Agenda: Additional measures to stabilise the financial and economic situation.
Mikhail Mishustin’s opening remarks
Anton Siluanov’s report on additional measures to stabilise the financial and economic situation
Excerpts from the transcript:
Meeting with deputy prime ministers on current issues
Mikhail Mishustin: Colleagues, good afternoon.
First, a few words on the current situation.
The sanctions pressure on Russia is growing. Every day the US, EU members and other states introduce new packages of restrictive measures. As the President said, they are taking unfriendly actions. Whatever the public reasons are, their main goal is to cause damage to certain areas.
These steps were expected; we have no illusions regarding such actions. This is why we have been preparing and adopting an entire range of decisions to minimise the impact both for the economy and for people, considering money flows and the development of import substitution projects for components.
Colleagues, today it is important to promptly respond to all changes. We must take action, work effectively and smoothly, and fulfil all the necessary plans. The situation must be monitored in real time in every sphere you oversee as part of your responsibilities.
The entire Government, all ministries, agencies, and their local branches in the regions will also act in such a format.
We must continue our work to implement the President’s instructions. All the decisions have been made.
I would like to give the floor to Minister of Finance Anton Siluanov. Mr Siluanov, please report on the additional measures that are being taken to stabilise the financial and economic situation.
Please.
Anton Siluanov: Mr Mishustin, colleagues,
The Government and the Bank of Russia are taking action to maintain economic and financial stability.
To maintain stable prices and exchange rates, it has been decided that exporters shall sell 80 percent of their foreign currency revenues on a mandatory basis from 28 February.
In addition, the Central Bank has raised the key interest rate today, and it has also implemented a number of measures to stabilise financial markets and to support banks, including more lenient regulatory requirements for them. Due to greater borrowing costs, we have temporarily suspended the issue of state securities, and we are planning to reduce their volume this year.
The largest companies and financial organisations are implementing measures to ensure uninterrupted work in conditions of sanction restrictions. The Government and the Bank of Russia are monitoring the situation on financial markets. And, if necessary, the Government will act to maintain financial stability, including efforts to strengthen the capital base of commercial banks.
Mr Mishustin, we have also drafted proposals on greater capital amnesty measures, as compared to 2015, 2018 and 2019. We are doing this to provide guarantees for Russian capital that is now deposited abroad.
Speaking of the budget, all budget obligations, primarily social obligations, shall be fulfilled on a priority basis. We have the necessary resources to do this. We are actively working with the Russian regions, so that the planned 2022 regional obligations would be fulfilled in full. Regarding the fulfillment of budgetary obligations, we have taken all the necessary measures to back planned decisions with financial resources.
Mikhail Mishustin: Thank you, Mr Siluanov.
I would also like to inform everyone that urgent meetings were held over the weekend. They involved many colleagues, including you, and dealt with the socioeconomic situation. We adopted a number of decisions to support the economy. These decisions will become part of an action plan, due to be submitted in the near future. We will discuss it many times.
I would like to mention another subject. The Government continues to create favourable conditions for conducting research and development projects. It has been decided to expand the current preferential taxation mechanism.
The mechanism will cover more projects aiming to create new technologies for various sectors. The relevant document has been signed.
This list includes many important aspects, such as R&D projects to develop aerospace systems, drones, medications and medical services, more effective treatment and rehabilitation methods, as well as work on advanced intelligent energy systems, state-of-the-art production technologies, cybersecurity solutions and those in the field of neural-computer interfaces.
Business persons conducting such high-tech research will be able to pay reduced income tax.
Another matter concerns support for advanced developments in the agriculture sector. The President has repeatedly noted the need to build up the science and technological potential in this sector. We provide this support in the federal budget. Agrobusinesses involved in implementing comprehensive science and technological projects can apply for special grants. This year, we designate over one billion roubles for these purposes.
We have signed the Government resolution on expanding the list of projects eligible for such grants. First of all, this concerns the livestock-breeding sector. Vine-growers, as well as farmers breeding oil-bearing crops and their seeds, can also expect additional assistance.
These measures will make it possible to provide consumers with Russian meat, butter and fruits and to boost food security, and this is highly important today. They will help introduce competitive Russian technologies in agriculture.
