The meeting was held on the sidelines of the Caucasus Investment Forum in Grozny.
Mikhail Mishustin’s opening remarks
Remarks by Presidential Plenipotentiary Envoy to the North Caucasus Federal District Yury Chaika
Remarks by Minister of Economic Development Maxim Reshetnikov
Mikhail Mishustin’s closing remarks
Mikhail Mishustin holds a meeting with members of the Government Commission on the Socioeconomic Development of the North Caucasus Federal District
Meeting with members of the Government Commission on Socioeconomic Development of the North Caucasus Federal District
Meeting with members of the Government Commission on Socioeconomic Development of the North Caucasus Federal District
Meeting with members of the Government Commission on Socioeconomic Development of the North Caucasus Federal District
Alexander Novak attends a meeting with members of the Government Commission on Socio-Economic Development of the North Caucasus Federal District
Mikhail Mishustin holds a meeting with members of the Government Commission on the Socioeconomic Development of the North Caucasus Federal District
Excerpts from the transcript:
Mikhail Mishustin: Good afternoon, colleagues.
We have toured the exhibition of the Caucasus Investment Forum just now. It is the first time that the forum is being held at this scale. I would like to express gratitude to everyone who contributed to its preparation, primarily Ramzan Kadyrov, Yury Chaika and Alexander Novak, as well as the heads of all Caucasian regions that are taking part in this investment forum.
The President has signed an executive order on holding this forum every year. I have no doubt whatsoever that it will offer a good platform for presenting the macro-region’s possibilities and coordinating effective solutions for making full use of the Caucasus’ potential. It is notable that our young people are being involved in this project. Special sessions and roundtable and other discussions have been prepared for young professionals.
During our tour of the exhibition, the heads of the North Caucasus regions briefed us on many useful initiatives aimed at strengthening their economies, creating new jobs, attracting investment, and increasing the real incomes of those who live in the Caucasus. Most importantly, we talked about the new goals our President outlined in his May executive order.
And now we have met with members of the government commission to hold an in-depth discussion of the situation in the federal district as a whole, is development outlook and the tasks we must attain to create comfortable conditions for the 10 million people living in the North Caucasus.
The construction of schools, kindergartens, hospitals, outpatient clinics, culture and sports facilities, roads and utility systems is ongoing, first of all within the relevant comprehensive state programme that was launched more than two years ago. Over that period, more than 800 such facilities have been built here.
Development plans have been approved for individual territories, for example, North Ossetia, Derbent and the Kavkazskiye Mineralnye Vody resort area. Thanks to them, modern social, transport and utility infrastructure has become more accessible, and its construction is not finished yet. Over 9.5 billion roubles will be allocated for this purpose from the federal budget next year.
We are also helping modernise housing and utility systems. We have launched a pilot project in Dagestan, Ingushetia and North Ossetia in order to balance the work of regional operators.
At the same time, our main task is to unlock the economic potential of North Caucasus territories, to create economic growth points in each of them and to provide favourable conditions for attracting investment, launching their own production facilities and creating jobs.
We already have positive results. The industry, especially its processing sector, is performing well. The same concerns agriculture, including, fruit, vegetable, grain and leguminous crops harvests.
All this became possible due to well-coordinated actions of federal and regional authorities, development institutions and by implementing measures, stipulated by the strategy and the state programme for developing the North Caucasus, as well as sectoral and infrastructure mechanisms.
The so-called breakthrough investment projects also play a significant role here. We focused on their implementation three years ago, seeing them as a driving force of economic growth. In all, there are 35 such projects in high-priority spheres, including the industry, the agrarian sector, the housing and utility sector, transport and tourism. According to the Analytical Centre, in the first quarter of 2024, they earned virtually 330 billion roubles’ worth of extra-budgetary funding for the federal district and created about 20,500 jobs there. We have to find jobs for over 87,000 specialists by late 2030.
Alexander Novak will report on these initiatives in more detail.
Today, we will also hear a report by Maxim Reshetnikov on support measures for entrepreneurs and the overall situation in economic sectors.
The tourism industry ranks among the most promising sectors, and it opens up additional economic development opportunities for the North Caucasus, including by generating a multiplier effect in adjacent spheres.
We are active in developing tourist cluster projects. Over the recent three years the flow of holidaymakers to such resorts as Veduchi, Elbrus and Arkhyz has exceeded four million people. And today, when region leaders, developers and investors demonstrated these projects, my inner pride, frankly speaking, woke up, because these ideas were nothing more than just plans three years ago, and now they are being implemented.
The President has instructed us to increase the number of travels inside the country up to 140,000,000 a year within six years. I believe that Caucasian regions, which have always been famous for their hospitality, will make a solid contribution to solving such task. Everybody knows, there are unique, most beautiful sites and very hospitable people there. And, of course, our people like visiting them.
However, so far there are no comfortable accommodation facilities everywhere. We need to improve the level of service. Businesses are actively involved in the work, investing substantial resources. And the Government offers a wide range of instruments of support to our entrepreneurs.
Twenty-three hotel construction and a multifunctional complex projects, including a mountain skiing infrastructure will receive them under a preferential lending programme for this area. Two of them have already been put into operation. Subsidies have also been allocated for the construction of modular hotels. Ninety rooms in them are completed. We will continue such aid, and we will discuss relevant proposals for expanding it.
The development of tourism also requires a modern transport system. During his address, the President noted that it is important to increase the mobility of citizens by air and to increase the intensity of air traffic by 50 percent over six years.
A new airport terminal has already been built in Vladikavkaz. The air hubs of Uytash, Grozny, Minvody and Stavropol are being reconstructed. On the presidential instructions, an agreement on airport construction by way of concession in the Karachayevo-Circassian Republic was signed on the sidelines of the Caucasian Investment Forum. All this will help increase the number of passengers and make flights comfortable. I ask heads of the regions and federal officials to closely monitor the deadlines. Everything that we have planned must be executed.
It is also necessary to consider measures to ensure the resorts’ connectivity and improve transportation for tourists and locals. We have talked about this almost at all stands. We will also discuss this in detail at the commission meeting.
In view of the geostrategic location of the North Caucasus, we must establish reliable supply chains. The region’s products are delivered throughout Russia and abroad.
The potential is enormous. To fully unlock it, we have to involve the Caucasian constituent entities in the development of the North – South international corridor more actively. Two border crossing points on the border with Azerbaijan have been fully upgraded. The expansion of the R-217 Kavkaz motorway and the construction of bypasses for Gudermes and Grozny are underway. Funding is also provided for bypasses of Derbent, Makhachkala, and Khasavyurt. All this will serve to increase the supply of Russian goods to new promising markets.
Colleagues,
A great number of projects are being implemented in the North Caucasus Federal District, and even more have been scheduled. They can only be executed by well-trained specialists. Those with secondary vocational education are especially in demand. During previous meetings, we discussed measures that will help provide the economy of the macro-region with necessary specialists.
As a result, equipment in 180 colleges in the North Caucasus was updated, five advanced training centres and 12 Professionalism clusters have been created. Of course, this has yielded results. The level of graduates’ employment has increased, but is still lower that the Russian average. Therefore, additional solutions will be required. Today we will discuss proposals on this.
Let us get down to work.
I would like to once again thank Ramzan Kadyrov on behalf of everyone who worked today to make our forum and exhibition so active. Thank you for your hospitality.
Alexander Novak is the first to present his report. Please, you have the floor.
Alexander Novak: Mr Mishustin,
First and foremost, I would like to express my gratitude for your focus on the development of the North Caucasus Federal District. This region is truly unique, boasting a favourable climate, a strategic geolocation, and rich cultural traditions. Despite occupying less than 1 percent of Russia's total territory, it is home to approximately 7 percent of the population.
The North Caucasus is experiencing active development due to the coordinated efforts of the federal government, regional authorities, and the Presidential Plenipotentiary Envoy to the North Caucasus Federal District.
Mr Mishustin, today the heads of the North Caucasus regions have provided detailed reports on their achievements during the tour of the Caucasus Investment Forum exhibition. Allow me to briefly highlight the key indicators of the socio-economic development dynamics of the North Caucasus Federal District and summarise the outcomes of the first day of the forum.
Over the past three years, significant efforts have been made to enhance the economic potential of the North Caucasus. In response to your directives, three years ago, the regions of the North Caucasus, in collaboration with the Ministry of Economic Development, drafted and received your endorsement for economic development models for the regions. These models determined the development trajectory for the regions, clearly outlining goals, indicators, key issues to be addressed, and breakthrough locomotive projects, which serve as drivers for the growth of regional economies.
Based on the results of the first quarter of this year, the North Caucasus Federal District ranked second among all federal districts in terms of achieving economic development goals and project progress.
There is positive momentum in 35 breakthrough projects, showcasing the district's accomplishments. As you noted, Mikhail Vladimirovich, by the first quarter of 2024, the actual volume of attracted private investment had reached approximately 330 billion roubles. The implementation of these breakthrough projects has resulted in the production of 91 billion roubles worth of goods and services. The investment climate and interest from investors in the region have significantly improved. Last year, five regions of the North Caucasus Federal District improved their rankings in the national investment attractiveness index. Notably, one region, the Chechen Republic, ranked seventh, placing it in the top 15.
The activity of credit institutions has surged, following your instructions. Over the past three years, the volume of loans issued by banks for investment purposes has increased by 1.6 times.
Lending to small and medium-sized businesses for investment purposes has doubled. This upgrowth of economic activity has also led to a significant rise in tax revenues for the budgets of the North Caucasus Federal District regions. By the end of 2023, tax revenues had grown by 41 percent compared to 2020.
I would like to note separately the role of the Kavkaz.RF development institution in supporting breakthrough projects. We have already supported nine projects, including five projects to develop tourism clusters on the territory of special economic zones, as well as four breakthrough projects in agriculture and in developing essential infrastructure.
Regions and investors in the North Caucasus Federal District are actively using federal support tools, including preferential regimes (special economic zones and priority development territories); restructuring of budgetary loans in exchange for infrastructure; agreements on investment protection and incentives; infrastructure loans from the budget, as well as special investment contracts and concession agreements.
Most importantly, it should be noted that these measures are highly popular with investors, and we can see that they remain interested in them. Active dialogue at discussion venues between all those involved in the process serves to improve the investment attractiveness.
I would like to say a few words about the results of the first day of the Caucasus Investment Forum.
I would also like to thank the Head of the Chechen Republic Ramzan Kadyrov and his team for their personal involvement, for the forum’s wonderful organisation and their traditional hospitality, experienced by all forum participants.
By elevating the event to the status of a forum, it became possible to considerably expand its business agenda and scale. This year, over 4,000 guests from Russia and other countries are expected to attend. On the first day of the forum, the participants held 25 sessions involving regional leaders, heads of agencies and development institutions, CEOs of small and medium-sized businesses.
The Ministry of Economic Development and Kavkaz.RU organised a major discussion on adjusting state support measures for investors, banks and regional leaders. The Ministry of Sport is taking an active part in the forum’s work. Yesterday, we discussed import substitution options for professional alpine skiing facilities together with Mikhail Degtyaryov, our famed Olympians, regional leaders, and Kavkaz.RF.
As usual, we are focusing on tourism. The participants have held several roundtable discussions, including interactive discussions when experts “established a resort” at little-known but promising locations.
At the end of the first day of the forum, the participants signed 24 documents worth a total of 60 billion roubles. I am confident that this sum will increase considerably by the end of the forum. I am talking about investment agreements, memorandums and contracts. Yesterday, the participants signed agreements on building the new Arkhyz airport facility in the Karachayevo-Circassian Republic and the Caspian coastal cluster in Dagestan. These important infrastructure projects will help make the region more accessible and boost its popularity among tourists.
The forum participants also launched projects in construction, industry and power industry. This will positively influence the regional economy, create jobs and channel additional tax proceeds into the budget.
Certainly, this will make it possible to accomplish objectives, set by the President of Russia, for achieving national development goals.
Thank you. Maxim Reshetnikov will report on specific results and priorities in greater detail.
Mikhail Mishustin: Thank you, Mr Novak. Yury Chaika, the Presidential Plenipotentiary Envoy in the North Caucasus Federal District, has the floor. Please.
Yury Chaika: Mr Mishustin, participants. I would like to begin by thanking President Vladimir Putin, you, Mr Mishustin, and through you the entire Government for your attention to the North Caucasus regions.
Analytical and expert data confirm that our choice of the areas of focus to be pursued by the constituent entities of the North Caucasus Federal District and the tools for implementing them was accurate.
The established benchmarks and results of the efforts to implement national breakthrough projects are being achieved in an effective and systematic manner. Much is being done to increase the level of own revenue and reduce the amount of subsidies provided to regional budgets. Last year alone, the share of tax and non-tax revenue increased by 3.4 points to a total of 39 percent. The main socioeconomic indicators demonstrate stable positive dynamics, just like the year before. The volumes of construction, industrial and agricultural output are on the rise, and wholesale and retail trade has grown as well.
Systematic work is carried out in the district to ensure the safety of doing business and the protection of the rights of entrepreneurs. The fight against corruption continues unabated. The level of administrative pressure on business is noticeably down.
A favourable investment climate and state support provided to businesses have ensured the formation of a portfolio of private investment in the amount of 514 billion roubles in 2024, up 12.7 percent on 2022, and 250 percent higher than in 2020.
The availability of five ski resorts and one seaside resort, more than 100 health resort facilities have led to the tourist traffic more than doubling over the past three years from 4 million to almost 9 million people, and more tourists are expected over time.
Revenues of collective accommodation facilities have grown 3.3 times during this time. The tourist flow exceeded 3.5 million people in the first quarter of this year.
I’d be remiss not to mention the active and productive activities of the Кавказ.РФ Corporation, which is the key development institution in the district.
The corporation’s efforts to create growth points and a one-stop shop office for businesses, as well as it acting as a state guarantor for investment projects, has created a high level of confidence in doing business in the Caucasus.
The Corporation’s work with the country’s leading financial institutions has been successful. In conjunction with Sberbank, Rosselkhozbank and SME Bank, 175 projects are being implemented which helps improve the efficiency of budget investment where every rouble from the public budget it matched by 2.7 roubles coming from investors.
All these factors are of great interest for Russian and foreign investors from China, the Middle East, and Central and East Asia.
I’m confident that the forum will boost the flow of investment into the North Caucasus.
The standard of living of the district’s population is up as well. The average monthly nominal gross salary has increased by almost 12 percent in 2023. To date, the unemployment rate has fallen to 9 percent, which is the absolute minimum in the past 20 years. In 2023 alone, more than 70,000 new jobs were created in the macroregion.
Based on the outcomes of last year’s meeting of the government commission, the district has adopted serious measures to combat the grey economy and related informal employment. However, more efforts are needed if we want to overcome this challenge. According to experts, unreported employment in the district’s constituent entities amounts to over 1 million people, which is 24 percent of labour. In the Russian Federation, this figure stands at 12.5 per cent. In order to speed up the legalisation of informal employment, it is imperative to create new jobs at an even faster pace, including through accelerating small and medium-sized businesses and sole proprietors. It is likewise important to continue to develop the institute of self-employed, whose numbers have grown almost 34 times in the North Caucasus since 2020 to 718,000 people. At the same time, it is important to take a targeted approach, primarily with those who have no income or run the risk of seeing their incomes decline.
The new Personnel national project provides for setting up Work of Russia HR centres. We believe it is important to coordinate its activities with My Business centres, which could make a difference for the labour market in the district.
Mr Mishustin, in accordance with your February decision, the Tambukan state natural reserve of federal significance was created. Conferring the federal status on the lake will ensure special protection of the site and effective use of its recreational and balneological potential for the benefit of our people, including for the recovery of the special military operation participants’ health. The unmatched nature and full range of natural therapeutic resources, extensive scientific and practical experience of using them form exceptional opportunities for creating a multi-purpose health resort and tourism cluster in the macroregion.
A wide window of opportunity is opening for pursuing joint mutually beneficial projects with friendly countries, including the public-private partnership format.
The successful experience of investors from Kazakhstan and Azerbaijan shows that both new construction and renovation of classic health resorts are lucrative areas of business.
According to experts, investment projects amid the emerging high level of anthropogenic and man-caused impact in resort towns can adversely affect the therapeutic resources. Therefore, the project of creating a special economic zone of a tourist and recreational type in the federal resort towns of the Caucasian Mineral Waters needs to be reviewed thoroughly and comprehensively. In this regard, I propose accelerating the comprehensive survey of this environmental and resort region which was recommended by the Accounts Chamber in 2022, and after obtaining the results, taking a final decision on creating the above area.
The federal importance resort management system requires special attention. The legal framework underlying their functioning should ensure maximum efficiency when protecting the interests of the state and its citizens.
Let me once again thank you for your support and interest in the regions of the district. Holding the first Caucasus Investment Forum here in the city of Grozny is another proof of that. Despite the challenging foreign economic situation and the ongoing attempts by destructive forces to disrupt our steady progressive development, the regions of the North Caucasus Federal District, with the active participation of the Government, continue to effectively fulfil the tasks set by the President. This will continue to be the case in the future.
Mikhail Mishustin: Thank you, Mr Chaika.
The floor is given to Minister of Economic Development Maxim Reshetnikov.
Maxim Reshetnikov: Mr Mishustin, colleagues,
The previous speakers have already noted the North Caucasus’s dynamics. This is the result of the joint work at all levels of power. Therefore, I would like to join the gratitude extended towards the heads of regions for their cooperation and everyday work, which help achieve these numbers.
Mr Novak has listed the region’s development priorities and tasks. I would focus on their implementation and solutions that are necessary today.
Let me begin with agriculture. The region has remained a supplier of raw materials for other regions and countries for a long time but now the situation is changing thanks to investments in storing and processing.
Using preferential loans from the Ministry of Agriculture, a lamb processing plant in Karachayevo-Circassia was renovated. Dagestan has supported projects for the production of juices and meat and milk processing. Turkey meat production has been launched in Ingushetia under the state programme of the North Caucasus Federal District. And in Kabardino-Balkaria, a juice factory is being built with the resources of Sberbank and Kavkaz.RF.
At the request of brandy producers, the President instructed them to retain the right to direct part of the excise tax not to the budget, but to the development of the industry until 2026. Mr Melikov has already noted this today. Last year, four agreements were concluded with producers in Dagestan. They are reinvesting four billion roubles in expanding vineyards and purchasing equipment for processing raw materials. We hope that there will be more agreements like these.
The regions have begun to support industry more actively, using such mechanisms as agreements on the protection and encouragement of capital investments, such as in Tyrnyauz, special investment contracts, and support from the Industrial Development Fund, which this year supported 12 projects worth four billion roubles, including six projects already in the final stage.
It was possible to support 13 industrial projects by restructuring the debt to the federal budget. Of these, two have been launched: the production of building mixes and confectionery products in the Stavropol Territory.
As part of infrastructure budget loans, a cement plant in the Chechen Republic is being upgraded.
Investment budget loans are also being actively used to build housing. Dagestan, Stavropol Territory and the Chechen Republic are among the leaders in terms of supporting this mechanism. These regions will build roads and engineering networks for six million square metres of housing.
At the president’s instruction, we are preparing for a new state of providing infrastructure budget loans. Regions of the North Caucasus Federal District will be able to receive 48 billion roubles within the allocation limit alone, that is, the half that will be distributed on a per capita basis, as part of the measures that we are discussing with the Ministry of Construction and the Ministry of Finance.
Another 32 billion roubles will be provided as part of writing off debt on budget loans. The regions have now declared their need for only two-thirds of this amount. Therefore, there is an opportunity to get extra resources. We would ask and encourage the regions to use them to encourage investment and the economy.
As you have noted, Mr Mishustin, the North Caucasus is a national leader in terms of the tourist flow growth. We are now increasing the number of rooms available to meet the surging demand.
Hotels with 4,300 rooms and a project to create infrastructure for the Dombay ski resort were supported as part of the latest selection under the preferential lending programme.
We have also subsidised the construction of module hotels with 2,300 rooms. Now the regions have the task to commission all these projects (heads of regions, please take a note) and develop new ones until the end of the year. The president has instructed to select module hotels for the next three years, but we will still have to consider how you, colleagues, have fulfilled the obligations that you already have. So, we are asking you to speed up the commissioning.
We are distributing a single regional subsidy for three years so that regions have proper resources to develop their popular locations.
We will continue to develop major tourist attractions using the mechanism of special economic zones for tourism and the Kavkaz.RF Corporation, which manages them. These special zones include ski resorts that have been mentioned today: Elbrus, Mamison, Veduchi, and a new seaside resort in Dagestan. At the forum, an agreement was signed with the second resident company. Ten more applications have come in, as Mr Novak said.
The possibility of creating a new tourist special economic zone in the Stavropol Territory is being considered; the plan is to develop a local cluster of health resorts. Vladimir Vladimirov said they have already submitted an application to the Ministry of Economic Development, and we are processing it.
Another goal regarding the Kavkazskiye Mineralnye Vody area is to improve the federally owned health resorts there. The President instructed us to do this by the end of 2028. Together with the Ministry of Health, we have made a list of facilities that need to be renovated in the first place. But this problem cannot be resolved without private investment. We have various mechanisms for that in place, including PPP, concessions, and agreements with investment obligations. At the same time, Mr Mishustin, while the work is on pause, we would like to ask our colleagues from the Ministry of Finance and the Federal Agency for State Property Management to consider this issue as a priority and expedite the decision-making on the improvements required for each specific facility.
Heat and water supply systems in resort cities need to be upgraded as well. DOM.RF has developed a master plan for the Kavkazskiye Mineralnye Vody conurbation. With this in mind, we have discussed and updated the infrastructure development priorities with the regional authorities. We will now try to find resources; among other things, we will tap into the new national infrastructure project, and consider budget loans for infrastructure development.
Mr Mishustin, I would like to take this opportunity to ask the heads of the regions to be more active in preparing applications and economic justifications for those budget loans.
Together with the Ministry of Health, we have developed a regulatory framework for a re-demarcation of mountain areas that hold medicinal resources and are therefore subject to sanitary protection. Clear rules for doing business, governing what is allowed to be built and where, will accelerate the inflow of investment while also protecting such natural resources as mineral springs. I would like to thank the Ministry of Health and personally Mr Murashko for finding a balance between protecting the springs and enabling investment and development.
The growth of tourism, agriculture and industry requires faster development of transport and logistics. The Ministry of Transport plans to complete the construction and modernisation of airports in almost every region in the North Caucasus by 2028. Mr Mishustin, you have mentioned this.
The Government has included the following initiatives in the new national project on transport development: modernising the airport in Kabardino-Balkaria; the overhaul of the airport in Ingushetia; and building the second stage of the airport in North Ossetia. Our colleagues from the ministries of Transport and Finance are now coordinating the timeframe of these projects and funding for them.
Mr Mishustin, as you have announced, we signed a concession agreement on the construction of an airport in Karachayevo-Circassia at the forum yesterday. We are working with the Finance Ministry on the mechanism and conditions for co-financing the republic’s repayment of its capital grants. We ask you to support these expenditures in the state budget. Mr Siluanov and I have found funding sources for this.
The growth of tourism has led to busier passenger traffic within the North Caucasus Federal District. We need to improve connectivity and link various resorts across the region. Together with our colleagues from the Ministry of Transport and Russian Railways, we have started working with Mineralnye Vody and the Caspian coastal cluster that is being created. We will be able to do this faster if we use budget loans for infrastructure development. Oleg Belozerov and I are now discussing a project to upgrade all suburban transport services in the North Caucasus and are asking for your support, Mr Mishustin. In fact, it is not just about suburban transport; this is a single transport corridor that will connect all regions in the North Caucasus.
The work on the North-South corridor development is proceeding normally.
We have made serious progress in improving the local housing and utilities and energy sectors. The pilot programmes implemented in Dagestan, Ossetia and Ingushetia have consolidated the assets of key utilities to be managed by single operators.
They have reached economically sound tariffs and achieved better collection rates of utilities payments. Their revenues increased several times, they created a transparent system of subsidies from the budget and established social tariffs for the population.
I would also like to emphasise once again that the budget subsidies that we are currently helping the republics with are limited, and there are strict deadlines for aligning tariffs for the population to an economically justified tariff. We must give credit to the regions and governors — our colleagues operate to schedule.
For the first time in a long time, we have begun systematic repairs and renovation of utilities networks. Accidents at water supply facilities have decreased by an average of 60 percent, and almost halved in heating networks. We have moved away from water supply schedules; it is mostly supplied consistently in those communities where this project is being implemented.
Words of gratitude for this should be extended to Mr Chaika, his colleagues from the General Prosecutor’s Office and the regions for the work they have done. And, of course, to you, Mr Mishustin, for supporting these important decisions. A year ago, you supported them here. All of this works now.
At your instruction, we have extended the pilot programmes for three years. Please support their funding from the budget. Mr Siluanov and I have decided on the sources. We would like to thank the Ministry of Finance for understanding the situation and the complexity of the project we are implementing.
The issue of personnel imbalance and low employment among young people is still acute in the Caucasus.
During the last three years, only 3 percent out of 450 recipients of grants for the creation of vocational education clusters within the Professionalism federal project went to the North Caucasus.
These are 12 colleges. A good number, of course, but we have 12 percent of youth here. We believe it crucial to increase financing for the national project in the North Caucasus.
The current mechanisms where we rely on large, primarily industrial enterprises, actually isolate the North Caucasus in this regard. We discussed this issue just yesterday at a strategic session. This is why we would like to ask you to find a mechanism: either a quota for North Caucasus regions, or a separate contest. We are asking for your principled support on the matter, and we will fine-tune this mechanism together with Mr Kravtsov.
In my report, I outlined economic development tasks that would require a support for the industrial national projects. There is also the social sphere. We worked with the regions on the priority need for financing 64 social and utility facilities. Considering how important these facilities are for the district, we would like to ask our colleagues from industrial ministries to provide for their financing when forming national projects, paying special attention to the facilities in the North Caucasus and considering the situation here.
Coming out of the shadows is also important to develop the economy in the Caucasus. I suggest once again talking about non-cash payments today. They are used significantly more rarely here than in other regions. People use bank cards to withdraw cash and make transfers. Terminals for cashless purchases are not very popular. This also means there is shadow turnover. My colleagues from the Central Bank will explain today how to rectify the situation.
Mr Mishustin, in conclusion I would like to once again thank you and Mr Novak for your support, as well as the federal agencies, development institutions and regional teams and businesses for their joint work.
The efforts and resources that are currently concentrated in the North Caucasus Federal District, as well as new national ideas and goals create a strong foundation for stepping up current development rates.
More to be posted soon…
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Mikhail Mishustin: Colleagues,
I want to thank you all for your substantive presentations. All your proposals will definitely be thoroughly considered.
To sum up today’s meeting, I should note that a lot is actually being done to develop the North Caucasus Federal District. We attach immense attention to this objective at all levels of the federal and regional authority, giving priority to raising the quality of life in the macro-region as well as the efforts to improve the investment climate and support business and industries.
The breakthrough projects that we thoroughly discussed during our strategic sessions have proved their effectiveness as they provide a fair view of the industry and economy, giving an idea of the ways to develop our republics and regions. Their implementation essentially helps us attract private investment into the macro-region, launch advantageous production facilities and create infrastructure, including for the travel industry which obviously has the biggest multiplier effect on related industries through creating jobs, which is essential. And it is also important for all these projects to facilitate achievement of the renewed national development goals set by the President in his recent May executive order.
The regions in the North Caucasus have a traditionally high birth rate, with its population including many children and young people. They need good conditions for education, professional training and further employment. I ask all concerned executive authorities to consider these aspects while developing new national projects.
We talked about it in detail at the strategic session on the Personnel and Youth and Children national projects.
Also, the President pointed out on numerous occasions the immense role of the Professionalism project, which has allowed us to begin modernising resources and technical facilities in colleges and vocational schools, update educational programmes and attract the most important people to implement them – that is, employers, who will eventually hire the skilled specialists trained under our Professionalism project.
On the Government’s instructions, a programme has been developed for the development of secondary vocational education in the district until 2030. It has been already launched with due consideration of the existing measures to support the system. Since 2019, its financing at the expense of the federal budget has exceeded 3.5 billion roubles. In order to continue its implementation, the constituent entities in the district need assistance as well as the corresponding expertise in preparing applications for participation in the selection process for creating clusters in 2026 under the Professionalism project. This is a major area of work.
I underscore that employers’ participation in the project is essential. Mr Kravtsov, I ask you to develop proposals, jointly with Mr Reshetnikov, the Ministry of Economic Development, regional authorities and the Kavkaz.RF company, on involving enterprises of the North Caucasus Federal District in the project and engage children and young people in studying and eventually being employed in the district. Efforts should be made to provide local regions with human resources through employers.
Providing the economy with skilled personnel and improving the employment situation is our common goal. I consider it appropriate to have these regions agree on the distribution of training places under the programmes of secondary vocational education.
Today, we have also thoroughly discussed our transport system, which obviously requires a major upgrade. We see an increasing interest in traveling in the Caucasus as well as the growing passenger flow. I am always pleased to hear my acquaintances and comrades, including my work colleagues and those in the Government, tell me that they have traveled to certain republics and toured certain locations, or say they have just returned from Grozny and Dagestan, with absolutely everyone noting how the look of the cities has changed over recent years and the opportunities for services expanding. It is important for people to know about it to choose the Caucasus as a tourist destination.
I ask the ministers of transport, economic development, finances and construction, jointly with the regional authorities and the Russian Railways, to develop proposals on improving the railway network, just what Oleg Belozyorov has spoken about. This should include the use of infrastructure budgetary loans. Obviously, resources are required to improve the connectivity of these territories. The trips should become more comfortable both for local residents, which is very important, and for the visitors, whose number is increasing.
We will continue to boost the tourism potential of the North Caucasus.
The Caucasus Mineralnye Vody region has a particularly important role. We obviously need additional solutions to preserve its natural riches and develop the health resort facilities that have traditionally existed there.
Mr Reshetnikov, efforts should be taken to improve the legal regulation regarding the Caucasus Mineralnye Vody region, including its status, boundaries, and the composition of its territory. I ask you, together with the Ministry of Health, other federal authorities and the governments of Kabardino-Balkaria, Karachay-Cherkessia and the Stavropol Territory, to submit the relevant proposals.
Colleagues and friends,
I ask you to keep the development of the North Caucasus under your personal control, and make every effort to fulfill the tasks set by the President for this major region, and attain national goals.
In conclusion, I want to once again thank everybody involved in preparing this forum, our hospitable hosts, Mr Kadyrov and everybody who worked to make today’s event so exciting and memorable, Mr Chaika, who initially proposed the idea of holding it in Grozny when we discussed it, and Mr Novak, as well as everyone involved in today’s events.
Thank you from the bottom of my heart.
