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Vladimir Putin’s annual news conference Part I

Note DefesaNet

Annual Press Conference presented in two parts.

Vladimir Putin’s annual news conference Part I Link

Vladimir Putin’s annual news conference Part II Link

The Editor

Released by Kremlin.ru

Part I

December 17, 2020

The news conference was broadcast live by Rossiya 1, Rossiya 24, Channel One, NTV and MIR television channels, as well as Mayak, Vesti FM and Radio Rossii radio stations. Public Television of Russia (OTR) and its site (http://www.otr-online.ru/online/) provided live sign language interpretation of the event.

Representatives of federal and foreign media worked at the World Trade Centre in Moscow. In addition, special platforms have been set up in all federal districts, where representatives of regional media could participate and ask their questions.

During the news conference the call centre continued to accept questions from individuals. Questions could be asked via the website https://moskva-putinu.ru or by using the Moskva-Putinu mobile app.

* * *

President of Russia Vladimir Putin: Good afternoon.

My greetings to all of you, here in Novo-Ogaryovo, in the call centre and across the regions of the Russian Federation, in Moscow and St Petersburg.

Today we are holding the traditional news conference to wind up this year’s results. Since COVID-19 prevented us from holding the Direct Line live, my colleagues have tried to merge these two events into a single one by introducing elements inspired by the Direct Line format into this news conference so that I can interact directly with people, hear what they have to say, what is going on in the country, and listen to their proposals on what more can be done in order to address matters in the best possible way and find effective solutions to the issues we face and deliver on our objectives.

Allow me to mention that over the past years it has become a good tradition for us to ensure that all the questions we get, and there are hundreds of thousands of them, are answered in one way or another. For that, I would like to thank my colleagues from the Presidential Executive Office, the Government, but first and foremost from non-governmental organisations: the Civic Chamber and the Russian Popular Front, the volunteers who contacted the people who took part in previous Direct Lines, talked to them, discussed the challenges pinpointed by these people, and quite often succeeded in resolving various matters that people were concerned with, and which probably remain relevant to this day.

I very much hope that we will do the same this year. I would like to ask volunteers, the Russian Popular Front to continue this wonderful practice, very useful for the country.

For me, I would like to emphasise, such events are not formal; I highly value them. Even though I have a vast flow of information about what is happening in the country reaching me through various channels, still, there is nothing more valuable than direct communication with the people, with Russian citizens, there is nothing more valuable than hearing their opinions about their lives and concerns, and again, what we need to do in order to have a better life.

You know, I would rather finish my opening remarks here. It would be a good idea to start the Q&A without wasting any more time. I would like to give the floor to Mr Peskov, who is at the call centre now. He will continue to moderate our meeting.

Mr Peskov, please.

Presidential Press Secretary Dmitry Peskov: Good afternoon, Mr President. Hello everyone.

Vladimir Putin: Good afternoon.

Dmitry Peskov: We have our participants scattered widely across our vast country, and I suggest we start from the easternmost point.

Vladivostok, please.

Once again, I urge everyone to be brief and dynamic so that as many journalists as possible have time to ask their questions.

Please, Vladivostok, help me out, for a start.

Dmitry Kaistro: Good evening. It is evening here already.

So this is Vladivostok, the capital of the country's largest federal district, the Far East. There are 50 correspondents here, and you can see how active they are. Each of them has their own established audience and their own questions for the head of state.

I suggest we begin now. We seem to have people here who really have something to say.

Mr Peskov, would you choose who will go first?

Dmitry Peskov: Could you show me the audience, please? Did I see Magadan there?

Dmitry Kaistro: Yes, the young lady in blue.

Lyudmila Shcherbakova: Good afternoon.

Magadan State Television and Radio Company. My name is Lyudmila Shcherbakova.

First of all, I would like to greet you Mr President, and all the spectators and the audience on behalf of Russia’s Far East and Magadan Region in particular.

I have the following question. We all know that this was a challenging year, to an extent that I can hardly find the right words to describe. Still, in your opinion, was this year all bad, or was there something positive as well?

Vladimir Putin: The year was… What do you mean by calling this a bad year? This is like the weather: is it good or bad? Weather is just the way it is. The same goes for the year: it had its ups and downs, as it always happens in life.

Of course, this year brought us a problem that is on everyone’s lips, and is a matter of concern for all of us: the coronavirus pandemic. However, not only Russia, the entire world has been hit by this scourge. We are fully aware of this, since over 70 million people have already been infected by the coronavirus, according to WHO data. This problem has affected all aspects of our lives.

What is a pandemic? It means lockdowns, curbed production, declining passenger and cargo traffic and all that goes with it. Unfortunately, it also means fewer jobs, and lower incomes. This has all become a reality.

At the same time, here is what I wanted to point out. First (and I will try to provide figures to back this up), despite the plethora of challenges we have been facing, and there has been plenty of problems, and we will discuss them today, since this is why we are here, the whole world has been submerged in this ocean of problems. Still, we can affirm in all confidence that we faced up to these problems with dignity and in some ways maybe even better than other countries of the world that have every right to be proud of their economies, social services and healthcare systems.

I have some prompts here (it is not my intention to delve deep into numbers since it sounds boring) to show you where we are right now. At this point in time, Russia’s GDP has fallen by 3.6 percent, which is less than in the leading European, EU countries, and less than in the United States. In some EU countries GDP has so far dropped by as much as 9 percent (I think this is the case in Great Britain).

We have industrial production down 3 percent now – mainly due to oil, because we have made the OPEC Plus deal and began to cut production, and this affected our overall performance. But there is also good news (better in some areas, worse in others, but we do have some improvements): yesterday, my colleagues from the Government reported to me that processing industries (manufacturing) showed 1.1 percent growth in November. This gives us reason to hope that this trend will continue, that we will move forward in this direction.

Over the past few years, our agricultural industry has posted good figures, and now, at the moment, it is somewhere around up 1.8. The Minister said agriculture might not even show a decline for the year, but an increase of up to 2 percent. I hope this will be the case.

Our banking sector is in a very satisfactory condition, with profits estimated at about 1.3 trillion rubles for the year. This definitely testifies to the financial system’s stability.

Real wages. I ask the country’s citizens, try not to be angry with me because what I will say now might not correspond to how people feel in real life; nevertheless, I am going to cite an averaged figure, and it also needs to be taken into account. I hope real wages will grow by about 1.5 percent by the end of the year across Russia, although unfortunately, there will be a decline in real disposable incomes. Why is this happening? What does it mean? Where does this difference come from? This has to do with the declining incomes of individual entrepreneurs, and the resulting changes. Overall, real incomes, unfortunately, will fall by around 3 percent.

Unemployment rate in Russian was 4.7 percent at the beginning of 2020; now, as you know, it has grown to 6.3 percent. We will certainly talk about this later.

Everything we do to support the economy, to support the affected industries, is aimed at maintaining employment. We have [unemployment at] 6.3 percent now, but I hope that over the next year, we will be able to bring it down to the earlier figures.

A positive trade balance can be considered a good indicator. It creates conditions for good macroeconomic development.

Our national debt had been at its lowest at $70 billion, in dollar terms. It shrank by another 10 billion since. We borrow less in foreign markets, while regularly servicing all our loan obligations. Our international reserves have grown. At the beginning of this year, they amounted to 554.4 billion; now, as of December 4, they are already about 587.7 billion. The same holds true for the National Wealth Fund. In ruble terms, it was 7.7 trillion, now it is almost 13.5 trillion. This is significant growth.

There is something I need to draw your attention to. What is an obviously positive part of our economic growth? As much as 70 percent of the Russian federal budget comes from non-oil and gas revenues now. This means, well, we are not entirely off the so-called oil and gas needle, but we are starting to get away from it. Even if someone still likes to think of Russia as a petrol station, they no longer have real grounds for that. Even though the dependence is still strong enough, and we have to bear this in mind.

Finally, this outgoing year is also associated with major national events, such as the 75th anniversary of Victory in the Great Patriotic War. Despite all the difficulties caused by the pandemic, we nevertheless celebrated it properly, with the Victory Parade on Red Square; and the Immortal Regiment march also took place, albeit online. These are all positive aspects.

But most importantly, there is something else I definitely need to mention now, and I would like to thank the citizens of our country for it: even in the most difficult circumstances, we have once again reaffirmed what underlies the Russian identity – people rallying together in the face of a threat. We have seen it all, the work of volunteers, the work of doctors – we bow down before them again as a sign of deepest gratitude – the prevailing attitude in society, people are ready to help and support their neighbours, those especially in need of help and support. That showed a nationwide unity – let alone the We Are Together volunteer campaign, which is just an external manifestation of the internal attitude in society – this, in my opinion, is something that determines our country and is a decisive factor. Once again, I would like to express my gratitude to everyone who took part in those major campaigns.

Thank you.

Dmitry Peskov: I would like to remind everyone that after asking your questions you should change the mike cover for a new one. After all, we must comply with the sanitary rules.

Let us proceed. The Kremlin pool, please, show us Novo-Ogaryovo.

We will give the floor to our largest holding, the VGTRK, Rossiya channel.

Alexei Petrov: Thank you. Alexei Petrov, Vesti news programme, Rossiya TV channel.

Mr President, face masks have become an unpleasant symbol of the times. It is obvious that the pandemic is the main event of the year. My question concerns the situation in the Russian healthcare system. How would you describe its state of readiness? How well has it responded and how well is it responding to the current challenges?

There is an important nuance here. Do you think the situation is being analysed? Are the shortcomings and drawbacks being considered? This includes the shortage and labelling of medications, something that has been spoken about many times, and our social activists have reported about this to you. What is the net result?

Another thing has to do with the primary care system reform. A lot of money has been invested in it. How will it proceed now in the light of the lessons of the pandemic?

Thank you.

Vladimir Putin: Regarding the readiness of our healthcare system. Of course, not a single healthcare system in the world was ready for the scale of the problem we faced. There are simply no such systems. We are analysing everything that is taking place across the world, and we see that there are no such systems. But there are examples of how the pandemic response was organised in Russia. Compared to other countries, although we do have a great number, an ocean of problems, some of which you have mentioned, but compared to what was happening in the world our healthcare system has proved to be more effective.

I will now talk about medicine shortages and other problems – it goes without saying that the problems are still there, and we can see them all. It is evident from the incoming questions, and I can hear it in your question, it suggests that not everything has been resolved. But look, when the pandemic was only just starting, when the very first signals came from our friends in the People's Republic of China that there was a problem, we reacted immediately at the border, and – I have already said this many times – it bought us time to get prepared, so that when it all hit us on a large scale, we were ready.

It bought us time, we began to quickly deploy the healthcare system proper, as well as other measures to prevent a pandemic, and we did not waste any of that time. The required number of beds for coronavirus patients was 95, we are counting in millions, and the availability was only 50 percent; now we have 125 – sorry, I meant thousands – 125,000, and now we have 177,000 deployed, even 277,000 – a total of 277,000 beds deployed in a fairly short time. During that time, we have built 40 coronavirus centres: 30 of them were built quickly by the Ministry of Defence, and 10 by the regions. Overall, we will have 40, as the last one should be completed in the final days of 2020. This shows our ability to quickly respond to a problem.

Yesterday, when I was inspecting equipment, I spoke to a young woman working as a volunteer: at the time the pandemic began, we had very few doctors or specialists – 8,300, and now, there are 150,000 doctors working with this infection, and total medical staff numbers are more than half a million, some 520,000–530,000, I think.

What happened? We were able to quickly convert some of the medical institutions available for dealing with COVID and set up a retraining system for medical personnel. We introduced bonuses for people working in the ‘red zones’ in order to support our doctors, also 10,000 for senior students of medical universities, and 7,000 each for college students, as you know. We quickly expanded the production of personal protective equipment and suits, and disinfectants to sanitise premises. In some cases, the expansion was dramatic: for example, with the facemasks everyone is sick and tired of by now, we increased production 20 times, and this rarely happens.

Our healthcare system and state governance system in this area have shown that they can quickly mobilise resources, and they have done this. Incidentally, the required amount of medications has doubled. It is true that some regions have problems – I am aware of this and have just received information from the call centre based on what people say. There is a shortage of medications at hospitals, not to mention pharmacies, and free medications are not provided – I will say a few words about this as well. But these are not the same problems that we faced at the beginning. These problems have to do with logistics and purchase and delivery delays, but on the whole our industry has responded well enough.

At the beginning of the pandemic we did not know what we were facing, how to identify or test the disease, what treatment to use, and whether there would ever be an antidote, that is, a vaccine against it.

Just look now: we have moved forward a great deal in all of these areas. Russia is one of the world’s top three countries for COVID testing, and the WHO believes that mass testing is a way to deal with the problems created by the spreading infection. Take medications: we are now producing domestic medications in the necessary amount. And lastly, vaccination: Russia is the first country in the world to create and produce a vaccine, or vaccines created at the Gamaleya National Research Centre and at the Novosibirsk-based Vektor Centre. These are good vaccines, as I have said on numerous occasions, safe and effective: their efficacy rate is over 95 percent, approaching 96 or 97 percent, according to experts, and not a single case of serious side effects has been reported.

Thankfully, our foreign colleagues have changed their attitude towards us and are ready to collaborate in the areas where it is not working out for them. The Anglo-Swedish AstraZeneca is ready to work with us, and is in the process of signing a corresponding agreement. This is very good; I am really glad when top-notch specialists – this is a large and good company with a global reputation – join forces, including with their Russian partners. I have no doubt that this will have a very good result not just for our citizens, but for the world as a whole.

Everything I have said just now shows that although there are quite a few problems, our healthcare system has responded appropriately to the threats our citizens faced.

Turning to the question on primary healthcare, it is true, of course, that we had to channel the necessary resources into what I have just mentioned, fighting the coronavirus, helping doctors, volunteers, students, etc., and acquiring the required manufacturing capability as soon as possible. We have postponed the effort to upgrade primary healthcare, without forgetting about it or placing it on the back burner. Instead of launching this undertaking on July 1, we will begin on January 1, and all the resources that were to be spent on this programme will be engaged within the timeframe set out in the programme. This is 500 billion rubles from the federal budget and another 50 billion from regional budgets. Over the next three years or so, some 300 billion rubles will have been made available and used.

We have started improving some aspects of primary healthcare. This includes buying motor vehicles, for example. We need these vehicles right now, as I can see from the questions we have been receiving, but this is also part of the programme to develop primary healthcare.

Since we are on this topic, I would like to say that ensuring that all people enjoy access to medical services is what the efforts to develop primary healthcare are all about. I know that there are many issues here that need to be resolved without delay. This will be our priority. Of course, this is also about personnel training, infrastructure, etc.

As for your question on how to respond to challenges that arose in the course of the fight against the pandemic and have yet to be resolved, of course, we are looking into these issues. In this context, let me reiterate that our event today is essential since it provides us with massive feedback from all regions across the country, giving us a picture of what is being done in specific regions of the Russian Federation, and allowing us to respond to these developments and fine-tune our actions.

We can draw the obvious conclusion that we need to move towards building a better sanitary and epidemiological service and reforming it. We need to understand how many specialised hospital beds we need and in what regions, and how many specialists are required. This programme is ready by all accounts, and we will make it a reality.

Dmitry Peskov: Let’s move on. Ura.Ru.

Anton Olshannikov: Good afternoon, Mr President.

My name is Anton Olshannikov, from the Ura.Ru news agency.

The epidemic is a problem indeed, but life goes on, and in this regard, I have this compound question about life, concerning elections, the big campaign we are going to have next year.

How do you think this upcoming political campaign will differ from the last one? What will the political landscape be like in the country?

The second part of my question is about the old mainstream opposition parties. Isn’t it time for them to make way for young parties, and do these young parties even have a chance, given how they have shown themselves at the municipal elections?

And the last part of my question is about external interference. It is obviously quite possible, especially since this campaign is so important. How do you intend to block this interference?

Thank you.

Vladimir Putin: As for the 2021 parliamentary elections, there will be a few differences, of course, mainly because we have adopted amendments to the Constitution – this is my first point. This means that the parliament now has more powers in a number of areas, including in forming the Government of the Russian Federation. You know, I would like to repeat this again, the State Duma now in fact makes the final decision not only regarding the Prime Minister, but also on cabinet ministers and deputy prime ministers.

The President must sign the personnel decisions adopted by parliament. And this – I do not think everyone has fully realised this yet – this greatly augments the importance of the deputy corps’ work, of their responsibility to the country, including for the work of the Government. This link between parliament and the Government is extremely important, I think. This is the first point.

Second, about the new parties and whether the old political heavyweights should cede their places to them. This is not for the new parties or for the political heavyweights, that is, the traditional parties, but for our citizens, the voters to decide. They will decide at the elections which parties to support. But does our political system, which continues developing, offer an opportunity for more political forces and parties to participate in the general election campaigns? Yes, it does. I think, no, I am sure that next year up to 16 parties will be taking part in the elections without collecting signatures, as far as I am aware. This is because in accordance with our legislation they have won seats in several Russian regions and therefore have the right to try their hand on the national political stage.

I wish them every success, but I would like to repeat that it is for the voters to decide whom to elect. I would like to note in this connection that the traditional parties are well known and have been represented in parliament for many years. It should be said that different, sometimes widely different views are expressed in parliament, where heated debates are held on a number of priority matters facing the country. At the same time, nearly all these parties act patriotically in the interests of the nation while offering their own solutions to the problems the country is facing. Approaches and ways to address problems may differ, but the goal of all our traditional political parties is the same – the welfare and development of the country.

Dmitry Peskov: Let us move from Moscow to Siberia now. Novosibirsk, you have an opportunity to ask your question.

Anton Vernitsky: Mr President, you have mentioned Novosibirsk as a centre where one of our vaccines has been created. Allow me to take Mr Peskov’s place now and act as a moderator. Can I choose who will ask the question? The thing is that I have seen a poster with the word “vaccine” on it. Go ahead, please, but first introduce yourself.

Lyudmila Keibol: Lyudmila Keibol, Altai Territory.

Mr President, I would like to ask if you have been vaccinated. What do you think about compulsory vaccination if there are not enough pilot vaccine doses in the regions? The epidemiological situation is quite complicated in Altai Territory.

And one more question: will we have enough vaccine doses in Russia if we help out other countries?

Thank you.

Vladimir Putin: Look here. I urge everyone to pay close attention to specialists’ recommendations. I see, Lyudmila, that you have put on a mask. This is great. And you have gloves as well.

Specialists are telling us that the vaccines that are now coming into civil circulation are designed for people in a certain age group. So vaccines have not yet reached people like me. Let me repeat that I am a law-abiding person in this sense, I follow the recommendations of our specialists, therefore I have not been vaccinated yet. But I will do it as soon as it becomes possible. This is the first point.

Now the second one: I hear from specialists that it is necessary to have an interval between, say a flu shot and the coronavirus vaccine. Some of them say it should be two weeks whereas others insist it should be at least four weeks. I am referring to the coronavirus vaccine.

The third point is about the need for a large-scale or universal vaccination campaign. I think it must be done. It is not only Russian virologists who say this but also their colleagues practically throughout the world. Mass vaccination is one of the few ways of dealing with all pandemic-related issues. It is this vaccination that will create nationwide, community immunity. And let me repeat once again: our vaccine is effective and safe. Therefore, I do not see any reasons for rejecting it.

Finally, the next issue that is related to aid to other countries, as you put it. First of all, as I have always said and will say it again because I want all people in this country to hear me, our task is to carry out vaccination inside the Russian Federation. There are some issues in this respect.

What are they? The vaccine itself and its components are good. But we are still short of the hardware, the equipment for producing the amount of the vaccine we need. I believe 70 million people have already got flu shots. This is large-scale vaccination all over the country. This is what we must also do to counter COVID-19. But to produce this vaccine, we need corresponding plants, companies and equipment. We will build them. I assume that all plans in this respect will be carried out. Next year, in the very beginning, we will already have millions of vaccine doses and we will keep increasing its production on and on.

With regard to cooperation with other countries, since we need time in order to boost the technological capabilities of our enterprises to produce the vaccine, nothing is preventing us from producing the components of this vaccine in other countries, which will invest their own money into expanding their production capacities and purchasing the corresponding equipment. This is what I am talking about. In no way does this interfere with vaccinating the public in Russia. On the contrary, it will even improve the final quality of the product, since increasingly it will be mass produced.

Anton Vernitsky: Mr President, let us continue the tradition Mr Peskov started here. (Addressing Lyudmila Keibol.) We would like to present you with a microphone windscreen. The fact is that you used the microphone without wearing a mask. Now you have it, so go ahead and use it.

Vladimir Putin: You are a perfectionist, I would say. But never mind.

Dmitry Peskov: Let us visit the call centre.

Nailya Asker-Zade: The call centre has received many pandemic-related questions, as well as questions about the doctors’ work during this challenging period. These questions were handled by a medical worker and volunteer Alevtina Kiselyova. She worked five months as a general practitioner at an outpatient clinic and saw COVID-19 patients.

Good afternoon, Alevtina,

Tell us what Russia’s citizens are complaining about.

Alevtina Kiselyova: Good afternoon,

We received many complaints about serious problems, including testing, getting a home visit by a doctor, and a lack of medications in both pharmacies and hospitals. At times, people waited over a week for an ambulance to arrive.

I also handled messages from the “red zone” doctors, which I would like to focus on.

Doctors from the town of Kola, Murmansk Region, and the town of Kachkanar, Sverdlovsk Region, have not once been paid a bonus for working with COVID-19 patients. The last time the bonus was paid to the military hospital personnel in Nizhny Novgorod and the doctors at an infectious disease hospital in the city of Tver was September.

We have received many requests from those who are risking their lives just as doctors but do not receive any additional payments for this. These are the support personnel – lift operators, cleaning staff and canteen workers. They are working in the risk zone, and the operation of the “red zone” would be impossible without them. I feel sorry for those who are at the forefront of the war against the pandemic but do not feel appreciated.

Mr President, we have a large number of questions regarding this, and we can give them to you so that you would issue instructions on dealing with every one of them. Mr President, is it possible to settle this problem?

Vladimir Putin: Thank you. Alevtina, was it you I talked with yesterday?

Alevtina Kiseleva: Yes, I talked with you yesterday.

Vladimir Putin: I see.

I have a question from the call centre, possibly from you, from the Ryazan Region: “We live in a small town, and we never have access to medications, free medications. Why do coronavirus patients have to pay for their medications? They said that confirmed cases would receive free medications, but we do not. Everyone I know is buying their own medications. Where is the money?” I would like to know this too. It is from Vladimir Korshunov, Ryazan Region.

Alevtina, this is what I would like to tell you and all those who have sent in their questions, including Mr Korshunov. We have indeed allocated 10 billion rubles to the regions for a prompt response to arising problems connected with the purchase of PPE and the preparation of medical centres and facilities for dealing with COVID. We have also allocated 5 billion rubles, or even slightly more, for the provision of free medications to those who receive treatment at home.

As for the Ryazan Region, I know for sure that all the approved allocations have been transferred from the federal budget to the region. It is not clear why these medications are not provided to the people; we will definitely look into the matter. Here is the procedure for receiving free medications: notify your outpatient clinic, which should confirm the diagnosis and provide the necessary medications.

Alevtina, we will systematise the complaints that you received, and respond to other similar complaints and requests. To reiterate, we gave 10 billion to the regions for institutions and personal protective equipment, and 5 billion to help people directly. Of course, we will investigate where this money went. All the money from the federal budget was made available to the regions. Some governors – I am in constant contact with all of them – are reporting back to me that the money is being disbursed. There may be, of course, isolated irregularities, I hope that this is the case. Judging by the number of complaints, though, these are not isolated instances, but a widespread problem. We will definitely take a closer look at it.

Alevtina Kiselyova: Thank you very much.

Dmitry Peskov: Let us go back to the World Trade Centre.

Introduce yourself, please.

Pyotr Marchenko: MIC Izvestia, REN TV channel.

Good afternoon, Mr President,

Thank you for the vaccine. Above all, thanks go to the researchers. However, talk about fighting the pandemic has overshadowed the issue of the origin of that scourge. The debate continues until now, with the United States accusing China, and China accusing the United States of the virus being man-made or non-man-made. What do we know about it? Perhaps you ordered the special services to get on it and find out the source of the problem?

Vladimir Putin: There are many rumours regarding its origin. I do not feel like discussing this in front of the entire country and the whole world, especially since we do not have any evidence to back up these accusations. I think we need to join our efforts in combating the problem rather than look for the culprits. Cooperation will be the right thing to do. This is my first point.

Secondly, some of our Western partners never stop emphasising that they adhere to humanistic principles in their domestic and foreign policies. So, we should think about how to help the people in particularly difficult circumstances and lift trade restrictions and sanctions for the countries and areas of cooperation that are critical for overcoming the pandemic fallout. Perhaps restrictions on supplying medications, medical equipment and doctor training should be lifted in the first place. This is what everyone should be thinking about rather than looking for the culprits.

I have to note that, fortunately, we are developing cooperation with many countries, including the People’s Republic of China, at the level of specialists, regional heads and at the federal level.

As for the tasks assigned to the special services: there are many various tasks, of course, but I believe this is not the right place to discuss how these tasks are fulfilled.

One of the earlier questions was about possible interference in our elections. I am sorry, I did not respond to it, but not because I do not want to answer it. I just thought there are other issues that are more important, and focused on them. But this is a general question. Of course, they will try to interfere, they always do, and not only in our elections, but almost all over the world. This is global policy. Just like there are bases all over the world, there is interference on a worldwide scale. We know about it and are getting ready for it. But we will be able to efficiently block it only if the overwhelming majority of our citizens understand that a) it is interference, b) we must counteract it, and c) it is unacceptable and we must determine our destiny ourselves.

It is very important that our society feels this. Therefore, the sentiments of internet bloggers, the sentiments of the media and their intention to protect themselves is a crucial thing, the protection of our sovereignty. At the same time, of course, we are open to cooperation with our partners and international observers.

I think there is no such transparency anywhere else in the world. In some US states, you know, there are over a dozen states where it is prohibited for any foreign observers to attend the elections. We are nothing like that. On the contrary, we are open, we will work, and observers inside the country are working actively, including public organisations, the Civic Chamber, and others, and they are allowed to take part as observers. There are more opportunities for political parties and the media to observe the political processes inside the country, as it was before. We will definitely boost this activity to make our citizens confident that the elections are open and transparent and that their results should be respected.

Dmitry Peskov: We will stay at the World Trade Centre. Alexander Gamov, one of the most prominent members of the presidential pool, go ahead, please.

Alexander Gamov: Mr President, first, thank you very much for holding this countrywide gathering, I almost called it a Union-wide one, since it is so great for us to come together at this time and get an opportunity to tell you the truth.

In general, you know that the coronavirus has dealt a heavy blow to the standard of living of many people. I come from the regions, and I get a lot of phone calls from there with people saying that they find it extremely difficult to get by, worse than ever before: poverty is on the rise, and poor people are getting even poorer, with unemployment, the falling ruble, growing prices and higher mortality. Also, I wanted to tell you that prices have been gradually increasing since about September or August. Why did it take until December to start talking about it? A minister would not sweat until cornered by the President, it seems.

Could you tell us, please, whether there is a programme for resolving the issue with growing prices within a week, as you have said? Does the President or the Government have a programme to help Russia in the coming weeks?

Thank you very much. I represent the Komsomolskaya Pravda website, radio station and newspaper. Alexander Gamov.

Vladimir Putin: As I have said at the outset, this is a challenging situation. When I said that the pandemic caused the shutdown of several manufacturers, rising unemployment and a decline in disposable incomes, these were not empty words, and not something that can be overlooked. This means that we see and understand what is going on.

You said that things have never been as hard as they are today. This is not so. In 2000, 29 percent of the population lived below the poverty line. Almost one third of the country earned less than the subsistence level. One person out of three lived below the poverty line earning less than the subsistence level.

In 2017, we had 12.3 percent of the population below the poverty line. Unfortunately, today this level increased to 13.5 percent, due to all these problems. Of course, 20 million people is still too many.

You asked me whether there is a plan. Of course, there is a plan. Reducing the number of people below the poverty line is one of our key priorities. Let me elaborate on this subject.

First, here is the plan: by 2030, we need to bring down the share of the population living in poverty from the current 13.5 percent to 6.5 percent. Having 6.5 percent of the population earning less than the subsistence level is still not good, but we need to be realistic. This is a far-reaching, but feasible goal. This is the first point I wanted to make.

Now about prices. It is true that some prices are growing for objective reasons, for example, because the cost of their component parts has increased due to changes in the exchange rate. This is inevitable. Some products are only assembled in Russia, and we are now paying more for a large share of component parts, which have become more expensive because the ruble has slumped a bit.

But when the price hike is not related to objective reasons, this provokes a painful reaction. This is what made me angry, frankly speaking. For example, although we had a record large harvest this year, the largest harvest in the past six years – it will be 131 million tonnes and possibly even 134 million tonnes this year, yet bread and pasta prices are growing. How is that? Why? This is the first thing I wanted to say.

Second, sugar. I was told in the past that we should do something about cane sugar so as to support our own producers. We did so, in a number of ways, but not because we wanted to create a shortage on the domestic market. The minister has told me that we produce enough sugar for domestic consumption. But how can it be enough if sugar prices have soared by 75 percent?

Or take sunflower oil: prices have grown by 17 percent. Is there a shortage of sunflower seeds? No. There is also plenty of that. Why did it happen then? Because prices have grown on the global market, and so our producers increased exports and started adjusting domestic prices to global ones, which is absolutely unacceptable.

This is why we had such a tough discussion. The Government has responded. The main thing now is not to go too far with disciplinary action. This should have been done before with market measures; we should have adjusted the import duty, and this would have solved the problem. These are well known instruments, but they should be used on time. I hope we will do this now.

Contracts have been signed or will be signed – I think they have already been signed – between producers and retail chains: producers will bring down their prices to a certain level, and the retail chains should do the same for basic foods.

Of course, prices need to be monitored, and we will certainly do this. I hope to see the required changes within days, or weeks at the most.

Now about what can and must be done and what we are doing to help the people in this difficult period.

To begin with, we have substantially increased unemployment benefits since the unemployment rate has grown from 4.7 percent to 6.3 percent. This is common knowledge.

But the most difficult situation is taking shape in families with children, and we have created a whole programme to support families with children: from zero to 1.5 years, from 1.5 to three years and from three to seven years old. We have introduced an allowance for toddlers from zero to 1.5 years, and the rules are as follows: if every family member receives less than two subsistence minimums (at first, it was was 1.5, but later we expanded this programme and now it covers more people), such families are entitled to receive one child subsistence minimum for every child. As for children from 1.5 to three years of age, if their parents’ incomes are below these levels, they can receive the same payments but from the maternity capital: we have given them the right to receive these funds from the maternity capital. And, finally, for children aged between three and seven years we have introduced the following rule: if the income of each family member is below the subsistence minimum, they will start getting half of the subsistence minimum per each child. However, we decided from the very start to analyse this situation and see how it will affect the incomes of families. If not all families reach one subsistence minimum per member, starting January 1, that is, in two weeks from now, we will be already paying them one subsistence minimum for every child.

These are, so to speak, urgent measures to support Russian families. I did not mention lump sum payments for all children under 16.

And then there is support for the labour market. We will probably talk about it later on, and I will speak about it separately, so as not to drag out the answer to your question. However, this is certainly one of the key issues, therefore I allow myself to devote more time to it.

But the main point, of course, is that we need to develop the economy, reach the national development goals and implement national projects that contain these goals, create new jobs, raise the economy to a new level meeting the latest requirements, as well as develop artificial intelligence, digitisation and modern production lines that would allow people to have interesting jobs and receive decent incomes. The entire package of our measures envisaged by the national projects is aimed at reaching these goals.

Dmitry Peskov: Let’s not forget about the regions.

Yekaterinburg, please. We have not had any questions from Yekaterinburg yet.

Olga Armyakova: Colleagues, good afternoon. This is Yekaterinburg, the capital of the Urals.

We are broadcasting from the office of the presidential envoy, where journalists from all over the Ural Federal District have gathered. Accreditation has been approved for 70 journalists, but only 69 are present now. We learned why just a minute ago. Colleagues, I must share this with you: a journalist from a local news agency could not come to the news conference because she had a son yesterday. I think that is a good reason, and that you, Mr President, will accept it. As for the others, you can see that they are all ready to leap into actio

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