Agenda: Implementation of the Energy Strategy to 2030 and seven other issues.
Dmitry Medvedev’s introductory remarks:
Government meeting
Good afternoon, colleagues. Today we will discuss several energy issues, including the implementation of the Russian Energy Strategy until 2030, which was adopted in 2009. I am not going to speak about the importance of our energy industry because everyone knows this already.
Last year the energy industry amounted to over 26% of our gross domestic product and slightly less than 50% of budget revenues, although only recently it accounted for more than 50% of budget revenues and for two-thirds of exports. It is a gauge of our capacity, but also a major problem. Last year saw a considerable decrease in the growth of energy exports compared to domestic supplies, which points to a gradual balancing of export growth against domestic consumption. This is quite good overall, because this means that domestic consumption is growing.
Dmitry Medvedev: To increase exports, Russian energy companies are adding new export destinations such as the Asia-Pacific Region, actively developing new deposits on the Yamal Peninsula and in East Siberia and implementing continental shelf projects. Gazprom, Transneft, Rosneft and LUKoil have completed several large investment projects.
To increase exports, Russian energy companies are adding new export destinations such as the Asia-Pacific Region, actively developing new deposits on the Yamal Peninsula and in East Siberia and implementing continental shelf projects, Gazprom, Transneft, Rosneft and LUKoil have completed several large investment projects.
Government meeting
But some problems remain unresolved despite the implementation of large energy projects, primarily the depreciation of fixed assets. Over the past four years, investment plans were fulfilled to 60% of the target, although we must admit that these were far from easy years, in particular the 2009 crisis year. In this respect, the situation is somewhat better in the oil industry, although oil companies also need to replace outdated assets with new equipment.
We should pay more attention to comprehensive modernisation of energy infrastructure with a focus on innovation-based development. We will continue to encourage companies to increase the depth of refining (the difference between crude input and marketable products output) and the production of quality products which meet environmental standards.
Dmitry Medvedev: One result of the implementation of the Energy Strategy is that we now do more than just export traditional energy resources and fuel. Today we will discuss an important draft law on the energy industry that concerns the export of liquefied natural gas and actually amounts to partial liberalisation of LNG export.
One result of the implementation of the Energy Strategy is that we now do more than just export traditional energy resources and fuel. Today we will discuss an important draft law on the energy industry that concerns the export of liquefied natural gas and actually amounts to partial liberalisation of LNG export. There are plans to grant the right to export LNG, which currently only Gazprom and its affiliates have, also to other companies working in this sphere, based on the criteria which the Energy Minister will speak about today.
Government meeting
The global energy market is changing, and these changes concern LNG production and transportation technology. This is adding a global dimension to the regional gas market as happened with the oil market in the past. The European demand for LNG is forecast to more than double. But experts believe that Asia Pacific, or more precisely, Southeast Asia, whose development is bolstered by China and India, is an even more promising market.
And of course, we must now occupy adequate positions in this respect, with due account for the fact that the liquefied natural gas (LNG) market is very mobile, and that it is possible to deliver LNG consignments from plants that are located in different places. Therefore we must show that we are competitive and that, of course, we are reliable fuel and energy suppliers. And we must create favourable conditions for increasing Russia’s share on the gas market.
I would like to mention one more document which we will examine. Today, we are examining the draft federal law On Introducing Amendments to Article 57 of the Law On Insurance Payments to the Pension Funds and Certain Other Funds. This law proposes changing specific terms for using reduced insurance premium rates with regard to IT companies until 2019, meaning the threshold reduction of their average number of personnel from 30 to seven people. I have voiced this initiative, which was actively advocated by representatives of IT companies, at the Sochi forum. I believe that, on the whole, this step must help improve our approaches towards the development of innovation technologies and the entire innovation environment.
We will also discuss the payment of monthly regional benefits to families that are having a third child, and we will assess the influence of this social security measure on the prosperity of families with many children. Moreover, we will approve a list of regions paying out monthly benefits. Indeed, we are focusing on this issue, and it is certainly very important. We discussed it quite recently at a meeting of the Presidium of the Council for the Implementation of Priority National Projects. By the way, I have instructed the concerned departments to amend regulatory documents regarding the allocation of land plots to multi-child families and also to examine a number of alternative options.
Dmitry Medvedev: This year, the budget stipulates over 3.5 billion roubles for payments of monthly regional benefits to families that are having a third child. And regional budgets will contribute an additional 3.3 billion roubles. Next year, we plan to spend even more for these purposes, including over ten billion roubles’ worth of federal budget allocations, as well as almost 16 billion roubles annually in 2015-2016.
In any case, these instructions must be completely fulfilled. We started making monthly payments to families with many children in early 2013. This regional project began to be implemented in accordance with the 7 May 2012 Presidential Executive Order. Currently, these payments are made in 65 regions, including 50 regions where payments are made with support from the federal budget. Each year, we approve a list of regions. And today, we will approve a new list as proposed by the Ministry of Labour and Social Protection.
Government meeting
This year, the budget stipulates over 3.5 billion roubles for such payments. And regional budgets will contribute an additional 3.3 billion roubles. Next year, we plan to spend even more for these purposes, including over ten billion roubles’ worth of federal budget allocations, as well as almost 16 billion roubles annually in 2015-2016. Local authorities are also doing all they can to help families with many children, despite their difficulties with budget formation.
At the same time, I would like all regional authorities addressing this issue to create comfortable conditions for those applying for such benefits. For instance, it is impossible to obtain these benefits online in 11 out of 65 regions where this programme operates. People there have to waste their time running about state agencies to obtain certificates entitling them to standard benefits, and this is bad. The authorities must ensure maximum comfortable conditions for people’s life, for obtaining documents.
I would also like to draw the attention of the governors to a lengthy procedure for processing requests and approving the payment of these benefits. This procedure takes 30 days in many regions, from the moment an application is submitted. This is too long. Other regions do the same in five or ten days. I believe that regions with longer application processing deadlines can reduce them and allow people to get financial assistance more quickly. In any event, the Government will keep problems of families with many children under permanent control.
< … >
