Agenda: the Federal Targeted Programme and the Federal Targeted Investment Programme and their progress in 2021; adapting the construction industry’s procurement system to external sanctions; allocating additional funds to the Industrial Development Fund to support industrial companies; supporting regions affected by emergencies.
Mikhail Mishustin’s opening remarks:
Good afternoon, colleagues,
Government meeting
Before we start on today’s agenda, I would like to say a few words about the latest decision. From tomorrow, the Government is introducing a six-month moratorium on initiating insolvency cases filed by creditors. It applies to both organisations and individuals, including private entrepreneurs.
The moratorium will essentially give debtors six months to deal with their current difficulties, bring their businesses back into order, find new sources of income and straighten out their finances without closing their companies and businesses and without dismissing their staff.
Excluded from the moratorium will be indebted developers of blocks of flats or other housing subject to the equity construction law, and distressed assets included in the unified registry.
We expect that this decision will support companies and individuals who, as a result of unfriendly actions against our country, are facing financial difficulties and are currently in default on their obligations.
Now, let’s move on to this meeting’s agenda. Today we will summarise the results of the federal targeted and investment programmes over the last year. These programmes received substantial funding from the state, over 1.1 trillion roubles, as a means of supporting significant projects, including construction.
We have worked under 11 targeted programmes. The level of achievement of key indicators and efficiency targets has increased. Financial discipline has been strengthened. The co-financing of programmes from regional and local budgets and extra-budgetary sources has increased by nearly 40 percent.
As for the Federal Targeted Investment Programme, the completion of construction projects has decreased slightly, partly because of the growing prices for construction materials and the adjustment of project documents. Pandemic related restrictions have had their effect as well.
Colleagues, I ask you to take the necessary organisational decisions to complete all the projects this year. I am referring to healthcare facilities, sports centres, motorways and other infrastructure our people need.
We believe this investment budgeting instrument will become more effective if we keep it open and transparent.
The Government has prepared an important legislative initiative as part of the priority action plan. The new proposals are designed to adjust the procurement system to the foreign sanctions.
First of all, this concerns construction procedures. We will simplify the system of turnkey contracts for customers, which will include the entire range of relevant features, from the design stage to supplying the necessary equipment. They will be able to do this until the end of 2023. This will help them accelerate decision making and increase flexibility. Businesses will be able to reduce administrative expenses and expedite construction under their projects.
There is one more important issue. We discussed ways to expand import substitution during a recent meeting of the Commission on the Sustainable Development of the Russian Economy amid the Sanctions. The Government will provide all the necessary assistance to companies that are implementing projects in the related priority spheres.
Today we will discuss the allocation of 20 billion roubles to subsidise the Industry Development Fund. It will provide low-interest loans to companies that are creating advanced technologies for substituting imported equivalent items.
This will allow us to implement at least 50 such projects in a broad range of sectors. Our goal is to help businesses keep working and, of course, to maintain jobs.
I would like to talk about support measures for the regions affected by natural disasters.
The heavy flooding in Crimea last summer damaged roads and many buildings, including multistorey residential buildings. They must be repaired and some of them overhauled. Plans for this year include new roofing and façade repairs on more than 260 blocks of flats.
Last week we approved the allocation of an additional 520 million roubles for the restoration of damaged roads in Crimea. Today the Government will allocate over 1.5 billion roubles for housing repairs.
These funds will be used to improve living conditions for thousands of people in the municipal districts of Yalta and Kerch, as well as the Kirovsky, Leninsky and Sovetsky regions of Crimea.
