6 february 2012

Prime Minister Vladimir Putin holds a meeting on the results of his working visit to the Perm Territory

Participants:
Vladimir Putin said that a “representative group” should be set up to work locally on a roadmap to resolve the issues facing the territory’s industries.

Vladimir Putin's opening remarks:

Colleagues, as you know, I have recently visited Perm and met with the leadership of the region's largest companies. I must tell you that on the whole my impressions from the visit were very positive. None of the executives I met with complained – and they all represented major companies, not only in their regions but on the national scale too, operating in various sectors. None of them moaned or whined or said it was "all over" or "the game is up" like in one famous film. On the contrary, they were very businesslike and to the point while speaking about what they have accomplished over the past few years, and what problems they had encountered.

I would like to note that the issues they raised were very specific too and I agree that nearly each of those issues requires direct government attention and support. In fact everything they said was fair and justified and none of their requests were far-fetched or unfeasible. Among them were representatives of instrument making companies such as the Perm Research and Production Instrument Company, which manufactures instruments for aircraft, shipbuilding and river transport applications. They had some proposals to make. They also mentioned that the network of research universities that we have created is very helpful in addressing personnel issues. They not only help attract young professionals, but also participate in implementing programmes that companies see as priorities. They cooperate with these universities and use their research centres and other resources and potential, including human resources – the students and researchers.

They proposed a very specific project for 2017, a new space related project... I will not go into detail now. Incidentally, Mr Serdyukov, there are questions about the state defence order. In fact, they mentioned several defence-related issues, and I also think they were very specific and we need to address them.

Representatives of the TGC-9 Territorial Generation Company also spoke about the need to speed up the adoption of certain regulatory acts required to enforce the heat supply law. I would like to ask the Economic Development and Energy ministries to help intensify this process.

I know that work is underway on four projects, two projects have been rejected, and a total of 10 government regulatory acts are to be adopted. We should accelerate this effort and discuss openly what else should be done. Chemical company Metafrax, one of the largest in the region, has asked about plans to modernise the Kama gas pipeline, and they also have another query. I am asking Gazprom to work with them directly. In general, infrastructure development and increased supplies of commodities will help us to considerably boost production, create new jobs and expand the region’s tax base. I am asking you to work jointly with them in this respect.

The same goes for railway infrastructure. Of course, such projects are expensive: a gas pipeline in the first case and a whole transport corridor, Belkomur, in the second case, to ensure access to the ports of Arkhangelsk and Murmansk, which will greatly expand the opportunities of the regional companies. As I have said, these projects need major investment, but we should nevertheless consider them and find ways to implement them.

Novomet-Perm has formulated its requirements, and prominent engine producer Aviadvigatel and Perm-based mechanical engineering company Mashinostroitel have done likewise. Work is proceeding smoothly and we are financing these projects from the federal budget. Much has been accomplished, and they have told me about their progress in [creating an engine] for the MС-21 jet fighter. In fact, we can create a completely new product, a new aircraft engine that will be perfectly competitive on the global market. They are working on it, and they are doing it within the timeframe. They sometimes encounter minor problems, and this is where we should help them.

Other issues are connected with the provision of loans and solution of problems with grants. This is a separate issue. There are provisions limiting the attraction of investment for development in mechanical engineering. The general rule for the industry is that they provide 50% of the required funds, but they don’t have this kind of money. I agree that the figure could be lowered, but on the other hand, they could... They could use our funds and their own money to start a project, repaying loans when they start marketing the product. I know very well that this calls for more detailed elaboration. The Finance Ministry and the Industry Ministry should work jointly on this issue.

So, why have we gathered here? We need to sum up everything the Government Staff has collected – and they have collected everything our colleagues would like to hear and see – and to properly arrange it.

I am asking you to form a representative group comprising ministers or their deputies, those who have the authority to take decisions, and to send it there, so that they will work jointly with the regional authorities, the governor and the colleagues I have met, not only discussing issues but also outlining a roadmap to address the problems of the territory’s industries. Have we agreed? Right, then I will speak in greater detail now.