Vladimir Putin's introductory remarks:

Good afternoon, colleagues,

Let’s start with an event that has pleased millions of sports fans in our country – our victory in the competition for the right to host the FIFA World Cup in 2018.

We decided on the content of our bid in May, or in any case in the spring of 2009, and in one and a half years much has been done to ensure that we won. I want to draw your attention to the fact that credit has already been given where credit is due and it is time to start the hard everyday work on the preparation of this major event. And the event is indeed very large in scope; it is no smaller and is probably even bigger than the Winter Olympics. In order to understand what is at stake: stadium audiences alone will total roughly 3.5 million people, of whom approximately 40% will be foreign tourists. The television audience of the final match will be one billion people. An average of roughly 500 million people will watch each game. And the total cumulative television audience for the entire duration of the tournament will be about eight billion people. Can you imagine how many people in the world will see Russia?

I ask that the organising committee for the World Cup be fully staffed and its supervisory board assembled in the near future.

I also ask the Ministry of Sport and Tourism to ensure the development of appropriate legal and regulatory framework, paying particular attention to the fulfilment of our obligations to the FIFA Executive Committee.

We must approve a detailed plan for sporting, transport, hotel and other necessary infrastructure, and we need to study the issue of attracting private investors for its construction and operation. If need be, we should amend the relevant federal programmes. In addition, I expect that the constituent entities of the Russian Federation that will hold the World Cup will take active part in this joint work, approve their own plans to prepare for the tournament, make adjustments in regional development plans and establish special management agencies.

Indeed, this is a major challenge. We are already invested heavily in the development of, for example, aviation infrastructure, airport, transport and other programmes. These expenses are, in one way or another, already included in our commitments for 2011-2013. We need to look at it all again, and you need to adjust everything accordingly. We cannot have any unnecessary spending. In this regard, of course, private businesses can do much. I mean that a significant portion of these projects will be lucrative and may be attractive for business.

Next, I can say that I signed a resolution on amendments to the federal programme for the development of the Far East and the Trans-Baikal region. This is another topic. These changes include the allocation of additional funds for the transformation of Vladivostok and the preparations for the APEC summit. As a result, total funding will increase by 109 billion roubles and will reach 662 billion; however, the basic additional funds – over 105 billion roubles – will come from projects implemented by investors. Federal budget obligations increased only slightly, by just over three billion roubles.

Now let’s move on to some of the items on the agenda.

One of these is also associated with the task of supporting the Far East, which we discussed yesterday at a United Russia conference in Khabarovsk. We will consider a bill that establishes a zero rate of mineral tax for the development of tin deposits in the Far Eastern Federal District. The tax break is temporary, for five years, and as we hope, it will not only help revive tin production, but will also provide an opportunity to revitalise a number of villages in remote and outlying areas of Yakutia and the Khabarovsk Territory, creating more than 2,500 jobs.

In addition, we have to summarise early results from the state programmes to support single-industry towns. As you know, many of them faced great difficulties during the crisis. Problems at major employers resulted in an increase in unemployment and lower incomes, as well as reduced revenues to local budgets. As part of crisis management measures, we used special tools to help single-industry towns: we invested 27 billion roubles for this purpose. Most of the funds have been distributed. However, we must understand that in 2010 we only managed to alleviate the existing problems, help those who lost their jobs and slightly improve the situation with housing and utilities.

At the same time the problems of single-industry tows are endemic. And the strategic decision is to diversify the municipal economy, avoiding excessive dependence on a single enterprise, as was the case at the notorious facility in Pikalyovo. Incidentally, today, all participants in this process have agreed among themselves, showing a sense of responsibility for the company and the future of the city and have agreed on principles for 2011. They have agreed on their own, for which I once again want to thank them.

Of course, federal assistance will continue to be available. But the decisive role in such cases, of course, must be played by the regional and local authorities. Where they have led the way, problems are resolved and there are comprehensible and realistic plans for long-term development.

I can say that 50 key investment projects have already been approved. These will give rise to at least 200,000 new and better jobs by 2015 in the single-industry towns.

On the other hand, no comprehensive investment programme has been developed for 135 single-industry towns as yet. Apparently, some people wait for others to take care of them and solve their problems. They just sit around and wait, instead of using the competitive advantages that are likely to be found in every region, every city. It is enough to introduce measures encouraging small and medium-sized businesses, and the result is obvious.

I appeal to the heads of the constituent entities of the Russian Federation to keep the issues of support for single-industry towns under their personal supervision and assist the local authorities in the implementation of development programmes that create the most favourable conditions for attracting private investors.

Our agenda today also includes a number of international issues.

We are to review documents related to the launch of the Common Economic Space of Russia, Belarus and Kazakhstan. At the last summit of the three countries’ prime ministers in St Petersburg we were able to forge a key agreement on the CES. The debate was very heated, but in the end we achieved the optimum result, finding a precise, mutually acceptable balance of interests. It is important that the day after tomorrow, at the Moscow summit, the prime ministers be able to sign quality, carefully thought-out agreements. Accordingly, the three countries will meet the deadlines set earlier, forming the entire legal framework of the Common Economic Space by January 1, 2011.

I want to stress that the CES, similarly to the customs union before that, is being formed in a very short time, without exaggeration, in record time. Such a pace is made possible by the constructive spirit of all participants in this process, as well as a tremendous amount of work. I say this without exaggeration: the effort at the expert and industry levels was enormous. And I want to thank all the government officials for the contribution you have made to this major, very important process, a matter of strategic importance for our country.

However, I want to draw your attention to the following: after the signing of the CES agreements, the process of creating a legislative basis is still far from over. The agenda includes a fundamentally new range of issues associated with a continued deepening of integration, the introduction of transparent and clear rules and regulations for all economic actors.

In this regard, I would ask my colleagues not to lose the momentum gained and to continue this work with a view to the long term. Such an approach will contribute to the rapid development of our economies, increase their competitiveness and attractiveness, and will help both the businesses and people of our countries experience the positive impact of the single economic space mechanisms.

Let’s get to work.