Agenda: aerospace industry management; population growth; abnormal winter weather in the Southern and North Caucasus federal districts.
Dmitry Medvedev’s opening remarks
Transcript:
Meeting with deputy prime ministers
Dmitry Medvedev: A few words about the issue I’ve suggested we discuss today. I’ve signed a government directive on the management of the aerospace industry, in accordance with the Presidential executive order on this issue. It aims at consolidating the largest design bureaus and production facilities in the planned United Aerospace Corporation. Under this directive, the new corporation will take over 10 integrated structures comprising 48 different organisations and 14 companies. The corporation will be 100% owned by the state.
This industry needs to be overhauled to meet the requirements of our Armed Forces and space programmes with the required types of aerospace technology, and to improve ground infrastructure, in particular, creating space centres, which are very complex facilities technologically. I hope that the optimisation of this industry in accordance with the Presidential executive order and the directive that I have signed will create the necessary conditions for the industry’s development.
Dmitry Medvedev: "United Aerospace Corporation. Under this directive, the new corporation will take over 10 integrated structures comprising 48 different organisations and 14 companies. The corporation will be 100% owned by the state."
Mr Rogozin (Dmitry Rogozin), please report on the implementation of the Presidential executive order and the Government directive.
Dmitry Rogozin: Mr Medvedev, following the signing of this Government directive, the Federal Agency for State Property Management (Rosimushchestvo) will start drafting several documents on assessing the value of the shares and corporatisation of federal state unitary enterprises, which is the most popular form of property ownership in the aerospace industry. We are also preparing real estate and funds to transfer to the United Rocket and Space Corporation as a contribution to its charter capital so that it can start operating in the first year of its formation.
A few words about other major areas of work, such as coordination of the principles of the division of responsibilities between the Federal Space Agency as a systemic integrator and major government client and the corporation itself that will be involved in economic activities.
The third important point – we’ve started consolidating the assets of the aerospace industry, particularly based on the areas of their activities. I’m referring to the systems of control, launch of space vehicles and production of spacecraft. This will allow us to pursue a uniform technological policy, and this is the key to upgrading the production of space vehicles and equipment.
Finally, Mr Medvedev, our main problem (you know about this, we’ve discussed it many times): our Achilles heel in the aerospace industry is hardware components… Since 95% of any spacecraft consists of hardware components, and these are radio-resistant hardware components, we must establish a uniform centre for the purchase and certification of radio-resistant hardware components within the framework of the United Rocket and Space Corporation.
Dmitry Rogozin: "Since 95% of any spacecraft consists of hardware components, and these are radio-resistant hardware components, we must establish a uniform centre for the purchase and certification of radio-resistant hardware components within the framework of the United Rocket and Space Corporation."
The second, even more important task is to launch the production of everything we need on our own territory. On the one hand, we must reduce the number of part types of hardware components and, on the other, start manufacturing everything we need at home. In this context the corporation must be the main coordinator of all producers of hardware components, primarily the state-owned Rostec Corporation and private manufacturers (Mikron and Angstrem).
I’d like to make a point about such an important issue as the market of space services. All the required documents on this score have been produced recently. Needless to say, there should be one entity in charge of this issue. I’m referring to the services market created by our unique orbital GLONASS system, which is all the more important since the new ERA-GlONASS system has been launched early this year; remote probing of the Earth; cartography, weather services and communications, to name a few. As a corporation that, when it comes down to it, is the owner of these space systems, the Rocket and Space Corporation should coordinate all these activities.
We intend to review these five aspects that I reported to you, Mr Medvedev, at the meeting of the commission on the structure and management systems of the aerospace industry. So we are launching this very important work. The presidential executive order and the directive give us two years to do this, so let’s try to do it more quickly. Everything depends on the institutional and legal foundation, the transfer of all of these federal state unitary enterprises into joint-stock companies, but we must do everything else more quickly.
Dmitry Medvedev: It is important to prevent this process from being dragged out. All these bureaucratic procedures are essential, but regrettably they sometimes take too much time and the positive effect that we expect from uniting all enterprises of the industry in the corporation will simply not be produced until the completion of this work. This is why it is necessary to deal with these procedures as soon as possible.
Keep an eye on this and report on how you are doing.
Dmitry Medvedev: "The natural population growth amounted to almost 23,000 and the main factor contributing to this was the decrease in the death rate for various reasons."
There is one good piece of news on demography. It is already known but I’d like to draw your attention to it because it has not yet been commented on seriously. I’m referring to the latest information of Rosstat (the Federal Service for Statistics). It has registered an increase in our population. Importantly, this increase is largely due to the reduction of the mortality rate, owing to the introduction of new technology. We didn’t have this before. The natural population growth amounted to almost 23,000 and the main factor contributing to this was the decrease in the death rate for various reasons. Ms Golodets, could you please tell us how this is calculated and what conclusions should be made?
Olga Golodets: Indeed, Rosstat has registered a positive population growth. This information will be specified, but we already know that it will be a positive figure. Most likely, the increase will be bigger than the initial figure. Rosstat has registered a growing birth rate and a decreasing mortality rate. We thought that our potential for supporting births had been exhausted, but the recent measures (bonuses for giving birth to a third child and continued maternity capital) are increasing the number of second and third children being born. Thus, the share of third children increased on average by 9.6% in the country as a whole. Despite the obvious trend towards a reduction in the number of women of childbearing age, the number of babies born in 2013 increased by 4,500, according to preliminary data. We hope that when this data is made more specific we’ll see an even bigger figure.
Olga Golodets: "Rosstat has registered a growing birth rate and a decreasing mortality rate. We thought that our potential for supporting births had been exhausted, but the recent measures (bonuses for giving birth to a third child and continued maternity capital) are increasing the number of second and third children being born. Thus, the share of third children increased on average by 9.6% in the country as a whole."
At the same time, we are carrying out several programmes to support positive demographic change by creating favourable conditions for mothers that want to receive education. We summed up the results of our pilot project the other day. We created for mothers with babies an opportunity to attend preparatory courses that will lead them to universities. Fifty universities took part in this programme. Their rectors are positive about this programme and we are planning to launch it in other universities.
As for the mortality rate, its reduction is due to the steady modernisation of the healthcare system and I think we should decrease it at a faster pace.
Dmitry Medvedev: Okay, we’ll see how it goes. Let’s hope these measures will produce a general effect and consolidate these demographic trends.
There is one more issue that has drawn much attention – the weather, and the related temperature, snowfalls, snow storms and snowdrifts on federal and regional roads. There are still traffic jams that stretch for many kilometers, and I’m not referring to just one case, which was broadly covered. There is traffic congestion in the Far East, the Urals, central Russia, and the Southern and North Caucasus Federal Districts. Winter has reached its peak. On the M4 and M29 roads traffic was almost completely paralysed, and an emergency situation was announced in the Rostov Region because of powerful snowfall. Now life is returning to normal but it is necessary to be on top of the situation.
Dmitry Medvedev: "On the M4 and M29 roads traffic was almost completely paralysed, and an emergency situation was announced in the Rostov Region because of powerful snowfall. Now life is returning to normal but it is necessary to be on top of the situation."
What is happening on the roads now, Mr Dvorkovich? What are our regional colleagues doing? Do they require more federal support measures?
Arkady Dvorkovich: Mr Medvedev, ladies and gentlemen. Indeed, in the last few days there have been abnormal frosts in some regions, such as the Southern and North Caucasus Federal Districts, primarily in the Rostov Region, and the Krasnodar and Stavropol Territories. A warning about the expectant low temperatures was made several days in advance. All services and regional authorities were informed about this. Individuals and companies were also promptly warned that things may get tougher than they normally are there.
Arkady Dvorkovich: "Additional equipment was brought only on the second day from other regions, covering a distance of 700km-900km before it arrived in dangerous areas. The difficulties were eliminated on the following day.There is still traffic congestion on regional and local roads in the Krasnodar Territory and the Rostov Region but all problems on the federal roads have been removed."
Nonetheless, during the first day after the temperature dropped, the problems that arose were not fully addressed and there were blockages on many roads. Additional equipment was brought only on the second day from other regions, covering a distance of 700km-900km before it arrived in dangerous areas. The difficulties were eliminated on the following day.
The situation remains tough in some areas of the Stavropol Territory. There are restrictions on the Nevinnomyssk-Stavropol Motorway and some other roads. There is still traffic congestion on regional and local roads in the Krasnodar Territory and the Rostov Region but all problems on the federal roads have been removed.
What lessons have been drawn and what should we do in the near future? First, when we hear forecasts like these, we should more quickly transfer equipment from one part of the country to another. This year we didn’t fully cope with this task. We’ll probably need to buy more equipment so as to have mobile reserves in key areas of the country.
Second, sometimes there is a lack of proper coordination between different departments and services. There was lack of coordination between the Border Guard Service on the one hand, and other services at Ukraine’s border with the Rostov Region on the other. Now this problem has been resolved but it persisted for one day.
Third, after last year’s problems in the North-Western Federal District the binding requirement to use winter tires in certain periods, especially on large trucks, has not been legally introduced. Deputies did not support the initiatives of the Government and relevant departments and we’ll have to submit our proposals to the Duma once again.
Finally, the fourth problem is provision of winter fuel. The regions under review do not have enough winter diesel fuel. We’ll resolve this problem in cooperation with the Ministry of Energy and find out what caused it in the near future. It was reported before that they had enough winter fuel.
In addition, we found out that our grocery chains do not always work properly even though the regional authorities have done their part and offered to supply them with additional bread and milk. Chain stores were often reluctant to take these products saying they had contracts with other suppliers.
Dmitry Medvedev: Are you talking about the Rostov Region?
Arkady Dvorkovich: Yes. These problems have been resolved now, but they posed quite a challenge during the first few days.
Dmitry Medvedev: We need to look at the legislation, because contracts must, of course, be honoured. On the other hand, this should not affect social interests in general. Some providers may simply be unable to come up with food supplies. This doesn’t mean that the shelves in grocery stores should be empty just because they have signed some contracts. Perhaps we need to take a closer look at the competition law. Please work with the head of the antimonopoly agency and see what can be done here.
Arkady Dvorkovich: Will do.
Dmitry Medvedev: That's my first point. Second, with regard to equipment. Of course, it probably won’t make much sense if we start assembling it in all our regions. For example, the Rostov Region is located in southern Russia, and such abnormal weather is a rare occurrence there. But, on the other hand, we must be clear-eyed about what we have. I checked the materials and saw that there was a lot of chatter about this equipment. They are saying that we have it and that it’s operational, but when they go on an onsite inspection they find out that it is either not there, or is dismantled or just plain old. No need to pull the wool over anyone’s eyes here. We just need to take an unbiased look at the situation. I’m all for having logistical centres that would serve entire regions: one in the south and in the Caucasus, so as to have all such equipment in one place. Having to move it just 200-300 km is a much better proposition than having to haul it 900 km. This is different. It takes just a few hours. Please get this going. Prepare your directives for the Ministry of Transport and the regions, too, because it is their responsibility.
Arkady Dvorkovich: Will do. Mr Medvedev, I’d like to let you know in advance that the weather might worsen in certain parts of the southern Volga Region and the Rostov Region in about a week, and it’s imperative that regional leaders and services continue their partnership in this regard.
Dmitry Medvedev: Let them know that. Call them and tell them that winter comes to Russia every year, that Russian winters are notoriously cold, and that they must be prepared for anything that comes their way.
The federal government should also issue all the corresponding instructions and find out what the petrol issue was all about.
Agreed then.
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