“The Government of the Russian Federation <…> shall submit to the State Duma annual reports on the Government’s performance, including on issues formulated by the State Duma.” (Constitution of the Russian Federation, Article 114, Clause 1, Subclause “a”).
Excerpts from the transcript:
Mikhail Mishustin: Mr
Volodin, Ms Matviyenko, deputies of the State Duma, colleagues,
Mikhail Mishustin and State Duma Speaker Vyacheslav Volodin at the State Duma
Mikhail Mishustin and State Duma Speaker Vyacheslav Volodin at the State Duma
Mikhail Mishustin and State Duma Speaker Vyacheslav Volodin at the State Duma
Annual Government report on its performance to the State Duma
Annual Government report on its performance to the State Duma
Annual Government report on its performance to the State Duma
Annual Government report on its performance to the State Duma
Annual Government report on its performance to the State Duma
Annual Government report on its performance to the State Duma
Mikhail Mishustin and State Duma Speaker Vyacheslav Volodin at the State Duma
In accordance with the Constitution, the Government submits annual performance reports to the State Duma. Today I will report on our achievements in 2024 and our priorities for the future.
In the context of increasing external pressure, we have been working together with you under the guidance of our President to do everything necessary to tackle extremely serious challenges and to help our citizens, regions and businesses ensure Russia’s dynamic development.
I would like to express gratitude to all our colleagues, deputies and senators for supporting the Government’s initiatives. Our rhythmical joint work helped us fulfill a number of systemic tasks the head of state set for us.
For a second year in a row, our economy was developing at a rate that is higher than the world’s average, which is an objective formulated by the President.
Russia has become the fourth largest global economy in terms of purchasing power parity. Our gross domestic product increased by 4.1 percent last year, which is several times higher than average for industrialised countries. Over the past two years, our economy grew nearly six times faster than in Europe, where recession has been reported in some countries. In particular, the German economy has been shrinking in that period.
Our GDP reached 200 trillion roubles in nominal prices in 2024, almost doubling since 2020.
This achievement was primarily made possible by our citizens who work at many Russian companies. It is also certainly a result of careful implementation of the President’s instructions, the coordinated efforts of the Government and the Bank of Russia, the contribution of our deputies who have detailed knowledge of the situation in the regions and economic sectors, as well as active engagement of our expert, scientific and business communities in preparing decisions.
Our growth was driven by both investment and consumer domestic demand. Investments in fixed assets increased by nearly 7.5 percent in real terms last year.
One of the explanations is that the Government provided priority support to high added value industrial projects. Our economy is gradually becoming more highly technological and diversified, which is having a positive effect on macroeconomic conditions and fiscal sustainability and creating a foundation for achieving long-term objectives.
Consumer demand was influenced by the nearly 8.5 percent growth in real incomes, partly stimulated by a number of social programmes, while unemployment dropped to a historic low last year.
The national projects were one of our key tools in 2024, and we will continue to rely on them to ensure that Russians have everything they need for a comfortable life. Under these projects, modern schools are being built in every region. Students ride to these schools in new school buses along new high-quality roads, with local infrastructure being developed everywhere, such as playgrounds and parks. New hospitals are opening, as are paramedical centres and outpatient clinics in smaller communities, for their residents to receive timely assistance. New businesses are being established; the service sector is on the rise. In addition, the national projects also promote research, ensuring the development and deployment of new technologies across the economy.
The government has put together an effective system for managing the national projects, where progress can be monitored online almost in real time. These efforts have led to a full implementation of the national projects that have been completed.
In many respects, this was stimulated and improved due to the feedback we receive from citizens: based on their opinion, the measures already adopted were promptly adjusted or supplemented.
The successful implementation of the national projects made it possible to set new and ambitious guidelines in the form of the national goals that have been defined by our President.
Undeniably, funding sources had to be earmarked for all the development objectives. The government and parliament certainly took a very responsible approach drafting to the budget policy, which was primarily aimed at a structural transformation of the economy, including the ongoing restructuring of economic ties.
Last year, federal revenues grew by more than a quarter, or 26 percent to be exact. This enabled us to fully finance social programmes, promote new, promising projects and effectively address national security issues, and those within the special military operation among them.
We are working in coordination with the Bank of Russia to strengthen macroeconomic stability, reduce inflation, ensure resilience to external shocks, increase labour productivity and overcome personnel shortages. All these steps are necessary to bring inflation gradually down to moderate figures, in keeping with the President’s instructions.
A few words about our efforts towards achieving the overarching goals set by the President. I will list them again first. These goals include preserving the population, improving people’s well-being and quality of life, building the necessary infrastructure, creating a supply economy, achieving technological sovereignty and creating enabling conditions for the balanced development of Russian regions. I will dwell on each of these points in more detail now.
Let me begin with population preservation.
The year 2024 was declared the Year of the Family by the President’s decision. We have enhanced support for parents raising children, which is provided from the moment they prepare for the birth of a child until the child begins an independent life. The reliable foundation for this effort lies in the Demography national project, under which the provision of maternity capital continues.
For the sixth consecutive year, maternity capital is now granted upon the birth of the first child. Since 2022, it has been indexed to actual inflation, and its scope of application has broadened. Since the President introduced this mechanism, approximately 14.5 million certificates have been issued.
We have extended the maternity capital programme through to 2030.
Social guarantees for parents are also being expanded. During my previous report, I detailed that the maximum maternity benefit had reached 565,000 roubles. It has now approached 800,000 roubles. Furthermore, childcare benefits are now retained even if parents return to work before their child turns 18 months old.
Families facing hardships are supported through social contracts and a unified benefit system.
A new mechanism will be introduced in June next year: working parents with two or more children, whose income falls below 1.5 times the regional subsistence minimum, will qualify for an annual payment exceeding 50 percent of their personal income tax (PIT) contributions. Together with you, deputies, we drafted the relevant legislation, which has been signed by the President.
This measure will extend support to 4 million families raising approximately 10 million children.
Large families receive particular attention. At the President’s instruction, a unified status for such families has been established nationwide. A number of benefits are provided at the federal level. For example, an increased tax deduction or a subsidy of 450,000 roubles to repay a mortgage. Nearly 160,000 families utilised this subsidy last year. We have extended its availability for the birth of a third and subsequent child until the end of 2030.
Additional regional benefits are also in place.
Critically, systemic support for parents operates at all levels and will undoubtedly continue, as it is now – informed by citizen feedback.
Russian families also include older generations – our grandparents, who, of course, deserve care.
From 1 January this year, insurance pensions were initially increased by 7.3 percent. Subsequently, under Presidential instruction, an additional 9.5 percent indexation was applied, reflecting inflation. This adjustment extended to military pensions and over 40 federal social benefits and payments.
Indexation has also resumed for insurance pensions of more than 7.5 million working pensioners – an issue that deputies have long prioritised. From April, social pensions will rise by over 14.5 percent.
We are closely monitoring to ensure that citizens receive their entitled funds in a timely manner. For the elderly, support transcends financial aid: a long-term care system is being implemented nationwide. Pilot regions demonstrated that integrated home-based social and medical services enhance the quality of life for older citizens and those with disabilities. Last year, this programme assisted over 173,000 individuals, and its expansion will continue.
Colleagues,
President has declared 2025 the Year of the Defender of the Fatherland. Today, our servicemen are fighting on the front lines, courageously defending the country’s interests under challenging conditions. It is our duty to support these heroes, provide them with care, and extend that care to their families.
We are addressing this task together with the Defenders of the Fatherland State Foundation, under the President’s guidance. The foundation’s branches have been established in every region of the country, ensuring that participants in the special military operation receive priority access to healthcare, education, retraining and professional development.
Children of these servicemen are provided with free vouchers to resorts and wellness centres, while older students now have admissions advantages when applying to educational institutions.
Last year, we simplified the process for veterans of combat operations to receive monthly financial support. Now, this payment is assigned automatically, without requiring additional applications, and are effective immediately upon receiving veteran status.
Additional tax benefits have been introduced, including exemptions from property taxes and certain fees for defenders and their families.
A draft law is currently under review in the State Duma to extend combat veteran status to those carrying out operations in the Kursk Region. I trust that you, esteemed deputies, will expedite its passage.
Recently, the President introduced a number of new initiatives aimed at supporting our servicemen. We will implement these measures as quickly as possible to ensure they take effect without delay.
The well-being of our defenders and their families remains an absolute priority, including in the work of the Government. At the same time, we are making social support for all citizens more efficient and accessible by leveraging social treasury mechanisms. As of early this year, nearly all federal aid programmes have been transitioned to this new system.
What does this meanAll procedures have now been simplified to the greatest possible extent. People need to submit only a single application – whether for monthly child benefits or large-family status to access and receive related benefits. Certain payments, such as the special allowance for Great Patriotic War veterans marking the 80th anniversary of Victory, will be processed automatically, with disbursement scheduled for April — May.
This approach not only saves time but, more importantly, reduces stress. Government agencies now handle all organisational
aspects internally. We will continue to refine this system, ensuring it
meets the needs of the people, because the key goal is to make interactions with the state as smooth and convenient as possible.
There is another topic on everyone’s lips. I am referring to making healthcare services better accessible so that people across the country can benefit from preventive care and treatments, as well as recover after their illnesses. To achieve this aim, the Government has been working to upgrade the corresponding facilities and equipment.
We built or upgraded over 10,000 primary care units as part of the Healthcare national project and supplied them with over 230,000 units of medical equipment. Importantly, 60 percent of these devices were made in Russia. There was also an effort to upgrade the fleet we use for reaching patients and moving mobile medical teams around.
Today, people can use advanced institutions which are properly equipped and offer a patient-friendly environment. We do understand, however, that in some locations we have yet to deliver on this promise. That said, in keeping with the President’s instructions, we extended the programme for upgrading primary healthcare institutions. They play an instrumental role not only in terms of ensuring quality care but also serve as an incentive for people to have a medical checkup, which is also very important. Last year, 109 million people passed general health screenings, while there were 1.5-times fewer visits of this kind only six years ago.
These regular checkups help identify chronic and acquired deceases, including cancers, cardiovascular deceases, diabetes and hepatitis. We have stepped up efforts in fighting these conditions by creating the necessary infrastructure as well as by expanding the programme to supply patients diagnosed with these diseases with subsidised medications, which means that people are getting them for free.
We have been developing the framework for supporting mothers and promoting childbirth. Child mortality has reached its all-time low for both Russia and the Soviet Union, which means that thousands of newborns received timely medical care from qualified specialists who presented these infants with the gift of life.
Almost all newborns without exception benefit from neonatal screenings. For two years now, these examinations have been covering 40 pathologies, while these tests used to include only five not that long ago. By identifying these pathologies early in life, we can be more responsive and agile in treating them.
We have been also upgrading medical facilities for children by opening 21 hospitals as part of the Healthcare national project, as well as equipping almost all existing outpatient clinics – there are over 2,500 of them today. Children suffering from diabetes get free continuous glucose monitors. During my preceding report, I said that almost 49,000 young patients will get these devices. Last year, the number of beneficiaries aged between 2 and 17 years old was even higher at 58,000. They can now track their sugar levels around the clock. Starting this year, we will offer the same treatment to pregnant women in order to better prevent certain complications.
All Russian citizens have
now more opportunities for benefiting from high-technology treatments. This
includes complex surgeries. Last year, there were over 1.5 million operations
of this kind.
So, there is a human life behind each of these stories, plus a chance to conquer the dreadful disease.
The number of institutions has grown as well and they have all the things needed for medical rehabilitation. For this purpose, we have re-equipped nearly 320 organisations.
But, of course, any kind of equipment cannot be of use unless operated by talented doctors or diligent nurses. We continue to deal with personnel shortages in healthcare. This is a crucial issue. The number of doctors has increased by 12,000 over the past two years.
It goes without saying that these specialists should receive fair remunerations.
Let me remind you that in accordance with the President’s instructions, the Government has introduced, since January 2023, special payments and extras for over one million primary care physicians. Since last March, these payments have been increased for medical professionals – 450,000 in all – in the countryside, district centres, and small towns. (Last year’s Government report covered this topic.) This measure has made it possible to keep old personnel in and attract new medics to small townships.
I want to thank our doctors and other medical professionals for their daily painstaking work. Our great big thanks to them for saving human lives and keeping people healthy.
The President has identified maintaining the population numbers as one of the main national goals. As is clear, we cannot achieve it unless helped by the medics.
Yet another goal identified by the President is helping each person reveal their potential and talents. But appropriate conditions should be created for this. It is the Government’s duty to ensure them.
We have built over 1,700 kindergartens across the country under a number of national projects to provide space for all kids.
We have also built over 1,600 schools and upgraded another 5,000, bringing in whatever is needed for interesting and comfortable studies.
Over 7 million elementary school students are served free hot meals.
Education quality is a most important aspect. Russia is among top ten world states in terms of this indicator. Russian schoolchildren have won prizes at eight international intellectual events since 2021.
Last year, they won 42 medals, including 32 golds. This country is among top five countries in terms of the number and worth of medals gained. We are very much proud of this fact.
Mr Volodin, Ms Matvienko, I know how much attention you pay to improving the education sphere. Not so long ago, the State Duma held a detailed discussion on a long-term strategy in this area, designed to provide the necessary number of teachers and medical professionals. We are grateful because these discussions help to create a new effective system for our collaboration, a system that primarily makes it possible to find solutions that will enable us to implement complicated projects and tasks within the next few years.
Thank you, colleagues.
I will cover in a nutshell the measures being undertaken by the Government.
In the first place, we have reduced the bureaucratic pressure on teachers at kindergartens, schools and vocational schools. They will no longer have to fill in tons of forms for various bureaucratic departments, with or without reason. Right now, there are just five mandatory documents.
This law came into effect on 1 March.
Secondly, we enhanced the training of teachers to improve the quality of instruction in mathematics and natural sciences at all schools across the country, as instructed by the President. A similar project has also been launched at universities.
Thirdly, last year, in line with the Presidential executive order, we launched a pilot project focused on a new model of higher education. Under this system, there is a single foundational higher education level, while specialised education allows for in-depth study in a chosen field. You may recall that we discussed this for many years and now it is becoming reality.
We are also taking measures to ensure that the education system meets the demands of the labour market.
Last year, we actively worked to prepare a forecast of personnel needs in the Russian economy. I must confess that it was difficult to coordinate all the classifiers and extend this to the entire country. This is the first time the forecast has been adopted, and it will serve as a guideline to determine the number of budget places.
We are actively updating the material and technical base of colleges and vocational schools. Last year, almost 2,000 workshops in 320 institutions were modernised, amounting to about 7,500 over five years.
Thanks to the Professionalitet project, 370 industry clusters– in partnership with businesses – are already training young specialists in 24 of the most in-demand fields.
To help students gain practical skills in trades while still in high school, we are reviving the vocational training and production complex system. More than 700 such centres have been opened across 68 regions. This is a crucial step.
Key industries must have a steady supply of skilled professionals. To ensure this, we are expanding targeted education programmes funded by the federal budget. Graduates are guaranteed employment while also having the freedom to choose their workplace.
For the next academic year, quota allocations have been increased in nearly 80 fields, and in some medical specialties, they have been raised to 100 percent.
To meet the challenges of technological change, Russia needs inventors, engineers, and scientists. That’s why we have launched 50 advanced engineering schools, involving 250 of the country's top high-tech companies. Additionally, the large-scale Priority 2030 programme continues to drive scientific progress and train specialists based on the needs of each Russian region, and we have extended it for another six years. Notably, under this programme, for the first time, nearly 3,500 students from other regions have enrolled in universities in the Far East, which is a very good sign.
We are also creating cutting-edge infrastructure for students and faculty. In line with the President’s instruction, we are developing a network of 40 world-class campuses across the regions. One such campus has already opened at Bauman Moscow State Technical University, while the first stage of the Novosibirsk State University campus, designed as a specialised research and learning centre for gifted students, has been completed. I recently visited it during a working trip and was truly impressed.
New facilities have also been launched in Nizhny Novgorod, Kaliningrad, Chelyabinsk, and Ufa. These campuses serve as hubs for education, research, housing, and sports, benefiting both students and faculty alike.
This is our major investment in competences for years to come.
At the same time, it is essential to provide young people with opportunities for creative self-expression. Supporting emerging talent is a priority. As part of this effort, 90 children's art schools across 71 regions have undergone reconstruction or major renovations, now serving 40,000 gifted students.
Cultural engagement is also fostered through the Pushkin Card, which has been issued to millions of young people. Thanks to this initiative, children and teenagers eagerly visit theatres, cinemas, museums and exhibitions.
Accessible education, healthcare and culture directly impact people’s quality of life, as does the development of modern infrastructure.
Over the course of the Housing national project, approximately 580 million square metres of housing have been built across the country. These figures represent tens of millions of families who have significantly improved their living conditions over the past six years, largely thanks to state-backed mortgages. Their share is about one-third of all housing loans issued.
Last year, as you may recall, we had six such targeted mortgage programmes, including rural, Far Eastern, IT-sector, and new-region mortgages, as well as the most in-demand – family mortgages. Starting 1 April, family mortgages will also cover secondary housing in cities where new developments are scarce, fulfilling the President's instruction.
To enhance financial security, escrow accounts have been introduced for individual home construction, ensuring greater protection for citizens' investments. Efforts to improve public utilities continue, including social gas supply services, which was expanded last year to include gardening cooperatives. To date, nearly one million private homes have been connected to the gas grid.
At the same time, we are modernising and resettling outdated housing at an accelerated pace. Most regions are not only ahead of schedule but exceeding targets. As a result, over 800,000 people have already moved into new, comfortable housing. The completion of the core national project does not mean resettlement efforts will stop – they are continuing under the new Infrastructure for Life initiative.
Urban development plays a key role in shaping quality of life. Public feedback has shown that activities in this area are among the most in-demand and prioritised.
Clean courtyards, well-placed playgrounds, scenic waterfronts and inviting parks are what people want in their communities. Over the past six years, more than 70,000 public spaces and residential courtyards have been renovated.
A key driver of these improvements has been the All-Russian competition of the best urban environment projects, through which over 900 projects have been funded. Many of these creative, youth-driven initiatives have transformed cities and attracted visitors. Notable examples include Taman, Yalta, Rybinsk, and Magadan, among many others.
I witnessed its transformation during my visit there. In fact, anyone would notice this change. The same goes for embankments, parks and boulevards in small towns across Russia.
Importantly, people living in these municipalities can decide on their own where to spend the budget funds and choose the sites that will benefit from this money. The national survey has been serving as the main communications channel. In 2024, about 17 million people took part in these polls, which is almost double compared to when this project was launched.
People really care about where they live and want to improve their environment.
Regions have a wide range of tools at their disposal these days for making more progress in shaping a people-friendly urban environment and creating the social, energy, transport infrastructure people need. We brought all these elements together within a single tool called the infrastructure menu.
In keeping with the President’s instructions, we have recently started offering treasury infrastructure loans at an interest rate of 3 percent and carrying a 15-year maturity period. These long-term funding mechanisms are designed for upgrading utilities and housing, since this sector requires a lot of attention and resources.
Over the past six years, we have built or renovated hundreds of facilities, water management systems, water treatment plants and thousands of kilometres of utilities. This way, over 21 million people can now benefit from better services.
There were also improvements in extra-urban housing. The state programme to develop rural areas is in its sixth year, and has covered 14 million people since its launch. It helped create about 5,000 modern facilities, such as schools, medical institutions, sports grounds and clubs, including rural clubs.
We also use other tools for offering this kind of support. The so-called rural programmes are part of this toolkit. The initiative to pay out bonuses for moving to rural areas has already helped attract thousands of specialists these communities need, such as medical workers and teachers. This year, cultural workers have also joined this cohort.
Road repairs are vital for people no matter where they live, and we have gone to great lengths to address this matter.
The Government is fulfilling the objectives as set by the President. As of the end of 2024, over half of all regional roads meet the latest requirements, and this indicator for major cities and their suburbs has exceeded 85 percent. However, we keep pushing ahead with our efforts.
In 2024 alone, we built or upgraded about 25,000 kilometres of roads across Russia, from multi-level interchanges to narrow neighbourhood drives and back alleys. A total of about 1 billion square metres of road pavement has been installed as part of the Safe Quality Roads national project. This goes beyond comfort and offers better security and helps people save time.
Drivers can already benefit from the M12 Vostok (East) federal motorway. Built within a record time, it links Moscow to Kazan, and will be extended all the way to Yekaterinburg, and then on to Tyumen, and hopefully even farther than that.
Overall, we have been upgrading the country’s infrastructural core.
The effort to upgrade runways in Kemerovo, Tomsk and Yakutsk has been completed.
Modern airport terminals have been inaugurated in Ulan-Ude, Stavropol, Novokuznetsk, Cheboksary, Kazan, and Magadan – the latter I personally inspected during my visit last summer to assess progress. I also reviewed plans to enhance airport infrastructure in Khabarovsk, Novosibirsk, and Gorno-Altaisk.
We have commenced the high-speed railway line project connecting Moscow and St Petersburg.
The carrying capacity of the Baikal-Amur Mainline and Trans-Siberian Railway has been increased to the targeted 180 million tonnes.
International transport corridors – North-South, Azov−Black Sea, and northwestern routes – were further developed to improve access to promising markets.
We paid special attention to the Northern Sea Route, which remains our key priority. We are expanding cargo traffic in Arctic waters and broadening the fleet’s technical maintenance infrastructure.
Since January, systemic support for infrastructure objectives has been integrated into the new Efficient Transport System national project, with 1 trillion roubles planned for allocation from the federal budget.
Colleagues,
The unprecedented scale of anti-Russian sanctions has underscored to us and the world that a resilient economy and social stability demand a robust, self-sufficient industrial base.
Achieving technological sovereignty and subsequent leadership in core sectors is a paramount objective set by the President. We possess the resources and capabilities to fulfil this.
Reliance on domestic innovations across all critical domains is essential. This requires fostering extensive internal supply chains and establishing modern, full-cycle production of materials, components, and equipment.
Such an approach lays a durable foundation for long-term national development, enhances global competitiveness, and crucially, drives steady improvements in citizens’ quality of life.
At the President’s instruction, we updated the Strategy for Scientific and Technological Development early last year. It is explicitly designed to address emerging challenges and advance critical technologies. These breakthrough solutions will shape industries over the next 10–15 years, with the potential to transform existing industrial products and catalyse future markets.
Enterprises obviously require additional resources to develop and manufacture new products.
Support mechanisms, both system-wide and sector-specific, are in place.
We subsidise research and development, facilitating the creation of over 1,000 breakthrough technologies. More than 550 projects have been supported over five years, with allocated budgetary funds exceeding 75 billion roubles.
Programmes under the Industrial Development Fund have proven effective. For instance, low-interest targeted loans enabled the launch of long-awaited five-axis machining centre production in Krasnodar – the first of its kind in Russia – and multifunctional laser robotic complexes in Saint Petersburg. We have mastered domestic production of numerous other equipment previously imported from abroad.
Last year, such loans financed nearly 400 new projects.
The cluster investment platform, introduced in 2023, has empowered businesses to scale output of priority goods. Entrepreneurs now access long-term preferential loans, with over 50 large-scale initiatives totalling 1 trillion roubles approved.
These span new materials, advanced machinery, equipment, effective pharmaceuticals, and other critical needs for our economy and citizens.
Industrial mortgages and a unified regional subsidy facilitated the launch of production sites across Russia’s regions, supported by 37 billion roubles in funding.
With your backing, esteemed deputies, legislation was swiftly adopted to extend public-private partnership mechanisms to the industrial and space sectors, enabling investor participation in large-scale, knowledge-intensive projects.
Russia must pursue competitiveness across all technological domains. While immediate parity is unattainable, we are committed to this trajectory.
Achieving it demands skilled specialists capable of creating cutting-edge solutions and conditions that transform ideas into market-ready products.
Over the years of implementing the Science and Universities national project, an extensive and robust infrastructure has been established. This includes shared equipment centres and unique facilities where fundamental and applied research is conducted. The implementation of eight mega-science projects is underway.
Promising platforms – world-class scientific centres – include four in mathematics, three in genomics, and ten in priority scientific and technological development areas. Their activities are focused on the development and integration of advanced technologies into the economy.
I would like to emphasise that an increasing number of young people are joining these centres. Today, over a third of all research in the country is conducted by scientists under the age of 39. I was particularly pleased when we received this statistic. To support them, 940 new laboratories have been established, catering to postgraduate students and test engineers. On the instruction of the President, more than half of the equipment base has been updated in nearly 300 leading scientific organisations and universities. All of this opens up significant prospects for achieving ambitious and large-scale goals.
To strengthen technological sovereignty, it is essential to integrate the most advanced digital solutions into all sectors of the economy. For this, we have a robust information technology industry. Over the past six years, it has become one of the fastest-growing sectors of the Russian economy, nearly doubling its contribution to GDP. It employs almost one million people. An increasing number of in-demand software products are being developed. Since 2020, the number of entries in the Russian software registry, which tracks such products, has grown fivefold. These are our own, domestically created products.
The level of development in this industry enables accelerated digital transformation of public administration.
We are providing a broad variety of services to our citizens and businesses. We have converted all socially significant services into digital format by the end of 2024. More precisely, 111 federal and 95 regional and municipal services are available at the public services portal, which millions of our people use every day. I do not think that any other country offers such products.
The growing role of innovative sectors, where the share of added value is much larger than in the raw materials sector, is important for developing the supply-side economy and obligatory for creating modern enterprises and sectors in the country.
Our industry has been growing dynamically for the past few years. I would like to remind you that it increased by 4.6 percent in 2024, largely thanks to manufacturing, which increased output by 8.5 percent.
Mechanical engineering has greatly contributed to this result by increasing the production of high-tech products by nearly 20 percent.
Nearly all other sectors finished the year equally confidently. Growth in metallurgy was about 8 percent, the chemical industry demonstrated positive dynamics, and the production of pharmaceuticals and medical supplies increased by18 percent.
Overall, production in our manufacturing sector has grown by 25 percent over the past five years.
It is notable that our businesses are actively engaged in increasing the national industrial potential. Over the past five years, they increased investment in fixed assets in the manufacturing sector by 40 percent. Investment in automobile manufacturing, electronics and other strategic sectors have grown significantly, alongside the delivery of computers and electronic and optical products.
Colleagues, I would like to mention our achievements in aircraft manufacturing, where we marked a major event two weeks ago: the maiden flight of a SuperJet airliner powered by domestic engines.
It was the result of an extremely complicated technological project to replace imported components with domestically manufactured ones through the efforts of a large group of professionals, who have found the necessary technological solutions and created our own materials, units and modules. Similar work is underway for our latest aircraft, MC-21.
We hope that our aircraft manufacturers will implement all their obligations and accelerate their work, of course, without affecting safety. It is one of our key tasks.
We are giving special attention to the development of unmanned aerial systems. Their production nearly tripled last year.
As for shipbuilding, we continue to build the world’s largest and most powerful nuclear icebreakers for Arctic development. We have completed the construction of the fourth icebreaker, which has been named Yakutia. The fifth vessel, Chukotka, has been floated out, and the construction of the sixth one, Leningrad, has begun at the Baltic Shipyard.
Machine tool manufacturing is a crucial factor in industry, without which
enterprises in all sectors cannot grow, increase productivity and enhance
competitiveness.
Undeniably, machine tools are the driving force of entire industry. Last year, we launched a plant in Chelyabinsk to manufacture industrial robotic manipulators, the first large facility of its kind in Russia. These products, which Russia has not been making for decades, are essential for any industrial company to grow, increase productivity and ultimately become more competitive. Robotic manipulators can service lathes and milling machines, and load hot forging presses. Today, there are ten companies around the country that manufacture such devices; maybe more. In January, we launched a new national project, Means of Production and Automation, to provide systematic support for this industry.
Modern solutions are in demand in our agriculture. More than half of the farm machinery and equipment is now made in Russia. Agribusinesses received 30,000 tractors, combine harvesters, and other machines last year. Procurement increased in the food industry as well, which had a positive effect on the dynamics in agriculture as a whole. This is one of the most competitive and technologically advanced sectors of the economy. More than 500 billion roubles were earmarked in the federal budget to support agriculture this year.
The main targets of the Food Security Doctrine have been met; we see consistent growth in the rest.
Every year, agribusinesses set a new harvest record. According to the Ministry of Agriculture, this was the case in a variety of crops including grain, oilseeds, potatoes, vegetables in greenhouses and in the open field, as well as fruits and berries. Last year, rice, soybeans and rapeseed showed record figures.
Before today’s report, we met with representatives of parliamentary parties. Almost all of them raised questions that are of great concern to people, above all the rising prices.
In working towards our national development goals, we have focused on a system-wide fight against the causes of this growth. Supporting domestic producers is our unconditional priority.
To achieve this, we created enabling conditions for increasing local production and profitability. We continued all the main measures of priority support for the national agriculture, including those that the regions can choose based on their local specifics. Among them is the state financing of livestock breeding, elite seed production, and deep processing of grain and milk. We also provided preferential loans to agribusinesses for sowing and harvesting.
In segments where it was impossible to achieve a quick result, we took prompt measures such as temporary restrictions on export, to re-channel the products to the domestic market. This way we protected the interests of Russian consumers. We did this with respect to grain crops and sunflower oil.
Accordingly, if we saw that the local market needed to be additionally saturated with certain products, we temporarily expanded the relevant imports, mainly from friendly countries. Let me remind you that we zeroed out import duties on butter, meat, potatoes, carrots, and apples.
It was important to build a supply and demand balance in general and smooth out price fluctuations to avoid significant spikes.
The Federal Antimonopoly Service plays a significant role in this, especially when it comes to essential products.
Middle parties’ markups were among the most significant factors in price rises. It is clear that goods need to be beautifully packaged and delivered to the buyer, but the cost of these services should not rise beyond reason, especially in a situation where our country is dealing with bigger challenges.
The FAS found that with certain goods, markups reached as high as 50 percent. In particular, this was the case with fish products.
The fisherman-to-consumer supply chain involved six intermediaries and middlemen, inflating retail prices by 250 percent.
To address such issues, regulatory authorities conduct regular onsite audits, issue warnings, and initiate legal proceedings. However, I firmly believe that we must enhance cooperation with all market participants while remaining prepared to take decisive action when necessary.
The Government has deliberately equipped regional authorities with strong tools and mechanisms to collaborate with producers, suppliers, and retail chains in order to stabilise prices and prevent excessive markups.
In recent years, the Russian economy has had to operate under intensifying sanctions pressure, which has disrupted long-established transport and logistics chains as well as financial ties.
In response, we have deepened cooperation within the Union State, the Shanghai Cooperation Organisation and BRICS. In the past year alone, I personally conducted over 100 high-level negotiations with our key partners, many of them during working visits to friendly countries.
We have successfully redirected trade flows towards new growth centres in the Global South – a strategic objective that was set only recently.
Today, Eurasia is rapidly developing trade, economic ties, and international transport corridors that operate outside foreign control. The use of national currencies in mutual settlements is growing, and we are creating favourable conditions for new technological alliances. These efforts are driving expansion in both Russia’s real economy and service sector.
To support this shift, we have modernised the legal framework for cooperation with foreign partners and friendly countries, signing over ten international agreements. We have also introduced new support mechanisms for Russian companies exporting goods and services, helping them enter new markets through the Russian Export Centre and its initiatives.
At the same time, we are actively removing trade barriers. Since 2020, we have either eliminated or significantly relaxed over 170 restrictive measures affecting Russian exporters. Even by conservative estimates, these efforts have generated an economic impact of 550 billion roubles.
The Agreement on Free Trade in Services within the Commonwealth of Independent States, which came into force last year, is set to become a key driver of growth in this sector. Additionally, we have completed negotiations on an updated investment protection and promotion agreement with China.
As a result of these and other measures, Russian exports to friendly countries grew by 8.5 percent by the end of 2024, with their share in total foreign shipments more than doubling over the past six years.
The Agreement on the Common System of EAEU Customs and Transits, signed by our leaders in December 2024, will further strengthen economic ties. This document is also open to external partners, expanding opportunities for broader cooperation beyond our union.
It is open to our partners who are not members of our association. It is designed to ensure, first and foremost, seamless transit across the union and friendly countries, to cut logistics costs for businesses, and to prevent the abuse of the EAEU’s capabilities.
External sanctions have not achieved the intended goals in the energy sector. Russia has retained its influence on the global market in this sector.
We continue to improve our own critically important processes of oil and gas production and refining, which helped us master a number of technologies that came under restrictions.
The Government’s work is helping address key challenges in the power sector.
The new power grid built last year for Baikal-Amur Railway simultaneously united the energy systems of the Russian Far East and Siberia, thus creating prospects for industrial development in these regions. The share of Russian-made equipment and technologies used in modern substations and power transmission lines exceeds 90 percent.
Overall, over the five years, the commissioning of new generating capacities amounted to almost 10 GW. Electricity production has increased by 13 percent, which has significantly improved the reliability of power supply in our regions.
This is especially important for expanding tourism. I will say a few words about it as well.
Our country boasts unique, beautiful, and interesting places to visit, so it is critical that the infrastructure meets the needs of tourists in terms of comfort and level of service. As a result of the Tourism and Hospitality Industry national project, modern accommodation facilities — hotels, glamping and camping sites — have been built from Kaliningrad to Vladivostok.
Federal funds were allocated for the construction of modular hotels, and subsidised loans were granted for the construction of hotels with the capacity of over 50,000 new rooms. Of course, we are expecting the investors to implement the promised projects.
According to last year’s outcomes, the number of tourist trips in the country grew by over 10 percent. Most importantly, we have provided our people with opportunities to travel more around Russia. I’m absolutely confident that every year the number of those who want to get better acquainted with our regions will only increase thanks to private initiative, among other things. A special role here goes to small and medium-sized businesses, both in tourism and in other industries.
In my opinion, fresh ideas and new thoughts can often be found in the sphere of small and medium-sized businesses. Of course, its representatives are more active and more mobile than large companies.
The President has set a goal to increase the number of people employed in this sector to 25 million by 2030. By late third quarter of 2024, we have reached the figure of almost 29.5 million people. The number of companies has grown as well.
These indicators are the result of multi-pronged efforts, including the realisation of the national project Small and Medium-Sized Entrepreneurship and Support for Individual Entrepreneurial Initiative. Over the period of this national project, financial assistance has been provided to almost half a million SMEs for an amount of over 7.6 trillion roubles. We have launched measures to stimulate lending, umbrella sureties, regional guarantees, as well as leasing, grants, industrial technology parks, and many others.
The above mechanisms help citizens to more actively develop their businesses and to create new jobs and, consequently, to attract investment in fixed capital which is what we are striving to achieve. This is our goal of paramount importance, and in order to fulfil it we need a favourable business climate not only for the SME sector, but all other companies as well.
Here’s what we have accomplished to get there.
First, we have systematically reduced the administrative load on entrepreneurs of all levels. The number of inspections has been reduced by almost 75 percent compared to pre-pandemic 2019. According to business estimates, the earlier imposed moratorium on them has become one of the most effective anti-sanctions measures.
As part of the reform of the oversight system, new risk metrics have been developed. Now, planned measures are carried out only in respect of extremely high and high-risk facilities.
Other categories are subject to mandatory preventive visits.
We will continue to improve the risk-oriented approach in this area in conjunction with the Prosecutor's Office.
The second area includes cutting business costs. Businesses will now be able to save money using the federal tax deduction that reduces the amount of corporate revenue tax on capital spending.
In recent years, private entrepreneurial initiative was the main source of investment growth across all sectors. The Government supports it through subsidised sectoral programmes, among other incentives.
The Project Finance Factory operated by VEB.RF has a good track record. It is implementing about 40 investment projects in priority areas with a total value of over 4 trillion roubles. Last year, the mechanism was improved. The limit was raised from 500 billion to 600 billion roubles, which will allow increasing lending volumes.
Agreements on protecting and promoting capital investments are in place. By the end of last year, over 80 such agreements had been concluded. The total portfolio here amounts to 4.5 trillion roubles, which means about 30,000 jobs across the country.
Investment projects have been implemented in the Russian regions. Modern enterprises were created, which contributed to the growth of regional budget revenue which almost doubled in five years which is a good result.
They exceeded 20 trillion roubles at the end of 2024.
To support Russian regions, we have allocated over 3.5 trillion roubles in 2024 alone to address the most important social problems for millions of our citizens opening hospitals and outpatient clinics, and upgrading engineering communications.
Infrastructure budget loans in the amount of another 175 billion roubles were used to build housing, kindergartens, schools, and to make road improvements.
In order to reduce the burden on the regions, upon the instructions of the President, we have defined a mechanism for writing off two-thirds of the debt on budget loans in the amount of over one trillion roubles.
All these resources will continue to be used to improve the quality of life in our country. Half of them will be used to upgrade the housing and utilities sector. The rest will be used to relocate people from emergency housing, to purchase mass transit vehicles, and to overcome a number of other important challenges.
The President has approved the initiative on expanding the list of the regions that eligible to write off loans and to use these funds, as you will remember, for supporting our defenders taking part in the special military operation, as well as carrying out national projects. This applies to Russian regions with a fiscal capacity below 85 percent compared to the national average. The Government is working on the corresponding amendments which are expected to be enacted soon.
I hope that the parliamentarians will review this draft law in a timely manner, since its main purpose is to help people.
During my last year’s reports, I promised that the Government would align all infrastructure development tools with the Spatial Development Strategy. Mission accomplished. Together with the regions, we have listed 2,160 key communities where development efforts and initiatives to improve them are expected to reinforce their economies and improve the wellbeing for their people.
We are now compiling a list of cities that would have their own master plans. In this context, I hope that you will support us in creating a legal framework for this initiative. This is expected to serve as an effective territorial development tool.
For the past five years, the Government has been relying on tailored programmes for offering additional support to 10 Russian regions which have been falling behind in terms of their socioeconomic development. Tens of thousands of jobs were created in the process, and we almost tripled investment compared to allocations under the relevant programmes. Overall, household incomes have been growing above the national average, while unemployment declined in these territories.
Let me remind you that Vyacheslav Volodin and Valentina Matviyenko were the ones who spearheaded the initiative to launch these programmes and keep them in place. We did it back in 2020 when we were just starting out.
Last year, during my confirmation hearings here, I said that the Government would extend this mechanism for another six years. I also promised revising the list of beneficiary regions. Mission accomplished, too. We approved tailored programmes for Altai, Tuva, Adygeya, Mari El, Kalmykia, Khakassia and Chuvashia republics, as well as for the Altai Territory, Pskov and Kurgan regions. The Government earmarked 60 billion roubles to this effect, and these funds must generate maximum returns.
We have also carried out comprehensive development programmes for specific regions in order to make them even more attractive for private investors. These measures produced tangible results. For example, Russia’s Far East and the Arctic raised over a trillion roubles in funding in 2024, which helped open about 200 companies employing tens of thousands of people.
The Government has also drafted development plans for Dombay and Arkhyz, the resorts in North Caucasus. They are designed to create more tourist-friendly offerings during both the winter and summer seasons. Travelers will also be able to use an airport which will be built in the Karachayevo-Circassian Republic.
The Government has also launched an integration programme for our new regions. It is worth over 360 billion roubles. This enabled us to repair over 1,000 kilometres of roads and motorways, and also restore or build almost 4,000 facilities of various kinds. This way, people can move into modern homes, enrol their children in kindergartens, schools and sports clubs, and also receive quality healthcare, just like in any other Russian region.
Businesses operating in these Russian regions, despite challenging conditions, have also received support through the continued operation of a free economic zone. By year’s end, over 200 companies with investments totalling 80 billion roubles had joined it.
These preferential terms have been extended to parts of the Kursk, Belgorod, and Bryansk Regions, enabling enterprises to reduce costs and redirect savings towards restoring production of goods and services. To preserve companies and workforces in these regions, we have introduced grants, subsidies, and preferential equipment leasing.
Entrepreneurs in the Kursk and Belgorod Regions have been granted a one-year deferral on taxes and insurance contributions. Crucially, residents of these Regions have received resources to cover not only essential needs but also housing purchases or construction. Since February of this year, under Presidential instruction, monthly payments of 65,000 roubles have been provided to those displaced from their homes in the Kursk Region.
Assisting our citizens has been and remains a priority, as you are aware, given the President’s close oversight of this matter.
Colleagues,
Last spring, the President defined national development goals for 2030 and beyond to 2036. These serve as the framework for our collaborative efforts, esteemed deputies.
The Government has approved a unified plan to achieve these objectives, ensuring cohesion among all available tools. Central to this are, without doubt, the national projects.
Extensive preparatory work has been conducted with your direct involvement, alongside experts, businesses, State Council commissions, and, of course, public feedback.
As a result, 19 new national projects have been approved, incorporating high-impact initiatives with measurable targets. Implementation commenced nationwide in January.
Six projects are aimed at supporting motherhood, childhood, improving healthcare and education systems, creating comfortable urban environments, and enhancing the overall quality of life for citizens.
These are large-scale projects: Family, Long and Active Life, Youth and Children, Personnel, as well as Infrastructure for Life and Environmental Wellbeing.
The implementation of another project, Effective and Competitive Economy, will primarily contribute to increasing labour productivity and sustainable economic growth, which, as instructed by the President, must be accompanied by improved living standards for citizens and increased corporate revenues, as well as the expansion of private investment.
A new step for Russia’s digital development will be the execution of the national project Data Economy and Digital Transformation of the State. Within its framework, we will focus on ensuring access to the most advanced solutions for individuals and businesses, as well as implementing a modern management model based on big data.
The Efficient Transport System national project is also designed to establish a reliable transport framework, which is crucial for expanding foreign economic activities and enhancing the appeal of domestic tourism in Russia. Two corresponding national projects have already been launched: International Cooperation and Export and Tourism and Hospitality.
Almost a year ago, speaking here, I mentioned that the Government was preparing major projects capable of delivering breakthrough results in science and industry. Today, we have eight such projects of technological leadership in a fundamentally new format.
Their objective is to address our country’s needs in the production of capital goods and automation, propose innovative solutions for safeguarding citizens’ health and strengthening food security, as well as in the domain of unmanned aircraft systems, space services, enhancing transport mobility, energy, new materials, and chemistry. A ninth project – focused on the development of bioeconomy technologies – is being prepared for launch.
All are rigorously outcome-focused, with defined product lists, quantities, and legal frameworks. The details have been spelled out in in the new Federal Law On Technological Policy.
I extend gratitude to you, esteemed deputies, for swiftly reviewing this pivotal legislation.
Colleagues,
We have forged an effective partnership marked by open, trust-based dialogue. Even on complex issues, we reach consensus through measured and precise solutions. Under the President’s leadership, we will continue to fulfil all the tasks facing our country to ensure stable development of the economy and social sphere, as well as improve the quality of life for our citizens. This is essential for Russia’s strengthened global standing.
In this endeavour, I count on your cooperation, for we share a common goal – the prosperity of our citizens.
We take pride in our nation and will spare no effort for its flourishing.
Thank you. I am ready for your questions.
