.553
During 2014, the investigative authorities opened nearly 200,

362
00:25:34.553 --> 00:25:41.633
000 cases on so-called economic crimes.

363
00:25:41.633 --> 00:25:46.884
But only 46,000 of 200,000 cases were actually taken to court,

364
00:25:46.884 --> 00:25:50.523
and 15,000 cases were thrown out during the hearings.

365
00:25:50.523 --> 00:25:53.871
Simple math suggests that only 15 percent of all cases 

366
00:25:53.871 --> 00:25:57.084
ended with a conviction.

367
00:25:57.084 --> 00:26:01.431
At the same time, the vast majority, over 80 percent, or specifically,

368
00:26:01.431 --> 00:26:06.768
83 percent of entrepreneurs who faced criminal charges fully 

369
00:26:06.768 --> 00:26:09.707
or partially lost their business –

370
00:26:09.707 --> 00:26:11.562
they got harassed, intimidated,

371
00:26:11.562 --> 00:26:14.889
robbed and then released.

372
00:26:14.889 --> 00:26:19.279
This certainly isn’t what we need in terms of a business climate.

373
00:26:19.279 --> 00:26:20.370
This is actually the opposite, the direct destruction 

374
00:26:20.370 --> 00:26:21.604
of the business climate.

375
00:26:21.604 --> 00:26:23.606
I ask the investigative authorities and the prosecutor’s 

376
00:26:23.606 --> 00:26:25.719
office to pay special attention to this.

377
00:26:25.719 --> 00:26:28.757
I would like to emphasise that prosecutors should make greater use 

378
00:26:28.757 --> 00:26:32.944
of the tools available to check the quality of investigations.

379
00:26:32.944 --> 00:26:36.918
I know that discussions have been going on for a long time about 

380
00:26:36.918 --> 00:26:39.708
the prosecutor office’s needs.

381
00:26:39.708 --> 00:26:42.322
As you know, we have separated the investigative authorities 

382
00:26:42.322 --> 00:26:46.311
and the prosecutor's office in order to ensure independent 

383
00:26:46.311 --> 00:26:47.678
investigations are carried out;

384
00:26:47.678 --> 00:26:49.361
it was a conscious decision.

385
00:26:49.361 --> 00:26:52.694
Today, I remind you, the prosecutor’s office has the authority 

386
00:26:52.694 --> 00:26:55.190
to cancel a decision to institute criminal proceedings,

387
00:26:55.190 --> 00:27:00.562
or waive the indictment, or even refuse to support the case in court.

388
00:27:00.562 --> 00:27:03.276
We must learn to use what is available;

389
00:27:03.276 --> 00:27:07.857
only then we will be able to analyse what is happening in practice.

390
00:27:07.857 --> 00:27:12.370
In addition, I believe that suspects in economic cases should be 

391
00:27:12.370 --> 00:27:15.846
detained only as a last resort measure;

392
00:27:15.846 --> 00:27:18.287
for the most part investigators should opt for release on bail,

393
00:27:18.287 --> 00:27:20.539
travel restrictions or house arrest.

394
00:27:20.539 --> 00:27:25.973
The role of law enforcement and the judicial system is to protect 

395
00:27:25.973 --> 00:27:29.556
the economy and community from fraud and criminals,

396
00:27:29.556 --> 00:27:34.231
and to protect the rights, property and dignity of all those who obey 

397
00:27:34.231 --> 00:27:37.288
the law and conduct their business honestly.

398
00:27:37.288 --> 00:27:38.299
There is one more point I’d like to make.

399
00:27:38.299 --> 00:27:41.859
Last year we announced the so-called capital amnesty 

400
00:27:41.859 --> 00:27:44.152
to return financial assets to Russia.

401
00:27:44.152 --> 00:27:47.653
Yet, businesses seem in no hurry to take advantage of that opportunity,

402
00:27:47.653 --> 00:27:50.659
which suggests that the procedure proposed is too complicated,

403
00:27:50.659 --> 00:27:52.412
while guarantees it provides are still insufficient.

404
00:27:52.412 --> 00:27:56.760
I follow the public discussions on the issue.

405
00:27:56.760 --> 00:28:00.819
The word is, that what we have already done and the decisions we made 

406
00:28:00.819 --> 00:28:04.726
previously are slightly better than the solutions we’ve offered 

407
00:28:04.726 --> 00:28:07.962
in years past, but it is definitely not enough today.

408
00:28:07.962 --> 00:28:10.066
I ask the Government to organise consultations,

409
00:28:10.066 --> 00:28:12.918
including further consultations with the business community,

410
00:28:12.918 --> 00:28:15.618
with the Supreme Court, with law enforcement agencies,

411
00:28:15.618 --> 00:28:18.930
and in short order make the appropriate adjustments.

412
00:28:18.930 --> 00:28:20.622
I also suggest extending the capital amnesty itself 

413
00:28:20.622 --> 00:28:23.353
for another six months.

414
00:28:23.353 --> 00:28:29.098
Colleagues, the state will fund the necessary assistance to those who 

415
00:28:29.098 --> 00:28:32.188
are ready to go forward and become leaders.

416
00:28:32.188 --> 00:28:36.515
We are building such a system in our dialogue with the business 

417
00:28:36.515 --> 00:28:41.045
community based on its requirements and the tasks facing our country.

418
00:28:41.045 --> 00:28:44.795
The Industry Development Fund is already supporting import 

419
00:28:44.795 --> 00:28:49.765
substitution programmes. These programmes are needed by entrepreneurs.

420
00:28:49.765 --> 00:28:55.082
I suggest increasing its authorised capital by another 20 

421
00:28:55.082 --> 00:28:57.360
billion roubles.

422
00:28:57.360 --> 00:29:02.948
We are also guaranteeing stable tax rates and other basic terms 

423
00:29:02.948 --> 00:29:07.439
for investors who are ready to finance import substitution projects.

424
00:29:07.439 --> 00:29:13.080
This is included in mechanisms such as the special investment contract.

425
00:29:13.080 --> 00:29:19.465
I suggest granting the regions the right to reduce profit tax to zero 

426
00:29:19.465 --> 00:29:21.801
under such contracts.

427
00:29:21.801 --> 00:29:28.216
Some governors directly request this to allow investors to cover their 

428
00:29:28.216 --> 00:29:31.769
capital outlays on developing new production lines.

429
00:29:31.769 --> 00:29:36.827
Obviously, we are aware of the regional governors’ concerns.

430
00:29:36.827 --> 00:29:41.655
The regions should be motivated to consolidate their economic base,

431
00:29:41.655 --> 00:29:46.459
so an increase in regional profits from implementing these projects 

432
00:29:46.459 --> 00:29:51.969
should not lead to a reduction in federal subsidies.

433
00:29:51.969 --> 00:29:55.814
We are ready to guarantee the demand for the goods produced under these 

434
00:29:55.814 --> 00:29:57.777
programmes and projects.

435
00:29:57.797 --> 00:30:00.599
I propose giving the Government the right to purchase 

436
00:30:00.599 --> 00:30:03.860
on a non-competitive basis up to 30 percent of the products 

437
00:30:03.860 --> 00:30:09.711
manufactured under special investment contracts.

438
00:30:09.711 --> 00:30:17.126
Whatever remains should go to the free markets, including those abroad,

439
00:30:17.126 --> 00:30:20.812
to motivate these companies, to monitor the quality 

440
00:30:20.812 --> 00:30:23.032
of their products and reduce overheads.

441
00:30:23.032 --> 00:30:26.616
As you know, when other countries carried out these kinds 

442
00:30:26.616 --> 00:30:32.518
of programmes, the terms for state support were even tougher: it was 

443
00:30:32.518 --> 00:30:42.750
mandatory for a certain percentage of goods produced to be sold abroad.

444
00:30:42.750 --> 00:30:51.137
What for? To motivate producers to manufacture quality products.

445
00:30:51.137 --> 00:30:54.107
We’re saying that we will guarantee demand in our own market.

446
00:30:54.107 --> 00:30:56.517
Our terms are somewhat different from those in other 

447
00:30:56.517 --> 00:31:00.612
countries with tougher terms.

448
00:31:00.612 --> 00:31:05.266
That said, we must assume that these products will be highly 

449
00:31:05.266 --> 00:31:08.512
competitive on the international market.

450
00:31:08.512 --> 00:31:11.983
Let me emphasise again that we will support expressly competitive 

451
00:31:11.983 --> 00:31:13.551
domestic production lines.

452
00:31:13.551 --> 00:31:16.072
No one should be working under the illusion that under the guise 

453
00:31:16.092 --> 00:31:19.041
of import substitution it’s possible to build a substandard,

454
00:31:19.041 --> 00:31:21.830
out of date product and pawn it off to the state or to our people 

455
00:31:21.830 --> 00:31:24.065
and make them pay a premium price for it.

456
00:31:24.065 --> 00:31:26.918
Russia needs companies that are capable not only of providing 

457
00:31:26.918 --> 00:31:31.049
the country with quality products but also of taking on foreign 

458
00:31:31.049 --> 00:31:34.361
markets. The Russian Export Centre was established to help 

459
00:31:34.361 --> 00:31:37.664
those who are ready for this effort.

460
00:31:37.664 --> 00:31:42.227
In addition, I suggest making the growth of non-energy exports one 

461
00:31:42.227 --> 00:31:46.060
of the key indicators of the performance of industry-related agencies 

462
00:31:46.060 --> 00:31:47.907
and the Government as a whole.

463
00:31:47.907 --> 00:31:51.367
I think it would be appropriate to implement the business community’s 

464
00:31:51.367 --> 00:31:56.250
initiative and create a technological development agency to help 

465
00:31:56.250 --> 00:32:01.712
companies acquire domestic and foreign patents and licenses 

466
00:32:01.712 --> 00:32:04.300
for engineering services.

467
00:32:04.300 --> 00:32:07.564
Access to foreign markets and the expansion of Russian manufacturing 

468
00:32:07.564 --> 00:32:11.054
should become a natural strategy for the development of the nation’s 

469
00:32:11.074 --> 00:32:14.268
business sector and the entire Russian economy.

470
00:32:14.268 --> 00:32:19.369
We should put stereotypes aside and believe in our own capabilities.

471
00:32:19.369 --> 00:32:23.791
If we work with this attitude, we are certain to see a result.

472
00:32:30.031 --> 00:32:32.201
Our agriculture sector is a positive example.

473
00:32:32.201 --> 00:32:39.406
Just a decade ago we imported almost half of our food products 

474
00:32:39.406 --> 00:32:42.356
and critically depended on imports,

475
00:32:42.356 --> 00:32:45.923
whereas now Russia has joined the exporters’ club.

476
00:32:45.923 --> 00:32:51.522
Last year Russia’s agricultural exports totalled almost $20 billion.

477
00:32:51.522 --> 00:32:56.332
This is a quarter more than our proceeds from arms sales or about one 

478
00:32:56.332 --> 00:32:58.926
third of our profits from gas exports.

479
00:32:58.926 --> 00:33:04.586
Our agriculture has made this leap in a short but productive period.

480
00:33:04.586 --> 00:33:06.451
Many thanks to our rural residents.

481
00:33:12.251 --> 00:33:16.630
I believe we should set a national goal — fully provide the internal 

482
00:33:16.630 --> 00:33:20.876
market with domestically produced foods by 2020.

483
00:33:20.876 --> 00:33:26.347
We are capable of feeding ourselves from our own land, and importantly,

484
00:33:26.347 --> 00:33:28.713
we have the water resources.

485
00:33:28.713 --> 00:33:32.964
Russia can become one of the world’s largest suppliers of healthy,

486
00:33:32.964 --> 00:33:39.597
ecologically clean quality foods that some Western companies have 

487
00:33:39.597 --> 00:33:43.853
stopped producing long ago, all the more so since global demand 

488
00:33:43.853 --> 00:33:46.945
for such products continues to grow.

489
00:33:46.945 --> 00:33:49.094
To fulfil these ambitious goals,

490
00:33:49.094 --> 00:33:54.124
we need to concentrate our resources on primary support 

491
00:33:54.124 --> 00:33:55.813
for highly efficient farms.

492
00:33:55.813 --> 00:33:59.729
This approach should underlie the programme for the development 

493
00:33:59.729 --> 00:34:01.563
of the agro-industrial complex.

494
00:34:01.563 --> 00:34:05.705
This includes large, medium and small companies –

495
00:34:05.705 --> 00:34:07.182
all of them must be efficient.

496
00:34:07.182 --> 00:34:10.116
I would like the Agriculture Ministry to pay special attention to this.

497
00:34:10.116 --> 00:34:13.137
It is necessary to put to use millions of hectares 

498
00:34:13.137 --> 00:34:15.393
of arable land that is now idle.

499
00:34:15.393 --> 00:34:18.326
They belong to large land owners,

500
00:34:18.326 --> 00:34:23.191
many of whom show little interest in farming.

501
00:34:23.191 --> 00:34:27.438
How many years have we been talking about this? Yet things 

502
00:34:27.438 --> 00:34:29.708
are not moving forward.

503
00:34:29.708 --> 00:34:36.266
I suggest withdrawing misused agricultural land from questionable 

504
00:34:36.266 --> 00:34:48.192
owners and selling it at an auction to those who can 

505
00:34:48.192 --> 00:34:51.934
and want to cultivate the land.

506
00:34:51.934 --> 00:34:55.801
I would like to ask the Government to prepare specific proposals,

507
00:34:55.801 --> 00:35:00.331
including draft regulations and standards by June 1,

508
00:35:00.331 --> 00:35:04.233
2016. I would also like to ask the State Duma deputies and all members 

509
00:35:04.233 --> 00:35:08.433
of the Federal Assembly to make amendments to the related laws over 

510
00:35:08.433 --> 00:35:10.951
the next year and adopt laws to make this possible 

511
00:35:10.951 --> 00:35:14.195
at the next autumn session.

512
00:35:14.195 --> 00:35:16.873
We also need our own technology for the production,

513
00:35:16.873 --> 00:35:19.211
storage and processing of agricultural produce,

514
00:35:19.211 --> 00:35:24.965
our own seed and pedigree stock. This is a very important goal.

515
00:35:24.965 --> 00:35:27.778
We are still vulnerable in these areas.

516
00:35:27.778 --> 00:35:31.798
I ask you to get leading research centres,

517
00:35:31.798 --> 00:35:36.016
the Russian Academy of Sciences and businesses which are successfully 

518
00:35:36.016 --> 00:35:38.871
putting advanced technology into practice involved in this process.

519
00:35:38.871 --> 00:35:42.109
In my previous Address, I announced the launch of the National 

520
00:35:42.109 --> 00:35:45.547
Technology Initiative, spanning 15–

521
00:35:45.547 --> 00:35:52.486
20 years, but practical work is already underway.

522
00:35:52.486 --> 00:35:56.908
It shows that we have plenty of strong teams capable of offering 

523
00:35:56.908 --> 00:35:59.590
and following through on innovative ideas.

524
00:35:59.590 --> 00:36:02.597
In areas such as neutron technology,

525
00:36:02.597 --> 00:36:06.196
robotics in aviation and the transport sector in general,

526
00:36:06.196 --> 00:36:08.708
energy storage and distribution systems,

527
00:36:08.708 --> 00:36:14.009
Russia has every chance of breaking through to global markets 

528
00:36:14.009 --> 00:36:17.156
in the near future, within the next few years.

529
00:36:17.156 --> 00:36:20.887
Development institutions should be geared towards achieving priority 

530
00:36:20.907 --> 00:36:24.653
goals, primarily those related to technological modernisation.

531
00:36:24.653 --> 00:36:26.787
We have over two dozen of them.

532
00:36:26.787 --> 00:36:29.537
Unfortunately, many of them, to put it bluntly,

533
00:36:29.537 --> 00:36:33.629
have turned into dumping grounds for bad debts.

534
00:36:33.629 --> 00:36:36.615
It is essential to streamline them and optimise 

535
00:36:36.615 --> 00:36:38.808
the structure and mechanisms of this work.

536
00:36:38.808 --> 00:36:41.203
I know that both the Government and the Central Bank are 

537
00:36:41.203 --> 00:36:42.787
actively working on this.

538
00:36:42.787 --> 00:36:46.934
We should make a more active use of the investment potential 

539
00:36:46.934 --> 00:36:48.836
of domestic savings for economic modernisation.

540
00:36:48.836 --> 00:36:52.767
I ask the Central Bank and the Government to submit proposals 

541
00:36:52.787 --> 00:36:55.432
on the development of the corporate bond market,

542
00:36:55.432 --> 00:36:57.391
something we have discussed many times.

543
00:36:57.391 --> 00:37:00.016
It is essential to simplify the procedure for the issue and acquisition 

544
00:37:00.016 --> 00:37:02.864
of corporate bonds. To make it worthwhile for investors,

545
00:37:02.864 --> 00:37:07.835
individuals to invest in the development of the domestic real sector,

546
00:37:07.835 --> 00:37:13.495
I propose exempting the coupon income on these bonds from taxation,

547
00:37:13.495 --> 00:37:16.716
including from income tax for individuals.

548
00:37:16.716 --> 00:37:21.657
Dozens of major projects are being implemented or are about to be 

549
00:37:21.657 --> 00:37:23.905
launched in industry, agriculture,

550
00:37:23.905 --> 00:37:26.470
transport and housing construction.

551
00:37:26.470 --> 00:37:31.346
They should have a positive impact not only on separate sectors but 

552
00:37:31.346 --> 00:37:34.288
also stimulate the comprehensive development of entire territories.

553
00:37:34.288 --> 00:37:37.692
These are primarily private projects.

554
00:37:37.692 --> 00:37:41.519
To expedite their effective implementation it is important to make 

555
00:37:41.519 --> 00:37:47.926
pinpoint amendments to laws, lift administrative barriers and assist 

556
00:37:47.926 --> 00:37:50.648
the development of infrastructure and the process 

557
00:37:50.648 --> 00:37:52.521
of entering foreign markets.

558
00:37:52.521 --> 00:37:55.718
These issues often extend beyond the scope of just one government 

559
00:37:55.718 --> 00:37:57.710
agency, so I propose putting in place a mechanism 

560
00:37:57.710 --> 00:38:02.058
to support the most important projects.

561
00:38:02.058 --> 00:38:06.326
A special agency can be established for this.

562
00:38:06.326 --> 00:38:10.676
I ask Prime Minister Dmitry Medvedev to submit proposals 

563
00:38:10.676 --> 00:38:13.675
on the work of this agency.

564
00:38:13.675 --> 00:38:18.623
Incidentally, one such project could be the creation of major private 

565
00:38:18.623 --> 00:38:23.226
Russian companies that specialise in online trade so that Russian goods 

566
00:38:23.226 --> 00:38:24.924
are delivered via the Internet to all countries 

567
00:38:24.924 --> 00:38:27.825
in the world. We do have a great deal to deliver.

568
00:38:27.825 --> 00:38:31.973
Colleagues, we are interested in broad business cooperation with our 

569
00:38:31.973 --> 00:38:37.140
foreign partners, and we welcome investors who focus on long-term work 

570
00:38:37.140 --> 00:38:40.169
on the Russian market, even though the current circumstances they face 

571
00:38:40.169 --> 00:38:42.465
aren’t always favourable.

572
00:38:42.465 --> 00:38:46.511
We highly appreciate their positive attitude to our country,

573
00:38:46.511 --> 00:38:48.801
and the fact that they see advantages for growing their respective 

574
00:38:48.801 --> 00:38:50.820
businesses in our country.

575
00:38:50.820 --> 00:38:55.390
Russia is involved in integration processes designed to open additional 

576
00:38:55.390 --> 00:38:59.279
avenues for expanding economic ties with other countries.

577
00:38:59.279 --> 00:39:03.310
We have reached the next level of cooperation within the Eurasian 

578
00:39:03.310 --> 00:39:06.838
Economic Union by creating a common space,

579
00:39:06.838 --> 00:39:11.432
with free movement of capital, goods and labour.

580
00:39:11.432 --> 00:39:17.018
We have reached a basic agreement on combining Eurasian integration 

581
00:39:17.018 --> 00:39:21.284
with the Chinese Silk Road Economic Belt.

582
00:39:21.284 --> 00:39:24.874
A free trade zone with Vietnam was established.

583
00:39:24.874 --> 00:39:29.120
Next year, we will host the Russia-ASEAN summit in Sochi,

584
00:39:29.120 --> 00:39:31.516
and I am sure we will be able to work out a mutually 

585
00:39:31.516 --> 00:39:34.701
beneficial agenda for cooperation.

586
00:39:34.701 --> 00:39:36.708
I propose holding consultations,

587
00:39:36.708 --> 00:39:39.057
in conjunction with our colleagues from the Eurasian Economic Union,

588
00:39:39.057 --> 00:39:41.033
with the SCO and ASEAN members,

589
00:39:41.033 --> 00:39:44.776
as well as with the states that are about to join the SCO,

590
00:39:44.776 --> 00:39:47.816
with the view of potentially forming an economic partnership.

591
00:39:47.816 --> 00:39:52.034
Together, our states make up nearly a third of the global economy 

592
00:39:52.034 --> 00:39:54.349
in terms of purchasing power parity.

593
00:39:54.349 --> 00:40:01.011
Such a partnership could initially focus on protecting investments,

594
00:40:01.011 --> 00:40:04.294
streamlining procedures for the cross-border movement of goods,

595
00:40:04.294 --> 00:40:10.848
joint development of technical standards for next-generation technology 

596
00:40:10.848 --> 00:40:13.727
products, and the mutual provision of access to markets 

597
00:40:13.727 --> 00:40:15.576
for both services and capital.

598
00:40:15.576 --> 00:40:19.038
Of course, this partnership should be based on principles 

599
00:40:19.058 --> 00:40:22.807
of equality and mutual interest.

600
00:40:22.807 --> 00:40:28.565
For Russia, this partnership will open new possibilities for increasing 

601
00:40:28.565 --> 00:40:33.249
exports of food and energy, as well as offering services 

602
00:40:33.249 --> 00:40:35.683
in engineering, education, healthcare,

603
00:40:35.683 --> 00:40:37.738
and tourism to the Asia-Pacific Region,

604
00:40:37.738 --> 00:40:42.384
allowing us to play the leading role in forming new technology markets,

605
00:40:42.384 --> 00:40:46.843
and re-orienting major global trade flows to Russia.

606
00:40:46.843 --> 00:40:51.196
We will continue to upgrade our transport infrastructure and expand 

607
00:40:51.196 --> 00:40:56.674
major logistic centres, such as the Azov-Black Sea and the Murmansk 

608
00:40:56.674 --> 00:41:00.452
transport hubs, modern ports in the Baltic Sea and the Russian Far 

609
00:41:00.452 --> 00:41:04.135
East. We will consolidate the system of inter-regional air transport,

610
00:41:04.135 --> 00:41:07.681
including in northern and Arctic regions.

611
00:41:07.681 --> 00:41:12.488
We will review in detail the situation with inland waterways and river 

612
00:41:12.488 --> 00:41:15.867
routes during a forthcoming State Council meeting.

613
00:41:15.887 --> 00:41:18.755
The Northern Sea Route should become a link between Europe 

614
00:41:18.755 --> 00:41:20.904
and the Asia-Pacific Region.

615
00:41:20.904 --> 00:41:23.690
To enhance its competitiveness,

616
00:41:23.690 --> 00:41:28.430
we will extend the preferential regime of the free port of Vladivostok 

617
00:41:28.430 --> 00:41:32.759
to key Far Eastern harbours, as requested by the entrepreneurs who 

618
00:41:32.759 --> 00:41:37.444
operate in this strategically important Russian region.

619
00:41:42.904 --> 00:41:46.186
The socioeconomic development of this region is a major 

620
00:41:46.186 --> 00:41:51.439
national priority. Investors have shown great practical interest 

621
00:41:51.439 --> 00:41:54.774
in the new methods of operation we have proposed,

622
00:41:54.774 --> 00:41:57.906
including priority development areas.

623
00:41:57.906 --> 00:42:02.691
I instruct the Government to expedite decisions on levelling off energy 

624
00:42:02.691 --> 00:42:08.586
rates for the Far Eastern regions where they are considerably above 

625
00:42:08.586 --> 00:42:12.920
average national rates, and I urge the Parliament to promptly hear 

626
00:42:12.920 --> 00:42:16.158
the draft law on the free allocation of land plots 

627
00:42:16.158 --> 00:42:18.467
to people in the Far East.

628
00:42:18.467 --> 00:42:22.179
Over the past few years, major investments have been made 

629
00:42:22.179 --> 00:42:24.984
in the development of Khabarovsk and Vladivostok,

630
00:42:24.984 --> 00:42:28.495
and people there have noticed the improvements.

631
00:42:28.515 --> 00:42:31.815
Komsomolsk-on-Amur must become one more rapidly developing 

632
00:42:31.815 --> 00:42:33.353
centre in the Far East.

633
00:42:33.353 --> 00:42:38.375
It is a city with a rich history and modern high-tech industries,

634
00:42:38.375 --> 00:42:43.432
which turn out civilian products that enjoy high demand and also work 

635
00:42:43.432 --> 00:42:45.843
fruitfully for the defence sector.

636
00:42:45.843 --> 00:42:50.687
But this city’s urban and social infrastructure has been neglected.

637
00:42:50.687 --> 00:42:54.621
I’m referring to the city’s face and its sports, culture,

638
00:42:54.621 --> 00:42:56.993
healthcare and education facilities,

639
00:42:56.993 --> 00:43:00.563
none of which are consistent with the potential of Komsomolsk-on-Amur.

640
00:43:00.563 --> 00:43:05.664
This is why it is difficult to attract talented young professionals 

641
00:43:05.664 --> 00:43:09.059
there, which the regional companies badly need.

642
00:43:09.059 --> 00:43:14.344
I believe that we can use resources under the on-going programmes 

643
00:43:14.344 --> 00:43:17.533
to address the problems of Komsomolsk-on-Amur without delay.

644
00:43:17.533 --> 00:43:19.878
Of course, we can’t do this overnight,

645
00:43:19.878 --> 00:43:22.018
but we at least must understand what we need to accomplish 

646
00:43:22.018 --> 00:43:24.153
and how fast work must proceed.

647
00:43:24.153 --> 00:43:28.886
Colleagues, we have a long-term agenda that must be independent 

648
00:43:28.886 --> 00:43:34.202
of election cycles and the prevailing situation.

649
00:43:34.202 --> 00:43:38.132
These strategic goals include preserving the nation,

650
00:43:38.132 --> 00:43:44.020
bringing up our children and helping them develop their talents,

651
00:43:44.020 --> 00:43:47.525
which constitutes the basis of the power and future of any 

652
00:43:47.525 --> 00:43:50.461
country, including Russia.

653
00:43:50.461 --> 00:43:52.434
I’d like to begin with demography.

654
00:43:52.454 --> 00:43:55.546
We’ve registered a natural increase in population 

655
00:43:55.546 --> 00:43:59.862
for the past three years. It has been modest,

656
00:43:59.862 --> 00:44:02.658
but present nevertheless.

657
00:44:02.658 --> 00:44:05.705
What I would like to highlight is that, according to forecasts,

658
00:44:05.705 --> 00:44:14.721
we should have seen a demographic collapse due to the demographic echo 

659
00:44:14.721 --> 00:44:21.165
of the 1990s, which demographers have predicted,

660
00:44:21.165 --> 00:44:27.778
including at the UN. But this hasn’t come to pass,

661
00:44:27.778 --> 00:44:32.074
primarily because half of the new-borns today are second 

662
00:44:32.074 --> 00:44:38.231
or third children. Russian families want to have children,

663
00:44:38.231 --> 00:44:41.787
they believe in their future and in their country,

664
00:44:41.787 --> 00:44:44.522
and they are confident that the state will help them.

665
00:44:44.522 --> 00:44:48.362
The maternity capital programme ends next year. Over 6.

666
00:44:48.362 --> 00:44:53.417
5 million families have enjoyed its benefits,

667
00:44:53.417 --> 00:44:55.848
including in Crimea and Sevastopol.

668
00:44:55.848 --> 00:45:00.275
But we know that our efforts in this sphere have not been sufficient 

669
00:45:00.295 --> 00:45:06.805
to close the demographic wound of the past.

670
00:45:06.805 --> 00:45:11.808
Of course, we realise that this will be hard on the budget,

671
00:45:11.808 --> 00:45:13.950
that the programme needs major funding.

672
00:45:13.950 --> 00:45:17.267
We said in the past that we need to analyse the figures to see if we 

673
00:45:17.267 --> 00:45:19.710
can shoulder this burden, as the financiers say,

674
00:45:19.710 --> 00:45:24.198
if we can guarantee the payment of these allocations.

675
00:45:24.198 --> 00:45:25.946
Yes, we can do this, despite the current challenges.

676
00:45:25.946 --> 00:45:29.045
I believe that we must extend the maternity capital 

677
00:45:29.045 --> 00:45:31.574
programme for at least two years.

678
00:45:39.974 --> 00:45:43.997
A major demographic policy measure is the development 

679
00:45:43.997 --> 00:45:46.053
of preschool education.

680
00:45:46.053 --> 00:45:47.480
Over the past three years, 800,

681
00:45:47.480 --> 00:45:51.731
000 new places have been created at kindergartens.

682
00:45:51.731 --> 00:45:54.716
Practically in all parts of Russia,

683
00:45:54.716 --> 00:45:57.602
such institutions are available for children between 

684
00:45:57.602 --> 00:45:59.517
the ages of three and seven.

685
00:45:59.517 --> 00:46:02.355
I know that the Prime Minister has paid special,

686
00:46:02.355 --> 00:46:06.095
personal attention to this. Thank you, Mr Medvedev.

687
00:46:11.175 --> 00:46:13.289
However, so far, individual families – many families –

688
00:46:13.289 --> 00:46:18.902
continue to encounter problems placing children in kindergartens.

689
00:46:18.902 --> 00:46:20.548
As long as these problems exist,

690
00:46:20.548 --> 00:46:23.063
we cannot say that the issue has been closed.

691
00:46:23.063 --> 00:46:26.811
I ask both the Government and regional authorities to pay 

692
00:46:26.811 --> 00:46:28.530
special attention to this.

693
00:46:28.530 --> 00:46:32.858
Now, healthcare. The main achievement of our entire policy in this 

694
00:46:32.858 --> 00:46:36.312
sphere is that we are seeing an increase in average life expectancy.

695
00:46:36.312 --> 00:46:40.976
Over the past decade, it has increased by more than five years and this 

696
00:46:40.976 --> 00:46:42.941
year, according to preliminary estimates,

697
00:46:42.941 --> 00:46:45.195
should exceed 71 years.

698
00:46:45.195 --> 00:46:48.858
Nevertheless, there are still quite a few problems that 

699
00:46:48.858 --> 00:46:50.934
have to be dealt with.

700
00:46:50.934 --> 00:46:54.677
Next year, the Russian healthcare system will transition completely 

701
00:46:54.677 --> 00:46:56.615
to an insurance-based system.

702
00:46:56.615 --> 00:46:59.592
It is the direct responsibility of insurance companies operating 

703
00:46:59.592 --> 00:47:03.184
in the compulsory medical insurance system to uphold patients’ rights,

704
00:47:03.184 --> 00:47:06.647
including in situations where they are refused free medical 

705
00:47:06.647 --> 00:47:09.099
care without a reason.

706
00:47:09.099 --> 00:47:12.798
If an insurance company does not do this,

707
00:47:12.798 --> 00:47:16.725
it should be held accountable, including being banned from working 

708
00:47:16.725 --> 00:47:18.050
in the compulsory medical insurance system.

709
00:47:18.050 --> 00:47:21.822
I ask the Government to ensure stringent oversight in this regard.

710
00:47:21.822 --> 00:47:25.667
Next. We have significantly expanded the scope of high-tech medical 

711
00:47:25.667 --> 00:47:28.534
care. It may be recalled that in 2005, 60,

712
00:47:28.534 --> 00:47:33.035
000 high-tech operations were performed in Russia –

713
00:47:33.035 --> 00:47:37.759
60,000! – compared to 715,000 in 2014.

714
00:47:37.759 --> 00:47:39.862
For the first time in the country’s history,

715
00:47:39.862 --> 00:47:42.879
a significant part of such operations are carried out without there 

716
00:47:42.879 --> 00:47:46.844
being a waiting list, and this is indeed a major achievement.

717
00:47:46.844 --> 00:47:49.023
However, it is important to understand that certain 

718
00:47:49.023 --> 00:47:51.526
operations are expensive.

719
00:47:51.526 --> 00:47:54.303
As a general rule, they are performed at leading federal 

720
00:47:54.303 --> 00:47:56.316
medical centres and clinics.

721
00:47:56.316 --> 00:47:59.228
To finance such operations, I propose establishing within 

722
00:47:59.228 --> 00:48:02.514
the compulsory medical insurance system… We have thought about 

723
00:48:02.514 --> 00:48:04.368
this a great deal – whether we should provide additional 

724
00:48:04.368 --> 00:48:05.987
funding to the system.

725
00:48:05.987 --> 00:48:11.187
The deputies, government ministers and governors know what 

726
00:48:11.187 --> 00:48:13.674
happens in reality. The compulsory medical insurance system is 

727
00:48:13.694 --> 00:48:17.110
a territorial system and it supports primarily territorial 

728
00:48:17.110 --> 00:48:19.885
healthcare institutions.

729
00:48:19.885 --> 00:48:24.385
Naturally, underfinancing is a matter of concern for the heads of major 

730
00:48:24.385 --> 00:48:28.158
federal clinics, where the majority of high-tech operations 

731
00:48:28.158 --> 00:48:32.932
are in fact performed.

732
00:48:32.932 --> 00:48:40.024
So, to finance these centres and perform such operations,

733
00:48:40.024 --> 00:48:44.062
I propose instituting a special federal component within the compulsory 

734
00:48:44.062 --> 00:48:46.241
medical insurance system.

735
00:48:46.241 --> 00:48:48.618
I request that the relevant amendments to the law be 

736
00:48:48.618 --> 00:48:50.467
adopted during the spring session.

737
00:48:57.267 --> 00:49:02.414
Even so, this is not enough because people must not suffer 

738
00:49:02.414 --> 00:49:04.328
while we make these decisions.

739
00:49:04.328 --> 00:49:08.920
It is necessary to ensure continuous financing of high-tech medical 

740
00:49:08.920 --> 00:49:12.520
care, including with direct support from the federal budget 

741
00:49:12.520 --> 00:49:15.058
until this decision is made.

742
00:49:20.238 --> 00:49:24.293
As you also know, the ambulance service has been significantly upgraded 

743
00:49:24.293 --> 00:49:26.755
as part of the Healthcare national project.

744
00:49:26.755 --> 00:49:29.346
We have procured a large number of modern ambulance 

745
00:49:29.346 --> 00:49:31.266
vehicles and other equipment.

746
00:49:31.266 --> 00:49:34.363
Naturally, as time goes on, the auto fleet needs 

747
00:49:34.363 --> 00:49:37.510
maintenance and renovation. Ten years have passed.

748
00:49:37.510 --> 00:49:41.504
This is the regions’ responsibility and they are duty bound to fulfil 

749
00:49:41.504 --> 00:49:46.143
this task and find the necessary reserves.

750
00:49:46.143 --> 00:49:49.251
When we did this 10 years ago, I remember well,

751
00:49:49.271 --> 00:49:52.532
we agreed that we will make an initial injection of federal funding,

752
00:49:52.532 --> 00:49:54.381
and then the regions will take over the responsibility and keep 

753
00:49:54.381 --> 00:49:57.135
the financing at a certain level.

754
00:49:57.135 --> 00:50:00.182
But this never happened, which is unfortunate.

755
00:50:00.182 --> 00:50:02.481
I understand that there may be issues,

756
00:50:02.481 --> 00:50:06.127
but like I said many times before,

757
00:50:06.127 --> 00:50:09.928
it is imperative to get our priorities straight.

758
00:50:09.928 --> 00:50:12.847
It was the wrong thing to do to wait for everything to fall apart,

759
00:50:12.847 --> 00:50:14.378
and then expect to be bailed out again with the money from 

760
00:50:14.378 --> 00:50:16.683
the federal budget. However, the way things are now,

761
00:50:16.683 --> 00:50:18.970
it looks like we will have to do it again.

762
00:50:18.970 --> 00:50:25.666
But that's not what we agreed upon.

763
00:50:25.666 --> 00:50:28.619
In any case, I ask the Government and the regional authorities to get 

764
00:50:28.619 --> 00:50:35.170
back to this issue and resolve it jointly.

765
00:50:35.170 --> 00:50:37.378
People are complaining that they often cannot understand why certain 

766
00:50:37.378 --> 00:50:44.799
hospitals, schools, cultural or social centres and institutions are 

767
00:50:44.799 --> 00:50:47.693
being closed or merged.

768
00:50:47.693 --> 00:50:54.068
We keep talking about the need to restructure the network, which is,

769
00:50:54.068 --> 00:50:59.038
in some cases, oversized. Yes, that’s a fact.

770
00:50:59.038 --> 00:51:04.430
But we must proceed very carefully and be fully aware of the fact that 

771
00:51:04.430 --> 00:51:07.348
in order for us to be able to reach certain indicators,

772
00:51:07.348 --> 00:51:12.207
closing rural medical centres is not always the best option.

773
00:51:12.207 --> 00:51:13.970
Unfortunately, such things happen.

774
00:51:13.970 --> 00:51:18.182
People then have to travel 100 kilometres to get medical attention.

775
00:51:18.182 --> 00:51:22.513
This is outrageous! Please make sure that things are done right.

776
00:51:22.513 --> 00:51:27.474
I ask the Government to draft and adopt a methodology for the most 

777
00:51:27.494 --> 00:51:30.323
efficient distribution of social institutions by March 1,

778
00:51:30.323 --> 00:51:33.979
2016. It should be mandatory for use in the regions.

779
00:51:33.979 --> 00:51:39.948
We must find a legally valid formula that will allow us to do so.

780
00:51:39.948 --> 00:51:42.566
In matters such as providing assistance to the elderly or people with 

781
00:51:42.566 --> 00:51:45.463
disabilities, or supporting families and children,

782
00:51:45.463 --> 00:51:47.755
it is imperative to show more trust in civil society 

783
00:51:47.755 --> 00:51:49.561
and non-profit organisations.

784
00:51:49.561 --> 00:51:52.357
Often, they work more effectively and efficiently,

785
00:51:52.357 --> 00:51:55.138
showing genuine concern for the people.

786
00:51:55.138 --> 00:51:57.367
Also, there’s less red tape in their work.

787
00:51:57.367 --> 00:51:59.672
I would like to propose a number of concrete solutions based 

788
00:51:59.672 --> 00:52:01.304
on the results of the active citizens’ forum Community,

789
00:52:01.304 --> 00:52:02.907
which took place in November.

790
00:52:02.927 --> 00:52:06.613
First, we will launch a special programme of presidential grants 

791
00:52:06.613 --> 00:52:10.518
to support non-profit organisations working in small towns and villages.

792
00:52:10.518 --> 00:52:13.677
Second, the non-profit organisations that have established themselves 

793
00:52:13.677 --> 00:52:17.671
as reliable partners of the state will receive the legal status 

794
00:52:17.671 --> 00:52:19.237
of a ”non-profit organisation –

795
00:52:19.237 --> 00:52:22.624
provider of socially useful services,

796
00:52:22.624 --> 00:52:25.187
“ and a number of incentives and preferences.

797
00:52:25.187 --> 00:52:28.740
Finally, I believe that making up to 10 percent of the regional 

798
00:52:28.740 --> 00:52:32.716
and municipal social programmes’ funding available to non-profit 

799
00:52:32.716 --> 00:52:35.413
organisations is the right thing to do.

800
00:52:35.413 --> 00:52:37.282
That way, non-profit organisations will be able to participate 

801
00:52:37.282 --> 00:52:41.564
in providing social services that are financed from the budget.

802
00:52:41.564 --> 00:52:46.968
We believe we know well the current legislation,

803
00:52:46.968 --> 00:52:48.311
and we are not imposing anything on anyone,

804
00:52:48.311 --> 00:52:51.275
but I’d like to ask heads of the regions and municipalities 

805
00:52:51.275 --> 00:52:54.543
to bear this in mind in their work.

806
00:52:54.543 --> 00:52:59.463
Colleagues, as you may recall, there was a meeting with children 

807
00:52:59.463 --> 00:53:04.722
in Sochi at the Sirius Centre for Gifted Children on September 1.

808
00:53:04.722 --> 00:53:07.520
Our children and young adults are really interesting 

809
00:53:07.520 --> 00:53:10.318
and goal-oriented people.

810
00:53:10.318 --> 00:53:14.976
We must do our best to make sure that today's students get an excellent 

811
00:53:14.976 --> 00:53:18.029
education, have opportunities to be creative,

812
00:53:18.029 --> 00:53:19.999
choose a profession to their liking,

813
00:53:19.999 --> 00:53:25.242
and are able to self-actualise regardless of their geographical 

814
00:53:25.242 --> 00:53:28.260
location or level of their parents’ income.

815
00:53:28.260 --> 00:53:31.344
All children must have equal opportunities for a successful 

816
00:53:31.344 --> 00:53:32.652
start in life.

817
00:53:38.492 --> 00:53:42.340
Every year, schools have more and more students. There will be 3.

818
00:53:42.340 --> 00:53:47.625
5 million more of them over the next decade.

819
00:53:47.625 --> 00:53:51.047
It's great, it's very good, but it is also important to make sure that 

820
00:53:51.047 --> 00:53:54.157
this increase does not affect the quality of education and learning 

821
00:53:54.157 --> 00:53:59.534
conditions, and that the current level continues to improve.

822
00:53:59.534 --> 00:54:02.418
Schools need more space for students.

823
00:54:02.418 --> 00:54:04.171
I asked the Government to put together,

824
00:54:04.171 --> 00:54:05.461
in conjunction with the regions,

825
00:54:05.461 --> 00:54:09.221
a specific plan of action in this regard.

826
00:54:09.221 --> 00:54:14.395
A decision was made to release up to 50 billion rubles from the federal 

827
00:54:14.395 --> 00:54:20.565
budget next year to repair, renovate and build new schools.

828
00:54:25.965 --> 00:54:28.913
I suggest we take a broader look at these issues.

829
00:54:28.913 --> 00:54:33.144
Comfortable buildings are not enough to get a good education.

830
00:54:33.164 --> 00:54:38.721
We need professional and motivated teachers,

831
00:54:38.721 --> 00:54:42.098
ground-breaking educational programmes and, of course,

832
00:54:42.098 --> 00:54:44.030
opportunities for the children to engage in creative activities,

833
00:54:44.030 --> 00:54:46.505
sports and extracurricular activities.

834
00:54:46.505 --> 00:54:51.161
Of course, we should use the best of what former Palaces of Pioneers 

835
00:54:51.161 --> 00:54:53.304
and young technicians' clubs had to offer.

836
00:54:53.304 --> 00:54:58.201
We must build our work on an innovative and up-to-date foundation with 

837
00:54:58.201 --> 00:55:00.428
the participation of businesses,

838
00:55:00.428 --> 00:55:03.272
higher education institutions and universities.

839
00:55:03.272 --> 00:55:05.737
I will now note a positive fact,

840
00:55:05.737 --> 00:55:08.177
such as the growing interest of young people in engineering jobs 

841
00:55:08.177 --> 00:55:11.948
and blue-collar occupations, the vocations of the future.

842
00:55:11.948 --> 00:55:15.877
Competition for enrolment in engineering universities has almost 

843
00:55:15.877 --> 00:55:18.032
doubled in the past two years.

844
00:55:18.032 --> 00:55:21.121
The WorldSkills International 

845
00:55:21.121 --> 00:55:23.704
(WSI) will take place in Kazan in 2019.

846
00:55:23.704 --> 00:55:28.529
By the way, Russia was the first to hold such contests for young people 

847
00:55:28.529 --> 00:55:31.771
aged 10 to 17 years. It is important to make sure that such tournaments 

848
00:55:31.771 --> 00:55:34.380
become a road map for school children,

849
00:55:34.380 --> 00:55:37.341
for those who are just choosing their trades.

850
00:55:37.341 --> 00:55:41.526
We must establish a whole system of national competitions 

851
00:55:41.526 --> 00:55:43.135
for blue-collar workers.

852
00:55:43.135 --> 00:55:46.461
I suggest we call this system “The Young Professionals.

853
00:55:46.461 --> 00:55:48.574
” This is a very important task.

854
00:55:54.534 --> 00:55:58.531
In a nutshell, Russian schools, additional and professional education,

855
00:55:58.531 --> 00:56:02.606
and support for children’s creative work should be aligned with 

856
00:56:02.606 --> 00:56:06.486
the country’s future, the requirements of people,

857
00:56:06.486 --> 00:56:10.983
young people in this case, and the demands of the economy 

858
00:56:10.983 --> 00:56:13.843
in the context of its prospects.

859
00:56:13.843 --> 00:56:18.110
These guys will have to resolve even more complicated tasks and should 

860
00:56:18.110 --> 00:56:19.879
be ready to be the best.

861
00:56:19.879 --> 00:56:23.619
They should become not only successful in their careers but also simply 

862
00:56:23.619 --> 00:56:28.829
decent people with a firm moral and ethical background.

863
00:56:28.829 --> 00:56:34.089
Colleagues, we have repeatedly faced a historical choice of which road 

864
00:56:34.089 --> 00:56:35.637
to take to further development.

865
00:56:35.637 --> 00:56:42.520
We crossed another milestone in 2014 when Crimea and Sevastopol were 

866
00:56:42.520 --> 00:56:43.553
reunified with Russia.

867
00:56:43.553 --> 00:56:49.028
Russia declared a voce piena its status as a strong state with 

868
00:56:49.028 --> 00:56:53.379
a millennium-long history and great traditions,

869
00:56:53.379 --> 00:57:00.683
as a nation consolidated by common values and common goals.

870
00:57:00.683 --> 00:57:03.479
We are acting with the same confidence now,

871
00:57:03.479 --> 00:57:07.198
at a time when Russia is waging an expressly open,

872
00:57:07.198 --> 00:57:10.092
direct struggle against international terrorism.

873
00:57:10.092 --> 00:57:12.888
We are making and implementing decisions,

874
00:57:12.888 --> 00:57:19.888
knowing that only we can cope with the tasks facing us,

875
00:57:19.888 --> 00:57:23.450
but only if we act together.

876
00:57:23.450 --> 00:57:29.992
I will cite a quotation that seemed stunning even to me.

877
00:57:29.992 --> 00:57:34.819
These words were said by a man who was far removed from politics,

878
00:57:34.819 --> 00:57:40.172
Dmitry Mendeleyev, who expressed these thoughts more than a hundred 

879
00:57:40.172 --> 00:57:45.854
years ago: “We will be immediately destroyed if we are divided.

880
00:57:45.854 --> 00:57:49.561
Our strength lies in our unity, our warriors,

881
00:57:49.561 --> 00:57:53.609
our benign domesticity that multiplies the numbers of our people;

882
00:57:53.609 --> 00:57:56.194
our strength lies in the natural growth of our intrinsic 

883
00:57:56.194 --> 00:57:58.590
wealth and love of peace.

884
00:57:58.590 --> 00:58:01.918
” These are wonderful words that are pertinent to us today.

885
00:58:10.878 --> 00:58:13.864
At the same time Russia is a part of a global world that is 

886
00:58:13.864 --> 00:58:17.767
changing rapidly. We understand well the complexity and scale 

887
00:58:17.767 --> 00:58:21.434
of existing problems – both foreign and domestic.

888
00:58:21.434 --> 00:58:24.263
There are always difficulties and obstacles on the path 

889
00:58:24.263 --> 00:58:26.456
to progress and development.

890
00:58:26.456 --> 00:58:31.691
We will respond to all challenges; we will be creative and productive;

891
00:58:31.691 --> 00:58:36.214
we will work for the common good and for the sake of Russia.

892
00:58:36.214 --> 00:58:40.790
We will move forward in unity and working together we will 

893
00:58:40.790 --> 00:58:42.980
achieve success.

894
00:58:42.980 --> 00:58:46.831
Thank you.

895
00:58:46.831 --> 01:00:09.640
(Anthem of the Russian Federation.)