The Prime Minister spoke at the plenary forum session, In Search for a New Balance: Russian Financial and Economic System during Worldwide Transformation.
This year, the main theme of the forum is In Search for a New Balance: Russian Financial and Economic System during Worldwide Transformation.
The 2023 Moscow Financial Forum will focus on the national economic and budget policy and long-term sustainability of Russia’s financial system. At thematic sessions, experts will discuss ways to develop regional finance and increase the economic potential of the regions, tax policy and the procurement system, and best practices in public finance management. Special attention will be paid to the development of the labour market, jewellery industry, alcohol and tobacco markets.
Mikhail Mishustin’s remarks:
Mikhail Mishustin at the presentation of the digital education ecosystem of the Financial University under the Government of the Russian Federation. With Finance Minister Anton Siluanov and University Rector Stanislav Prokofyev
Mikhail Mishustin met with students of the Financial University under the Government of the Russian Federation who are children of participants in the special military operation. With Finance Minister Anton Siluanov and University Rector Stanislav Prokofyev
Mikhail Mishustin met with students of the Financial University under the Government of the Russian Federation who are children of participants in the special military operation. With Finance Minister Anton Siluanov and University Rector Stanislav Prokofyev
Mikhail Mishustin met with employees of the Federal Taxation Service and the Federal Customs Service who took part in the special military operation
Mikhail Mishustin met with employees of the Federal Taxation Service and the Federal Customs Service who took part in the special military operation
Plenary session of the Moscow Financial Forum. Moscow Mayor Sergei Sobyanin, Finance Minister Anton Siluanov, and Presidential Aide Maxim Oreshkin
Mikhail Mishustin’s remarks at the plenary session of the Moscow Financial Forum
Mikhail Mishustin’s remarks at the plenary session of the Moscow Financial Forum
Mikhail Mishustin at the presentation of the digital education ecosystem of the Financial University under the Government of the Russian Federation. With Finance Minister Anton Siluanov and University Rector Stanislav Prokofyev
Good afternoon, ladies and gentlemen.
Welcome to the Moscow Financial Forum. It is traditionally held in September and unites top professionals: heads of federal and regional government bodies, bankers, heads of large companies, and representatives of the academic and expert community. Although the forum is still quite new, it has already become an excellent platform for discussing all key issues in this important area.
This year’s theme is very acute. It reflects developments in the country and the world in general.
The Russian economy is currently undergoing a large scale transformation. Western partners unilaterally severed past economic ties, thus aggravating many issues, but I believe the most difficult period is behind us.
The forecasts predicted a deep decline in the economy because of the sanctions, but this did not come true. Last year, none of the foreign experts expected that under such enormous pressure, the gross domestic product would decline by only 2 percent.
The country managed to adapt smoothly to the new challenges and quite quickly returned to sustainable growth with a stable labour market and high investment rates.
By the middle of this year, the economy had almost fully recovered to pre-crisis levels, probably with the exception of the oil and gas sector, which needs more time to restructure commodity distribution alternatives and find new trading partners. But in a number of industries, output exceeded the previous figures. Consumer activity continues to grow.
We know that many foreign investors would like to keep their projects in our country. We have seen that they are interested in this. And we appreciate their efforts, we understand the situation in which many find themselves because of the actions of their own authorities. Some were forced to leave Russia after all. We expect their pragmatism to prevail and they will return.
But, as we say, no place is a void. And those who have left our market have, as a result, freed up niches for other players and suppliers. They have given the opportunity, perhaps, to less promoted brands to prove themselves. And the more determined investors have now expanded their projects or launched new ones. After all, the demand for quality goods and services has not decreased, but, on the contrary, is growing.
Of course, the substitution process is not fast, but we are already seeing results. Economic activity is recovering at a higher rate than previously forecasted. According to the Ministry of Economic Development, gross domestic product growth may exceed 2.5 percent by the end of the year.
Such dynamics became possible thanks to the implementation of the President’s instructions, flexible and prompt actions of the Government in coordination with the Bank of Russia. They have made it possible to offset many challenges, support basic industries, small and medium-sized businesses, backbone enterprises and, most importantly, our citizens.
Our responsible approach to financial policy has played a big role. First, this is due to maintaining a balanced federal budget. Last week, the Government approved the budget for the next three years. In the next few days, it will be submitted to the State Duma, in accordance with the law.
The revenue section was increased significantly, which will help support more expenditures. As per the President’s instructions, we must guarantee the fulfilment of all social obligations and provide for the further development of supply-side economics with an emphasis on the country’s own potential and resources. The key growth drivers will be investment and consumer activity, and the expansion of manufacturing facilities.
The basic scenario the budget is based on suggests that the annual growth rate will continue at a level of over 2 percent for the next three years. Our activity will focus on efficiently managing the six priority goals set by the President. They include deepening foreign economic interaction with promising partners from friendly states and improving the necessary mechanisms, including in the transport and payment areas; strengthening our technological and financial sovereignty; priority construction of the transport, utility and social infrastructure; improving the wellbeing of our people; providing for population protection, including the protection of motherhood, childhood and support for families with children.
Naturally, the Russian financial system has played an important role in successfully adapting to the sanctions. Russia has maintained the ability to conclude financial transactions regardless of the actions of foreign countries.
Our Mir national payment card works successfully and provides for both payment and non-financial functionality, such as social and transport cards and the relevant electronic certificates.
The Bank of Russia’s SPFS financial messaging services system exchanges information not only between Russian users, but also with our foreign partners in 15countries. The faster payment system is developing rapidly. Our citizens are using it both for money transfers and to pay for goods and services.
This August, a pilot project for the digital rouble was launched. It is important that each person can choose a payment instrument, whether it’s cash, a card, the faster payment system, or the digital rouble.
Now we need to continue our efforts to strengthen our financial sovereignty and ensure economic sustainability. Not only are we facing sanctions pressure against Russia, but together with other countries we are in the process of transformation of the entire global financial system. This involves, among other things, the rivalry for technological leadership, for specialists, for energy sources and much more.
For two years, the Government and the Bank of Russia, have been implementing a roadmap to generate accessible resources for investment projects. This year we updated it. On the whole, it provides, for example, for expanding the range of tools, creating conditions and incentives for the active participation of various investor groups and for building confidence in the domestic market.
We also plan to accelerate the transition to the greater use of the rouble. We are expanding the network of direct correspondent accounts between banks in Russia and friendly countries in national currencies. The list of currencies from friendly countries that are currently traded on the Moscow Exchange is growing.
We are working on launching cross-border transactions based on blockchain technology using digital financial assets and corresponding utilitarian digital rights. The Government, in coordination with the Bank of Russia, has prepared a step-by-step plan for the creation of such a system that will analyse all legal and technical aspects.
This will hopefully provide new opportunities for attracting foreign investment, which in the current conditions can significantly facilitate capital flow, which is extremely important.
Colleagues, friends!
This story of the sanctions has finally made it clear to many countries that without their own technological backup they can easily, I would say, find themselves left behind. They can experience a shortage of even the most important goods and components.
Therefore, the Government places special emphasis on the development of domestic production. We encourage both the development and adoption of advanced solutions in Russia.
With this in mind, we have developed incentives for the production of critical products. Priority is given – everyone knows this – to the electronic, radio-electronic, and chemical industry, the machine tool industry, transport and energy engineering, and strengthening the technological and personnel sovereignty of the country.
A unified database of startups is being created. It is designed to give a complete picture of the technologies being developed. Today we saw the Fintech startup at the exhibition.
We are restarting the process to revitalise the activities of our venture funds through increased support for relevant investments. We are encouraging the creation of design documentation and launching an industrial mortgage programme. The mechanism for special investment contracts has been improved. The practice of using the tools of experimental legal regimes has been expanded, which makes it possible to apply special regulations in relation to their participants in the areas of development, testing and implementation of digital innovations. A law on small technology companies and a number of other measures have also been adopted.
The purpose of all this support is not simply to replace the imported technologies that have become unavailable under the sanctions. It is important to bring domestic companies to a level that will allow them to not only fill import substitution needs, but, most importantly, to become competitive exporters.
Friends!
I have only touched on a few areas. But I am sure that many more constructive ideas and proposals will be expressed today. We will definitely become familiar with them, study them, and implement the most promising ones in our plans.
I would like to take this opportunity to congratulate everyone present here on your recent professional holiday – Financier’s Day, and through you, everyone who now works in the financial markets and manages the efficiency of expenditures and revenues.
I am sure that our common efforts will allow us to continue the progressive development of the state for the long term, despite any external pressure.
I wish you productive work.
Good luck.
