The main item on the agenda is the preliminary results of the 2014 harvest, seasonal fieldwork for the 2015 harvest, draft federal laws on the development of the Far East and a draft agreement between the governments of Russia and China on cooperation in natural gas supplies.
Excerpts from Dmitry Medvedev’s
opening remarks
Government meeting
Good afternoon, ladies and gentlemen. Let’s start with agriculture. The Golden Autumn exhibition opened yesterday. The agriculture and related industries is one of our economic sectors that is demonstrating confident growth. This is the result of our Government support and, of course, the efforts of agrarians.
Today we’ll sum up the preliminary results of this year’s harvest. The rates of harvesting this autumn are a bit higher than they were a year ago. About 90 percent of grain crops and grain legumes have been threshed. In a rough estimate, this year we will take in a very good grain harvest: about 104 million tonnes. This will be the biggest success of agrarians after the record year in 2008, when they took in 108 million tonnes, an absolute record for this country. Our agrarians are expected to set an absolute record for soya and rape in the entire history of their cultivation.
Dmitry Medvedev: "The rates of harvesting this autumn are a bit higher than they were a year ago. About 90 percent of grain crops and grain legumes have been threshed. In a rough estimate, this year we will take in a very good grain harvest: about 104 million tonnes. This will be the biggest success of agrarians after the record year in 2008, when they took in 108 million tonnes."
The harvest of potatoes and other vegetables has slightly increased compared to the past year. At the same time, we must build up the production of these crops to enhance our food security, especially now that European producers have left niches open in our food market.
We must consider import replacement in planning the forthcoming season's field work. Above all, we must decrease the dependence of our agro-industrial complex on foreign seeds of agricultural plants. With this end in view we are drafting a special sub-programme to support selection and seed breeding under the agricultural development programme. This was mentioned more than once at the exhibition yesterday. We need domestic cultivars of crops that could produce a plentiful harvest of healthy vegetables and high-quality fruit in our climate.
One more issue is provision of equipment for agricultural producers. In general, the wear and tear of harvesters and tractors is proceeding faster than the fleet is being upgraded. Heavy debt loads are preventing farmers from buying the necessary amount of equipment. Moreover, the equipment that is produced or assembled in this country does not fully meet the farmers’ requirements. We must create efficient mechanisms of state support to make agricultural equipment more affordable for farmers.
All in all about 46 billion roubles from the federal budget will be spent to support plant growing, along with another 22 billion from regional funds. About 75 percent of this money has already been transferred to agricultural producers. The granting of loans on seasonal fieldwork is proceeding at a normal pace. It is carried out by banks that traditionally lend money to the countryside.
State purchase interventions provide more money for agrarians. Last year the Government gave them an opportunity to buy back grain if they make up for the costs of its storage, insurance and taxes. Favourable market conditions allowed them to sell grain at a tangible profit following the buy-back. This year the practice of interventions will be continued.
Dmitry Medvedev: "Last year the Government gave them an opportunity to buy back grain if they make up for the costs of its storage, insurance and taxes. Favourable market conditions allowed them to sell grain at a tangible profit following the buy-back. This year the practice of interventions will be continued."
Finally, I’d like to draw your attention once again to the need to insure the future harvest. The number of farms that sign insurance contracts is growing every year, but we are not satisfied with this modest growth. Now only about 14 percent of all cultivated areas are insured. The amount of insured perennial crops is much less, and we must change the situation for the better. The Minister of Agriculture will report on this issue. In addition, today’s meeting is attended by the heads of our large agrarian regions: Stavropol Region Governor Vladimir Vladimirov and Omsk Region Governor Viktor Nazarov. We’ll give them an opportunity to speak as well.
Today we’ll review a number of draft laws on creating territories of accelerated socio-economic development. At first we are planning to set them up in the Far Eastern Federal District, and then in other parts of the country as well.
We are attaching great importance to the accelerated development of the Far East. Government members are taking part in this work, and right after this meeting we’ll have a session of a major governmental commission on the socio-economic development of the Far East. Territories of accelerated development should become a mechanism that would impart new dynamics to such territories and improve the living and working conditions of local people.
The documents formulate the main principles for creating and running the territories of accelerated development, and determine the sources of funding for these plans. These territories will have special legislation and special Government and municipal control mechanisms. To improve the investment climate and create competitive conditions for entrepreneurship we’ll introduce tax, customs and administrative benefits. Thus, there will be easier procedures for obtaining permits and plots of land, getting registered and connecting to power grids, utilities and other infrastructure, making rent and insurance payments and employing foreign specialists.
Dmitry Medvedev: "We hope that the mechanism of these territories will allow us to launch large investment projects in the near future, remove infrastructure restrictions, maximally simplify the development of new production lines and the creation of jobs."
At any rate we hope that the mechanism of these territories will allow us to launch large investment projects in the near future, remove infrastructure restrictions, maximally simplify the development of new production lines and the creation of jobs, and will encourage regional governors to support small and medium-sized companies and hire qualified personnel.
One more issue concerns amendments to the Tax Code. I’m referring to granting the right to apply a zero profit tax rate for organisations involved in social services. This measure will be valid for five years starting 1 January 2015 and is aimed at making social services more attractive for investors. The relevant draft law determines the terms for applying the zero profit tax rate, while the list of social services will be endorsed by the Government. I hope this will ease the tax burden for social services and enhance their quality.
Today we’ll consider a draft resolution on signing a Russian-Chinese intergovernmental agreement on cooperation in Russia’s natural gas supplies to the People’s Republic of China following the Eastern route. The signing of this agreement is a prerequisite for the entry into force of the purchase and sale contract concluded by Gazprom and the China National Petroleum Corporation (CNPC) in May this year. These companies will receive all-round government assistance in designing, building and running the gas transport infrastructure that is required for Russian gas supplies to our Chinese partners.
<…>
