Dmitry Medvedev: “Officials had an unprecedented job to restore the infrastructure that was destroyed almost completely, so that people could get back to a normal life, and to do so within the shortest possible time. Over 40 billion roubles’ worth of federal budget funding was transferred to the regional budgets for restoring the Far East. On the whole, we can say that all the instructions regarding the disaster relief projects have been fulfilled on schedule.”
Excerpts from
Dmitry Medvedev’s introductory remarks:
Meeting of the Government Commission on the Socioeconomic Development of the Russian Far East
First, let’s sum up the results of the clean-up operations after a major flood that hit the Russian Far East just over a year ago.
Over 40 billion roubles’ worth of federal budget funding were transferred to regional budgets for restoring the Far East. On the whole, we can say that all instructions regarding disaster relief projects have been fulfilled on schedule. Of course, the housing construction and renovation for almost 12,000 flood victims was the most difficult thing. All of them have received new or renovated flats and homes by 30 September. In all, 226,000 square metres of housing were either built or purchased. A total of 200,000 people have received financial assistance worth almost ten billion roubles. Agricultural producers have also received the necessary support. Road-construction operations are nearing completion, and social facilities will also be renovated soon. The local infrastructure has been restored.
Dmitry Medvedev: "Over 40 billion roubles’ worth of federal budget funding were transferred to regional budgets for restoring the Far East. On the whole, we can say that all instructions regarding disaster relief projects have been fulfilled on schedule. Of course, the housing construction and renovation for almost 12,000 flood victims was the most difficult thing. All of them have received new or renovated flats and homes by 30 September. In all, 226,000 square metres of housing were either built or purchased."
But the Russian Far East requires systematic attention and work, rather than just emergency projects. While conducting such regular work, participants in a recent Government meeting have approved a very complicated, important and somewhat revolutionary legislative package formalising a mechanism to establish territories that would develop faster than planned. They embody the following two main ideas. First, it involves a deregulation system for these territories. And, second, tax incentives, specifically economic freedoms and low taxes, are stipulated.
Today, we will also discuss the situation in the forest/timber industry, which accounts for not more than 1.5 percent of the Russian economic structure. In fact, its share has been plunging for the past eight years. Annual budget losses incurred by the ineffective management of national forest/timber resources exceed eight billion roubles, according to the most optimistic estimates. Nevertheless, the Far East accounts for 43 percent of Russia’s forests and 25 percent of its timber reserves. These are tremendous resources.
Dmitry Medvedev: "Eleven priority investment projects with a total volume of 37 billion roubles are being implemented in the Far Eastern Federal District, and aim to manufacture high-quality and deeply processed timber."
Eleven priority investment projects with a total
volume of 37 billion roubles are being implemented in the Far Eastern Federal
District, and aim to manufacture high-quality and deeply processed timber.
Production facilities have started operating in line with seven projects, but
the enterprises still function to not more than 50 percent of their rated
capacity. Moreover, the projects have so far failed to attain the required
profitability levels. We need to improve the situation in the industry,
including with human resources. And, of course, we need to assess legislation
in line with existing realities.
