RUSSIA, September 12 - The agenda: Additional support for economic sectors under sanctions, the results of the Eastern Economic Forum, the implementation progress of the Far Eastern Quarter project, and the updated Strategy for the Development of Agriculture and Fisheries for the period up to 2030.
Mikhail Mishustin’s welcoming remarks
Excerpts from transcript:
Mikhail Mishustin: Good afternoon, colleagues,
The Government continues to adopt decisions to support businesses and citizens in the face of external restrictions. The President has emphasised the necessity of helping industries overcome difficulties. We had an in-depth discussion at a meeting of the Presidium of the Government Commission on Enhancing Economic Resilience, focusing on which areas need additional attention. We will allocate more than 100 billion roubles for these purposes.
Part of the funding will go to the aviation industry. Fifteen billion roubles will be allocated to expand the production of MC-21 aircraft. And we will allocate another 25 billion this year to support the air traffic management system.
External restrictions have made the situation with the supply of components and equipment for shipbuilding more difficult and led to a significant increase in costs. This is why we will allocate another 15 billion roubles to the programme of preferential leasing of sea vessels. In general, it is planned to build over 300 ships at domestic shipyards for various purposes and transfer them to transport companies by 2030. Also, a targeted subsidy in the amount of 3 billion roubles will be allocated to the Vyborg Shipyard, which is currently working on a new icebreaker for the North-Western Basin.
Today it is especially important to support business. To that end, a decision was made to increase the capital of the Industrial Development Fund by over 8 billion roubles. An additional 4 billion roubles will be allocated for the programmes in low-tonnage and medium-tonnage chemistry. Its products are used practically in all sectors, especially in technology-intensive ones. At the same time, its own production capacities are not developed enough yet. We will also send 2 billion roubles for the development of equipment to produce liquefied natural gas.
The Kaliningrad Region will also receive assistance. Due to the actions of unfriendly states, the region is facing restrictions on cargo transit from other Russian regions. We will allocate 5.5 billion roubles to support investment projects and create new jobs there.
All relevant instructions must be prepared shortly. We hope that these decisions will improve our country’s technology capacities and support employment.
Another issue is related to the Far East. The President outlined this area of activity as one of the national priorities.
In his speech at the plenary session of the Eastern Economic Forum, the President emphasised that it is necessary to continue promoting the advanced development of Far Eastern regions using all means of state support.
The Government is implementing an entire range of large-scale measures aimed at strengthening the economic and social spheres of this region. Conditions are being created for boosting investment activity, doing business and creating a comfortable life here. It is important to not only create profitable enterprises but also do everything possible so that people would see their future in the Far East. To this end, they need to have stable jobs, high-quality social infrastructure and good housing. The Far Eastern Quarter project will serve as a solution to this issue. It involves the comprehensive development of the region’s cities, including social infrastructure. We discussed it in detail during our trip to the Trans-Baikal Territory.
The President gave instructions to hold the first tenders, select developers and begin the design and construction of housing before the end of the year.
Mr Trutnev, please tell us about the work on the project and about the results of the Eastern Economic Forum in general.
Yury Trutnev: Mr Mishustin, colleagues,
The Eastern Economic Forum has come to an end. It was attended by over 7,000 people from 68 countries, including unfriendly countries such as the United States, Great Britain, France, Germany, Italy, Korea and Japan.
The forum was visited by 15 foreign high-ranking officials and 14 heads of diplomatic corps.
Participants in the forum signed a total of 296 agreements worth 3.272 trillion roubles. Since the sixth Forum took place, 113 new enterprises have been built, more than 24,000 jobs have been created, and private investors have invested 654 billion roubles over the last year. It means that the pace of development in the Far East has not slackened.
Mr Mishustin, we informed the head of state about the government initiatives developed under your leadership. They include the construction of rental housing, Greater Vladivostok, a new image for the regions, conditions for improving the quality of education and a number of other proposals.
Housing construction occupies a special place in the development of the Far East. The work on Far Eastern quarters has begun. Seven sites have been selected in the Khabarovsk, Kamchatka and Trans-Baikal territories, the Sakhalin and Amur regions, the Republic of Buryatia and the Jewish Autonomous Region. Under the programme, we will build housing for 80,000 people. As you noted not only housing will be built, but also the necessary social infrastructure: schools, hospitals and kindergartens.
In addition to the Far Eastern Quarter, the President also supported the prolongation of Far Eastern mortgages. Today, in the Far East, every second flat in a new building is purchased using this mechanism.
The preparation of master plans has become a new area of work for the development of the Far East. Preparations have already been made for 17 out of the 25 master plans assigned by the President. The best projects to date are those of Petropavlovsk-Kamchatsky, Ulan-Ude and Magadan. The Far Eastern Hectare law also encourages construction. Today, more than 40 percent of the sites gained are used for housing construction. This work has already produced results. In 2021, the rate of housing construction in the Far East exceeded the national average almost two times over. At the same time, it is extremely important to us that there has been a narrowing of the difference in housing costs between the regions of the Far East and central Russia. Back in 2019, it was over 15 percent, today it is six percent. All of this work will make housing affordable in the Far East, create comfortable living conditions and encourage an influx of people to the region.
Mikhail Mishustin: Thank you, Mr Trutnev. Please personally monitor the implementation of the elaborated and outlined projects and the instructions that the President gave at the Eastern Economic Forum. It is necessary to fulfil our obligations to people and businesses.
Following the President’s instruction, the Government updated the Strategy for the Development of Agriculture and Fisheries for the period up to 2030. The President set the task of taking into account current challenges and creating conditions for expanding the industry in all major areas.
Today, Russia is among the world’s top ten in terms of value added in the agricultural sector, and is one of the largest suppliers of wheat and sunflowers. Domestic farms fully meet the country’s demand for important products such as meat, fish, grain, sugar and vegetable oil.
It is necessary to achieve a sustainable average annual growth of production in the sector at the level of 3 percent, which will require financing in the amount of at least 900 billion roubles annually.
These tasks will be addressed in conjunction with other programme documents for the country’s development and national goals set out by the President. This includes improving living conditions in small towns, including roads, schools and healthcare, increasing the incomes of people living there, and developing tourism.
Ms Abramchenko, please tell us in more detail which areas you will pay special attention to.
Viktoria Abramchenko: Mr Mishustin, colleagues,
The updated strategy defines three main areas in the development of the agricultural and fisheries industry.
First, it is necessary to increase production and achieve all the indices of the Food Security Doctrine.
As you said, Mr Mishustin, the agricultural workers fully meet the national demand for important products such as meat, fish, grain, sugar and vegetable oil. We continue increasing the domestic production of milk, potatoes, vegetables, fruit and berries.
In line with your instruction, the Strategy includes measures designed to boost the industry’s technological independence. It is intended to encourage the agriculturists’ demand for domestically produced versions of essential machinery and equipment, as well as for home-grown seeds.
We will continue to support breeding and genetics projects. We will launch the production of amino acids and enzymes. For this purpose, we will introduce additional support measures and extend favourable loans to businesses at an interest rate of 1 to 5 percent. In addition, we are planning to provide grants for purchasing materials, machinery, equipment and new know-how. Businesspeople who will launch dairy or sheep-breeding units will be reimbursed for up to 20 percent of their expenses.
Yet another measure designed to tap the agricultural industry’s potential is to put [unused] agricultural lands into use and enhance their fertility. In 2024, we will increase the area for agricultural production by 5 million hectares, and we will add over 13 million hectares of [unused] agricultural lands by 2030. We will also promote amelioration.
In the fisheries industry, we focus on developing Russian shipbuilding, building onshore fish-packing factories, and providing aquiculture producers with home-made feed and fish seed.
These and other measures will make it possible to increase agricultural production by 29.7 percent by 2030.
The second area we will work on is increasing exports and expanding markets. Experts estimate that the world population will be in the ballpark of 10 billion people by 2050. The number of food supplying countries are decreasing because of unfavourable climate change. In this context, Russia is a key and reliable supplier in the world food market.
Our objective is to increase agricultural exports to over $47 billion by 2030, or by more than 50 percent. For this, it is necessary to increase the supply of high value-added products and solve logistical problems. That is why we are planning to build more than 40 ships to transport agricultural products and to have a sufficient number of railway containers and refrigerators.
Our third goal is to ensure a high standard of living for the rural population. People should have the necessary infrastructure for a comfortable life in the countryside. I am referring to roads, quality healthcare, education and leisure centres, and, of course, new housing.
Mr Mishustin, on your instruction, rural mortgages, a high-demand support measure, will continue indefinitely. In this way, we will be able to help a large number of families to get better housing.
As you said, no less than 900 billion roubles per year will be needed to achieve all these goals. This support will enable agriculture to boost its gross value added by more than 72 percent to 6.5 trillion roubles. The amount of investment in the fixed assets will increase by more than 40 percent before 2030.
In conclusion, I would like to note that agriculture has never let [this country] down and showed steady growth even during the [Covid-19] pandemic. The agricultural industry will continue to provide residents of Russia with affordable, high-quality products and strengthen its positions in the world market.
Mikhail Mishustin: Thank you, Ms Abramchenko.
It is important to continue strengthening national food security and support the development of agricultural land so that the people of Russia have an opportunity to choose high-quality products.
Please oversee the implementation of all measures envisaged by the Strategy.
