Mikhail Mishustin: “Given the constantly increasing sanction threats, we have adopted a number of decisions in recent years following the President’s instructions to support the development of domestic production and import substitution processes. In the current conditions, I consider it necessary to enhance the existing tools.”
Meeting on the sustainable development of the Russian economy
Mikhail Mishustin’s opening remarks:
Colleagues, good afternoon.
Today we will discuss the current economic situation. The United States and the European Union continue to impose sanctions. They have moved from the persecution of specific politicians and businesses to broader restrictions that directly affect the interests of Russian citizens.
Given the constantly increasing sanction threats, we have adopted a number of decisions in recent years following the President’s instructions to support the development of domestic production and import substitution processes.
In the current conditions, I consider it necessary to enhance the existing tools. Since 2018, the Government Commission on the sustainable development of the Russian economy amid sanctions has been operating. It has done a great job counteracting the introduction of sanctions.
Now we are shifting the commission’s work to that of an emergency response centre. I will personally head it. Andrei Belousov and Sergei Sobyanin will be my deputies. Mr Belousov will oversee macroeconomic issues and the development of measures at the federal level. And Mr Sobyanin will be responsible for coordinating emergency decisions at the regional level. The relevant resolution has been signed.
The priority task is to stabilise the markets. The President signed an executive order that will support the rouble exchange rate. Participants in foreign economic activity will be required to sell 80 percent of their foreign currency, which will go into their accounts at authorised banks from non-residents.
It is prohibited to provide non-residents with new foreign currency loans and replenish accounts and deposits opened abroad.
The second area here is the stock market. The presidential executive order allows public joint stock companies to redeem their shares up to the end of this year. It will enable them to secure the necessary capitalisation.
At our meeting on current issues yesterday, we continued to work on the decisions required for maintaining economic and financial stability. Special attention should be given to the support measures for Russian business. And two groups of measures have been developed for essential companies. They include targeted assistance for those who find themselves in dire straits because of the sanctions, and general measures. Now many need time to change their logistics chains and working capital financing.
The Government and the Bank of Russia are contemplating additional support measures for small and medium-sized businesses, combining subsidies and funding for the banks which operate in this sector.
We must ensure that the operating conditions for small businesses do not change. We must retain their current quotas in public procurement – it should be checked individually.
Another important area is investment. The restrictions imposed on our country open new opportunities for domestic investment.
We need to create the most favourable conditions for businesspeople and remove unnecessary administrative barriers, just as we have been doing of late. And we also need to devise support mechanisms for investment projects already underway. Our plans are to work on this issue jointly with businesspeople. We have to ease the government procurement procedures as much as possible and eliminate excessive requirements. The Ministry of Finance is also preparing its proposals on capital amnesty.
Such steps would make it possible to direct more funds to the implementation of new projects in our country. And import substitution should become the main area of our activity. So, the businesses that are engaged in such projects must get additional support.
We need to encourage to the utmost changes in the structure of the economy to move further away from commodity dependence by increasing the share of high-technology production.
The Government has been actively supporting localisation over recent years. We sought to attract to our country both end product manufacturers and producers from related industries in order to boost the output of component parts at Russian plants.
We still consider foreign businesses as potential partners, and we are open to dialogue with investors with constructive attitudes. Many such companies have long and successfully been working on our market. They have set up production facilities with high-paying jobs. They have put resources, effort and time into their projects to reach full capacity. They have established appropriate logistic chains. Their products are in high demand in our country and abroad.
Amid the current sanctions, foreign entrepreneurs have to take decisions under political pressure, not according to economic factors. To allow businesspeople to take informed decisions, a presidential executive order has been drafted on temporary limits on withdrawal from Russian assets.
We hope that those who invested in our country will be able to continue working here. I am sure that the sanctions pressure will eventually subside. And those who do not wind up their projects in our country, who do not succumb to the slogans of foreign politicians, will win. Experience shows that leaving the market is easy, but returning to the place occupied by competitors is much harder.
Another important point. The situation involving a variety of foreign restrictions is difficult. More and more Russian companies are coming under different kinds of sanctions. It is extremely important to support them. All decisions on them will eventually help thousands of our citizens working at those companies.
Today we will discuss in detail all the areas that I have mentioned. I will make it a point to hold such meetings as we have today on a regular basis. It is important to monitor the situation in real time and promptly work on all the necessary measures.
