In particular, the main parameters of the federal targeted programme on the development of the Far East and the Trans-Baikal Territory over the next five years were discussed at the meeting.
Transcript of the beginning of the meeting:
Dmitry Medvedev: There are fewer people here today than usual. Some of our colleagues are on business trips and others are on sick leaves. Mr Dvorkovich has received an athletic injury. I wish him an early recovery. He should be more careful on the football pitch.
With Deputy Prime Minister Sergei Prikhodko and Deputy Prime Minister Dmitry Rogozin
Now let’s turn to current issues. Quite recently I endorsed another roadmap that was compiled as part of the National Business Initiative. So, this work is continuing. The matter concerns expanded access of small and medium-sized companies to the purchases of infrastructure monopolies and companies that are partially owned by the state. We have spoken about this issue more than once. This is an enormous market, worth about seven trillion roubles a year. The share of small and medium-sized companies is a mere 10%. It no longer reflects their influence on our economy. I hope that the measures we planned will increase this figure by 250% in the next few years.
The implementation of the roadmap should not lead to the reduction of the quality of goods and services being rendered or to an increase in their costs. This market must simply become more transparent and competitive. Small and medium-sized companies will make it more open. This is absolutely certain.
One more document I have signed concerns improvement of the military educational system. We have merged military universities – in some cases this has had a positive effect, but it has not been quite justified in others. At any rate, we must consider the results. I have signed a paper on reorganising the Military Research and Education Centre of the Armed Forces Combined Arms Academy by withdrawing two of its components – the Margelov Ryazan Higher Airborne Command School and the Proshlyakov Tyumen Higher School of Military Engineering. Both are military universities. I hope this measure will help improve the system of military education.
Mr Rogozin, I hope you will supervise these processes as Deputy Prime Minister. This applies to the defence purchase order and the educational system in general, although this is a special part of it.
Dmitry Rogozin: Mr Medvedev, a couple of months ago I went to Ryazan on your instructions and visited this celebrated, legendary Margelov School.
Dmitry Medvedev: I’ve been there as well.
Dmitry Rogozin: Indeed, we had a conversation – they have a lot of hope associated with the drafting of this resolution. Now they cannot wait for you to sign this paper.
Dmitry Medvedev: I’ve already signed it.
Dmitry Rogozin: Let’s tell them straight away. In many respects, this decision is linked with the reorganisation of the Ground Forces Training Centre and the delivery of new equipment to airborne forces and other troops. This equipment is designed for airborne troops and supplied under the armament programme. So, the Ryazan School is currently living its own life. The long-awaited decision to separate it from the centre has been justified.
Dmitry Medvedev: I hope the academic process and the training of officers will be improved. The Government and other agencies have received some petitions on this issue.
And one more huge topic: the Far East and Eastern Siberia. We are carrying out large-scale projects there. We’ve also adopted a major programme that will be funded both from the budget and extra-budgetary sources. By the way, I think we should conduct a separate meeting on the latter. Mr Shuvalov, could you please talk to your colleagues and come to see me along with our major companies that are operating in the Far East? This is a very large programme and some people are wondering where to obtain such funds. We should find such funds in the investment programmes of our major companies – those that want to develop. Our task is to help them. This is the issue I’d like to discuss today. How are things? How are you doing?
Igor Shuvalov: Mr Medvedev, the budget is being drafted and the Government has adopted all fundamental documents to determine main parameters of the federal targeted programme for the Far East and Trans-Baikal for the next five years. I’m referring to the state programme and legislation – including new tax laws – that are now being reviewed by the State Duma. On May 24 it adopted a draft in the first reading on tax benefits for companies that are being established in this macro region. These companies will receive substantial profit tax relief. We and our Duma deputies are now discussing the final version of the amendments for the second reading. The draft will be adopted and sent to the Federation Council before the end of the spring session. We’ll do our best to finalise the draft by the middle of July.
The State Duma is also reviewing a draft on special economic zones that will also provide benefits for projects being carried out in this region. Thus, the instructions of the President and the Prime Minister on the Far East will have been fulfilled for the most part. At the budget commission meeting on June 24 we’ll suggest looking at the expenses on the programme for the Far East, on par with other expenditures. We’ll propose spending 100 billion roubles a year for this programme during the next five years. This is the figure you approved in Yakutsk.
On May 30 you endorsed the list of 38 priority projects for this region. The main projects that allow us to develop industry and improve the quality of life are on transport infrastructure, power generation and some industrial facilities. This is a far from complete list of projects that will be financed from the federal budget or the Fund for the Development of the Far East. Positions on these projects have been fully agreed upon. New information about them will be presented in the next two months for their final endorsement as priority projects.
Upon the instructions that you issued, as well as previous instructions, we are completing the drafting of proposals on the institutional structure of the Fund for the Development of the Far East. By June 26 we must report to the President what should be done to change the system of managing the Far East. Mr Medvedev, there is a proposal to transform this fund into a different institutional form – a non-profit organisation – because far from all projects can be carried out by a joint stock company. We believe the new system of management will be fairly effective and will allow us to resolve all the tasks we are facing.
To sum up, the legal foundation for the development of the Far East is being established. Sources of funding will be determined during the drafting of the budget. We’ll resolve this issue before September and will submit a relevant draft budget to the State Duma.
As for the projects, the most important of them are well-known, for instance, Sollers in the Primorye Territory, Mazda, and Korean carmakers. Toyota has launched the production of cars in this region – it will manufacture about 100,000 cars per year and develop the production of spare parts. There are also projects on the Ussuriyskaya thermal power station, other energy generating plants and grids, and on the development and production of raw materials… Governors have repeatedly addressed the Government on these issues, and they were discussed with private companies.
Dmitry Medvedev: I’d like to repeat that we should hold a meeting on this, because the future investors in these projects should realise their responsibilities. The financing of these projects from the federal budget should be accompanied by private funding. Private companies should provide for allocations in their long-term plans, because our programme is designed for a long-term perspective. Our plans should fully coincide with those of our companies and infrastructure monopolies – in general, any large corporations that are going to work there (you’ve mentioned some of them).
Igor Shuvalov: We’ll prepare the meeting.
Dmitry Medvedev: Okay. As for legislation, it is still being drafted. The main financial instrument exists as a fund, but in reality it is a joint stock company. We must decide what to do about this, but I’d like all those who are working on this issue to have a consolidated position on it, because different proposals are being made all the time. I think it’s time to make a final decision. Please discuss it with our other colleagues. If you decide the fund could become a non-profit organisation, I won’t object to it. I’m referring to the institution of a new form that is now being established (a public company was mentioned in this context). I’m ready to formulate my position and talk with the President. That said, it would be best if you could reach some consensus rather than the host of proposals that are being made today.
Igor Shuvalov: We’ll do it.
Dmitry Medvedev: Okay, agreed. Thank you.
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