Mikhail Mishustin’s opening remarks
Good afternoon, colleagues.
Before we begin our discussion, I would like to welcome a new Government member, Alexander Kurenkov, the new Minister of Civil Defence, Emergencies and Disaster Relief. Congratulations, Mr Kurenkov. The President has appointed you to a high and responsible position and has entrusted you with important tasks.
Rescue workers are among the first responders in the most difficult situations, including fires, floods and other emergencies or calamities. They prevent potential threats, and protect our territories from natural and man-made disasters.
I hope that the Ministry will continue to develop actively under your guidance, that it will respond effectively to emergencies at any level and help those in trouble.
Today, I would like to wish you a happy 50th birthday, I wish you and your family good health, and I also wish you professional successes. Congratulations.
Last week, we discussed efforts to reduce the administrative burden, as well as ways to improve the work of the oversight system, at a meeting of the Government Commission on the Development of Small and Medium-Sized Businesses.
A risk-oriented approach towards holding inspections has become our common principle here. Their intensity depends on the risk categories of the facilities under review. We maintain strict oversight only when it concerns protection of people’s lives and health.
The President also underscored the importance of this work. The Government has made significant improvements to the legislation in this sphere. Consequently, the number of inspections is approximately half of the number carried out in 2019.
We have created a mechanism for settling matters out of court. From now on, businesses will be able to inform oversight agencies about their mistakes and prove their point without resorting to costly and protracted court hearings. Digital solutions facilitate online interaction.
It is possible to expand document packages at the request of oversight agencies, without visiting their offices. This greatly expedites the entire process and makes it more effective.
We received 1,400 complaints in the second half of the year, and one third of them have been solved.
The transformation of the oversight system has allowed businesses to slash administrative costs by 160 to 180 billion roubles, according to expert opinion. They can invest these funds in development, which is very important during a difficult period when our economy is responding to new challenges.
Today, we will review our performance last year. Economic Development Minister Maxim Reshetnikov will speak about this in detail.
We will also discuss the amendments to the Tax Code, notably, a set of adjustments that should mitigate the impact of sanctions on our citizens and businesses. We will lift personal income tax on the transfer of securities and monies from brokers who have been affected by the imposition of foreign sanctions.
Electronics companies that develop and produce their own electronic components and products will benefit from profit tax and insurance deduction allowances. Businesses can take into account the mark-up factors involved in purchasing and introducing their own electronic equipment and software. This will accelerate our transition to domestically produced goods and will also become part of support packages for our people and businesses.
Another issue on our agenda today has to do with companies working in the priority development areas and the Free Port of Vladivostok. They can also reduce their insurance contributions in the 10 years after they have obtained resident status. In fact, in the first few years, companies prepare project documents, build the planned facilities and install equipment, tasks that can usually be delegated to contractors. They don’t need to hire paid staff and pay contributions, which means that this support measure is ineffective. Consequently, the effective period of incentives is much shorter than it is on paper.
Acting upon the President’s instructions, the Government has prepared amendments to the legislation under which the insurance payment benefits are effective for 10 years after a company starts employing staff. To benefit from this support, investors need to send a notification to the tax authorities no later than three years after receiving the resident status.
This will improve the effectiveness of the benefits available in the priority development areas and the Free Port of Vladivostok and will better meet the needs of investors.
We will also discuss ways to enhance the efficiency of government spending on the construction of river and sea vessels of all kinds. It is essential to ensure that each government rouble is invested as planned, especially in such a capital-intensive sector as shipbuilding.
The sectoral strategy includes ambitious goals, which mean that the Russian shipyards will be working hard for years to come, including building up our Arctic fleet and maintaining the batch production of powerful nuclear icebreakers for year-round navigation along the Northern Sea Route.
On the President’s instructions, the Government has drafted amendments to the Federal Law On Industrial Policy. These amendments remove loopholes in the law, which made it difficult to verify the reliability of ship construction cost estimates at the initial design stage. Now a clear and comprehensible procedure for carrying out this expert auditing will be approved, and the Ministry of Industry and Trade will be vested with the relevant authority.
We hope that the amendments will be passed shortly. They will make it possible to take government spending under control and render it more transparent and predictable. They will also expedite the allocation of budget funds for laying down new ships.
With the sanctions pressure, Northern Sea Route development is emerging as a key national priority. The NSR is a reliable and safe transport corridor located within Russia’s territorial waters and exclusive economic zone. It can be used for alternative routes and exports to friendly countries.
The President has instructed the Government to amend the legislation in order to centralise the authority to administer the Northern Sea Route. Rosatom State Corporation, the owner of our unique national icebreaker fleet, will oversee the management of NSR navigation.
The volume and duration of navigation is growing every year. Today’s decision should increase the safety of sailing this route.
Now let’s take up the issues related to the development of private farms. The Government continues to support them. They play an important role in developing the national agriculture sector, ensuring food security, and creating new jobs in rural areas.
We will consider a draft law developed on the President’s instruction. This document makes it possible to considerably simplify the procedure for leasing government- or municipally-owned agriculture land.
This opportunity will be available to Russian nationals and farm owners. They will be able to lease land for up to five years without participating in tenders.
But they will have to comply with a number of conditions, including not transferring the land to third parties or subleasing it. Subsequent to the five years, it will be possible to extend the lease or acquire the title to the land. This section of the law will offer additional advantages to small landholders.
Until recently, they found it difficult to compete with big agriculture companies at tenders where land lease contracts are signed. We hope that small and especially family farms will now be able to increase their agricultural production.
Our next agenda item concerns tourism. This economic sector has great potential and is connected to many related industries – from transport and construction to agriculture. To develop it, the Government is implementing a package of measures, including as part of the Tourism and Hospitality Industry national project.
Today, we will distribute over 24 billion roubles among 16 regions, funding that the federal budget will allocate during the next three years, from 2022 to 2024, including more than 3.4 billion roubles this year. These funds are intended for the Kamchatka Territory, the Republic of Adygea, the Tver Region, and the Kemerovo Region.
The money will be used to create the necessary engineering and transport infrastructure that will help the tourist centres in these regions continue developing. After all, in addition to comfortable hotels, modern health resorts, and other tourist facilities, people who travel around this country need good and safe roads as well as high-quality public utilities. It is important to continue creating a diverse and competitive tourist infrastructure in Russia that will meet people’s needs.
