Putin Meets with Government Members 11 January 2023

The first meeting of the new year shows Putin's drive to improve Russia hasn't diminished one iota, while revealing that NATO's economic war against Russia is a complete failure as you'll see when you read the text. After Putin's peroration are important reports by government members. For those able to understand Russian, there's a video at this link along with the original Russian transcript. I've used Yandex translate for this as it seems to provide a more intelligible translation.

Vladimir Putin: Dear colleagues, good afternoon!

Today we are holding our first meeting with members of the Government in 2023. I once again congratulate you on this event and wish you every success.

Just recently-a couple of days ago-we met with the Prime Minister and some colleagues from the Government, discussed the results, and talked about what we will do in the coming year. Mikhail Vladimirovich [Mishustin], showed how the work in the Government is technologically structured in the most important areas, including the implementation of national projects.

I would like to say is that we spoke at a narrow meeting, but I would like to point out [once again]. First of all, I would like to thank you for your work in 2022. Nothing that our opponent predicted for us happened. And this was done, of course, first of all thanks to the citizens of Russia, their composure, all our composure, readiness for challenges, readiness to work in difficult conditions. But last but not least, this is the result of the Government's work. Mikhail Vladimirovich managed to assemble an efficient, modern team of interested people-interested in the results of the work, [managed] to build all this activity technologically well, and this, of course, brings appropriate results.

We know – we discussed it with our colleagues from the Administration just this morning – that we have additional budget revenues, and they are not related to oil or gas revenues, but rather to non-oil and gas revenues: 200 billion rubles in additional revenues. This gives us the opportunity to solve all the tasks that we set for development and on those issues that are current, but very serious and important. This means working at the federal level, and it means working on the regional dimension.

We need, of course, in the near future to absolutely achieve [resolution] of issues related to sovereign – namely, to sovereign, independent development, despite any external pressure and threats.

I would like to emphasize that we will reliably guarantee the security and interests of the country, we will improve our defense capability, and we will certainly solve all the problems related to providing the Armed Forces and units involved in a special military operation.

At the same time, we will continue to implement large-scale social and economic programs and plans aimed at improving people's well-being, unlocking Russia's enormous potential, and expanding our international relations. We certainly have all the resources to do this.

Six main areas of work for the current year, 2023, have already been outlined, and I would just like to remind you of some of the things that we have already discussed.

The first is to expand foreign economic relations and build new logistics corridors. As a matter of fact, we are actively working in this area – we need to continue this work.

Further. We need to achieve noticeable positive results in the development of road and other infrastructure, housing and communal services, although 2022 was also successful and good here. Well, what can I say: Deputy Prime Minister Khusnullin, and I discussed just the other day the results of work in the construction sector – a good result, one of the best in our history. As for housing construction, it is probably the best in general. The groundwork is done, you need to maintain this pace.

The third. It is necessary to significantly increase the technological capabilities of the Russian economy and encourage the opening of new industries and jobs. Everyone is doing it, of course. First Deputy Prime Minister Andrey Belousov is working in the most promising areas.First Deputy Prime Minister Andrey Belousov is working in the most promising areas, and I very much hope that together with the companies that are designated as leading, we will continue the work that was started last year.

Fourth. A systemic issue is the strengthening of our country's financial sovereignty. This is the most important condition for increasing investment in high-tech companies, industry, agriculture and many other industries. I very much look forward to the effective work of the Central Bank and the Government, first of all, of course, the economic bloc and the Ministry of Finance, just as it was in 2022.

Fifth. Economic policy measures should be designed in such a way that they lead to an increase in real wages and incomes of people, and together with social support measures, especially for families with children, ensure further reduction of poverty and inequality.

Sixth. Special attention should be paid, of course, to solving acute problems in the field of demography – this has also been discussed many times, I will not go into details. We understand what the main problems here are and how to approach them in order to solve them. I mean, of course, addressing these issues by increasing the availability of modern and high-quality healthcare.

I would like to emphasize that work in these areas should cover all regions of the country, including new regions of the Russian Federation. That is why the task was set to provide a systematic, integrated approach to the integration of the Donetsk and Luhansk People's Republics, Zaporozhye and Kherson regions into the common socio-economic space of Russia.

Let me remind you that the Government has been instructed to prepare a special program for the development of new constituent entities of the Russian Federation by the end of this quarter. In the horizon of 2030, they should reach the national level in terms of infrastructure, the level of social services, and many other parameters of the quality of life. I ask the Government, federal agencies, and colleagues in the regions to work out all the details of such a program as clearly and consistently as possible.

And of course, the most acute, vital issues need to be resolved now in an operational mode. As a matter of fact, that's what we do. I understand that the situation in the new regions is complicated: fighting continues in some territories, and peaceful life has not been restored everywhere, and people's safety has been ensured.

Naturally, all these factors need to be taken into account, but all this is not a reason to take a break, postpone the solution of the most pressing issues for later. Even now, we need to set specific goals and gradually, step by step, achieve them, achieve their solutions. This is what people who are really going through hard times and want to see changes for the better are waiting for.

It is important to set clear and understandable guidelines for the development of new regions of Russia, so that residents know what will be built in their cities and towns, what facilities will be restored and when, how family incomes will grow, what state assistance they will receive, how kindergartens, schools, universities, hospitals and polyclinics will work, when businesses will open, what support small businesses and entrepreneurs will receive, and how infrastructure and transport will develop.

Here's what I wanted to put some emphasis on: we need to support local entrepreneurs. Of course, if we need investments from some serious Russian sources, from our large companies-private or state-owned-we need to promote this. But where possible, it is necessary to support local businesses.

Key performance indicators for the development of Zaporizhia, Kherson region, LPR and DPR should be set for the current year. I am referring to common, transparent work criteria not only for regional and municipal authorities, but also for federal authorities, so that our colleagues on the ground, together with the Government, ministries and departments, can focus their efforts and resources on those priority areas that require attention in the first place.

In addition, we have already said this, and I want to emphasize once again that it is necessary to involve new regions of the Russian Federation in the implementation of national projects, and this also means that the activities of national projects in the territories of the DPR, LPR, Kherson and Zaporozhye regions should be provided with funding.

We have said this many times – I know that the Government is actively working on preparing key performance indicators for the development of new regions and connecting them to national projects, but I would like to draw your attention: it is not yet completed, and we need to resolve the remaining issues as soon as possible.

As for today's agenda, we have agreed to consider the issues of social support for citizens, the organization of payments of funds in new regions of Russia, and benefits in all areas as the main topic. About it Tatyana Alekseevna [Golikova], will report today.

But at the beginning of the meeting, I would like to ask Denis Manturov, to tell us how the instructions for implementing long-term programs for updating the fleet of aircraft and water transport fleet are being implemented. We have also been actively engaged in this last year, and we all understand the urgency of these issues, especially in air transport. We discussed this topic just a month ago at the Strategic Development Council.

Let's get to work.

As I suggested, Denis Valentinovich Manturov will start. I ask you to.

Dmitry Manturov: Thank you very much.

Dear Vladimir Vladimirovich,

Dear colleagues!

On your instructions, at the end of last year, we submitted to the Government a passport for an investment project on aircraft leasing. The decision on its approval has been fully approved. In 2023-2025, Aeroflot is scheduled to supply 63 aircraft, including 34 import-substituted Superjets, 18 MS-21s and eleven Tu-214s. This year, the National Welfare Fund will allocate 175 billion rubles for the implementation of the program.

In addition, under the order of other airlines, it is planned to adopt separate passports this year to ensure a comprehensive program for the development of the aviation industry. The aviation industry is ready to fulfill your task.

Given the strategic importance of the project, it was decided to finance it from the National Welfare Fund at a preferential rate of 1.5 percent and without excessive payback requirements. The Ministry of Economic Development is preparing appropriate changes to the regulatory framework, and as soon as this work is completed in the near future, the Ministry of Finance will promptly transfer funds to the lessor through the bond repurchase. This is a subsidiary of Rostec, called Aviakapital-Service, which will be contracted with aircraft manufacturing enterprises.

We propose to implement a similar scheme under the program of preferential leasing of water transport. We ask you, Mr Putin, to support this approach, i.e. loans from the National Welfare Fund at 1.5 percent per annum and easing the profitability requirements.

We have already formed an investment project, and STLC [state transport leasing company] and the Ministry of Finance have agreed on its parameters in a working order. In the period from 2023 to 2027, our shipyards expect to build 260 civilian vessels under this order. This is a wide range of equipment for various purposes, deadweight. The largest volume of orders is planned for cargo vessels, such as tankers, container ships, barges, tugs, dry cargo ships, including those of the Arctic class.

Much work remains to be done on the further development of the passenger fleet, including electric-powered vessels that will start operating in Moscow this year. The first two electric river trams from the capital's target order for 21 units are already undergoing sea trials.

Special emphasis is placed on fishing vessels, as well as on the construction of dredgers for work on the expansion of waterways. This is especially important given the development of new logistics routes.

In total, the program for the renewal of the civil fleet is laid out at 231 billion rubles, and, in addition to the ten billion rubles budgeted for subsidies, it implies the allocation of 136 billion rubles from the National Welfare Fund. STLC will attract another $ 85 billion from the market. This combined scheme will provide operators with a cost-effective leasing model.

Now the key task is to promptly approve the investment project passport. We are ready to submit it to the Government, and we hope that my colleagues will quickly work out the procedural issues that will allow us to open funding this quarter, as you, Mr Putin, instructed us to do.

Thanks for attention.

Vladimir Putin: Denis Valentinovich, have you received the paper that I painted for you? It was sent to me under the signature of the governor of St. Petersburg and the head of the company that produces Meteors, in my opinion. There is a fairly financially capacious project there.

Dmitry Manturov: I confirm this, Mr President.

St. Petersburg is also one of the leaders in the renewal of marine passenger transport, so we are constantly working with our colleagues. They actively use support measures, including those for Meteors and electric vessels. By analogy, as Moscow is already purchasing, work is also underway for St. Petersburg. And also on gas-powered vessels.

Therefore, we are actively engaged.

Vladimir Putin:Good.

They just need to work out their financial instruments, as you have already mentioned, so that their order is timely.

Dmitry Manturov:We use both the current subsidy, which has been operating traditionally for many years and provides a preferential rate, and those funds of the National Welfare Fund that will reduce the effective rate for consumers, including for the subject.

Vladimir Putin: Look, by 2030, as you said just now, 700 aircraft, including helicopters, and 260 civil water technical equipment will be delivered: ships, support vessels, and so on.

These 700 aircraft, including helicopters, need to be worked out together with the Ministry of Defense, so that it is clearly understood and clear: how many will be ordered by the military department, and how many will be civilian vessels. At some enterprises, there is still no order, even for 2023.

D. Manturov: As for the Ministry of Defense, we reported to you in Tula about the number of aircraft. This is aligned with the civil order, taking into account the production capabilities of finishers, pickers, including, most importantly, engines.

For these purposes, we are currently implementing investment projects for aircraft engine fittings, primarily for helicopters-these are VK-2500 engines at the Klimov plant in St. Petersburg. That is, in cooperation with other enterprises, but the main thing is to expand the opportunities at Klimov as a finisher, in order to fulfill the tasks of the Ministry of Defense and civilian customers. In particular, we do not forget about export.

Vladimir Putin: Long time! Too long.

Businesses need to understand their prospects and orders. They have to hire labor, they have to keep or expand production facilities, you know? They need to understand how much the military department will order, how many civilian vessels will be ordered. Some companies don't even have an order for 2023.

Dmitry Manturov: In general, the Ministry of Defense has confirmed the number of all enterprises for this year. Moreover, as I reported to you, loans were taken out by Russian Helicopters enterprises – first of all, we are talking about helicopters – in order to launch all cooperation at the second, third, and fourth levels.

Therefore, we have all the capacities set up for the current and next year.

Vladimir Putin: Denis Valentinovich, as long as there are no passports, which you mentioned yourself, and they do not exist, and there are no firm contracts, they do not have an understanding of what they will do and should do.

Too long, too long. Please, I ask you to speed up this work. There are no contracts for 2023 at the enterprises, you know, well, what can I say? As you said yourself, there are no passports. When will they be available? And there are no contracts yet.

Dmitry Manturov: Here is the order, Mr Putin. As I have reported, we have contracts with the Ministry of Defense, the civil Service, STCL, and other leasing companies - these are related to helicopters. And we have everything set up for the planes. This is taking into account the technical tests, certification and import substitution programs of the Superjet and MS-21. Everything is completely laid out.

Vladimir Putin: Denis Valentinovich, you have made up your mind, but you don't have any contracts. I'm telling you. Let's finish the meeting later, now. What are we going to fight about here? I know that there are no contracts at the enterprises, the directors told me. What are you really fooling around with? When will the contracts be issued? That's what I'm talking about. Directors of enterprises tell me: there are no contracts. And you have "everything laid out".

When will the passports be issued? When will the contracts be issued? Here are some questions to answer.

D. Manturov: As for the passport of the aircraft I just reported: the order is strictly in accordance with your assignment. As for other passports, this will be done during the quarter based on the opportunities that are formed by the budget, including under the preferential program of the National Welfare Fund.

Vladimir Putin: I ask that everything be done within a month. A block away. What are we talking about? Don't we understand the conditions we live in? I ask you to finish this work within a month. Okay?

D. Manturov: We will try to do our best with our colleagues from the economic bloc. Thanks.

Vladimir Putin: No, don't try to do everything possible, but please do it within a month. This should be done within a month, at the latest. Ok?

Dmitry Manturov: There is.

Vladimir Putin: Do you understand why I mentioned this? I noticed some of the wording. You said: "We'll do it soon." What is "coming soon"? It should be clear, clear, and understandable. I don't take it from the ceiling, do I? Directors of enterprises say: there are no contracts.

Well, we'll talk to you again. We already talk every day – and we'll talk again today and tomorrow.

Please, Vitaly Gennadyevich, tell us about the situation with the export of containers from the Far East. We've talked about this, and we've talked about it many times. I know that the situation is changing, I know that now empty cars and gondolas do not go from the Far East to the European part, but I would like to hear your assessment.

You are welcome.

V. : Dear Vladimir Vladimirovich,

Dear colleagues!

First of all, let me thank you for your support of the solutions proposed in November by the Ministry of Transport for the export of containers from the seaports of the Far East. This really allowed us to stabilize the situation there.

The main seaports of the Far East with container terminals are the port of Vladivostok and the port of Vostochny. 17 rear container terminals are also involved.

The average daily export of containers with imported goods by rail and road in December 2022 amounted to 3,713 TEU containers – a twenty-foot equivalent, which is 8.8 percent higher than the average daily figure in November and 18.7 percent higher than the average daily figure in October last year.

The technology of loading into gondolas has shown its effectiveness, and, as you have just noted, we have managed to significantly increase the shipment of containers in gondolas, thereby at the same time solving the issue of loading empty cargo in the opposite direction after unloading coal in the Far Eastern ports.

In November, 43 such container trains were sent, and in December already 121 trains, that is, about four trains a day. We plan to increase the number of trains to five in February. To encourage such transportation, Russian Railways extended a discount to the tariff for transportation of containers in open wagons until the end of this year.

At the same time, in December, record daily figures were achieved for the export of containers by rail: 4,318 containers, including 1,088 containers in gondolas. For example, today we have shipped 4,200 containers per day.

Together with the operator community and Russian Railways, we expect to achieve an average daily container export rate of 4100-4300 containers per day this year.

For ten days of January 2023, the average daily export of containers with imported cargo by rail and road amounted to 3,066 containers. The decline is due to a seasonal factor and is traditional for the beginning of the year. At the same time, I would like to note that the growth by the ten days of January 2022 was 17 percent. Starting from January 7, 2023, the average daily export of containers has stabilized and reaches the indicators of December 2022.

As of January 11, sea terminals were loaded to 97 percent of their design capacity, and rear terminals were loaded to 70 percent. On the roadstead, more than ten thousand containers are waiting to be unloaded, of which eight thousand containers are on line ships and 2,200 containers are on jump ships. Vessels with 19 thousand containers are moving towards the ports.

I will focus separately on the Eastern polygon. The work carried out on the modernization of the railway infrastructure of the Eastern Landfill made it possible to significantly increase the carrying capacity at the end of 2022 to the planned figures of 158 million tons.

Taking into account the growing capacity of the Eastern Landfill, we ask you to support the decision on three additional container trains, which we planned, with your permission, to use until the end of January, and extend [their use] until the end of this year. We discussed this proposal with Andrey Ramovich Belousov, and he supported us. At the same time, we will maintain guaranteed volumes of coal export from Kuzbass, Khakassia, Yakutia, Tuva and Buryatia precisely at the expense of the additional capacities of the Eastern Landfill, which I mentioned.

The measures that we have already implemented and that we plan to implement in the near future will allow us to increase the volume of containers in 2023 by more than 60 percent compared to the volume of 2022.

In fact, today we are talking about compensation for the volume of transshipment previously carried out in the north-west of the country. We do not see any prerequisites for a drop in demand for import and export services through the ports of the Far East: as you have repeatedly noted, all logistics has been rebuilt to the east.

That is why we are now working together with Russian Railways and the business community on further options for increasing imports and exports, taking into account the development of open-car transportation, the ongoing reconstruction of the Eastern Landfill and the increase in the volume of reception and transmission through border crossings in the eastern direction.

By mid-April, we are going to prepare a certain set of measures that will ensure the daily shipment of containers to the Far East in the amount of 6-6.5 thousand.

Dear Vladimir Vladimirovich, If you don't mind, I would also briefly report on the work of the transport complex during the New Year holidays.

The transport complex has worked quite reliably. We have met the full demand of citizens and the economy for transportation by all types of transport – it is very important, this is a reserve for the whole year: as you work out during the New Year holidays, as practice shows, the start of the new year begins.

From January 1 to January 8, despite abnormal weather conditions: snowfalls, frosts, freezing rains – more than two million 260 thousand passengers were transported by air, this is the operational data of our airlines. This is 11.3 percent more than in the same period last year. Of course, such indicators were achieved, among other things, through the extension of support measures for airlines.

During the holidays, 17.6 million passengers were transported by long-distance and suburban railway transport – which is 10.7 percent more than last year. To ensure increased demand during the New Year holidays, 1,369 additional train departures were scheduled.

In the period from January 1 to January 8, sea transport transported about 72 thousand people, which is almost 21 percent more than the same period in 2022. About 47 thousand people were transported by inland water transport, which is 53 percent higher than in the same period in 2022. Motor transport and public buses transported more than 163,000 people during the holidays – which is 5.7 percent more than in the same period in 2022.

During the New Year's Eve and New Year's holidays, children are transported by all types of transport, including organized groups to Christmas trees and performances.

In addition, a socially significant project was implemented to organize railway transportation of more than two thousand children and accompanying persons from the Luhansk and Donetsk People's Republics, Zaporozhye, Kherson and Belgorod regions to New Year's performances in the State Kremlin Palace.

Dear Vladimir Vladimirovich,

The transport complex is ready to solve the full range of tasks in 2023 with the aim of uninterrupted communication and organization of movement of both the economy and passenger traffic.

Thanks for attention.

Vladimir Putin: Thank you.

Oleg Valentinovich, do you have anything to add to what the Minister said?

O. : Vladimir Vladimirovich, we have agreed on the report. Maybe I would also like to say one more figure.

By the end of 2022, we have achieved several unique results. First of all, on your instructions, transportation to the south plus 20 percent-in general, since the history of the formation of Russian railways-transported the number of passengers, purchased a record number-more than one thousand passenger cars.

Vitaly Gennadievich said in general, the Eastern training ground. Not only for export, but also for work within the Eastern landfill increased-more than eight percent, transported more cargo in domestic consumption. This is a good indicator that indicates that the economy in this macro-region is actively developing.

We are ready to perform all tasks.

Thanks.

Vladimir Putin: Thank you.

Alexander Valentinovich, two words about your complex – on coal transportation and so on.

A. : Vladimir Vladimirovich, as for 2022, this year our coal production increased by 0.3 percent, despite the fact that an embargo on coal supplies to Europe was imposed on August 10. Nevertheless, the overall production rate increased slightly, almost at the level of last year, primarily due to supplies to the domestic market. They grew by about eight percent, while exports fell by seven percent.

That is, in fact, this year coal-fired power plants were more loaded due to the low water content and lower electricity generation at hydroelectric power plants, so the domestic market has grown. In particular, the domestic market was provided by rail transport, as our colleagues have just reported. Here we have no problems, full synchronization.

Next year, the main direction, of course, is the Far Eastern direction. Here we are working with the opportunities that exist for expanding the Baikal-Amur mainline and the eastern route in general, so we will continue to implement the tasks set for the coal industry with our colleagues.

Vladimir Putin: Are our oil and gas companies coping with the problems that their competitors are trying to create by using political mechanisms and tools?

Alexander Novak: Yes, there are difficulties, of course. But at the same time, now the total volume of exports and supplies that we observed in December, starting from December 5, when we imposed an embargo on supplies to Europe and a price ceiling for sea transportation, insurance, and the provision of services by sea… We are in constant contact with the companies, the contract is completed for February, and in general, today the contracting companies do not say that they have problems.

Yes, counterparties sometimes require that these contracts take into account the situation associated with the limitation of the price ceiling. However, in the process of concluding contracts, taking into account your Decree and the requirements for companies, despite the fact that it comes into force on February 1, we nevertheless set a task for companies in December and January, and when contracting for February, so that they strictly do not take into account the price ceiling in contracts, because that it may be a future risk.

Now, starting from February 5, the price ceiling for petroleum products comes into force. The European Union has not yet set these prices, but they are still considering the appropriate offer, methodology and differentiation by types of petroleum products.

As for oil. The main problem is the high discount resulting from the high level of freight costs. In other words, the cost of freight has increased quite strongly due to the risks that carriers and counterparties experience regarding possible sanctions in accordance with the fact that they do not set a price ceiling.

I hope that this situation will be temporary, and the discount should decrease over time, as we observed during 2022, when in March-April the discount increased significantly, then it gradually began to fall and halved.

So now the main risk is, in my opinion, the discount, the first. The second is the imposed embargo on the supply of petroleum products and the imposed price ceiling. We will respond to these challenges, report back, and take all necessary measures to ensure deliveries to new markets, logistics, and appropriate transportation.

The report is over.

Vladimir Putin: We need to look at this discount so that it doesn't create any problems with the budget. If you understand what I'm talking about, please discuss it and then report your suggestions to me separately. Ok?

Alexander Novak: All right. There is.

Vladimir Putin: Thank you.

Marat Shakirzyanovich, we have already discussed the results of the construction sector several times. I would like to ask you to repeat some things with your colleagues.

M. Khusnullin : Dear Vladimir Vladimirovich,

We really did a good job last year, and we can already see one hundred percent that the construction of housing will be 101.5 million square meters – this is something that has already been confirmed by all regions. According to updated statistics, I think that we will leave even more. This is the largest input volume in history, even including the Soviet Union.

The second question is that, of course, thanks to the systematic measures that you supported on road construction: we have developed a five-year program, linked all our road construction plans with the regions – and today we have laid 170 million square meters of asphalt on our roads. This is the second indicator.

If, for example, we talk about the Eastern landfill, the territory of the Far East, then, on your instructions, we also took into account the construction of roads in the amount of about five years to bring all roads to a standard state.

We have done a lot of work to reduce the investment and construction cycle. We reduce these unnecessary requirements every year. Over the past year, thanks to the adoption of 29 laws and 160 amendments to laws, we have managed to remove more than 100 positions – extra approvals, which also allows everyone to speed up.

There was also your assignment on industrial construction, which is particularly relevant now. We are also working systematically in this area, and we are removing more and more restrictions.

And of course, all construction projects are very much affected by the social gasification program today. It was decided to bring gas to every house. This, of course, gave a direct surge in the input of houses. That is, many who had a huge number of unfinished [houses], there was just a little bit left to build a house, they have now completed and registered. This is also very much affected.

This year, Mr President, we are very actively developing the housing and utilities program, again on your instructions. We have some of the money. According to your instructions, 130 billion rubles have been pledged. Anton Germanovich [Siluanov] and I discussed the second part of the investment budget loans today, and we are already preparing a program for the Far Eastern Federal District, and we have already discussed the possibilities of using it for new territories. This, of course, will give an impetus to the development of industrial construction. Therefore, together we can clearly see that the growth of construction projects in our country this year will not be lower than six percent compared to last year. Because over the past 11-12 months, Mr Putin, we have gained 8-9 per cent.

In other words, this comprehensive program has worked for us and has begun to give such a synergistic effect, helping each other and increasing construction more and more. That is why, despite all the sanctions, our results have, on the contrary, surpassed all previous years – thanks to the entire Government, all our major monopolies, and very close cooperation with the regions. The verified program allowed you to build all objects faster.

This year, we have already scheduled a number of road construction projects to open, just as I told you about the deadlines. By dates, we will offer to contact the Presidential Administration-if you have the opportunity to take part in such iconic objects as M-12, as the Aksai and Rostov bypass, and a number of other objects.

So thank you very much, Vladimir Vladimirovich, everything seems to be working out so far.

Vladimir Putin: Thank you. Thank you to the builders who showed such record results.

By the way, I would also like to thank those who worked in the new territories, helped the Ministry of Defense, built and constructed defensive structures.

Unfortunately, there are also losses among builders. We must remember this and help our families. In addition to the fact that builders have always been respected by us as creators, it has also become a heroic profession today.

So many thanks to you and to all those who solved the problems facing the country in this area. I congratulate you on your results, just as I congratulate everyone who worked in rural areas: they also achieved excellent results. I'm not even talking about the level of harvest, which doesn't come by itself – this is the result of work, but also the work of the complex as a whole. It worked very well, very effectively. I mean the agricultural complex in this case and processing.

We ended 2022 with a minimum unemployment rate – what is it, 3.7 percent? – and with a lower level of inflation than predicted. In this regard, I would like to ask both the Minister of Economic Development and the Minister of Finance to comment on these results.

Maxim Gennadievich, please.

Mikhail : Dear Vladimir Vladimirovich,

Indeed, we have now received operational information on the results of the year. We have inflation below 12 percent, to be more precise with rounding-11.9 percent. This is despite the fact that we have moved the indexation of housing and utilities tariffs from July 1, 2023 to December 1, 2022.

This is largely a consequence of the stabilization of prices in the agricultural sector, a consequence of the high yield, and a consequence of the fact that quite a lot of work has been done in recent years both by the commodity distribution network and on the development of sales channels. Our agricultural products hit the shelves fairly quickly, competition develops and, accordingly, the pricing system develops.

Therefore, we assume that at the end of the first quarter, inflation will decrease significantly-year-on-year, since our price peak will leave the base in May, and in the second quarter we will see figures that are likely to be even lower than our target level of four percent, at least. at some point in time.

This is probably why keeping inflation within these parameters and stabilizing it in the second half of the year is one of the key tasks of the year, which now allows us to plan all processes more confidently and, most importantly, ensure the solution of the problem that you mentioned – the growth of real incomes of citizens. Because we will not be able to do this without solving the issues of inflation.

Preliminary data on personal income tax and salaries in general show that, of course, we have generally good nominal wage growth in the economy. This is a reflection of the situation in the labor market and a certain shortage in the labor market, which, of course, is now developing due to the load of both the defense industry and machine-building products, and so on.

Because the decline in imports is, on the one hand, a problem, of course. But, on the other hand, these are additional orders from our production facilities and, consequently, additional demand for labor. All this puts pressure – in a good way – on workers and leads to higher wages. Although, of course, it is extremely important for enterprises to continue to engage in productivity and invest.

Last year, we also fully adopted the system decisions on your instructions after the meeting with you, after the key issues, and we will continue to implement them this year.

Vladimir Putin: Nominal wage growth is good, but it is an accounting position for you and me. We need to achieve growth in real incomes of the population. This is obvious, it is also clear to everyone.

Of course, this downward trend in inflation should be taken into account in the current economic policy. As a matter of fact, we already understand all this. But I would like the entire economic bloc to feel this way, including the Ministry of Finance.

Please, Anton Germanovich.

A. Siluanov : Vladimir Vladimirovich, last year we paid attention not only to responding to the challenges that we faced, but also to supporting people, businesses, goals and national projects, which are among our main tasks.

Last year showed that, despite all the limitations that we faced, the tasks that were set, we mostly fulfilled them and provided full financial resources. To do this, we have increased our total expenditures: the planned volume of expenditures was increased by more than six trillion rubles, and the total amount of expenditures was 31.2 trillion rubles. We have never had such a volume in our history.

We financed these expenses with additional revenues of approximately 2.8 trillion rubles. Indeed, we have increased oil and gas expenditures by two trillion rubles and non-oil and gas expenditures that come from the economy by 760 billion rubles. It was a single resource.

And the second resource – we actively participated in the borrowing market. Together with the banks, we have attracted additional resources – we have taken about 3.5 trillion rubles from the market alone to finance our expenses.

Yes, we have a slightly larger deficit than we planned – 2.3 percent of GDP. But if we exclude, and it is probably correct to exclude, the money that was allocated to state extra-budgetary funds to compensate for lost income as a result of the deferral that we provided for business, then the deficit is 1.8 percent of GDP. In other words, it fits into the parameters that you have defined as a benchmark for us for this year and for the next year.

What's important? In terms of spending, you are talking about the labor market – we helped and provided measures to support the labor market: 28 billion rubles were allocated for this. But this is not the most important thing – the most important thing is that we helped people: we indexed the unscheduled costs of raising pensions by ten percent from June, we indexed the minimum wage and the subsistence minimum by the same amount. Almost 500 billion rubles were additionally allocated for these purposes.

We have started new payments for families with children who have already received a single allowance since this year. Last year, more than 400 billion rubles were allocated for these purposes to support families with children from 8 to 16 years old. This is also an innovation that we did not plan last year, but as a result of the need to support the most needy of our citizens, we launched this measure.

A single social fund has been created. Our entrepreneurs were supported. In addition to the deferral that we discussed, we provided subsidies for interest on loans, because loans had to be available to continue developing production. We helped enterprises, helped our builders-we compensated for the increase in the cost of construction. And so on and so forth – a lot of things have been done.

In general, we believe that the budget component has largely influenced the dynamics of GDP as a whole. Because we have made a contribution – as a state demand-to the development of the economy and, most importantly, supported people in this difficult period for the country.

Thanks.

Vladimir Putin: Thank you.

We can confidently state that the country's financial and banking systems, as well as the economy as a whole, are in a stable state and are actively developing. We have every reason to believe that the same pace will be maintained in 2023. I very much look forward to your interested work and would like to thank you once again for the results of 2022.

Before giving the floor to Tatyana Alekseevna, I would like to ask Mikhail Murashko to say a few words about the results and progress of medical examinations of children living in the new territories, as well as a few questions related to this.

Please, Mikhail Albertovich.

Mikhail Murashko : Thank you very much.

Dear Vladimir Vladimirovich,

On your instructions, we conduct preventive medical examinations of children in new regions of the Russian Federation. We have applied a new technology for organizing this type of assistance. We purchased 50 cars with medical equipment together with the Ministry of Industry and Trade. They actually work directly in educational institutions, and all the work of medical staff is organized exactly at the place of study.

More than 450 specialist doctors are currently working on medical examinations. More than 110 thousand children were examined – which is already more than 20 percent of those who are subject to [examination]. We plan to complete all this work before the end of the school year.

According to the results of preventive examinations, such an important figure: more than 50 percent of diagnoses are newly established diagnoses. That is, these children really needed preventive examinations, and qualified specialists allow, accordingly, to detect the disease in a timely manner. Of these children, 17 thousand were taken for dispensary observation.

I would also like to note that almost 3,800 children were sent to hospitals for routine treatment. Today, more than 1.5 thousand surgical interventions have already been performed where necessary, including telemedicine consultations organized and large regional and federal clinics involved. 20 children have already been hospitalized as planned and received medical care.

I would also like to note that the Circle of Good has actively engaged in providing medical care, and today nine children have already received expensive medicines for treatment.

Separately, I would like to say a few words about the restoration of the medical infrastructure. Today, work is underway on 172 sites, 78 have already been restored and are in operation. We have delivered 386 ambulances together with the Ministry of Industry and Trade. This is almost 50 percent of the updated fleet of ambulances, this was an urgent need. We have also installed mobile medical complexes that provide medical care in rural areas.

We supply medicines and medical devices worth more than $ 7.5 billion, the last deliveries were completed in December last year, including for the treatment of patients with HIV infection and tuberculosis.

We also organized technological support, as training of medical personnel is extremely important. All federal medical research centers have joined this work, carry out field visits, and provide both medical and educational assistance.

Specialists from medical institutions are also being sent – more than 700 people work in our territories today. We train management personnel who manage medical clinics. Our Scientific Center for health organization has already held several such seminars.

I would also like to note that on your instructions, divisions of federal executive authorities, in particular Roszdravnadzor, have been created, and this work has already been organized. Decisions were made and documents were issued on the organization of territorial divisions of the Compulsory Health Insurance Fund. And a law on the specifics of regulating medical activities in the new constituent entities of the Russian Federation has been prepared.

I would also like to note that all the materials have been prepared, and active work is underway to include new regions and medical organizations in national projects. Together with the Ministry of Construction, we are working on these issues.

I finished my report. Thank you so much for your attention.

Vladimir Putin: Thank you, thank you.

Tatiana Alekseevna, please. I ask you to.

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(addressing Tatyana Golikova): Vladimir Putin Look, medical workers in the so-called new territories are working in very difficult conditions, their workload is enormous, not comparable to the workload that our medical workers are experiencing even in a pandemic.

Think about it. Secondary medical personnel, first-level staff, and so on – you need to think about how to pay attention to them, how to support them.

T. : Yes, Mr Putin, we are holding a meeting on this subject tomorrow. We have certain suggestions on this issue, and we will report them to you separately.

<…>

Vladimir Putin: Thank you very much.

We probably don't need to talk about the importance of what we just discussed, what Tatyana Alekseevna reported on. I hope that this work will continue so meticulously, step by step in all areas.

Where, as you said, you will need some kind of my participation, please, at any second, you know: we are almost in daily contact, so we will discuss this with our colleagues-both together and in separate areas.

In general, I would like to thank you for the work that has been done, and I would like to once again congratulate all my colleagues on the upcoming New Year and Merry Christmas.

Good luck. Thank you very much.